EXHIBIT A

Case: 1:20-cv-04249 Document #: 1-1 Filed: 07/20/20 Page 1 of 92 PageID #:19
(1)

POLICY NUMBER MUST APPEAR ON ALL

CORRESPONDENCE

Policy Number

175 Capitol Blvd, Suite 100, Rocky Hill, CT 06067

Please forward correspondence and claims to our Administrative Office: WKFC Underwriting Managers

One Huntington Quadrangle

Suite 4N20

Melville, NY 11747

COMMERCIAL PROPERTY POLICY

COMMON POLICY DECLARATIONS

Effective Date Expiration Date

05/01/2019 05/01/2020

POLICY PERIOD At 12:01 A.M. Standard

Time at your Mailing

Address Shown Below.

RENEWAL OF NUMBER Account Number

NAMED INSURED AND ADDRESS PRODUCER NAME AND ADDRESS

Bradley Hotel Corp DBA Quality Inn & Suites

Bradley

800 North Kinzie Avenue

Bradley, IL 60915

R-T Specialty of Illinois, LLC

500 West Monroe Street

30th Floor

Chicago, IL 60661

Phone: 312-651-6000

BUSINESS DESCRIPTIONS: HOTELS AND MOTELS

In return for the payment of the premium and subject to all the terms of this policy, the company indicated above agrees to

provide the insurance stated in this policy.

This policy consists of the following coverage parts for which a premium is indicated. This premium may be subject

to adjustment.

Commercial Property Coverage Non-Terrorism Part

Commercial Property Coverage Terrorism Part

Commercial Inland Marine Coverage Non-Terrorism Part

Commercial Crime Coverage Part

Commerical Auto Coverage Part

Commercial Equipment Breakdown Coverage Part

$34,320.00

Not Taken

$0.00

$0.00

$0.00

$0.00

PREMIUM SUMMARY:

Aspen Specialty Insurance Company

Commercial Inland Marine Coverage Terrorism Part $0.00

WKA US02699-00

FORM(S) AND ENDORSEMENT(S) MADE A PART OF THIS POLICY AT TIME OF ISSUE*

TOTAL

Minimum Earned %

Authorized Signature

25.00%

*Omits applicable forms and endorsements if shown in specific Coverage Part/Coverage Form Declarations.

$34,620.00

Inspection Fee $150.00

MGA Service Fee $150.00

BROKERAGE FEE $750.00

SURPLUS TAX $1,201.00

STAMPING FEE $26.00

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Case: 1:20-cv-04249 Document #: 1-1 Filed: 07/20/20 Page 2 of 92 PageID #:20
COMMERCIAL PROPERTY COVERAGE PART DECLARATIONS

Policy No.:WKA US02699-00 Effective Date:5/1/2019 **

12:01 A.M. Standard Time

NAMED INSURED: Bradley Hotel Corp 

DESCRIPTION OF PREMISES:

PREM/BLDG NO LOCATION, CONSTRUCTION AND OCCUPANCY

See Location Schedule attached

COVERAGES PROVIDED -Insurance at the described premises applies only for which a limit of insurance is shown

PREM/BLDG NO CODE COVERAGE LIMIT OF INSURANCE ACV/RC* COVERED CAUSES OF LOSS COINSURANCE RATES

See Location Schedule attached

*RC means Replacement Cost

OPTIONAL COVERAGES - Applicable only when entries are made in the schedule below

PREM/BLDG NO CODE COVERAGE LIMIT OF INSURANCE COVERED CAUSES OF LOSS COINSURANCE** RATES

***MONTHLY LIMIT OF MAXIMUM PERIOD ***EXTENDED PERIOD

PREM/BLDG NO INDEMNITY(FRACTION) OF INDEMNITY (X) OF INDEMNITY (DAYS)

*RC means Replacement Cost **Extra Expense Coverage, Limits on Loss Payment ***Applies To Business Income Only

MORTGAGE HOLDERS

PREM/BLDG NO MORTGAGE HOLDER NAME AND MAILING ADDRESS

See Mortgagee Schedule attached*

*If no schedule attached, no mortgagees apply

DEDUCTIBLE: $10,000- Other Deductibles May Apply See Attached Endorsements

FORMS AND ENDORSEMENTS (other than applicable Forms and Endorsements shown elsewhere in the policy):

Forms and Endorsements applying to this Coverage Part and made part of this policy at time of issue: See Form Schedule 

attached

Coverage Exception

Applicable only to Specific Prem No. Bldg. No. Coverages Form Numbers

Premises/Coverages

PREMIUM

Minimum Premium for this Coverage Part: 25%

Premium for this Coverage Part $34,320.00

**Inclusion of Date Optional

THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE

NAME OF THIS INSURED AND THE POLICY PERIOD

CF 15 00 06 03

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Aspen Specialty Insurance Company

ASPCO98 0213 © Aspen Specialty Insurance Company, 2013 Page 1 of 1

IN WITNESS WHEREOF, the Insurer has caused this Policy to be signed by its President and 

Secretary and countersigned where required by law on the Declarations page by its duly 

Authorized Representative.

________________________________ ________________________________

Secretary President

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Case: 1:20-cv-04249 Document #: 1-1 Filed: 07/20/20 Page 4 of 92 PageID #:22
Form Name Form Edition No

Schedule of Forms

Named Insured Bradley Hotel Corp DBA: Quality Inn & Suites Bradley

Policy No: WKA US02699-00 Aspen Specialty Insurance Company

Declarations Page Dec Page

Supplemental Declarations CF 15 00 06 03

Signature Page ASPCO98 0213

Schedule of Forms Forms

Location Schedule Locsched (F1 8/95)

Named Insured Schedule NamedInsured

Sub-Limits of Liability SubLimit

Building and Personal Property Coverage Form CP 00 10 10 12

Business Income (And Extra Expense) Coverage Form CP 00 30 10 12

Causes of Loss – Special Form CP 10 30 10 12

Cancellation Changes CP 02 99 11 85

Commercial Property Conditions CP 00 90 07 88

Common Policy Conditions IL 00 17 11 98

Certain Computer Related Loss Exclusion IL 09 35 07 02

Illinois Changes IL 01 18 03 99

Protective Safeguards IL 04 15 04 98

Ordinance or Law Coverage CP 04 05 10 12

Exclusion of Certified Acts of Terrorism IL 09 53 01 15

Disclosure Pursuant to Terrorism Risk Insurance Act IL 09 85 01 15

Windstorm Or Hail Exclusion - Tier Two Territorial WK CP 01 06 10

Notice to Policyholders U.S. Treasury Department's Office of Foreign Assets

Control ("OFAC")

WK CP 01 07 09

Notice to Policyholders-Privacy Policy WK CP 03 07 09

Absolute Mold Exclusion WK CP 07 01 11

Notice to Policy Holders - Fraud Notice WK FN 01 10 09

General Service of Suit Notice ASPCO002 0213

Hotels, Motels and Inns WK HM 01 07 07

Aluminum Wiring Exclusion WK 25 86 01 08

Cooking Or Hazardous Process Areas Warranty WK 26 65 10 07

Occurrence Limit of Liability WK 62 28 10 07

Minimum Earned Premium WK 64 64 10 07

Pollution and Contamination Exclusion WK 76 55 10 07

Asbestos Material Exclusion WK 27 23 02 15

ACV Roof Covering Endorsement WK CP 21 04 16

Existing Damage Exclusion Endorsement WK CP 24 09 17

Forms

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Case: 1:20-cv-04249 Document #: 1-1 Filed: 07/20/20 Page 5 of 92 PageID #:23
LOCATION SCHEDULE

Named Insured:

Policy Effective Date:

Policy Expiration Date:

This endorsement effective: 12:01 AM 05/01/2019 forms a part of Policy No:

Bradley Hotel Corp

05/01/2019

05/01/2020

WKA US02699-00

Loc. # Bldg. # Location Address Coverage Limits Covered Cause of Loss Co-Ins. Valuation

1 1 800 North Kinzie Avenue

Bradley, IL Kankakee 60915

Protection: Wet-100% - Local

Class: Hotels & Motels

Construction: Fire Resistive

Year Built: 1969

BUILDING $19,916,760 Special - Excluding Flood, EQ NIL RC

BUSINESS INCOME

INCLUDING RENTAL VALUE

$2,000,000 Special - Excluding Flood, EQ 100% ALS

PERSONAL PROPERTY $2,000,000 Special - Excluding Flood, EQ NIL RC

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NAMED INSURED SCHEDULE

Named Insured:

Policy Effective Date:

Policy Expiration Date:

This endorsement effective: 12:01 AM 05/01/2019 forms a part of Policy No:

Bradley Hotel Corp

05/01/2019

05/01/2020

WKA US02699-00

Named Insured

Mazales Properties Inc.

As respects:

Loc #1 Bldg #1

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Named Insured: Bradley Hotel Corp

Policy Effective Date: 5/1/2019

Policy Expiration Date: 5/1/2020

SUB-LIMIT(s) OF LIABILITY

Sewer Backup: $25,000

All other terms and conditions of this policy remain unchanged.

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COMMERCIAL PROPERTY

CP 00 10 10 12

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

BUILDING AND PERSONAL PROPERTY 

COVERAGE FORM

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

what is and is not covered. 

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

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

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

A. Coverage 

We will pay for direct physical loss of or damage to 

Covered Property at the premises described in the 

Declarations caused by or resulting from any 

Covered Cause of Loss. 

1. Covered Property 

Covered Property, as used in this Coverage 

Part, means the type of property described in 

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

Not Covered, if a Limit Of Insurance is shown 

in the Declarations for that type of property. 

a. Building, meaning the building or structure 

described in the Declarations, including: 

(1) Completed additions; 

(2) Fixtures, including outdoor fixtures; 

(3) Permanently installed: 

(a) Machinery; and 

(b) Equipment; 

(4) Personal property owned by you that is 

used to maintain or service the building 

or structure or its premises, including: 

(a) Fire-extinguishing equipment; 

(b) Outdoor furniture; 

(c) Floor coverings; and 

(d) Appliances used for refrigerating, 

ventilating, cooking, dishwashing or 

laundering; 

(5) If not covered by other insurance: 

(a) Additions under construction, 

alterations and repairs to the building 

or structure; 

(b) Materials, equipment, supplies and 

temporary structures, on or within 

100 feet of the described premises, 

used for making additions, 

alterations or repairs to the building 

or structure. 

b. Your Business Personal Property

consists of the following property located in 

or on the building or structure described in 

the Declarations or in the open (or in a 

vehicle) within 100 feet of the building or 

structure or within 100 feet of the premises 

described in the Declarations, whichever 

distance is greater:

(1) Furniture and fixtures; 

(2) Machinery and equipment; 

(3) "Stock"; 

(4) All other personal property owned by 

you and used in your business; 

(5) Labor, materials or services furnished or 

arranged by you on personal property of 

others; 

(6) Your use interest as tenant in 

improvements and betterments. 

Improvements and betterments are 

fixtures, alterations, installations or 

additions: 

(a) Made a part of the building or 

structure you occupy but do not own; 

and 

(b) You acquired or made at your 

expense but cannot legally remove; 

(7) Leased personal property for which you 

have a contractual responsibility to 

insure, unless otherwise provided for 

under Personal Property Of Others. 

c. Personal Property Of Others that is: 

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

(2) Located in or on the building or structure 

described in the Declarations or in the 

open (or in a vehicle) within 100 feet of 

the building or structure or within 100 

feet of the premises described in the 

Declarations, whichever distance is 

greater. 

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However, our payment for loss of or 

damage to personal property of others will 

only be for the account of the owner of the 

property. 

2. Property Not Covered 

Covered Property does not include: 

a. Accounts, bills, currency, food stamps or 

other evidences of debt, money, notes or 

securities. Lottery tickets held for sale are 

not securities; 

b. Animals, unless owned by others and 

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

"stock" while inside of buildings; 

c. Automobiles held for sale; 

d. Bridges, roadways, walks, patios or other 

paved surfaces; 

e. Contraband, or property in the course of 

illegal transportation or trade; 

f. The cost of excavations, grading, backfilling 

or filling; 

g. Foundations of buildings, structures, 

machinery or boilers if their foundations are 

below: 

(1) The lowest basement floor; or 

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

basement; 

h. Land (including land on which the property 

is located), water, growing crops or lawns 

(other than lawns which are part of a 

vegetated roof); 

i. Personal property while airborne or 

waterborne; 

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

k. Property that is covered under another 

coverage form of this or any other policy in 

which it is more specifically described, 

except for the excess of the amount due 

(whether you can collect on it or not) from 

that other insurance; 

l. Retaining walls that are not part of a 

building; 

m. Underground pipes, flues or drains; 

n. Electronic data, except as provided under 

the Additional Coverage, Electronic Data. 

Electronic data means information, facts or 

computer programs stored as or on, 

created or used on, or transmitted to or 

from computer software (including systems 

and applications software), on hard or 

floppy disks, CD-ROMs, tapes, drives, cells, 

data processing devices or any other 

repositories of computer software which are 

used with electronically controlled 

equipment. The term computer programs, 

referred to in the foregoing description of 

electronic data, means a set of related 

electronic instructions which direct the 

operations and functions of a computer or 

device connected to it, which enable the 

computer or device to receive, process, 

store, retrieve or send data. This 

paragraph, n., does not apply to your 

"stock" of prepackaged software, or to 

electronic data which is integrated in and 

operates or controls the building's elevator, 

lighting, heating, ventilation, air conditioning 

or security system;

o. The cost to replace or restore the 

information on valuable papers and 

records, including those which exist as 

electronic data. Valuable papers and 

records include but are not limited to 

proprietary information, books of account, 

deeds, manuscripts, abstracts, drawings 

and card index systems. Refer to the 

Coverage Extension for Valuable Papers 

And Records (Other Than Electronic Data) 

for limited coverage for valuable papers and 

records other than those which exist as 

electronic data;

p. Vehicles or self-propelled machines 

(including aircraft or watercraft) that: 

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

(2) Are operated principally away from the 

described premises. 

This paragraph does not apply to: 

(a) Vehicles or self-propelled machines 

or autos you manufacture, process 

or warehouse; 

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(b) Vehicles or self-propelled machines, 

other than autos, you hold for sale;

(c) Rowboats or canoes out of water at 

the described premises; or

(d) Trailers, but only to the extent 

provided for in the Coverage 

Extension for Non-owned Detached 

Trailers; or

q. The following property while outside of 

buildings: 

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

(2) Fences, radio or television antennas 

(including satellite dishes) and their 

lead-in wiring, masts or towers, trees, 

shrubs or plants (other than trees, 

shrubs or plants which are "stock" or are 

part of a vegetated roof), all except as 

provided in the Coverage Extensions. 

3. Covered Causes Of Loss 

See applicable Causes Of Loss form as shown 

in the Declarations. 

4. Additional Coverages 

a. Debris Removal 

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

we will pay your expense to remove 

debris of Covered Property and other 

debris that is on the described premises, 

when such debris is caused by or 

results from a Covered Cause of Loss 

that occurs during the policy period. The 

expenses will be paid only if they are 

reported to us in writing within 180 days 

of the date of direct physical loss or 

damage. 

(2) Debris Removal does not apply to costs 

to: 

(a) Remove debris of property of yours 

that is not insured under this policy, 

or property in your possession that is 

not Covered Property; 

(b) Remove debris of property owned by 

or leased to the landlord of the 

building where your described 

premises are located, unless you 

have a contractual responsibility to 

insure such property and it is insured 

under this policy;

(c) Remove any property that is 

Property Not Covered, including 

property addressed under the 

Outdoor Property Coverage 

Extension;

(d) Remove property of others of a type 

that would not be Covered Property 

under this Coverage Form;

(e) Remove deposits of mud or earth 

from the grounds of the described 

premises;

(f) Extract "pollutants" from land or 

water; or 

(g) Remove, restore or replace polluted 

land or water.

(3) Subject to the exceptions in Paragraph

(4), the following provisions apply:

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

direct physical loss or damage plus 

debris removal expense is the Limit 

of Insurance applicable to the 

Covered Property that has sustained 

loss or damage.

(b) Subject to (a) above, the amount we 

will pay for debris removal expense 

is limited to 25% of the sum of the 

deductible plus the amount that we 

pay for direct physical loss or 

damage to the Covered Property that 

has sustained loss or damage. 

However, if no Covered Property has 

sustained direct physical loss or 

damage, the most we will pay for 

removal of debris of other property (if 

such removal is covered under this 

Additional Coverage) is $5,000 at 

each location.

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

for debris removal expense, for each 

location, in any one occurrence of 

physical loss or damage to Covered 

Property, if one or both of the following 

circumstances apply:

(a) The total of the actual debris removal 

expense plus the amount we pay for 

direct physical loss or damage 

exceeds the Limit of Insurance on 

the Covered Property that has 

sustained loss or damage.

(b) The actual debris removal expense 

exceeds 25% of the sum of the 

deductible plus the amount that we 

pay for direct physical loss or 

damage to the Covered Property that 

has sustained loss or damage.

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

our total payment for direct physical loss 

or damage and debris removal expense 

may reach but will never exceed the 

Limit of Insurance on the Covered 

Property that has sustained loss or 

damage, plus $25,000.

(5) Examples

The following examples assume that 

there is no Coinsurance penalty.

Example 1

Limit of Insurance: $ 90,000

Amount of Deductible: $ 500

Amount of Loss: $ 50,000

Amount of Loss Payable: $ 49,500

($50,000 – $500)

Debris Removal Expense: $ 10,000

Debris Removal Expense Payable: $ 10,000

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

The debris removal expense is less than 25% of the 

sum of the loss payable plus the deductible. The sum 

of the loss payable and the debris removal expense 

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

of Insurance. Therefore, the full amount of debris 

removal expense is payable in accordance with the 

terms of Paragraph (3).

Example 2

Limit of Insurance: $ 90,000

Amount of Deductible: $ 500

Amount of Loss: $ 80,000

Amount of Loss Payable: $ 79,500

($80,000 – $500)

Debris Removal Expense: $ 40,000

Debris Removal Expense Payable

Basic Amount: $ 10,500

Additional Amount: $ 25,000

The basic amount payable for debris removal 

expense under the terms of Paragraph (3) is 

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

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

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

the basic amount payable for debris removal expense 

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

($90,000).

The additional amount payable for debris removal 

expense is provided in accordance with the terms of 

Paragraph (4), because the debris removal expense 

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

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

the sum of the loss payable and debris removal 

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

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

additional amount of covered debris removal expense 

is $25,000, the maximum payable under Paragraph 

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

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

debris removal expense is not covered.

b. Preservation Of Property 

If it is necessary to move Covered Property 

from the described premises to preserve it 

from loss or damage by a Covered Cause 

of Loss, we will pay for any direct physical 

loss or damage to that property: 

(1) While it is being moved or while 

temporarily stored at another location; 

and 

(2) Only if the loss or damage occurs within 

30 days after the property is first moved. 

c. Fire Department Service Charge 

When the fire department is called to save 

or protect Covered Property from a 

Covered Cause of Loss, we will pay up to 

$1,000 for service at each premises 

described in the Declarations, unless a 

higher limit is shown in the Declarations. 

Such limit is the most we will pay 

regardless of the number of responding fire 

departments or fire units, and regardless of 

the number or type of services performed.

This Additional Coverage applies to your 

liability for fire department service charges: 

(1) Assumed by contract or agreement prior 

to loss; or 

(2) Required by local ordinance. 

No Deductible applies to this Additional 

Coverage. 

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d. Pollutant Clean-up And Removal 

We will pay your expense to extract 

"pollutants" from land or water at the 

described premises if the discharge, 

dispersal, seepage, migration, release or 

escape of the "pollutants" is caused by or 

results from a Covered Cause of Loss that 

occurs during the policy period. The 

expenses will be paid only if they are 

reported to us in writing within 180 days of 

the date on which the Covered Cause of 

Loss occurs. 

This Additional Coverage does not apply to 

costs to test for, monitor or assess the 

existence, concentration or effects of 

"pollutants". But we will pay for testing 

which is performed in the course of 

extracting the "pollutants" from the land or 

water. 

The most we will pay under this Additional 

Coverage for each described premises is 

$10,000 for the sum of all covered 

expenses arising out of Covered Causes of 

Loss occurring during each separate 12-

month period of this policy. 

e. Increased Cost Of Construction

(1) This Additional Coverage applies only to 

buildings to which the Replacement 

Cost Optional Coverage applies.

(2) In the event of damage by a Covered 

Cause of Loss to a building that is 

Covered Property, we will pay the 

increased costs incurred to comply with 

the minimum standards of an ordinance 

or law in the course of repair, rebuilding 

or replacement of damaged parts of that 

property, subject to the limitations stated 

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

Coverage.

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

of this Additional Coverage is an 

ordinance or law that regulates the 

construction or repair of buildings or 

establishes zoning or land use 

requirements at the described premises 

and is in force at the time of loss.

(4) Under this Additional Coverage, we will 

not pay any costs due to an ordinance 

or law that:

(a) You were required to comply with 

before the loss, even when the 

building was undamaged; and

(b) You failed to comply with.

(5) Under this Additional Coverage, we will 

not pay for: 

(a) The enforcement of or compliance 

with any ordinance or law which 

requires demolition, repair, 

replacement, reconstruction, 

remodeling or remediation of 

property due to contamination by 

"pollutants" or due to the presence, 

growth, proliferation, spread or any 

activity of "fungus", wet or dry rot or 

bacteria; or

(b) Any costs associated with the 

enforcement of or compliance with 

an ordinance or law which requires 

any insured or others to test for, 

monitor, clean up, remove, contain, 

treat, detoxify or neutralize, or in any 

way respond to, or assess the 

effects of "pollutants", "fungus", wet 

or dry rot or bacteria.

(6) The most we will pay under this 

Additional Coverage, for each described 

building insured under this Coverage 

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

Insurance applicable to that building, 

whichever is less. If a damaged building 

is covered under a blanket Limit of 

Insurance which applies to more than 

one building or item of property, then the 

most we will pay under this Additional 

Coverage, for that damaged building, is 

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

value of the damaged building as of the 

time of loss times the applicable 

Coinsurance percentage.

The amount payable under this 

Additional Coverage is additional 

insurance.

(7) With respect to this Additional 

Coverage:

(a) We will not pay for the Increased 

Cost of Construction:

(i) Until the property is actually 

repaired or replaced at the same 

or another premises; and 

(ii) Unless the repair or replacement 

is made as soon as reasonably 

possible after the loss or 

damage, not to exceed two 

years. We may extend this period 

in writing during the two years.

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(b) If the building is repaired or replaced 

at the same premises, or if you elect 

to rebuild at another premises, the 

most we will pay for the Increased 

Cost of Construction, subject to the 

provisions of e.(6) of this Additional 

Coverage, is the increased cost of 

construction at the same premises.

(c) If the ordinance or law requires 

relocation to another premises, the 

most we will pay for the Increased 

Cost of Construction, subject to the 

provisions of e.(6) of this Additional 

Coverage, is the increased cost of 

construction at the new premises.

(8) This Additional Coverage is not subject 

to the terms of the Ordinance Or Law 

Exclusion to the extent that such 

Exclusion would conflict with the 

provisions of this Additional Coverage.

(9) The costs addressed in the Loss 

Payment and Valuation Conditions and 

the Replacement Cost Optional 

Coverage, in this Coverage Form, do 

not include the increased cost 

attributable to enforcement of or 

compliance with an ordinance or law. 

The amount payable under this 

Additional Coverage, as stated in e.(6) 

of this Additional Coverage, is not 

subject to such limitation.

f. Electronic Data

(1) Under this Additional Coverage, 

electronic data has the meaning 

described under Property Not Covered, 

Electronic Data. This Additional 

Coverage does not apply to your "stock" 

of prepackaged software, or to 

electronic data which is integrated in 

and operates or controls the building's 

elevator, lighting, heating, ventilation, air 

conditioning or security system.

(2) Subject to the provisions of this 

Additional Coverage, we will pay for the 

cost to replace or restore electronic data 

which has been destroyed or corrupted 

by a Covered Cause of Loss. To the 

extent that electronic data is not 

replaced or restored, the loss will be 

valued at the cost of replacement of the 

media on which the electronic data was 

stored, with blank media of substantially 

identical type.

(3) The Covered Causes of Loss applicable 

to Your Business Personal Property 

apply to this Additional Coverage, 

Electronic Data, subject to the following:

(a) If the Causes Of Loss – Special 

Form applies, coverage under this 

Additional Coverage, Electronic 

Data, is limited to the "specified 

causes of loss" as defined in that 

form and Collapse as set forth in that 

form.

(b) If the Causes Of Loss – Broad Form 

applies, coverage under this 

Additional Coverage, Electronic 

Data, includes Collapse as set forth 

in that form.

(c) If the Causes Of Loss form is 

endorsed to add a Covered Cause of 

Loss, the additional Covered Cause 

of Loss does not apply to the 

coverage provided under this 

Additional Coverage, Electronic 

Data.

(d) The Covered Causes of Loss include 

a virus, harmful code or similar 

instruction introduced into or enacted 

on a computer system (including 

electronic data) or a network to 

which it is connected, designed to 

damage or destroy any part of the 

system or disrupt its normal 

operation. But there is no coverage 

for loss or damage caused by or 

resulting from manipulation of a 

computer system (including 

electronic data) by any employee, 

including a temporary or leased 

employee, or by an entity retained by 

you or for you to inspect, design, 

install, modify, maintain, repair or 

replace that system.

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(4) The most we will pay under this 

Additional Coverage, Electronic Data, is 

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

the Declarations) for all loss or damage 

sustained in any one policy year, 

regardless of the number of occurrences 

of loss or damage or the number of 

premises, locations or computer 

systems involved. If loss payment on the 

first occurrence does not exhaust this 

amount, then the balance is available for 

subsequent loss or damage sustained in 

but not after that policy year. With 

respect to an occurrence which begins 

in one policy year and continues or 

results in additional loss or damage in a 

subsequent policy year(s), all loss or 

damage is deemed to be sustained in 

the policy year in which the occurrence 

began.

5. Coverage Extensions 

Except as otherwise provided, the following 

Extensions apply to property located in or on 

the building described in the Declarations or in 

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

described premises. 

If a Coinsurance percentage of 80% or more, 

or a Value Reporting period symbol, is shown 

in the Declarations, you may extend the 

insurance provided by this Coverage Part as 

follows: 

a. Newly Acquired Or Constructed 

Property 

(1) Buildings

If this policy covers Building, you may 

extend that insurance to apply to:

(a) Your new buildings while being built 

on the described premises; and 

(b) Buildings you acquire at locations, 

other than the described premises, 

intended for: 

(i) Similar use as the building 

described in the Declarations; or 

(ii) Use as a warehouse. 

The most we will pay for loss or damage 

under this Extension is $250,000 at 

each building. 

(2) Your Business Personal Property 

(a) If this policy covers Your Business 

Personal Property, you may extend 

that insurance to apply to:

(i) Business personal property, 

including such property that you 

newly acquire, at any location 

you acquire other than at fairs, 

trade shows or exhibitions; or

(ii) Business personal property, 

including such property that you 

newly acquire, located at your 

newly constructed or acquired 

buildings at the location 

described in the Declarations.

The most we will pay for loss or 

damage under this Extension is 

$100,000 at each building. 

(b) This Extension does not apply to:

(i) Personal property of others that 

is temporarily in your possession 

in the course of installing or 

performing work on such 

property; or

(ii) Personal property of others that 

is temporarily in your possession 

in the course of your 

manufacturing or wholesaling 

activities.

(3) Period Of Coverage

With respect to insurance provided 

under this Coverage Extension for 

Newly Acquired Or Constructed 

Property, coverage will end when any of 

the following first occurs:

(a) This policy expires;

(b) 30 days expire after you acquire the 

property or begin construction of that 

part of the building that would qualify 

as covered property; or 

(c) You report values to us. 

We will charge you additional premium 

for values reported from the date you 

acquire the property or begin 

construction of that part of the building 

that would qualify as covered property.

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b. Personal Effects And Property Of Others 

You may extend the insurance that applies 

to Your Business Personal Property to 

apply to: 

(1) Personal effects owned by you, your 

officers, your partners or members, your 

managers or your employees. This 

Extension does not apply to loss or 

damage by theft. 

(2) Personal property of others in your care, 

custody or control. 

The most we will pay for loss or damage 

under this Extension is $2,500 at each 

described premises. Our payment for loss 

of or damage to personal property of others 

will only be for the account of the owner of 

the property. 

c. Valuable Papers And Records (Other 

Than Electronic Data)

(1) You may extend the insurance that 

applies to Your Business Personal 

Property to apply to the cost to replace 

or restore the lost information on 

valuable papers and records for which 

duplicates do not exist. But this 

Extension does not apply to valuable 

papers and records which exist as 

electronic data. Electronic data has the 

meaning described under Property Not 

Covered, Electronic Data.

(2) If the Causes Of Loss – Special Form 

applies, coverage under this Extension 

is limited to the "specified causes of 

loss" as defined in that form and 

Collapse as set forth in that form.

(3) If the Causes Of Loss – Broad Form 

applies, coverage under this Extension 

includes Collapse as set forth in that 

form.

(4) Under this Extension, the most we will 

pay to replace or restore the lost 

information is $2,500 at each described 

premises, unless a higher limit is shown 

in the Declarations. Such amount is 

additional insurance. We will also pay 

for the cost of blank material for 

reproducing the records (whether or not 

duplicates exist) and (when there is a 

duplicate) for the cost of labor to 

transcribe or copy the records. The 

costs of blank material and labor are 

subject to the applicable Limit of 

Insurance on Your Business Personal 

Property and, therefore, coverage of 

such costs is not additional insurance.

d. Property Off-premises 

(1) You may extend the insurance provided 

by this Coverage Form to apply to your 

Covered Property while it is away from 

the described premises, if it is:

(a) Temporarily at a location you do not 

own, lease or operate;

(b) In storage at a location you lease, 

provided the lease was executed 

after the beginning of the current 

policy term; or

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

(2) This Extension does not apply to 

property:

(a) In or on a vehicle; or

(b) In the care, custody or control of 

your salespersons, unless the 

property is in such care, custody or 

control at a fair, trade show or 

exhibition.

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

under this Extension is $10,000. 

e. Outdoor Property

You may extend the insurance provided by 

this Coverage Form to apply to your 

outdoor fences, radio and television 

antennas (including satellite dishes), trees, 

shrubs and plants (other than trees, shrubs 

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

vegetated roof), including debris removal 

expense, caused by or resulting from any of 

the following causes of loss if they are 

Covered Causes of Loss: 

(1) Fire; 

(2) Lightning; 

(3) Explosion; 

(4) Riot or Civil Commotion; or 

(5) Aircraft. 

The most we will pay for loss or damage 

under this Extension is $1,000, but not 

more than $250 for any one tree, shrub or 

plant. These limits apply to any one 

occurrence, regardless of the types or 

number of items lost or damaged in that 

occurrence.

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Subject to all aforementioned terms and 

limitations of coverage, this Coverage 

Extension includes the expense of 

removing from the described premises the 

debris of trees, shrubs and plants which are 

the property of others, except in the 

situation in which you are a tenant and such 

property is owned by the landlord of the 

described premises.

f. Non-owned Detached Trailers

(1) You may extend the insurance that 

applies to Your Business Personal 

Property to apply to loss or damage to 

trailers that you do not own, provided 

that:

(a) The trailer is used in your business; 

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

control at the premises described in 

the Declarations; and

(c) You have a contractual responsibility 

to pay for loss or damage to the 

trailer.

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

that occurs:

(a) While the trailer is attached to any 

motor vehicle or motorized 

conveyance, whether or not the 

motor vehicle or motorized 

conveyance is in motion;

(b) During hitching or unhitching 

operations, or when a trailer 

becomes accidentally unhitched from 

a motor vehicle or motorized 

conveyance.

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

under this Extension is $5,000, unless a 

higher limit is shown in the Declarations.

(4) This insurance is excess over the 

amount due (whether you can collect on 

it or not) from any other insurance 

covering such property.

g. Business Personal Property Temporarily 

In Portable Storage Units

(1) You may extend the insurance that 

applies to Your Business Personal 

Property to apply to such property while 

temporarily stored in a portable storage 

unit (including a detached trailer) 

located within 100 feet of the building or 

structure described in the Declarations 

or within 100 feet of the premises 

described in the Declarations, whichever 

distance is greater.

(2) If the applicable Covered Causes of 

Loss form or endorsement contains a 

limitation or exclusion concerning loss or 

damage from sand, dust, sleet, snow, 

ice or rain to property in a structure, 

such limitation or exclusion also applies 

to property in a portable storage unit.

(3) Coverage under this Extension: 

(a) Will end 90 days after the business 

personal property has been placed in 

the storage unit; 

(b) Does not apply if the storage unit 

itself has been in use at the 

described premises for more than 90 

consecutive days, even if the 

business personal property has been 

stored there for 90 or fewer days as 

of the time of loss or damage. 

(4) Under this Extension, the most we will 

pay for the total of all loss or damage to 

business personal property is $10,000 

(unless a higher limit is indicated in the 

Declarations for such Extension) 

regardless of the number of storage 

units. Such limit is part of, not in addition 

to, the applicable Limit of Insurance on 

Your Business Personal Property. 

Therefore, payment under this 

Extension will not increase the 

applicable Limit of Insurance on Your 

Business Personal Property.

(5) This Extension does not apply to loss or 

damage otherwise covered under this 

Coverage Form or any endorsement to 

this Coverage Form or policy, and does 

not apply to loss or damage to the 

storage unit itself.

Each of these Extensions is additional 

insurance unless otherwise indicated. The 

Additional Condition, Coinsurance, does not 

apply to these Extensions. 

B. Exclusions And Limitations 

See applicable Causes Of Loss form as shown in 

the Declarations. 

C. Limits Of Insurance

The most we will pay for loss or damage in any 

one occurrence is the applicable Limit Of 

Insurance shown in the Declarations. 

The most we will pay for loss or damage to 

outdoor signs, whether or not the sign is attached 

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

occurrence. 

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The amounts of insurance stated in the following 

Additional Coverages apply in accordance with the 

terms of such coverages and are separate from 

the Limit(s) Of Insurance shown in the 

Declarations for any other coverage:

1. Fire Department Service Charge;

2. Pollutant Clean-up And Removal;

3. Increased Cost Of Construction; and

4. Electronic Data.

Payments under the Preservation Of Property 

Additional Coverage will not increase the 

applicable Limit of Insurance. 

D. Deductible 

In any one occurrence of loss or damage 

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

the amount of loss if required by the Coinsurance 

Condition or the Agreed Value Optional Coverage. 

If the adjusted amount of loss is less than or equal 

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

the adjusted amount of loss exceeds the 

Deductible, we will then subtract the Deductible 

from the adjusted amount of loss and will pay the 

resulting amount or the Limit of Insurance, 

whichever is less.

When the occurrence involves loss to more than 

one item of Covered Property and separate Limits 

of Insurance apply, the losses will not be 

combined in determining application of the 

Deductible. But the Deductible will be applied only 

once per occurrence.

Example 1

(This example assumes there is no Coinsurance 

penalty.) 

Deductible: $ 250

Limit of Insurance – Building 1: $ 60,000

Limit of Insurance – Building 2: $ 80,000

Loss to Building 1: $ 60,100

Loss to Building 2: $ 90,000

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

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

applicable to Building 1 plus the Deductible. 

The Deductible will be subtracted from the amount of 

loss in calculating the loss payable for Building 1: 

$ 60,100

– 250

$ 59,850 Loss Payable – Building 1

The Deductible applies once per occurrence and 

therefore is not subtracted in determining the amount 

of loss payable for Building 2. Loss payable for 

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

Total amount of loss payable: 

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

Example 2

(This example, too, assumes there is no Coinsurance 

penalty.) 

The Deductible and Limits of Insurance are the same 

as those in Example 1. 

Loss to Building 1: $ 70,000

(Exceeds Limit of Insurance plus Deductible)

Loss to Building 2: $ 90,000

(Exceeds Limit of Insurance plus Deductible)

Loss Payable – Building 1: $ 60,000

(Limit of Insurance)

Loss Payable – Building 2: $ 80,000

(Limit of Insurance)

Total amount of loss payable: $ 140,000

E. Loss Conditions 

The following conditions apply in addition to the 

Common Policy Conditions and the Commercial 

Property Conditions: 

1. Abandonment 

There can be no abandonment of any property 

to us. 

2. Appraisal 

If we and you disagree on the value of the 

property or the amount of loss, either may 

make written demand for an appraisal of the 

loss. In this event, each party will select a 

competent and impartial appraiser. The two 

appraisers will select an umpire. If they cannot 

agree, either may request that selection be 

made by a judge of a court having jurisdiction. 

The appraisers will state separately the value 

of the property and amount of loss. If they fail 

to agree, they will submit their differences to 

the umpire. A decision agreed to by any two 

will be binding. Each party will: 

a. Pay its chosen appraiser; and 

b. Bear the other expenses of the appraisal 

and umpire equally. 

If there is an appraisal, we will still retain our 

right to deny the claim. 

3. Duties In The Event Of Loss Or Damage 

a. You must see that the following are done in 

the event of loss or damage to Covered 

Property: 

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

broken. 

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(2) Give us prompt notice of the loss or 

damage. Include a description of the 

property involved. 

(3) As soon as possible, give us a 

description of how, when and where the 

loss or damage occurred. 

(4) Take all reasonable steps to protect the 

Covered Property from further damage, 

and keep a record of your expenses 

necessary to protect the Covered 

Property, for consideration in the 

settlement of the claim. This will not 

increase the Limit of Insurance. 

However, we will not pay for any 

subsequent loss or damage resulting 

from a cause of loss that is not a 

Covered Cause of Loss. Also, if 

feasible, set the damaged property 

aside and in the best possible order for 

examination. 

(5) At our request, give us complete 

inventories of the damaged and 

undamaged property. Include quantities, 

costs, values and amount of loss 

claimed. 

(6) As often as may be reasonably required, 

permit us to inspect the property proving 

the loss or damage and examine your 

books and records. 

Also, permit us to take samples of 

damaged and undamaged property for 

inspection, testing and analysis, and 

permit us to make copies from your 

books and records. 

(7) Send us a signed, sworn proof of loss 

containing the information we request to 

investigate the claim. You must do this 

within 60 days after our request. We will 

supply you with the necessary forms. 

(8) Cooperate with us in the investigation or 

settlement of the claim. 

b. We may examine any insured under oath, 

while not in the presence of any other 

insured and at such times as may be 

reasonably required, about any matter 

relating to this insurance or the claim, 

including an insured's books and records. In 

the event of an examination, an insured's 

answers must be signed. 

4. Loss Payment 

a. In the event of loss or damage covered by 

this Coverage Form, at our option, we will 

either: 

(1) Pay the value of lost or damaged 

property; 

(2) Pay the cost of repairing or replacing the 

lost or damaged property, subject to b.

below; 

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

agreed or appraised value; or 

(4) Repair, rebuild or replace the property 

with other property of like kind and 

quality, subject to b. below. 

We will determine the value of lost or 

damaged property, or the cost of its repair 

or replacement, in accordance with the 

applicable terms of the Valuation Condition 

in this Coverage Form or any applicable 

provision which amends or supersedes the 

Valuation Condition.

b. The cost to repair, rebuild or replace does 

not include the increased cost attributable 

to enforcement of or compliance with any 

ordinance or law regulating the 

construction, use or repair of any property. 

c. We will give notice of our intentions within 

30 days after we receive the sworn proof of 

loss. 

d. We will not pay you more than your 

financial interest in the Covered Property. 

e. We may adjust losses with the owners of 

lost or damaged property if other than you. 

If we pay the owners, such payments will 

satisfy your claims against us for the 

owners' property. We will not pay the 

owners more than their financial interest in 

the Covered Property. 

f. We may elect to defend you against suits 

arising from claims of owners of property. 

We will do this at our expense. 

g. We will pay for covered loss or damage 

within 30 days after we receive the sworn 

proof of loss, if you have complied with all 

of the terms of this Coverage Part, and: 

(1) We have reached agreement with you 

on the amount of loss; or 

(2) An appraisal award has been made. 

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

common to adjoining buildings that are 

owned by different parties. In settling 

covered losses involving a party wall, we 

will pay a proportion of the loss to the party 

wall based on your interest in the wall in 

proportion to the interest of the owner of the 

adjoining building. However, if you elect to 

repair or replace your building and the 

owner of the adjoining building elects not to 

repair or replace that building, we will pay 

you the full value of the loss to the party 

wall, subject to all applicable policy 

provisions including Limits of Insurance, the 

Valuation and Coinsurance Conditions and 

all other provisions of this Loss Payment 

Condition. Our payment under the 

provisions of this paragraph does not alter 

any right of subrogation we may have 

against any entity, including the owner or 

insurer of the adjoining building, and does 

not alter the terms of the Transfer Of Rights 

Of Recovery Against Others To Us 

Condition in this policy.

5. Recovered Property 

If either you or we recover any property after 

loss settlement, that party must give the other 

prompt notice. At your option, the property will 

be returned to you. You must then return to us 

the amount we paid to you for the property. We 

will pay recovery expenses and the expenses 

to repair the recovered property, subject to the 

Limit of Insurance. 

6. Vacancy 

a. Description Of Terms 

(1) As used in this Vacancy Condition, the 

term building and the term vacant have 

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

(1)(b) below: 

(a) When this policy is issued to a 

tenant, and with respect to that 

tenant's interest in Covered Property, 

building means the unit or suite 

rented or leased to the tenant. Such 

building is vacant when it does not 

contain enough business personal 

property to conduct customary 

operations. 

(b) When this policy is issued to the 

owner or general lessee of a 

building, building means the entire 

building. Such building is vacant 

unless at least 31% of its total 

square footage is:

(i) Rented to a lessee or sublessee 

and used by the lessee or 

sublessee to conduct its 

customary operations; and/or

(ii) Used by the building owner to 

conduct customary operations.

(2) Buildings under construction or 

renovation are not considered vacant. 

b. Vacancy Provisions 

If the building where loss or damage occurs 

has been vacant for more than 60 

consecutive days before that loss or 

damage occurs: 

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

caused by any of the following, even if 

they are Covered Causes of Loss: 

(a) Vandalism; 

(b) Sprinkler leakage, unless you have 

protected the system against 

freezing; 

(c) Building glass breakage; 

(d) Water damage; 

(e) Theft; or 

(f) Attempted theft. 

(2) With respect to Covered Causes of Loss 

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

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

the amount we would otherwise pay for 

the loss or damage by 15%. 

7. Valuation 

We will determine the value of Covered 

Property in the event of loss or damage as 

follows: 

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

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

and e. below. 

b. If the Limit of Insurance for Building 

satisfies the Additional Condition, 

Coinsurance, and the cost to repair or 

replace the damaged building property is 

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

building repairs or replacement. 

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The cost of building repairs or replacement 

does not include the increased cost 

attributable to enforcement of or 

compliance with any ordinance or law 

regulating the construction, use or repair of 

any property. 

However, the following property will be 

valued at the actual cash value, even when 

attached to the building: 

(1) Awnings or floor coverings; 

(2) Appliances for refrigerating, ventilating, 

cooking, dishwashing or laundering; or 

(3) Outdoor equipment or furniture. 

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

the selling price less discounts and 

expenses you otherwise would have had. 

d. Glass at the cost of replacement with 

safety-glazing material if required by law. 

e. Tenants' Improvements and Betterments at: 

(1) Actual cash value of the lost or 

damaged property if you make repairs 

promptly. 

(2) A proportion of your original cost if you 

do not make repairs promptly. We will 

determine the proportionate value as 

follows: 

(a) Multiply the original cost by the 

number of days from the loss or 

damage to the expiration of the 

lease; and 

(b) Divide the amount determined in (a)

above by the number of days from 

the installation of improvements to 

the expiration of the lease. 

If your lease contains a renewal option, 

the expiration of the renewal option 

period will replace the expiration of the 

lease in this procedure. 

(3) Nothing if others pay for repairs or 

replacement. 

F. Additional Conditions

The following conditions apply in addition to the 

Common Policy Conditions and the Commercial 

Property Conditions: 

1. Coinsurance 

If a Coinsurance percentage is shown in the 

Declarations, the following condition applies: 

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

the value of Covered Property at the time of 

loss times the Coinsurance percentage 

shown for it in the Declarations is greater 

than the Limit of Insurance for the property.

Instead, we will determine the most we will 

pay using the following steps: 

(1) Multiply the value of Covered Property 

at the time of loss by the Coinsurance 

percentage; 

(2) Divide the Limit of Insurance of the 

property by the figure determined in 

Step (1);

(3) Multiply the total amount of loss, before 

the application of any deductible, by the 

figure determined in Step (2); and 

(4) Subtract the deductible from the figure 

determined in Step (3).

We will pay the amount determined in Step 

(4) or the Limit of Insurance, whichever is 

less. For the remainder, you will either have 

to rely on other insurance or absorb the 

loss yourself. 

Example 1 (Underinsurance)

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

The Coinsurance percentage 

for it is: 80%

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

The Deductible is: $ 250

The amount of loss is: $ 40,000

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

(the minimum amount of insurance to 

meet your Coinsurance requirements)

Step (2): $100,000  $200,000 = .50

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

Step (4): $20,000 – $250 = $19,750

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

$20,250 is not covered.

Example 2 (Adequate Insurance)

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

The Coinsurance percentage 

for it is: 80%

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

The Deductible is: $ 250

The amount of loss is: $ 40,000

The minimum amount of insurance to meet your 

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

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

example is adequate, and no penalty applies. We will 

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

minus the deductible of $250). 

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b. If one Limit of Insurance applies to two or 

more separate items, this condition will 

apply to the total of all property to which the 

limit applies. 

Example 3

When: The value of the property is:

Building at Location 1: $ 75,000

Building at Location 2: $100,000

Personal Property 

at Location 2: $ 75,000

$250,000

The Coinsurance percentage 

for it is: 90%

The Limit of Insurance for 

Buildings and Personal Property 

at Locations 1 and 2 is: $180,000

The Deductible is: $ 1,000

The amount of loss is:

Building at Location 2: $ 30,000

Personal Property 

at Location 2: $ 20,000

$ 50,000

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

(the minimum amount of insurance to 

meet your Coinsurance requirements 

and to avoid the penalty shown below)

Step (2): $180,000  $225,000 = .80

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

Step (4): $40,000 – $1,000 = $39,000

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

$11,000 is not covered. 

2. Mortgageholders 

a. The term mortgageholder includes trustee. 

b. We will pay for covered loss of or damage 

to buildings or structures to each 

mortgageholder shown in the Declarations 

in their order of precedence, as interests 

may appear. 

c. The mortgageholder has the right to receive 

loss payment even if the mortgageholder 

has started foreclosure or similar action on 

the building or structure. 

d. If we deny your claim because of your acts 

or because you have failed to comply with 

the terms of this Coverage Part, the 

mortgageholder will still have the right to 

receive loss payment if the mortgageholder: 

(1) Pays any premium due under this 

Coverage Part at our request if you 

have failed to do so; 

(2) Submits a signed, sworn proof of loss 

within 60 days after receiving notice 

from us of your failure to do so; and 

(3) Has notified us of any change in 

ownership, occupancy or substantial 

change in risk known to the 

mortgageholder. 

All of the terms of this Coverage Part will 

then apply directly to the mortgageholder. 

e. If we pay the mortgageholder for any loss 

or damage and deny payment to you 

because of your acts or because you have 

failed to comply with the terms of this 

Coverage Part: 

(1) The mortgageholder's rights under the 

mortgage will be transferred to us to the 

extent of the amount we pay; and 

(2) The mortgageholder's right to recover 

the full amount of the mortgageholder's 

claim will not be impaired. 

At our option, we may pay to the 

mortgageholder the whole principal on the 

mortgage plus any accrued interest. In this 

event, your mortgage and note will be 

transferred to us and you will pay your 

remaining mortgage debt to us. 

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

notice to the mortgageholder at least: 

(1) 10 days before the effective date of 

cancellation if we cancel for your 

nonpayment of premium; or 

(2) 30 days before the effective date of 

cancellation if we cancel for any other 

reason. 

g. If we elect not to renew this policy, we will 

give written notice to the mortgageholder at 

least 10 days before the expiration date of 

this policy. 

G. Optional Coverages

If shown as applicable in the Declarations, the 

following Optional Coverages apply separately to 

each item: 

1. Agreed Value 

a. The Additional Condition, Coinsurance, 

does not apply to Covered Property to 

which this Optional Coverage applies. We 

will pay no more for loss of or damage to 

that property than the proportion that the 

Limit of Insurance under this Coverage Part 

for the property bears to the Agreed Value 

shown for it in the Declarations. 

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b. If the expiration date for this Optional 

Coverage shown in the Declarations is not 

extended, the Additional Condition, 

Coinsurance, is reinstated and this Optional 

Coverage expires. 

c. The terms of this Optional Coverage apply 

only to loss or damage that occurs: 

(1) On or after the effective date of this 

Optional Coverage; and 

(2) Before the Agreed Value expiration date 

shown in the Declarations or the policy 

expiration date, whichever occurs first. 

2. Inflation Guard 

a. The Limit of Insurance for property to which 

this Optional Coverage applies will 

automatically increase by the annual 

percentage shown in the Declarations. 

b. The amount of increase will be: 

(1) The Limit of Insurance that applied on 

the most recent of the policy inception 

date, the policy anniversary date, or any 

other policy change amending the Limit 

of Insurance, times 

(2) The percentage of annual increase 

shown in the Declarations, expressed as 

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

(3) The number of days since the beginning 

of the current policy year or the effective 

date of the most recent policy change 

amending the Limit of Insurance, divided 

by 365. 

Example

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

The annual percentage increase is: 8%

The number of days since the 

beginning of the policy year 

(or last policy change) is: 146

The amount of increase is: 

$100,000 x .08 x 146  365 = $ 3,200

3. Replacement Cost 

a. Replacement Cost (without deduction for 

depreciation) replaces Actual Cash Value in 

the Valuation Loss Condition of this 

Coverage Form. 

b. This Optional Coverage does not apply to: 

(1) Personal property of others; 

(2) Contents of a residence; 

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

including etchings, pictures, statuary, 

marbles, bronzes, porcelains and bric-abrac; or 

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

option is shown in the Declarations. 

Under the terms of this Replacement Cost 

Optional Coverage, tenants' improvements 

and betterments are not considered to be 

the personal property of others.

c. You may make a claim for loss or damage 

covered by this insurance on an actual cash 

value basis instead of on a replacement 

cost basis. In the event you elect to have 

loss or damage settled on an actual cash 

value basis, you may still make a claim for 

the additional coverage this Optional 

Coverage provides if you notify us of your 

intent to do so within 180 days after the loss 

or damage. 

d. We will not pay on a replacement cost basis 

for any loss or damage: 

(1) Until the lost or damaged property is 

actually repaired or replaced; and 

(2) Unless the repair or replacement is 

made as soon as reasonably possible 

after the loss or damage. 

With respect to tenants' improvements and 

betterments, the following also apply:

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

are not met, the value of tenants' 

improvements and betterments will be 

determined as a proportion of your 

original cost, as set forth in the 

Valuation Loss Condition of this 

Coverage Form; and

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

tenants' improvements and betterments 

if others pay for repairs or replacement.

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

a replacement cost basis than the least of 

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

(1) The Limit of Insurance applicable to the 

lost or damaged property; 

(2) The cost to replace the lost or damaged 

property with other property: 

(a) Of comparable material and quality; 

and 

(b) Used for the same purpose; or 

(3) The amount actually spent that is 

necessary to repair or replace the lost or 

damaged property. 

If a building is rebuilt at a new premises, the 

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

the cost which would have been incurred if 

the building had been rebuilt at the original 

premises.

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f. The cost of repair or replacement does not 

include the increased cost attributable to 

enforcement of or compliance with any 

ordinance or law regulating the 

construction, use or repair of any property.

4. Extension Of Replacement Cost To 

Personal Property Of Others

a. If the Replacement Cost Optional Coverage 

is shown as applicable in the Declarations, 

then this Extension may also be shown as 

applicable. If the Declarations show this 

Extension as applicable, then Paragraph 

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

Coverage is deleted and all other provisions 

of the Replacement Cost Optional 

Coverage apply to replacement cost on 

personal property of others.

b. With respect to replacement cost on the 

personal property of others, the following 

limitation applies:

If an item(s) of personal property of others 

is subject to a written contract which 

governs your liability for loss or damage to 

that item(s), then valuation of that item(s) 

will be based on the amount for which you 

are liable under such contract, but not to 

exceed the lesser of the replacement cost 

of the property or the applicable Limit of 

Insurance.

H. Definitions 

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

including mold or mildew, and any mycotoxins, 

spores, scents or by-products produced or 

released by fungi.

2. "Pollutants" means any solid, liquid, gaseous or 

thermal irritant or contaminant, including 

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

chemicals and waste. Waste includes materials 

to be recycled, reconditioned or reclaimed. 

3. "Stock" means merchandise held in storage or 

for sale, raw materials and in-process or 

finished goods, including supplies used in their 

packing or shipping. 

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COMMERCIAL PROPERTY

CP 00 30 10 12

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

BUSINESS INCOME (AND EXTRA EXPENSE) 

COVERAGE FORM 

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

what is and is not covered. 

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

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

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

A. Coverage 

 1. Business Income 

Business Income means the: 

 a. Net Income (Net Profit or Loss before 

income taxes) that would have been earned 

or incurred; and 

b. Continuing normal operating expenses 

incurred, including payroll. 

For manufacturing risks, Net Income includes 

the net sales value of production. 

Coverage is provided as described and limited 

below for one or more of the following options 

for which a Limit Of Insurance is shown in the 

Declarations: 

 (1) Business Income Including "Rental 

Value". 

 (2) Business Income Other Than "Rental 

Value". 

 (3) "Rental Value". 

If option (1) above is selected, the term 

Business Income will include "Rental Value". If 

option (3) above is selected, the term Business 

Income will mean "Rental Value" only. 

If Limits of Insurance are shown under more 

than one of the above options, the provisions 

of this Coverage Part apply separately to each. 

We will pay for the actual loss of Business 

Income you sustain due to the necessary 

"suspension" of your "operations" during the 

"period of restoration". The "suspension" must 

be caused by direct physical loss of or damage 

to property at premises which are described in 

the Declarations and for which a Business 

Income Limit Of Insurance is shown in the 

Declarations. The loss or damage must be 

caused by or result from a Covered Cause of 

Loss. With respect to loss of or damage to 

personal property in the open or personal 

property in a vehicle, the described premises 

include the area within 100 feet of such 

premises. 

With respect to the requirements set forth in 

the preceding paragraph, if you occupy only 

part of a building, your premises means: 

 (a) The portion of the building which you 

rent, lease or occupy; 

(b) The area within 100 feet of the 

building or within 100 feet of the 

premises described in the 

Declarations, whichever distance is 

greater (with respect to loss of or 

damage to personal property in the 

open or personal property in a 

vehicle); and 

 (c) Any area within the building or at the 

described premises, if that area 

services, or is used to gain access 

to, the portion of the building which 

you rent, lease or occupy. 

 2. Extra Expense 

 a. Extra Expense Coverage is provided at the 

premises described in the Declarations only 

if the Declarations show that Business 

Income Coverage applies at that premises. 

b. Extra Expense means necessary expenses 

you incur during the "period of restoration" 

that you would not have incurred if there 

had been no direct physical loss or damage 

to property caused by or resulting from a 

Covered Cause of Loss. 

We will pay Extra Expense (other than the 

expense to repair or replace property) to: 

 (1) Avoid or minimize the "suspension" of 

business and to continue operations at 

the described premises or at 

replacement premises or temporary 

locations, including relocation expenses 

and costs to equip and operate the 

replacement location or temporary 

location. 

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(2) Minimize the "suspension" of business if 

you cannot continue "operations". 

We will also pay Extra Expense to repair or 

replace property, but only to the extent it 

reduces the amount of loss that otherwise 

would have been payable under this 

Coverage Form. 

 3. Covered Causes Of Loss, Exclusions And 

Limitations 

See applicable Causes Of Loss form as shown 

in the Declarations. 

 4. Additional Limitation – Interruption Of 

Computer Operations 

 a. Coverage for Business Income does not 

apply when a "suspension" of "operations" 

is caused by destruction or corruption of 

electronic data, or any loss or damage to 

electronic data, except as provided under 

the Additional Coverage, Interruption Of 

Computer Operations.

 b. Coverage for Extra Expense does not apply 

when action is taken to avoid or minimize a 

"suspension" of "operations" caused by 

destruction or corruption of electronic data, 

or any loss or damage to electronic data, 

except as provided under the Additional 

Coverage, Interruption Of Computer 

Operations. 

 c. Electronic data means information, facts or 

computer programs stored as or on, 

created or used on, or transmitted to or 

from computer software (including systems 

and applications software), on hard or 

floppy disks, CD-ROMs, tapes, drives, cells, 

data processing devices or any other 

repositories of computer software which are 

used with electronically controlled 

equipment. The term computer programs, 

referred to in the foregoing description of 

electronic data, means a set of related 

electronic instructions which direct the 

operations and functions of a computer or 

device connected to it, which enable the 

computer or device to receive, process, 

store, retrieve or send data. 

 d. This Additional Limitation does not apply 

when loss or damage to electronic data 

involves only electronic data which is 

integrated in and operates or controls a 

building's elevator, lighting, heating, 

ventilation, air conditioning or security 

system. 

 5. Additional Coverages 

a. Civil Authority 

In this Additional Coverage, Civil Authority, 

the described premises are premises to 

which this Coverage Form applies, as 

shown in the Declarations. 

When a Covered Cause of Loss causes 

damage to property other than property at 

the described premises, we will pay for the 

actual loss of Business Income you sustain 

and necessary Extra Expense caused by 

action of civil authority that prohibits access 

to the described premises, provided that 

both of the following apply: 

(1) Access to the area immediately 

surrounding the damaged property is 

prohibited by civil authority as a result of 

the damage, and the described 

premises are within that area but are not 

more than one mile from the damaged 

property; and 

(2) The action of civil authority is taken in 

response to dangerous physical 

conditions resulting from the damage or 

continuation of the Covered Cause of 

Loss that caused the damage, or the 

action is taken to enable a civil authority 

to have unimpeded access to the 

damaged property. 

Civil Authority Coverage for Business 

Income will begin 72 hours after the time of 

the first action of civil authority that prohibits 

access to the described premises and will 

apply for a period of up to four consecutive 

weeks from the date on which such 

coverage began. 

Civil Authority Coverage for Extra Expense 

will begin immediately after the time of the 

first action of civil authority that prohibits 

access to the described premises and will 

end: 

 (1) Four consecutive weeks after the date 

of that action; or 

 (2) When your Civil Authority Coverage for 

Business Income ends; 

whichever is later. 

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 b. Alterations And New Buildings 

We will pay for the actual loss of Business 

Income you sustain and necessary Extra 

Expense you incur due to direct physical 

loss or damage at the described premises 

caused by or resulting from any Covered 

Cause of Loss to: 

 (1) New buildings or structures, whether 

complete or under construction; 

 (2) Alterations or additions to existing 

buildings or structures; and 

 (3) Machinery, equipment, supplies or 

building materials located on or within 

100 feet of the described premises and: 

 (a) Used in the construction, alterations 

or additions; or 

 (b) Incidental to the occupancy of new 

buildings. 

If such direct physical loss or damage 

delays the start of "operations", the "period 

of restoration" for Business Income 

Coverage will begin on the date 

"operations" would have begun if the direct 

physical loss or damage had not occurred. 

 c. Extended Business Income 

 (1) Business Income Other Than "Rental 

Value" 

If the necessary "suspension" of your 

"operations" produces a Business 

Income loss payable under this policy, 

we will pay for the actual loss of 

Business Income you incur during the 

period that: 

 (a) Begins on the date property (except 

"finished stock") is actually repaired, 

rebuilt or replaced and "operations" 

are resumed; and 

 (b) Ends on the earlier of: 

 (i) The date you could restore your 

"operations", with reasonable 

speed, to the level which would 

generate the business income 

amount that would have existed if 

no direct physical loss or damage 

had occurred; or 

 (ii) 60 consecutive days after the 

date determined in (1)(a) above. 

However, Extended Business Income 

does not apply to loss of Business 

Income incurred as a result of 

unfavorable business conditions caused 

by the impact of the Covered Cause of 

Loss in the area where the described 

premises are located. 

Loss of Business Income must be 

caused by direct physical loss or 

damage at the described premises 

caused by or resulting from any Covered 

Cause of Loss. 

 (2) "Rental Value" 

If the necessary "suspension" of your 

"operations" produces a "Rental Value" 

loss payable under this policy, we will 

pay for the actual loss of "Rental Value" 

you incur during the period that: 

 (a) Begins on the date property is 

actually repaired, rebuilt or replaced 

and tenantability is restored; and 

(b) Ends on the earlier of: 

 (i) The date you could restore tenant 

occupancy, with reasonable 

speed, to the level which would 

generate the "Rental Value" that 

would have existed if no direct 

physical loss or damage had 

occurred; or 

 (ii) 60 consecutive days after the 

date determined in (2)(a) above. 

However, Extended Business Income 

does not apply to loss of "Rental Value" 

incurred as a result of unfavorable 

business conditions caused by the 

impact of the Covered Cause of Loss in 

the area where the described premises 

are located. 

Loss of "Rental Value" must be caused 

by direct physical loss or damage at the 

described premises caused by or 

resulting from any Covered Cause of 

Loss. 

 d. Interruption Of Computer Operations 

 (1) Under this Additional Coverage, 

electronic data has the meaning 

described under Additional Limitation – 

Interruption Of Computer Operations. 

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 (2) Subject to all provisions of this 

Additional Coverage, you may extend 

the insurance that applies to Business 

Income and Extra Expense to apply to a 

"suspension" of "operations" caused by 

an interruption in computer operations 

due to destruction or corruption of 

electronic data due to a Covered Cause 

of Loss. However, we will not provide 

coverage under this Additional 

Coverage when the Additional Limitation 

– Interruption Of Computer Operations 

does not apply based on Paragraph 

A.4.d. therein. 

 (3) With respect to the coverage provided 

under this Additional Coverage, the 

Covered Causes of Loss are subject to 

the following: 

 (a) If the Causes Of Loss – Special 

Form applies, coverage under this 

Additional Coverage, Interruption Of 

Computer Operations, is limited to 

the "specified causes of loss" as 

defined in that form and Collapse as 

set forth in that form. 

(b) If the Causes Of Loss – Broad Form 

applies, coverage under this 

Additional Coverage, Interruption Of 

Computer Operations, includes 

Collapse as set forth in that form. 

 (c) If the Causes Of Loss form is 

endorsed to add a Covered Cause of 

Loss, the additional Covered Cause 

of Loss does not apply to the 

coverage provided under this 

Additional Coverage, Interruption Of 

Computer Operations. 

 (d) The Covered Causes of Loss include 

a virus, harmful code or similar 

instruction introduced into or enacted 

on a computer system (including 

electronic data) or a network to 

which it is connected, designed to 

damage or destroy any part of the 

system or disrupt its normal 

operation. But there is no coverage 

for an interruption related to 

manipulation of a computer system 

(including electronic data) by any 

employee, including a temporary or 

leased employee, or by an entity 

retained by you or for you to inspect, 

design, install, maintain, repair or 

replace that system. 

 (4) The most we will pay under this 

Additional Coverage, Interruption Of 

Computer Operations, is $2,500 (unless 

a higher limit is shown in the 

Declarations) for all loss sustained and 

expense incurred in any one policy year, 

regardless of the number of 

interruptions or the number of premises, 

locations or computer systems involved. 

If loss payment relating to the first 

interruption does not exhaust this 

amount, then the balance is available for 

loss or expense sustained or incurred as 

a result of subsequent interruptions in 

that policy year. A balance remaining at 

the end of a policy year does not 

increase the amount of insurance in the 

next policy year. With respect to any 

interruption which begins in one policy 

year and continues or results in 

additional loss or expense in a 

subsequent policy year(s), all loss and 

expense is deemed to be sustained or 

incurred in the policy year in which the 

interruption began. 

 (5) This Additional Coverage, Interruption 

Of Computer Operations, does not apply 

to loss sustained or expense incurred 

after the end of the "period of 

restoration", even if the amount of 

insurance stated in (4) above has not 

been exhausted. 

 6. Coverage Extension 

If a Coinsurance percentage of 50% or more is 

shown in the Declarations, you may extend the 

insurance provided by this Coverage Part as 

follows: 

Newly Acquired Locations 

 a. You may extend your Business Income and 

Extra Expense Coverages to apply to 

property at any location you acquire other 

than fairs or exhibitions. 

 b. The most we will pay under this Extension, 

for the sum of Business Income loss and 

Extra Expense incurred, is $100,000 at 

each location, unless a higher limit is shown 

in the Declarations. 

 c. Insurance under this Extension for each 

newly acquired location will end when any 

of the following first occurs: 

 (1) This policy expires; 

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 (2) 30 days expire after you acquire or 

begin to construct the property; or 

 (3) You report values to us. 

We will charge you additional premium for 

values reported from the date you acquire 

the property. 

The Additional Condition, Coinsurance, does 

not apply to this Extension. 

B. Limits Of Insurance 

The most we will pay for loss in any one 

occurrence is the applicable Limit Of Insurance 

shown in the Declarations. 

Payments under the following coverages will not 

increase the applicable Limit of Insurance: 

 1. Alterations And New Buildings; 

 2. Civil Authority; 

 3. Extra Expense; or 

 4. Extended Business Income. 

The amounts of insurance stated in the 

Interruption Of Computer Operations Additional 

Coverage and the Newly Acquired Locations 

Coverage Extension apply in accordance with the 

terms of those coverages and are separate from 

the Limit(s) Of Insurance shown in the 

Declarations for any other coverage. 

C. Loss Conditions 

The following conditions apply in addition to the 

Common Policy Conditions and the Commercial 

Property Conditions: 

 1. Appraisal 

If we and you disagree on the amount of Net 

Income and operating expense or the amount 

of loss, either may make written demand for an 

appraisal of the loss. In this event, each party 

will select a competent and impartial appraiser. 

The two appraisers will select an umpire. If 

they cannot agree, either may request that 

selection be made by a judge of a court having 

jurisdiction. The appraisers will state separately 

the amount of Net Income and operating 

expense or amount of loss. If they fail to agree, 

they will submit their differences to the umpire. 

A decision agreed to by any two will be 

binding. Each party will: 

 a. Pay its chosen appraiser; and 

 b. Bear the other expenses of the appraisal 

and umpire equally. 

If there is an appraisal, we will still retain our 

right to deny the claim. 

 2. Duties In The Event Of Loss 

 a. You must see that the following are done in 

the event of loss: 

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

broken. 

 (2) Give us prompt notice of the direct 

physical loss or damage. Include a 

description of the property involved. 

 (3) As soon as possible, give us a 

description of how, when and where the 

direct physical loss or damage occurred. 

(4) Take all reasonable steps to protect the 

Covered Property from further damage, 

and keep a record of your expenses 

necessary to protect the Covered 

Property, for consideration in the 

settlement of the claim. This will not 

increase the Limit of Insurance. 

However, we will not pay for any 

subsequent loss or damage resulting 

from a cause of loss that is not a 

Covered Cause of Loss. Also, if 

feasible, set the damaged property 

aside and in the best possible order for 

examination. 

 (5) As often as may be reasonably required, 

permit us to inspect the property proving 

the loss or damage and examine your 

books and records. 

Also permit us to take samples of 

damaged and undamaged property for 

inspection, testing and analysis, and 

permit us to make copies from your 

books and records. 

 (6) Send us a signed, sworn proof of loss 

containing the information we request to 

investigate the claim. You must do this 

within 60 days after our request. We will 

supply you with the necessary forms. 

 (7) Cooperate with us in the investigation or 

settlement of the claim. 

 (8) If you intend to continue your business, 

you must resume all or part of your 

"operations" as quickly as possible. 

 b. We may examine any insured under oath, 

while not in the presence of any other 

insured and at such times as may be 

reasonably required, about any matter 

relating to this insurance or the claim, 

including an insured's books and records. In 

the event of an examination, an insured's 

answers must be signed. 

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 3. Loss Determination 

 a. The amount of Business Income loss will be 

determined based on: 

 (1) The Net Income of the business before 

the direct physical loss or damage 

occurred; 

 (2) The likely Net Income of the business if 

no physical loss or damage had 

occurred, but not including any Net 

Income that would likely have been 

earned as a result of an increase in the 

volume of business due to favorable 

business conditions caused by the 

impact of the Covered Cause of Loss on 

customers or on other businesses; 

 (3) The operating expenses, including 

payroll expenses, necessary to resume 

"operations" with the same quality of 

service that existed just before the direct 

physical loss or damage; and 

(4) Other relevant sources of information, 

including: 

 (a) Your financial records and 

accounting procedures; 

 (b) Bills, invoices and other vouchers; 

and 

 (c) Deeds, liens or contracts. 

 b. The amount of Extra Expense will be 

determined based on: 

 (1) All expenses that exceed the normal 

operating expenses that would have 

been incurred by "operations" during the 

"period of restoration" if no direct 

physical loss or damage had occurred. 

We will deduct from the total of such 

expenses: 

 (a) The salvage value that remains of 

any property bought for temporary 

use during the "period of restoration", 

once "operations" are resumed; and 

 (b) Any Extra Expense that is paid for by 

other insurance, except for insurance 

that is written subject to the same 

plan, terms, conditions and 

provisions as this insurance; and 

 (2) Necessary expenses that reduce the 

Business Income loss that otherwise 

would have been incurred. 

 c. Resumption Of Operations 

We will reduce the amount of your: 

 (1) Business Income loss, other than Extra 

Expense, to the extent you can resume 

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

using damaged or undamaged property 

(including merchandise or stock) at the 

described premises or elsewhere. 

 (2) Extra Expense loss to the extent you 

can return "operations" to normal and 

discontinue such Extra Expense. 

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

resume "operations" as quickly as possible, 

we will pay based on the length of time it 

would have taken to resume "operations" as 

quickly as possible. 

 4. Loss Payment 

We will pay for covered loss within 30 days 

after we receive the sworn proof of loss, if you 

have complied with all of the terms of this 

Coverage Part, and: 

 a. We have reached agreement with you on 

the amount of loss; or 

 b. An appraisal award has been made. 

D. Additional Condition 

COINSURANCE 

If a Coinsurance percentage is shown in the 

Declarations, the following condition applies in 

addition to the Common Policy Conditions and the 

Commercial Property Conditions. 

We will not pay the full amount of any Business 

Income loss if the Limit of Insurance for Business 

Income is less than: 

 1. The Coinsurance percentage shown for 

Business Income in the Declarations; times 

 2. The sum of: 

 a. The Net Income (Net Profit or Loss before 

income taxes), and 

 b. Operating expenses, including payroll 

expenses, 

that would have been earned or incurred (had 

no loss occurred) by your "operations" at the 

described premises for the 12 months following 

the inception, or last previous anniversary date, 

of this policy (whichever is later). 

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Instead, we will determine the most we will pay 

using the following steps: 

Step (1): Multiply the Net Income and operating

expense for the 12 months following the

inception, or last previous anniversary 

date, of this policy by the Coinsurance 

percentage; 

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

described premises by the figure

determined in Step (1); and 

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

figure determined in Step (2).

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

the limit of insurance, whichever is less. For the 

remainder, you will either have to rely on other 

insurance or absorb the loss yourself. 

In determining operating expenses for the purpose 

of applying the Coinsurance condition, the 

following expenses, if applicable, shall be 

deducted from the total of all operating expenses: 

 (1) Prepaid freight – outgoing; 

 (2) Returns and allowances; 

 (3) Discounts; 

 (4) Bad debts; 

 (5) Collection expenses; 

 (6) Cost of raw stock and factory supplies 

consumed (including transportation 

charges); 

 (7) Cost of merchandise sold (including 

transportation charges); 

 (8) Cost of other supplies consumed 

(including transportation charges); 

 (9) Cost of services purchased from 

outsiders (not employees) to resell, that 

do not continue under contract; 

 (10) Power, heat and refrigeration expenses 

that do not continue under contract (if 

Form CP 15 11 is attached); 

 (11) All payroll expenses or the amount of 

payroll expense excluded (if Form CP 

15 10 is attached); and 

 (12) Special deductions for mining properties 

(royalties unless specifically included in 

coverage; actual depletion commonly 

known as unit or cost depletion – not 

percentage depletion; welfare and 

retirement fund charges based on 

tonnage; hired trucks). 

Example 1 (Underinsurance) 

When: The Net Income and operating 

expenses for the 12 months 

following the inception, or last 

previous anniversary date, of 

this policy at the described 

premises would have been: $ 400,000

 The Coinsurance percentage is: 50%

The Limit of Insurance is: $ 150,000

The amount of loss is: $ 80,000

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

 (the minimum amount of insurance to 

meet your Coinsurance requirements)

Step (2): $150,000 ÷ $200,000 = .75 

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

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

$20,000 is not covered. 

Example 2 (Adequate Insurance) 

When: The Net Income and operating 

expenses for the 12 months 

following the inception, or last 

previous anniversary date, of 

this policy at the described 

premises would have been: $ 400,000

The Coinsurance percentage is: 50%

The Limit of Insurance is: $ 200,000

 The amount of loss is: $ 80,000

The minimum amount of insurance to meet your 

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

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

example is adequate and no penalty applies. We will 

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

This condition does not apply to Extra Expense 

Coverage. 

E. Optional Coverages 

If shown as applicable in the Declarations, the 

following Optional Coverages apply separately to 

each item. 

 1. Maximum Period Of Indemnity 

 a. The Additional Condition, Coinsurance, 

does not apply to this Coverage Form at the 

described premises to which this Optional 

Coverage applies. 

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 b. The most we will pay for the total of 

Business Income loss and Extra Expense is 

the lesser of: 

 (1) The amount of loss sustained and 

expenses incurred during the 120 days 

immediately following the beginning of 

the "period of restoration"; or 

 (2) The Limit Of Insurance shown in the 

Declarations. 

 2. Monthly Limit Of Indemnity 

 a. The Additional Condition, Coinsurance, 

does not apply to this Coverage Form at the 

described premises to which this Optional 

Coverage applies. 

 b. The most we will pay for loss of Business 

Income in each period of 30 consecutive 

days after the beginning of the "period of 

restoration" is: 

 (1) The Limit of Insurance, multiplied by 

 (2) The fraction shown in the Declarations 

for this Optional Coverage. 

Example 

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

 The fraction shown in the 

Declarations for this Optional 

Coverage is: 1/4

 The most we will pay for loss in 

each period of 30 consecutive 

days is: $ 30,000

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

 If, in this example, the actual 

amount of loss is: 

 Days 1–30: $ 40,000

 Days 31–60: $ 20,000

 Days 61–90: $ 30,000

 $ 90,000

 We will pay: 

 Days 1–30: $ 30,000

 Days 31–60: $ 20,000

 Days 61–90: $ 30,000

 $ 80,000

 The remaining $10,000 is not covered.

 3. Business Income Agreed Value 

 a. To activate this Optional Coverage: 

 (1) A Business Income Report/Work Sheet 

must be submitted to us and must show 

financial data for your "operations": 

 (a) During the 12 months prior to the 

date of the Work Sheet; and 

 (b) Estimated for the 12 months 

immediately following the inception 

of this Optional Coverage. 

(2) The Declarations must indicate that the 

Business Income Agreed Value Optional 

Coverage applies, and an Agreed Value 

must be shown in the Declarations. The 

Agreed Value should be at least equal 

to: 

 (a) The Coinsurance percentage shown 

in the Declarations; multiplied by 

 (b) The amount of Net Income and 

operating expenses for the following 

12 months you report on the Work 

Sheet. 

 b. The Additional Condition, Coinsurance, is 

suspended until: 

 (1) 12 months after the effective date of this 

Optional Coverage; or 

 (2) The expiration date of this policy; 

whichever occurs first. 

 c. We will reinstate the Additional Condition, 

Coinsurance, automatically if you do not 

submit a new Work Sheet and Agreed 

Value: 

 (1) Within 12 months of the effective date of 

this Optional Coverage; or 

 (2) When you request a change in your 

Business Income Limit of Insurance. 

 d. If the Business Income Limit of Insurance is 

less than the Agreed Value, we will not pay 

more of any loss than the amount of loss 

multiplied by: 

 (1) The Business Income Limit of 

Insurance; divided by 

 (2) The Agreed Value. 

Example 

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

The Agreed Value is: $ 200,000

 The amount of loss is: $ 80,000

Step (1): $100,000 ÷ $200,000 = .50 

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

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

covered. 

 4. Extended Period Of Indemnity 

Under Paragraph A.5.c., Extended Business 

Income, the number 60 in Subparagraphs 

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

shown in the Declarations for this Optional 

Coverage. 

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F. Definitions 

 1. "Finished stock" means stock you have 

manufactured. 

"Finished stock" also includes whiskey and 

alcoholic products being aged, unless there is 

a Coinsurance percentage shown for Business 

Income in the Declarations. 

"Finished stock" does not include stock you 

have manufactured that is held for sale on the 

premises of any retail outlet insured under this 

Coverage Part. 

 2. "Operations" means: 

 a. Your business activities occurring at the 

described premises; and 

 b. The tenantability of the described premises, 

if coverage for Business Income Including 

"Rental Value" or "Rental Value" applies. 

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

that: 

 a. Begins: 

 (1) 72 hours after the time of direct physical 

loss or damage for Business Income 

Coverage; or 

 (2) Immediately after the time of direct 

physical loss or damage for Extra 

Expense Coverage; 

caused by or resulting from any Covered 

Cause of Loss at the described premises; 

and 

b. Ends on the earlier of: 

 (1) The date when the property at the 

described premises should be repaired, 

rebuilt or replaced with reasonable 

speed and similar quality; or 

 (2) The date when business is resumed at a 

new permanent location. 

"Period of restoration" does not include any 

increased period required due to the 

enforcement of or compliance with any 

ordinance or law that: 

 (1) Regulates the construction, use or 

repair, or requires the tearing down, of 

any property; or 

 (2) Requires any insured or others to test 

for, monitor, clean up, remove, contain, 

treat, detoxify or neutralize, or in any 

way respond to, or assess the effects of 

"pollutants". 

The expiration date of this policy will not cut 

short the "period of restoration". 

 4. "Pollutants" means any solid, liquid, gaseous or 

thermal irritant or contaminant, including 

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

chemicals and waste. Waste includes materials 

to be recycled, reconditioned or reclaimed. 

 5. "Rental Value" means Business Income that 

consists of: 

 a. Net Income (Net Profit or Loss before 

income taxes) that would have been earned 

or incurred as rental income from tenant 

occupancy of the premises described in the 

Declarations as furnished and equipped by 

you, including fair rental value of any 

portion of the described premises which is 

occupied by you; and 

b. Continuing normal operating expenses 

incurred in connection with that premises, 

including: 

 (1) Payroll; and 

(2) The amount of charges which are the 

legal obligation of the tenant(s) but 

would otherwise be your obligations. 

 6. "Suspension" means: 

 a. The slowdown or cessation of your 

business activities; or

 b. That a part or all of the described premises 

is rendered untenantable, if coverage for 

Business Income Including "Rental Value" 

or "Rental Value" applies. 

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COMMERCIAL PROPERTY

CP 10 30 10 12

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

CAUSES OF LOSS – SPECIAL FORM 

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

A. Covered Causes Of Loss 

When Special is shown in the Declarations, 

Covered Causes of Loss means direct physical 

loss unless the loss is excluded or limited in this 

policy. 

B. Exclusions 

 1. We will not pay for loss or damage caused 

directly or indirectly by any of the following. 

Such loss or damage is excluded regardless of 

any other cause or event that contributes 

concurrently or in any sequence to the loss. 

 a. Ordinance Or Law 

The enforcement of or compliance with any 

ordinance or law: 

 (1) Regulating the construction, use or 

repair of any property; or 

 (2) Requiring the tearing down of any 

property, including the cost of removing 

its debris. 

This exclusion, Ordinance Or Law, applies 

whether the loss results from: 

 (a) An ordinance or law that is enforced 

even if the property has not been 

damaged; or 

 (b) The increased costs incurred to 

comply with an ordinance or law in 

the course of construction, repair, 

renovation, remodeling or demolition 

of property, or removal of its debris, 

following a physical loss to that 

property. 

 b. Earth Movement 

(1) Earthquake, including tremors and 

aftershocks and any earth sinking, rising 

or shifting related to such event; 

(2) Landslide, including any earth sinking, 

rising or shifting related to such event; 

(3) Mine subsidence, meaning subsidence 

of a man-made mine, whether or not 

mining activity has ceased; 

(4) Earth sinking (other than sinkhole 

collapse), rising or shifting including soil 

conditions which cause settling, 

cracking or other disarrangement of 

foundations or other parts of realty. Soil 

conditions include contraction, 

expansion, freezing, thawing, erosion, 

improperly compacted soil and the 

action of water under the ground 

surface. 

But if Earth Movement, as described in 

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

explosion, we will pay for the loss or 

damage caused by that fire or explosion. 

(5) Volcanic eruption, explosion or effusion. 

But if volcanic eruption, explosion or 

effusion results in fire, building glass 

breakage or Volcanic Action, we will pay 

for the loss or damage caused by that 

fire, building glass breakage or Volcanic 

Action. 

Volcanic Action means direct loss or 

damage resulting from the eruption of a 

volcano when the loss or damage is 

caused by: 

 (a) Airborne volcanic blast or airborne 

shock waves; 

 (b) Ash, dust or particulate matter; or 

 (c) Lava flow. 

With respect to coverage for Volcanic 

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

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

within any 168-hour period will constitute 

a single occurrence. 

Volcanic Action does not include the 

cost to remove ash, dust or particulate 

matter that does not cause direct 

physical loss or damage to the 

described property. 

This exclusion applies regardless of 

whether any of the above, in Paragraphs 

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

nature or is otherwise caused. 

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 c. Governmental Action 

Seizure or destruction of property by order 

of governmental authority. 

But we will pay for loss or damage caused 

by or resulting from acts of destruction 

ordered by governmental authority and 

taken at the time of a fire to prevent its 

spread, if the fire would be covered under 

this Coverage Part. 

 d. Nuclear Hazard 

Nuclear reaction or radiation, or radioactive 

contamination, however caused. 

But if nuclear reaction or radiation, or 

radioactive contamination, results in fire, we 

will pay for the loss or damage caused by 

that fire. 

 e. Utility Services 

The failure of power, communication, water 

or other utility service supplied to the 

described premises, however caused, if the 

failure: 

(1) Originates away from the described 

premises; or 

(2) Originates at the described premises, 

but only if such failure involves 

equipment used to supply the utility 

service to the described premises from 

a source away from the described 

premises. 

Failure of any utility service includes lack of 

sufficient capacity and reduction in supply. 

Loss or damage caused by a surge of 

power is also excluded, if the surge would 

not have occurred but for an event causing 

a failure of power. 

But if the failure or surge of power, or the 

failure of communication, water or other 

utility service, results in a Covered Cause of 

Loss, we will pay for the loss or damage 

caused by that Covered Cause of Loss. 

Communication services include but are not 

limited to service relating to Internet access 

or access to any electronic, cellular or 

satellite network. 

 f. War And Military Action 

 (1) War, including undeclared or civil war; 

 (2) Warlike action by a military force, 

including action in hindering or 

defending against an actual or expected 

attack, by any government, sovereign or 

other authority using military personnel 

or other agents; or 

 (3) Insurrection, rebellion, revolution, 

usurped power, or action taken by 

governmental authority in hindering or 

defending against any of these. 

 g. Water 

(1) Flood, surface water, waves (including 

tidal wave and tsunami), tides, tidal 

water, overflow of any body of water, or 

spray from any of these, all whether or 

not driven by wind (including storm 

surge); 

(2) Mudslide or mudflow; 

(3) Water that backs up or overflows or is 

otherwise discharged from a sewer, 

drain, sump, sump pump or related 

equipment; 

(4) Water under the ground surface 

pressing on, or flowing or seeping 

through: 

(a) Foundations, walls, floors or paved 

surfaces; 

(b) Basements, whether paved or not; or 

(c) Doors, windows or other openings; 

or 

(5) Waterborne material carried or 

otherwise moved by any of the water 

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

or material carried or otherwise moved 

by mudslide or mudflow. 

This exclusion applies regardless of 

whether any of the above, in Paragraphs 

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

nature or is otherwise caused. An example 

of a situation to which this exclusion applies 

is the situation where a dam, levee, seawall 

or other boundary or containment system 

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

contain the water. 

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

through (5), results in fire, explosion or 

sprinkler leakage, we will pay for the loss or 

damage caused by that fire, explosion or 

sprinkler leakage (if sprinkler leakage is a 

Covered Cause of Loss). 

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

Bacteria 

Presence, growth, proliferation, spread or 

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

bacteria. 

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

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

pay for the loss or damage caused by that 

"specified cause of loss". 

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This exclusion does not apply: 

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

result from fire or lightning; or 

 (2) To the extent that coverage is provided 

in the Additional Coverage, Limited 

Coverage For "Fungus", Wet Rot, Dry 

Rot And Bacteria, with respect to loss or 

damage by a cause of loss other than 

fire or lightning. 

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

or not the loss event results in widespread 

damage or affects a substantial area. 

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

or resulting from any of the following: 

 a. Artificially generated electrical, magnetic or 

electromagnetic energy that damages, 

disturbs, disrupts or otherwise interferes 

with any: 

 (1) Electrical or electronic wire, device, 

appliance, system or network; or 

 (2) Device, appliance, system or network 

utilizing cellular or satellite technology. 

For the purpose of this exclusion, electrical, 

magnetic or electromagnetic energy 

includes but is not limited to: 

 (a) Electrical current, including arcing; 

 (b) Electrical charge produced or 

conducted by a magnetic or 

electromagnetic field; 

 (c) Pulse of electromagnetic energy; or 

 (d) Electromagnetic waves or 

microwaves. 

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

damage caused by that fire. 

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

 c. Smoke, vapor or gas from agricultural 

smudging or industrial operations. 

 d.(1) Wear and tear; 

 (2) Rust or other corrosion, decay, 

deterioration, hidden or latent defect or 

any quality in property that causes it to 

damage or destroy itself; 

 (3) Smog; 

 (4) Settling, cracking, shrinking or 

expansion; 

 (5) Nesting or infestation, or discharge or 

release of waste products or secretions, 

by insects, birds, rodents or other 

animals. 

 (6) Mechanical breakdown, including 

rupture or bursting caused by centrifugal 

force. But if mechanical breakdown 

results in elevator collision, we will pay 

for the loss or damage caused by that 

elevator collision. 

 (7) The following causes of loss to personal 

property: 

 (a) Dampness or dryness of 

atmosphere; 

 (b) Changes in or extremes of 

temperature; or 

 (c) Marring or scratching. 

But if an excluded cause of loss that is 

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

"specified cause of loss" or building glass 

breakage, we will pay for the loss or 

damage caused by that "specified cause of 

loss" or building glass breakage. 

 e. Explosion of steam boilers, steam pipes, 

steam engines or steam turbines owned or 

leased by you, or operated under your 

control. But if explosion of steam boilers, 

steam pipes, steam engines or steam 

turbines results in fire or combustion 

explosion, we will pay for the loss or 

damage caused by that fire or combustion 

explosion. We will also pay for loss or 

damage caused by or resulting from the 

explosion of gases or fuel within the furnace 

of any fired vessel or within the flues or 

passages through which the gases of 

combustion pass. 

f. Continuous or repeated seepage or 

leakage of water, or the presence or 

condensation of humidity, moisture or 

vapor, that occurs over a period of 14 days 

or more. 

 g. Water, other liquids, powder or molten 

material that leaks or flows from plumbing, 

heating, air conditioning or other equipment 

(except fire protective systems) caused by 

or resulting from freezing, unless: 

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

building or structure; or 

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 (2) You drain the equipment and shut off 

the supply if the heat is not maintained. 

 h. Dishonest or criminal act (including theft) by 

you, any of your partners, members, 

officers, managers, employees (including 

temporary employees and leased workers), 

directors, trustees or authorized 

representatives, whether acting alone or in 

collusion with each other or with any other 

party; or theft by any person to whom you 

entrust the property for any purpose, 

whether acting alone or in collusion with 

any other party. 

This exclusion: 

 (1) Applies whether or not an act occurs 

during your normal hours of operation; 

(2) Does not apply to acts of destruction by 

your employees (including temporary 

employees and leased workers) or 

authorized representatives; but theft by 

your employees (including temporary 

employees and leased workers) or 

authorized representatives is not 

covered. 

 i. Voluntary parting with any property by you 

or anyone else to whom you have entrusted 

the property if induced to do so by any 

fraudulent scheme, trick, device or false 

pretense. 

 j. Rain, snow, ice or sleet to personal 

property in the open. 

 k. Collapse, including any of the following 

conditions of property or any part of the 

property: 

(1) An abrupt falling down or caving in; 

(2) Loss of structural integrity, including 

separation of parts of the property or 

property in danger of falling down or 

caving in; or 

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

leaning, settling, shrinkage or expansion 

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

above.

But if collapse results in a Covered Cause 

of Loss at the described premises, we will 

pay for the loss or damage caused by that 

Covered Cause of Loss. 

This exclusion, k., does not apply: 

 (a) To the extent that coverage is 

provided under the Additional 

Coverage, Collapse; or 

(b) To collapse caused by one or more 

of the following: 

 (i) The "specified causes of loss"; 

(ii) Breakage of building glass; 

(iii) Weight of rain that collects on a 

roof; or 

 (iv) Weight of people or personal 

property. 

 l. Discharge, dispersal, seepage, migration, 

release or escape of "pollutants" unless the 

discharge, dispersal, seepage, migration, 

release or escape is itself caused by any of 

the "specified causes of loss". But if the 

discharge, dispersal, seepage, migration, 

release or escape of "pollutants" results in a 

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

loss or damage caused by that "specified 

cause of loss". 

This exclusion, I., does not apply to 

damage to glass caused by chemicals 

applied to the glass. 

m. Neglect of an insured to use all reasonable 

means to save and preserve property from 

further damage at and after the time of loss. 

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

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

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

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

Covered Cause of Loss, we will pay for the 

loss or damage caused by that Covered Cause 

of Loss. 

 a. Weather conditions. But this exclusion only 

applies if weather conditions contribute in 

any way with a cause or event excluded in 

Paragraph 1. above to produce the loss or 

damage. 

 b. Acts or decisions, including the failure to act 

or decide, of any person, group, 

organization or governmental body. 

 c. Faulty, inadequate or defective: 

 (1) Planning, zoning, development, 

surveying, siting; 

 (2) Design, specifications, workmanship, 

repair, construction, renovation, 

remodeling, grading, compaction; 

 (3) Materials used in repair, construction, 

renovation or remodeling; or 

 (4) Maintenance; 

of part or all of any property on or off the 

described premises. 

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 4. Special Exclusions 

The following provisions apply only to the 

specified Coverage Forms: 

 a. Business Income (And Extra Expense) 

Coverage Form, Business Income 

(Without Extra Expense) Coverage Form, 

Or Extra Expense Coverage Form

We will not pay for: 

 (1) Any loss caused by or resulting from: 

 (a) Damage or destruction of "finished 

stock"; or 

 (b) The time required to reproduce 

"finished stock". 

This exclusion does not apply to Extra 

Expense. 

(2) Any loss caused by or resulting from 

direct physical loss or damage to radio 

or television antennas (including satellite 

dishes) and their lead-in wiring, masts or 

towers. 

 (3) Any increase of loss caused by or 

resulting from: 

 (a) Delay in rebuilding, repairing or 

replacing the property or resuming 

"operations", due to interference at 

the location of the rebuilding, repair 

or replacement by strikers or other 

persons; or 

 (b) Suspension, lapse or cancellation of 

any license, lease or contract. But if 

the suspension, lapse or cancellation 

is directly caused by the 

"suspension" of "operations", we will 

cover such loss that affects your 

Business Income during the "period 

of restoration" and any extension of 

the "period of restoration" in 

accordance with the terms of the 

Extended Business Income 

Additional Coverage and the 

Extended Period Of Indemnity 

Optional Coverage or any variation 

of these. 

 (4) Any Extra Expense caused by or 

resulting from suspension, lapse or 

cancellation of any license, lease or 

contract beyond the "period of 

restoration". 

 (5) Any other consequential loss. 

 b. Leasehold Interest Coverage Form 

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

does not apply to insurance under this 

Coverage Form. 

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

 (a) Your cancelling the lease; 

 (b) The suspension, lapse or 

cancellation of any license; or 

 (c) Any other consequential loss. 

 c. Legal Liability Coverage Form 

 (1) The following exclusions do not apply to 

insurance under this Coverage Form: 

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

 (b) Paragraph B.1.c. Governmental 

Action; 

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

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

and 

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

Action. 

(2) The following additional exclusions 

apply to insurance under this Coverage 

Form: 

 (a) Contractual Liability 

We will not defend any claim or 

"suit", or pay damages that you are 

legally liable to pay, solely by reason 

of your assumption of liability in a 

contract or agreement. But this 

exclusion does not apply to a written 

lease agreement in which you have 

assumed liability for building damage 

resulting from an actual or attempted 

burglary or robbery, provided that: 

 (i) Your assumption of liability was 

executed prior to the accident; 

and 

 (ii) The building is Covered Property 

under this Coverage Form. 

(b) Nuclear Hazard 

We will not defend any claim or 

"suit", or pay any damages, loss, 

expense or obligation, resulting from 

nuclear reaction or radiation, or 

radioactive contamination, however 

caused. 

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 5. Additional Exclusion 

The following provisions apply only to the 

specified property: 

Loss Or Damage To Products 

We will not pay for loss or damage to any 

merchandise, goods or other product caused 

by or resulting from error or omission by any 

person or entity (including those having 

possession under an arrangement where work 

or a portion of the work is outsourced) in any 

stage of the development, production or use of 

the product, including planning, testing, 

processing, packaging, installation, 

maintenance or repair. This exclusion applies 

to any effect that compromises the form, 

substance or quality of the product. But if such 

error or omission results in a Covered Cause of 

Loss, we will pay for the loss or damage 

caused by that Covered Cause of Loss. 

C. Limitations 

The following limitations apply to all policy forms 

and endorsements, unless otherwise stated: 

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

property, as described and limited in this 

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

that is a consequence of loss or damage as 

described and limited in this section. 

 a. Steam boilers, steam pipes, steam engines 

or steam turbines caused by or resulting 

from any condition or event inside such 

equipment. But we will pay for loss of or 

damage to such equipment caused by or 

resulting from an explosion of gases or fuel 

within the furnace of any fired vessel or 

within the flues or passages through which 

the gases of combustion pass. 

 b. Hot water boilers or other water heating 

equipment caused by or resulting from any 

condition or event inside such boilers or 

equipment, other than an explosion. 

c. The interior of any building or structure, or 

to personal property in the building or 

structure, caused by or resulting from rain, 

snow, sleet, ice, sand or dust, whether 

driven by wind or not, unless: 

 (1) The building or structure first sustains 

damage by a Covered Cause of Loss to 

its roof or walls through which the rain, 

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

 (2) The loss or damage is caused by or 

results from thawing of snow, sleet or 

ice on the building or structure. 

 d. Building materials and supplies not 

attached as part of the building or structure, 

caused by or resulting from theft. 

However, this limitation does not apply to: 

 (1) Building materials and supplies held for 

sale by you, unless they are insured 

under the Builders Risk Coverage Form; 

or 

(2) Business Income Coverage or Extra 

Expense Coverage. 

 e. Property that is missing, where the only 

evidence of the loss or damage is a 

shortage disclosed on taking inventory, or 

other instances where there is no physical 

evidence to show what happened to the 

property. 

 f. Property that has been transferred to a 

person or to a place outside the described 

premises on the basis of unauthorized 

instructions. 

 g. Lawns, trees, shrubs or plants which are 

part of a vegetated roof, caused by or 

resulting from: 

 (1) Dampness or dryness of atmosphere or 

of soil supporting the vegetation;

 (2) Changes in or extremes of temperature;

 (3) Disease;

 (4) Frost or hail; or 

 (5) Rain, snow, ice or sleet.

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

following types of property unless caused by 

the "specified causes of loss" or building glass 

breakage: 

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

their destruction is made necessary. 

 b. Fragile articles such as statuary, marbles, 

chinaware and porcelains, if broken. This 

restriction does not apply to: 

 (1) Glass; or 

 (2) Containers of property held for sale. 

 c. Builders' machinery, tools and equipment 

owned by you or entrusted to you, provided 

such property is Covered Property. 

However, this limitation does not apply: 

 (1) If the property is located on or within 

100 feet of the described premises, 

unless the premises is insured under the 

Builders Risk Coverage Form; or 

 (2) To Business Income Coverage or to 

Extra Expense Coverage. 

38

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

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

damage to all property in that category. The 

special limit applies to any one occurrence of 

theft, regardless of the types or number of 

articles that are lost or damaged in that 

occurrence. The special limits are (unless a 

higher limit is shown in the Declarations): 

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

trimmed with fur. 

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

movements, jewels, pearls, precious and 

semiprecious stones, bullion, gold, silver, 

platinum and other precious alloys or 

metals. This limit does not apply to jewelry 

and watches worth $100 or less per item. 

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

d. $250 for stamps, tickets, including lottery 

tickets held for sale, and letters of credit. 

These special limits are part of, not in addition 

to, the Limit of Insurance applicable to the 

Covered Property. 

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

Business Income Coverage or to Extra 

Expense Coverage. 

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

a system or appliance from which water, other 

liquid, powder or molten material escapes. But 

we will pay the cost to repair or replace 

damaged parts of fire-extinguishing equipment 

if the damage: 

 a. Results in discharge of any substance from 

an automatic fire protection system; or 

 b. Is directly caused by freezing. 

However, this limitation does not apply to 

Business Income Coverage or to Extra 

Expense Coverage. 

D. Additional Coverage – Collapse 

The coverage provided under this Additional 

Coverage, Collapse, applies only to an abrupt 

collapse as described and limited in D.1. through 

D.7. 

 1. For the purpose of this Additional Coverage, 

Collapse, abrupt collapse means an abrupt 

falling down or caving in of a building or any 

part of a building with the result that the 

building or part of the building cannot be 

occupied for its intended purpose. 

2. We will pay for direct physical loss or damage 

to Covered Property, caused by abrupt 

collapse of a building or any part of a building 

that is insured under this Coverage Form or 

that contains Covered Property insured under 

this Coverage Form, if such collapse is caused 

by one or more of the following: 

a. Building decay that is hidden from view, 

unless the presence of such decay is 

known to an insured prior to collapse; 

b. Insect or vermin damage that is hidden 

from view, unless the presence of such 

damage is known to an insured prior to 

collapse; 

 c. Use of defective material or methods in 

construction, remodeling or renovation if the 

abrupt collapse occurs during the course of 

the construction, remodeling or renovation. 

d. Use of defective material or methods in 

construction, remodeling or renovation if the 

abrupt collapse occurs after the 

construction, remodeling or renovation is 

complete, but only if the collapse is caused 

in part by: 

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

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

loss"; 

 (3) Breakage of building glass; 

 (4) Weight of people or personal property; 

or 

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

 3. This Additional Coverage – Collapse does 

not apply to: 

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

danger of falling down or caving in; 

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

it has separated from another part of the 

building; or 

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

building that is standing, even if it shows 

evidence of cracking, bulging, sagging, 

bending, leaning, settling, shrinkage or 

expansion. 

 4. With respect to the following property: 

 a. Outdoor radio or television antennas 

(including satellite dishes) and their lead-in 

wiring, masts or towers; 

39

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 b. Awnings, gutters and downspouts; 

 c. Yard fixtures; 

 d. Outdoor swimming pools; 

 e. Fences; 

 f. Piers, wharves and docks; 

 g. Beach or diving platforms or 

appurtenances; 

 h. Retaining walls; and 

 i. Walks, roadways and other paved surfaces; 

if an abrupt collapse is caused by a cause of 

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

loss or damage to that property only if: 

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

the abrupt collapse of a building insured 

under this Coverage Form; and 

 (2) The property is Covered Property under 

this Coverage Form. 

 5. If personal property abruptly falls down or 

caves in and such collapse is not the result of 

abrupt collapse of a building, we will pay for 

loss or damage to Covered Property caused by 

such collapse of personal property only if: 

 a. The collapse of personal property was 

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

through 2.d.;

b. The personal property which collapses is 

inside a building; and 

c. The property which collapses is not of a 

kind listed in 4., regardless of whether that 

kind of property is considered to be 

personal property or real property. 

The coverage stated in this Paragraph 5. does 

not apply to personal property if marring and/or 

scratching is the only damage to that personal 

property caused by the collapse. 

 6. This Additional Coverage, Collapse, does not 

apply to personal property that has not abruptly 

fallen down or caved in, even if the personal 

property shows evidence of cracking, bulging, 

sagging, bending, leaning, settling, shrinkage 

or expansion. 

 7. This Additional Coverage, Collapse, will not 

increase the Limits of Insurance provided in 

this Coverage Part. 

8. The term Covered Cause of Loss includes the 

Additional Coverage, Collapse, as described 

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

E. Additional Coverage – Limited Coverage For 

"Fungus", Wet Rot, Dry Rot And Bacteria 

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

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

bacteria are the result of one or more of the 

following causes that occur during the policy 

period and only if all reasonable means were 

used to save and preserve the property from 

further damage at the time of and after that 

occurrence: 

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

lightning; or 

 b. Flood, if the Flood Coverage Endorsement 

applies to the affected premises. 

This Additional Coverage does not apply to 

lawns, trees, shrubs or plants which are part of 

a vegetated roof. 

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

wet or dry rot or bacteria. As used in this 

Limited Coverage, the term loss or damage 

means: 

 a. Direct physical loss or damage to Covered 

Property caused by "fungus", wet or dry rot 

or bacteria, including the cost of removal of 

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

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

the building or other property as needed to 

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

or bacteria; and 

c. The cost of testing performed after removal, 

repair, replacement or restoration of the 

damaged property is completed, provided 

there is a reason to believe that "fungus", 

wet or dry rot or bacteria are present. 

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

Limited Coverage is limited to $15,000. 

Regardless of the number of claims, this limit is 

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

damage arising out of all occurrences of 

"specified causes of loss" (other than fire or 

lightning) and Flood which take place in a 12-

month period (starting with the beginning of the 

present annual policy period). With respect to a 

particular occurrence of loss which results in 

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

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

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

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

period. 

40

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

 4. The coverage provided under this Limited 

Coverage does not increase the applicable 

Limit of Insurance on any Covered Property. If 

a particular occurrence results in loss or 

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

and other loss or damage, we will not pay 

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

the applicable Limit of Insurance on the 

affected Covered Property. 

If there is covered loss or damage to Covered 

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

or bacteria, loss payment will not be limited by 

the terms of this Limited Coverage, except to 

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

bacteria cause an increase in the loss. Any 

such increase in the loss will be subject to the 

terms of this Limited Coverage. 

 5. The terms of this Limited Coverage do not 

increase or reduce the coverage provided 

under Paragraph F.2. (Water Damage, Other 

Liquids, Powder Or Molten Material Damage) 

of this Causes Of Loss form or under the 

Additional Coverage, Collapse. 

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

Business Income and/or Extra Expense 

Coverage applies to the described premises 

and only if the "suspension" of "operations" 

satisfies all terms and conditions of the 

applicable Business Income and/or Extra 

Expense Coverage Form: 

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

dry rot or bacteria does not in itself 

necessitate a "suspension" of "operations", 

but such "suspension" is necessary due to 

loss or damage to property caused by 

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

payment under Business Income and/or 

Extra Expense is limited to the amount of 

loss and/or expense sustained in a period 

of not more than 30 days. The days need 

not be consecutive. 

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

was caused by loss or damage other than 

"fungus", wet or dry rot or bacteria but 

remediation of "fungus", wet or dry rot or 

bacteria prolongs the "period of restoration", 

we will pay for loss and/or expense 

sustained during the delay (regardless of 

when such a delay occurs during the 

"period of restoration"), but such coverage 

is limited to 30 days. The days need not be 

consecutive. 

F. Additional Coverage Extensions 

 1. Property In Transit

This Extension applies only to your personal 

property to which this form applies. 

 a. You may extend the insurance provided by 

this Coverage Part to apply to your 

personal property (other than property in 

the care, custody or control of your 

salespersons) in transit more than 100 feet 

from the described premises. Property must 

be in or on a motor vehicle you own, lease 

or operate while between points in the 

coverage territory. 

b. Loss or damage must be caused by or 

result from one of the following causes of 

loss: 

 (1) Fire, lightning, explosion, windstorm or 

hail, riot or civil commotion, or 

vandalism. 

 (2) Vehicle collision, upset or overturn. 

Collision means accidental contact of 

your vehicle with another vehicle or 

object. It does not mean your vehicle's 

contact with the roadbed. 

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

by forced entry into a securely locked 

body or compartment of the vehicle. 

There must be visible marks of the 

forced entry. 

 c. The most we will pay for loss or damage 

under this Extension is $5,000. 

This Coverage Extension is additional 

insurance. The Additional Condition, 

Coinsurance, does not apply to this Extension. 

 2. Water Damage, Other Liquids, Powder Or 

Molten Material Damage 

If loss or damage caused by or resulting from 

covered water or other liquid, powder or molten 

material damage loss occurs, we will also pay 

the cost to tear out and replace any part of the 

building or structure to repair damage to the 

system or appliance from which the water or 

other substance escapes. This Coverage 

Extension does not increase the Limit of 

Insurance. 

 3. Glass 

 a. We will pay for expenses incurred to put up 

temporary plates or board up openings if 

repair or replacement of damaged glass is 

delayed. 

41

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

b. We will pay for expenses incurred to 

remove or replace obstructions when 

repairing or replacing glass that is part of a 

building. This does not include removing or 

replacing window displays. 

This Coverage Extension F.3. does not 

increase the Limit of Insurance. 

G. Definitions 

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

including mold or mildew, and any mycotoxins, 

spores, scents or by-products produced or 

released by fungi. 

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

fire; lightning; explosion; windstorm or hail; 

smoke; aircraft or vehicles; riot or civil 

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

volcanic action; falling objects; weight of snow, 

ice or sleet; water damage. 

 a. Sinkhole collapse means the sudden 

sinking or collapse of land into underground 

empty spaces created by the action of 

water on limestone or dolomite. This cause 

of loss does not include: 

 (1) The cost of filling sinkholes; or 

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

 b. Falling objects does not include loss or 

damage to: 

 (1) Personal property in the open; or

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

property inside a building or structure, 

unless the roof or an outside wall of the 

building or structure is first damaged by 

a falling object. 

 c. Water damage means: 

 (1) Accidental discharge or leakage of 

water or steam as the direct result of the 

breaking apart or cracking of a 

plumbing, heating, air conditioning or 

other system or appliance (other than a 

sump system including its related 

equipment and parts), that is located on 

the described premises and contains 

water or steam; and

 (2) Accidental discharge or leakage of 

water or waterborne material as the 

direct result of the breaking apart or 

cracking of a water or sewer pipe that is 

located off the described premises and 

is part of a municipal potable water 

supply system or municipal sanitary 

sewer system, if the breakage or 

cracking is caused by wear and tear. 

But water damage does not include loss or 

damage otherwise excluded under the 

terms of the Water Exclusion. Therefore, for 

example, there is no coverage under this 

policy in the situation in which discharge or 

leakage of water results from the breaking 

apart or cracking of a pipe which was 

caused by or related to weather-induced 

flooding, even if wear and tear 

contributed to the breakage or cracking. As 

another example, and also in accordance 

with the terms of the Water Exclusion, there 

is no coverage for loss or damage caused 

by or related to weather-induced flooding 

which follows or is exacerbated by pipe 

breakage or cracking attributable to wear 

and tear. 

To the extent that accidental discharge or 

leakage of water falls within the criteria set 

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

"specified causes of loss," such water is not 

subject to the provisions of the Water 

Exclusion which preclude coverage for 

surface water or water under the surface of 

the ground. 

42

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COMMERCIAL PROPERTY

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CP 02 99 11 85 Copyright, ISO Commercial Risk Services, Inc., 1984 Page 1 of 1 

CANCELLATION CHANGES 

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

The following is added to the CANCELLATION Common Policy Condition: 

If any one of the following conditions exists at any 

building that is Covered Property in this policy, we 

may cancel this Coverage Part by mailing or delivering to the first Named Insured written notice of cancellation at least 5 days before the effective date of cancellation. 

A. The building has been vacant or unoccupied 60 or 

more consecutive days. This does not apply to: 

 1. Seasonal unoccupancy; 

 2. Buildings in the course of construction, renovation or addition; or 

 3. Buildings to which the Vacancy Permit endorsement applies. 

Buildings with 65% or more of the rental units or 

floor area vacant or unoccupied are considered 

unoccupied under this provision. 

B. After damage by a covered cause of loss, permanent repairs to the building: 

 1. Have not started, and 

 2. Have not been contracted for, 

within 30 days of initial payment of loss. 

C. The building has: 

 1. An outstanding order to vacate; 

 2. An outstanding demolition order; 

 3. Been declared unsafe by governmental authority. 

D. 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. 

E. Failure to: 

 1. Furnish necessary heat, water, sewer service 

or electricity for 30 consecutive days or more, 

except during a period of seasonal unoccupancy; or 

 2. 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. 

43

Case: 1:20-cv-04249 Document #: 1-1 Filed: 07/20/20 Page 44 of 92 PageID #:62
COMMERCIAL PROPERTY

CP 00 90 07 88 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 Page 1 of 2 o

COMMERCIAL PROPERTY CONDITIONS

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

Conditions and Additional Conditions in Commercial Property Coverage Forms. 

A. CONCEALMENT, MISREPRESENTATION OR

FRAUD 

This Coverage Part is void in any case of fraud by

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

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

time, intentionally conceal or misrepresent a

material fact concerning: 

1. This Coverage Part; 

2. The Covered Property; 

3. Your interest in the Covered Property; or 

4. A claim under this Coverage Part. 

B. CONTROL OF PROPERTY 

Any act or neglect of any person other than you

beyond your direction or control will not affect this

insurance. 

The breach of any condition of this Coverage Part

at any one or more locations will not affect

coverage at any location where, at the time of loss

or damage, the breach of condition does not exist. 

C. INSURANCE UNDER TWO OR MORE

COVERAGES 

If two or more of this policy's coverages apply to

the same loss or damage, we will not pay more

than the actual amount of the loss or damage. 

D. LEGAL ACTION AGAINST US 

No one may bring a legal action against us under

this Coverage Part unless: 

1. There has been full compliance with all of the

terms of this Coverage Part; and 

2. The action is brought within 2 years after the

date on which the direct physical loss or

damage occurred. 

E. LIBERALIZATION 

If we adopt any revision that would broaden the

coverage under this Coverage Part without

additional premium within 45 days prior to or

during the policy period, the broadened coverage

will immediately apply to this Coverage Part. 

F. NO BENEFIT TO BAILEE 

No person or organization, other than you, having

custody of Covered Property will benefit from this

insurance. 

G. OTHER INSURANCE 

1. You may have other insurance subject to the

same plan, terms, conditions and provisions as

the insurance under this Coverage Part. If you

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

damage. Our share is the proportion that the

applicable Limit of Insurance under this

Coverage Part bears to the Limits of Insurance

of all insurance covering on the same basis. 

2. If there is other insurance covering the same

loss or damage, other than that described in 1.

above, we will pay only for the amount of

covered loss or damage in excess of the

amount due from that other insurance, whether

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

more than the applicable Limit of Insurance. 

H. POLICY PERIOD, COVERAGE TERRITORY 

Under this Coverage Part: 

1. We cover loss or damage commencing: 

a. During the policy period shown in the

Declarations; and 

b. Within the coverage territory. 

2. The coverage territory is: 

a. The United States of America (including its

territories and possessions); 

b. Puerto Rico; and 

c. Canada. 

44

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Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 CP 00 90 07 88 o

I. TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US 

If any person or organization to or for whom we

make payment under this Coverage Part has

rights to recover damages from another, those

rights are transferred to us to the extent of our

payment. That person or organization must do

everything necessary to secure our rights and

must do nothing after loss to impair them. But you

may waive your rights against another party in

writing: 

1. Prior to a loss to your Covered Property or

Covered Income. 

2. After a loss to your Covered Property or

Covered Income only if, at time of loss, that

party is one of the following: 

a. Someone insured by this insurance; 

b. A business firm: 

(1) Owned or controlled by you; or 

(2) That owns or controls you; or 

c. Your tenant. 

This will not restrict your insurance. 

45

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IL 00 17 11 98

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

COMMON POLICY CONDITIONS

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

A. Cancellation

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

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

of cancellation at least:

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

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

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

Named Insured's last mailing address known to

us.

4. Notice of cancellation will state the effective

date of cancellation. The policy period will end

on that date.

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

Named Insured any premium refund due. If we

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

Named Insured cancels, the refund may be

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

refund.

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

B. Changes

This policy contains all the agreements between

you and us concerning the insurance afforded.

The first Named Insured shown in the Declarations is authorized to make changes in the terms

of this policy with our consent. This policy's terms

can be amended or waived only by endorsement

issued by us and made a part of this policy.

C. Examination Of Your Books And Records

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

the policy period and up to three years afterward.

D. Inspections And Surveys

1. We have the right to:

a. Make inspections and surveys at any time;

b. Give you reports on the conditions we find;

and

c. Recommend changes.

2. We are not obligated to make any inspections,

surveys, reports or recommendations and any

such actions we do undertake relate only to insurability and the premiums to be charged. We

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

organization to provide for the health or safety

of workers or the public. And we do not warrant

that conditions:

a. Are safe or healthful; or

b. Comply with laws, regulations, codes or

standards.

3. Paragraphs 1. and 2. of this condition apply

not only to us, but also to any rating, advisory,

rate service or similar organization which

makes insurance inspections, surveys, reports

or recommendations.

4. Paragraph 2. of this condition does not apply

to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators.

E. Premiums

The first Named Insured shown in the Declarations:

1. Is responsible for the payment of all premiums;

and

2. Will be the payee for any return premiums we

pay.

F. Transfer Of Your Rights And Duties Under

This Policy

Your rights and duties under this policy may not

be transferred without our written consent except

in the case of death of an individual named insured.

If you die, your rights and duties will be transferred to your legal representative but only while

acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody

of your property will have your rights and duties

but only with respect to that property.

46

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IL 09 35 07 02

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 09 35 07 02 © ISO Properties, Inc., 2001 Page 1 of 1 

EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES

This endorsement modifies insurance provided under the following:

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

STANDARD PROPERTY POLICY

A. We will not pay for loss ("loss") or damage caused

directly or indirectly by the following. Such loss

("loss") or damage is excluded regardless of any

other cause or event that contributes concurrently

or in any sequence to the loss ("loss") or damage.

1. The failure, malfunction or inadequacy of:

a. Any of the following, whether belonging to

any insured or to others:

(1) Computer hardware, including microprocessors;

(2) Computer application software;

(3) Computer operating systems and related

software;

(4) Computer networks;

(5) Microprocessors (computer chips) not

part of any computer system; or

(6) 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.1.a. of this endorsement;

due to the inability to correctly recognize, process, 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 A.1. of this endorsement.

B. If an excluded Cause of Loss as described in

Paragraph A. of this endorsement results:

1. In a Covered Cause of Loss under the Crime

and Fidelity Coverage Part, the Commercial

Inland Marine Coverage Part or the Standard

Property Policy; or

2. Under the Commercial Property Coverage Part:

a. In a "Specified Cause of Loss", or in elevator collision resulting from mechanical

breakdown, under the Causes of Loss ñ

Special Form; or

b. In a Covered Cause of Loss under the

Causes Of Loss ñ Basic Form or the

Causes Of Loss ñ Broad Form;

we will pay only for the loss ("loss") or damage

caused by such "Specified Cause of Loss", elevator collision, or Covered Cause of Loss.

C. We will not pay for repair, replacement or modification of any items in Paragraphs A.1.a. and

A.1.b. of this endorsement to correct any deficiencies or change any features.

47

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IL 01 18 03 99

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 01 18 03 99 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 2 

ILLINOIS CHANGES

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART

FARM COVERAGE PART

STANDARD PROPERTY POLICY

A. When this endorsement is attached to Standard 

Property Policy CP 00 99, the terms Coverage Part 

and Coverage Form in this endorsement are 

replaced by the term Policy.

B. The following is added to the Legal Action 

Against Us Condition:

The 2 year period for legal action against us is 

extended by the number of days between the date 

the proof of loss is filed with us and the date we 

deny the claim in whole or in part.

C. If this policy covers:

1. The following in a. and b., then Paragraphs 2.

and 3. apply:

a. Real property used principally for residential 

purposes up to and including a four family 

dwelling; or

b. Household or personal property that is

usual or incidental to the occupancy of any 

premises used for residential purposes.

2. The second paragraph of the Appraisal

Condition is deleted and replaced by the 

following:

a. Each party will pay its own appraiser and 

bear the other expenses of the appraisal 

and umpire equally, except as provided in b.

below.

b. We will pay your appraiser's fee and the 

umpire's appraisal fee, if the following 

conditions exist:

(1) You demanded the appraisal; and

(2) The full amount of loss, as set by your 

appraiser, is agreed to by our appraiser 

or by the umpire.

3. The Concealment, Misrepresentation Or 

Fraud Condition is replaced by the following:

CONCEALMENT, MISREPRESENTATION 

OR FRAUD

a. This Coverage Part or Coverage Form is 

void if you or any insured ("insured") commit 

fraud or conceal or misrepresent a fact in 

the process leading to the issuance of this 

insurance, and such fraud, concealment or 

misrepresentation is stated in the policy or 

endorsement or in the written application for 

this policy and:

(1) Was made with actual intent to deceive; 

or

(2) Materially affected either our decision to 

provide this insurance or the hazard we 

assumed.

However, this condition will not serve as a 

reason to void this Coverage Part or 

Coverage Form after the Coverage Part or 

Coverage Form has been in effect for one 

year or one policy term, whichever is less.

b. This Coverage Part or Coverage Form is 

void if you or any other insured ("insured"), 

at any time subsequent to the issuance of 

this insurance, commit fraud or intentionally 

conceal or misrepresent a material fact 

relating to:

(1) This Coverage Part or Coverage Form;

(2) The Covered Property;

(3) Your interest in the Covered Property; or

(4) A claim under this Coverage Part or 

Coverage Form.

c. Notwithstanding the limitations stated in 3.a.

above, we may cancel the Coverage Part or 

Coverage Form in accordance with the 

terms of the Cancellation Condition.

48

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Page 2 of 2 Copyright, Insurance Services Office, Inc., 1998 IL 01 18 03 99 

D. For the Commercial Property Coverage Part and

the Standard Property Policy, the following 

exclusion and related provisions are added to 

Paragraph B.2. Exclusions in the Causes of Loss 

Forms and to any Coverage Form or policy to 

which a Causes of Loss Form is not attached:

1. We will not pay for loss or damage arising out

of any act committed:

a. By or at the direction of any insured; and

b. With the intent to cause a loss.

2. However, this exclusion will not apply to deny 

payment to an innocent co-insured who did not 

cooperate in or contribute to the creation of the 

loss if:

a. The loss arose out of a pattern of criminal 

domestic violence; and

b. The perpetrator of the loss is criminally 

prosecuted for the act causing the loss.

3. If we pay a claim pursuant to Paragraph D.2.,

our payment to the insured is limited to that 

insured's insurable interest in the property less 

any payments we first made to a mortgagee or 

other party with a legal secured interest in the 

property. In no event will we pay more than the 

Limit of Insurance.

E. The Intentional Loss Exclusion in the Causes of 

Loss Form – Farm Property, Mobile Agricultural 

Machinery And Equipment Coverage Form and 

Livestock Coverage Form is replaced by the 

following:

1. We will not pay for loss ("loss") or damage 

arising out of any act committed:

a. By or at the direction of any "insured"; and

b. With the intent to cause a loss ("loss").

2. This exclusion, however, will not apply to deny 

payment to an innocent co-"insured" who did 

not cooperate in or contribute to the creation of 

the loss ("loss") if:

a. The loss ("loss") arose out of a pattern of 

criminal domestic violence; and

b. The perpetrator of the loss ("loss") is 

criminally prosecuted for the act causing the 

loss.

3. If we pay a claim pursuant to Paragraph E.2.,

our payment to the "insured" is limited to that 

"insured's" insurable interest in the property 

less any payments we first made to a 

mortgagee or other party with a legal secured 

interest in the property. In no event will we pay 

more than the Limit of Insurance.

49

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INTERLINE

IL 04 15 04 98

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 04 15 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 

 PROTECTIVE SAFEGUARDS

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PART

FARM COVERAGE PART 

SCHEDULE*

Prem.

No.

Bldg.

No.

Protective Safeguards 

Symbols Applicable 

All All P-1

All All P-9

Describe any "P-9": Ansul System w/ Semi-Annual Cleaning Contract

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

Declarations.

A. The following is added to the:

Commercial Property Conditions

General Conditions in the 

Farm Property – Other Farm 

Provisions Form – Additional Coverages,

Conditions, Definitions

General Conditions in the Mobile Agricultural

Machinery and Equipment Coverage Form

General Conditions in the Livestock Coverage

Form 

PROTECTIVE SAFEGUARDS 

1. As a condition of this insurance, you are 

required to maintain the protective devices 

or services listed in the Schedule above. 

2. The protective safeguards to which this 

endorsement applies are identified by the 

following symbols: 

"P-1" Automatic Sprinkler System, 

including related supervisory 

services. 

Automatic Sprinkler System means: 

a. Any automatic fire protective or 

extinguishing system, including 

connected: 

(1) Sprinklers and discharge nozzles; 

(2) Ducts, pipes, valves and fittings; 

(3) Tanks, their component parts and 

supports; and 

(4) Pumps and private fire protection 

mains. 

b. When supplied from an automatic 

fire protective system: 

(1) Non-automatic fire protective 

systems; and 

(2) Hydrants, standpipes and outlets.

"P-2" Automatic Fire Alarm, protecting 

the entire building, that is: 

a. Connected to a central station; or 

b. Reporting to a public or private fire 

alarm station. 

"P-3" Security Service, with a recording 

system or watch clock, making hourly 

rounds covering the entire building, 

when the premises are not in actual 

operation. 

"P-4" Service Contract with a privately 

owned fire department providing fire 

protection service to the described 

premises. 

"P-9" The protective system described in 

the Schedule. 

50

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Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 04 15 04 98 

B. The following is added to the EXCLUSIONS 

section of:

CAUSES OF LOSS – BASIC FORM

CAUSES OF LOSS – BROAD FORM

CAUSES OF LOSS – SPECIAL FORM

MORTGAGE HOLDERS ERRORS AND

OMISSIONS COVERAGE FORM

STANDARD PROPERTY POLICY

CAUSES OF LOSS FORM – FARM PROPERTY

MOBILE AGRICULTURAL MACHINERY AND 

EQUIPMENT COVERAGE FORM

LIVESTOCK COVERAGE FORM

We will not pay for loss or damage caused by 

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

1. Knew of any suspension or impairment in 

any protective safeguard listed in the 

Schedule above and failed to notify us of 

that fact; or 

2. Failed to maintain any protective safeguard 

listed in the Schedule above, and over 

which you had control, in complete working 

order. 

If part of an Automatic Sprinkler System is shut

off due to breakage, leakage, freezing 

conditions or opening of sprinkler heads, 

notification to us will not be necessary if you 

can restore full protection within 48 hours. 

51

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COMMERCIAL PROPERTY

CP 04 05 10 12

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CP 04 05 10 12 © Insurance Services Office, Inc., 2011 Page 1 of 4

ORDINANCE OR LAW COVERAGE

This endorsement modifies insurance provided under the following: 

BUILDING AND PERSONAL PROPERTY COVERAGE FORM

CONDOMINIUM ASSOCIATION COVERAGE FORM

STANDARD PROPERTY POLICY 

SCHEDULE

Building Number/

Premises Number Coverage A

Coverage B

Limit

Of Insurance

Coverage C

Limit

Of Insurance

Coverage B And C 

Combined Limit 

Of Insurance 

All / All  $ 500,000 $ 500,000 $ *

/  $ $ $ *

/  $ $ $ *

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

*Do not enter a Blanket Limit of Insurance if individual Limits of Insurance are selected for Coverages B and C,

or if one of these Coverages is not applicable.

A. Each Coverage – Coverage A, Coverage B and 

Coverage C – is provided under this endorsement 

only if that Coverage(s) is chosen by entry in the 

above Schedule and then only with respect to the 

building identified for that Coverage(s) in the 

Schedule. 

B. Application Of Coverage(s)

The Coverage(s) provided by this endorsement 

applies only if both B.1. and B.2. are satisfied and 

are then subject to the qualifications set forth in 

B.3.

1. The ordinance or law:

a. Regulates the demolition, construction or 

repair of buildings, or establishes zoning or 

land use requirements at the described 

premises; and

b. Is in force at the time of loss.

But coverage under this endorsement applies only 

in response to the minimum requirements of the 

ordinance or law. Losses and costs incurred in 

complying with recommended actions or 

standards that exceed actual requirements are not 

covered under this endorsement.

2.a. The building sustains direct physical 

damage that is covered under this policy 

and as a result of such damage, you are 

required to comply with the ordinance or 

law; or

b. The building sustains both direct physical 

damage that is covered under this policy 

and direct physical damage that is not 

covered under this policy, and as a result of 

the building damage in its entirety, you are 

required to comply with the ordinance or 

law.

c. But if the building sustains direct physical 

damage that is not covered under this 

policy, and such damage is the subject of 

the ordinance or law, then there is no 

coverage under this endorsement even if 

the building has also sustained covered 

direct physical damage.

52

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Page 2 of 4 © Insurance Services Office, Inc., 2011 CP 04 05 10 12

3. In the situation described in B.2.b. above, we 

will not pay the full amount of loss otherwise 

payable under the terms of Coverages A, B,

and/or C of this endorsement. Instead, we will 

pay a proportion of such loss, meaning the 

proportion that the covered direct physical 

damage bears to the total direct physical 

damage.

(Section H. of this endorsement provides an 

example of this procedure.)

However, if the covered direct physical 

damage, alone, would have resulted in a 

requirement to comply with the ordinance or 

law, then we will pay the full amount of loss 

otherwise payable under the terms of 

Coverages A, B and/or C of this endorsement.

C. We will not pay under Coverage A, B or C of this 

endorsement for:

1. Enforcement of or compliance with any 

ordinance or law which requires the demolition, 

repair, replacement, reconstruction, remodeling 

or remediation of property due to 

contamination by "pollutants" or due to the 

presence, growth, proliferation, spread or any 

activity of "fungus", wet or dry rot or bacteria; or

2. The costs associated with the enforcement of 

or compliance with any ordinance or law which 

requires any insured or others to test for, 

monitor, clean up, remove, contain, treat, 

detoxify or neutralize, or in any way respond to, 

or assess the effects of "pollutants", "fungus", 

wet or dry rot or bacteria.

D. Coverage

1. Coverage A – Coverage For Loss To The 

Undamaged Portion Of The Building 

With respect to the building that has sustained 

covered direct physical damage, we will pay 

under Coverage A for the loss in value of the 

undamaged portion of the building as a 

consequence of a requirement to comply with 

an ordinance or law that requires demolition of 

undamaged parts of the same building.

Coverage A is included within the Limit Of 

Insurance shown in the Declarations as 

applicable to the covered building. Coverage A

does not increase the Limit of Insurance. 

2. Coverage B – Demolition Cost Coverage 

With respect to the building that has sustained 

covered direct physical damage, we will pay 

the cost to demolish and clear the site of 

undamaged parts of the same building as a 

consequence of a requirement to comply with 

an ordinance or law that requires demolition of 

such undamaged property.

The Coinsurance Additional Condition does not 

apply to Demolition Cost Coverage. 

3. Coverage C – Increased Cost Of 

Construction Coverage 

a. With respect to the building that has 

sustained covered direct physical damage, 

we will pay the increased cost to:

(1) Repair or reconstruct damaged portions 

of that building; and/or 

(2) Reconstruct or remodel undamaged 

portions of that building, whether or not 

demolition is required; 

when the increased cost is a consequence 

of a requirement to comply with the 

minimum standards of the ordinance or law.

However: 

(1) This coverage applies only if the 

restored or remodeled property is 

intended for similar occupancy as the 

current property, unless such occupancy 

is not permitted by zoning or land use 

ordinance or law. 

(2) We will not pay for the increased cost of 

construction if the building is not 

repaired, reconstructed or remodeled. 

The Coinsurance Additional Condition does 

not apply to Increased Cost of Construction 

Coverage. 

b. When a building is damaged or destroyed 

and Coverage C applies to that building in 

accordance with 3.a. above, coverage for 

the increased cost of construction also 

applies to repair or reconstruction of the 

following, subject to the same conditions 

stated in 3.a.:

(1) The cost of excavations, grading, 

backfilling and filling; 

53

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CP 04 05 10 12 © Insurance Services Office, Inc., 2011 Page 3 of 4

(2) Foundation of the building; 

(3) Pilings; and 

(4) Underground pipes, flues and drains. 

The items listed in b.(1) through b.(4)

above are deleted from Property Not 

Covered, but only with respect to the 

coverage described in this provision, 3.b.

E. Loss Payment 

1. All following loss payment provisions, E.2.

through E.5., are subject to the apportionment 

procedures set forth in Section B.3. of this 

endorsement.

2. When there is a loss in value of an undamaged 

portion of a building to which Coverage A

applies, the loss payment for that building, 

including damaged and undamaged portions, 

will be determined as follows:

a. If the Replacement Cost Coverage Option 

applies and the property is being repaired 

or replaced, on the same or another 

premises, we will not pay more than the 

lesser of: 

(1) The amount you would actually spend to 

repair, rebuild or reconstruct the 

building, but not for more than the 

amount it would cost to restore the 

building on the same premises and to 

the same height, floor area, style and 

comparable quality of the original 

property insured; or 

(2) The Limit Of Insurance shown in the 

Declarations as applicable to the 

covered building. 

b. If the Replacement Cost Coverage Option 

applies and the property is not repaired or 

replaced, or if the Replacement Cost 

Coverage Option does not apply, we will 

not pay more than the lesser of: 

(1) The actual cash value of the building at 

the time of loss; or 

(2) The Limit Of Insurance shown in the 

Declarations as applicable to the 

covered building. 

3. Unless Paragraph E.5. applies, loss payment 

under Coverage B – Demolition Cost Coverage 

will be determined as follows: 

We will not pay more than the lesser of the 

following: 

a. The amount you actually spend to demolish 

and clear the site of the described 

premises; or 

b. The applicable Limit Of Insurance shown 

for Coverage B in the Schedule above. 

4. Unless Paragraph E.5. applies, loss payment 

under Coverage C – Increased Cost Of 

Construction Coverage will be determined as 

follows: 

a. We will not pay under Coverage C:

(1) Until the property is actually repaired or 

replaced, at the same or another 

premises; and 

(2) Unless the repair or replacement is 

made as soon as reasonably possible 

after the loss or damage, not to exceed 

two years. We may extend this period in 

writing during the two years.

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 

under Coverage C is the lesser of: 

(1) The increased cost of construction at 

the same premises; or 

(2) The applicable Limit Of Insurance 

shown for Coverage C in the Schedule 

above. 

c. If the ordinance or law requires relocation to 

another premises, the most we will pay 

under Coverage C is the lesser of: 

(1) The increased cost of construction at 

the new premises; or 

(2) The applicable Limit Of Insurance 

shown for Coverage C in the Schedule 

above. 

5. If a Combined Limit Of Insurance is shown for 

Coverages B and C in the Schedule above, 

Paragraphs E.3. and E.4. of this endorsement 

do not apply with respect to the building that is 

subject to the Combined Limit, and the 

following loss payment provisions apply 

instead: 

The most we will pay, for the total of all 

covered losses for Demolition Cost and 

Increased Cost of Construction, is the 

Combined Limit Of Insurance shown for 

Coverages B and C in the Schedule above. 

Subject to this Combined Limit of Insurance, 

the following loss payment provisions apply: 

a. For Demolition Cost, we will not pay more 

than the amount you actually spend to 

demolish and clear the site of the described 

premises. 

54

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Page 4 of 4 © Insurance Services Office, Inc., 2011 CP 04 05 10 12

b. With respect to the Increased Cost of 

Construction: 

(1) We will not pay for the increased cost of 

construction: 

(a) Until the property is actually repaired 

or replaced, at the same or another 

premises; and 

(b) Unless the repair or replacement is 

made as soon as reasonably 

possible after the loss or damage, 

not to exceed two years. We may 

extend this period in writing during 

the two years. 

(2) 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.

(3) If the ordinance or law requires 

relocation to another premises, the most 

we will pay for the increased cost of 

construction is the increased cost of 

construction at the new premises. 

F. The terms of this endorsement apply separately to 

each building to which this endorsement applies. 

G. Under this endorsement we will not pay for loss 

due to any ordinance or law that: 

1. You were required to comply with before the 

loss, even if the building was undamaged; and 

2. You failed to comply with. 

H. Example of proportionate loss payment for 

Ordinance Or Law Coverage Losses (procedure 

as set forth in Section B.3. of this endorsement).

Assume:

 Wind is a Covered Cause of Loss; Flood is an 

excluded Cause of Loss

 The building has a value of $200,000

 Total direct physical damage to building: 

$100,000

 The ordinance or law in this jurisdiction is 

enforced when building damage equals or 

exceeds 50% of the building's value

 Portion of direct physical damage that is 

covered (caused by wind): $30,000

 Portion of direct physical damage that is not 

covered (caused by flood): $70,000

 Loss under Ordinance Or Law Coverage C of 

this endorsement: $60,000

Step 1: Determine the proportion that the covered 

direct physical damage bears to the total 

direct physical damage.

$30,000  $100,000 = .30

Step 2: Apply that proportion to the Ordinance or 

Law loss.

$60,000 x .30 = $18,000

In this example, the most we will pay under this 

endorsement for the Coverage C loss is $18,000, 

subject to the applicable Limit of Insurance and 

any other applicable provisions.

Note: The same procedure applies to losses 

under Coverages A and B of this endorsement.

I. The following definition is added:

"Fungus" means any type or form of fungus, 

including mold or mildew, and any mycotoxins, 

spores, scents or by-products produced or 

released by fungi.

55

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IL 09 53 01 15

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 09 53 01 15 © Insurance Services Office, Inc., 2015 Page 1 of 2

EXCLUSION OF CERTIFIED ACTS OF TERRORISM

This endorsement modifies insurance provided under the following: 

BOILER AND MACHINERY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

EQUIPMENT BREAKDOWN COVERAGE PART

FARM COVERAGE PART

STANDARD PROPERTY POLICY 

SCHEDULE

The Exception Covering Certain Fire Losses (Paragraph C) applies to property located in the following state(s), 

if covered under the indicated Coverage Form, Coverage Part or Policy: 

State(s) Coverage Form, Coverage Part Or Policy

CA, GA, HI, IA, IL, MA, ME,MO, NC, NJ, NY, OR, RI, 

US VI, WA, WI, and WV

Commercial Property Coverage Part

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

A. The following definition is added with respect to 

the provisions of this endorsement:

"Certified act of terrorism" means an act that is 

certified by the Secretary of the Treasury, in 

accordance with the provisions of the federal 

Terrorism Risk Insurance Act, to be an act of 

terrorism pursuant to such Act. The criteria 

contained in the Terrorism Risk Insurance Act for 

a "certified act of terrorism" include the following: 

1. 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 

infrastructure 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 conduct of the 

United States Government by coercion.

B. The following exclusion is added:

CERTIFIED ACT OF TERRORISM EXCLUSION

We will not pay for loss or damage caused directly 

or indirectly by a "certified act of terrorism". Such 

loss or damage is excluded regardless of any 

other cause or event that contributes concurrently 

or in any sequence to the loss.

C. Exception Covering Certain Fire Losses 

The following exception to the exclusion in 

Paragraph B. applies only if indicated and as 

indicated in the Schedule of this endorsement.

If a "certified act of terrorism" results in fire, we will 

pay for the loss or damage caused by that fire. 

Such coverage for fire applies only to direct loss or 

damage by fire to Covered Property. Therefore, for 

example, the coverage does not apply to 

insurance provided under Business Income and/or 

Extra Expense coverage forms or endorsements 

which apply to those forms, or to the Legal Liability 

Coverage Form or the Leasehold Interest 

Coverage Form.

56

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Page 2 of 2 © Insurance Services Office, Inc., 2015 IL 09 53 01 15

If aggregate insured losses attributable to terrorist 

acts certified under the Terrorism Risk Insurance 

Act exceed $100 billion in a calendar year and we 

have met our insurer deductible under the 

Terrorism 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 losses up to that amount are 

subject to pro rata allocation in accordance with 

procedures established by the Secretary of the 

Treasury. 

D. Application Of Other Exclusions

The terms and limitations of any terrorism 

exclusion, or the inapplicability or omission of a 

terrorism exclusion, do not serve to create 

coverage for any loss which would otherwise be 

excluded under this Coverage Part or Policy, such 

as losses excluded by the Nuclear Hazard 

Exclusion or the War And Military Action 

Exclusion.

57

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POLICY NUMBER: WKA US02699-00 IL 09 85 01 15

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. 

IL 09 85 01 15 © Insurance Services Office, Inc., 2015 Page 1 of 2

DISCLOSURE PURSUANT TO TERRORISM RISK

INSURANCE ACT

SCHEDULE

SCHEDULE – PART I

Terrorism Premium (Certified Acts) Declined

This premium is the total Certified Acts premium attributable to the following Coverage Part(s), 

Coverage Form(s) and/or Policy(ies):

Additional information, if any, concerning the terrorism premium:

SCHEDULE – PART II

Federal share of terrorism losses 81 % Year: 20 19

(Refer to Paragraph B. in this endorsement.)

Federal share of terrorism losses 80 % Year: 20 20

(Refer to Paragraph B. in this endorsement.)

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 

certified under the Terrorism Risk Insurance Act. 

The portion of your premium attributable to such 

coverage is shown in the Schedule of this 

endorsement or in the policy Declarations.

58

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Page 2 of 2 © Insurance Services Office, Inc., 2015 IL 09 85 01 15

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. The federal 

share equals a percentage (as shown in Part II of 

the Schedule of this endorsement or in the policy 

Declarations) of that portion of the amount of such 

insured losses that exceeds the applicable insurer 

retention. However, if aggregate insured losses 

attributable to terrorist acts certified under the 

Terrorism Risk Insurance Act exceed $100 billion 

in a calendar year, the Treasury shall not make 

any payment for any portion of the amount of such 

losses that exceeds $100 billion.

C. Cap On Insurer Participation In Payment Of 

Terrorism Losses

If aggregate insured losses attributable to terrorist 

acts certified under the Terrorism Risk Insurance 

Act exceed $100 billion in a calendar year and we 

have met our insurer deductible under the 

Terrorism 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 losses up to that amount are 

subject to pro rata allocation in accordance with 

procedures established by the Secretary of the 

Treasury. 

59

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COMMERCIAL PROPERTY 

WK CP 01 06 10

WK CP 01 06 10 Page 1 of 2

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

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

WINDSTORM OR HAIL EXCLUSION – TWO TIER TERRITORIAL

This endorsement modifies insurance provided under the following:

CAUSES OF LOSS – BASIC FORM

CAUSES OF LOSS – BROAD FORM

CAUSES OF LOSS – SPECIAL FORM

SCHEDULE

Additional Territory(ies):

The following applies only with respect to 

property located within the “coastal territories”:

A. The following is added to the EXCLUSIONS 

section and is therefore not a Covered 

Cause of Loss:

WINDSTORM OR HAIL 

We will not pay for loss or damage: 

1. Caused directly or indirectly by 

Windstorm or Hail, consisting of any or 

all of the following:

a. Wind; 

b. Wind-driven water; 

c. Wind-driven objects; 

d. Erosion of soil or other land caused 

by wind or wind-driven water; 

e. Hail; or 

f. Collapse of a building or other 

structure due to wind,

regardless of any other cause or event that 

contributes concurrently or in any sequence 

to the loss or damage; or 

2. Caused by rain, snow, sand or dust, 

whether driven by wind or not, if that 

loss or damage would not have 

occurred but for the Windstorm or Hail. 

But if Windstorm or Hail results in a 

cause of loss other than rain, snow, 

sand or dust, and that resulting cause of 

loss is a Covered Cause of Loss, we will 

pay for the loss or damage caused by 

such Covered Cause of Loss. For 

example, if the Windstorm or Hail 

damages a heating system and fire 

results, the loss or damage attributable 

to the fire is covered subject to any 

other applicable policy provisions. 

B. Under ADDITIONAL COVERAGE – 

COLLAPSE, in the Causes of Loss – Broad 

Form, Windstorm or Hail is deleted from 

paragraph 2.a.

C. In the Causes of Loss – Special Form, 

Windstorm or Hail is deleted from the 

"specified causes of loss". 

D. Under ADDITIONAL COVERAGE 

EXTENSIONS – PROPERTY IN TRANSIT, 

in the Causes of Loss – Special Form, 

Windstorm or Hail is deleted from paragraph 

b.(1).

E. The following definition is added:

“Coastal territories” means:

1. Baldwin County, Clarke County, 

Covington County, Escambia County, 

Geneva County, Mobile County, Monroe 

County and Washington County in the 

state of Alabama;

2. The entire state of Delaware;

3. The entire state of Florida;

4. Brantley County, Bryan County, Camden 

County, Charlton County, Chatham 

County, Effingham County, Glynn 

60

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WK CP 01 06 10 Page 2 of 2

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

County, Liberty County, Long County, 

McIntosh County and Wayne County in 

the State of Georgia;

5. Acadia Parish, Assumption Parish, 

Calcasieu Parish, Cameron Parish, Iberia 

Parish, Jefferson Parish, Jefferson Davis 

Parish, Lafayette Parish, LaFourche 

Parish, Orleans Parish, Plaquemines 

Parish, St. Bernard Parish, St. Charles 

Parish, St. James Parish, St. Martin 

Parish, St. Mary Parish, St. Tammany 

Parish, Terrebonne Parish and Vermilion 

Parish in the state of Louisiana;

6. Caroline County, Cecil County, 

Dorchester County, Kent County, Queen 

Anne’s County, Somerset County, Talbot 

County, Wicomico County and Worcester 

County in the state of Maryland; 

7. George County, Hancock County, 

Harrison County, Jackson County, Pearl 

River County and Stone County in the 

state of Mississippi;

8. Beaufort County, Brunswick County, 

Camden County, Carteret County, 

Chowan County, Columbus County, 

Craven County, Currituck County, Dare 

County, Hyde County, Jones County, 

New Hanover County, Onslow County, 

Pamlico County, Pasquotank County, 

Pender County, Perquimans County, 

Tyrrell County and Washington County in 

the state of North Carolina; 

9. Beaufort County, Berkeley County, 

Charleston County, Colleton County, 

Dorchester County, Georgetown County, 

Hampton County, Horry County, Jasper 

County, Marion County and Williamsburg 

County in the state of South Carolina;

10. Aransas County, Bee County, Brazoria 

County, Brooks County, Calhoun County, 

Cameron County, Chambers County, 

Fort Bend County, Galveston County, 

Goliad County, Hardin County, Harris 

County, Hidalgo County, Jackson 

County, Jefferson County, Jim Wells 

County, Kenedy County, Kleberg County, 

Liberty County, Matagorda County, 

Nueces County, Orange County, Refugio 

County, San Patricio County, Victoria 

County, Wharton County and Willacy 

County in the state of Texas; 

11. Accomack County, Gloucester County, 

Isle of Wight County, James City County, 

Lancaster County, Matthews County, 

Middlesex County, Northampton County, 

Northumberland County, Richmond 

County, Surry County and Westmoreland 

County in the state of Virginia;

12. Independent Cities of Chesapeake, 

Hampton, Newport News, Norfolk, 

Poquoson, Portsmouth, Suffolk, Virginia 

Beach and Williamsburg in the State of 

Virginia; and

13. Any other location shown in the 

“additional territory” Schedule on page 1.

61

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WK CP 01 07 09 COMMERCIAL PROPERTY 

WK CP 01 07 09 

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

U.S TREASURY DEPARTMENT’S OFFICE OF FOREIGN ASSETS CONTROL 

(“OFAC”) 

No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. 

You should read your policy and review your Declarations page for complete information on the coverages you are 

provided. 

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

directives issued by OFAC. Please read this Policyholder Notice carefully. 

OFAC administers and enforces sanctions policy, based on Presidential declarations of "national emergency". 

OFAC has identified and listed numerous 

 • Foreign agents 

 • Front organizations 

 • Terrorists 

 • Terrorist organizations 

 • Narcotics traffickers 

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

web site - http//www.treas.gov/ofac. 

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

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

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

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

a blocked or frozen contract, neither payments nor premium refunds may be made without authorization from 

OFAC. Other limitations on the premiums and payments also apply. 

62

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NOTICE TO POLICYHOLDERS

WK CP 03 07 09

PRIVACY POLICY

The Aspen Specialty Insurance Company (the “Companies”), believes personal information that 

we collect about our customers, potential customers, and proposed insureds (referred to 

collectively in this Privacy Policy as “customers”) must be treated with the highest degree of 

confidentiality. For this reason and in compliance with the Title V of the Gramm-Leach-Bliley Act 

(“GLBA”), we have developed a Privacy Policy that applies to all of our companies. For purposes 

of our Privacy Policy, the term “personal information” includes all information we obtain about a 

customer and maintain in a personally identifiable way. In order to assure the confidentiality of 

the personal information we collect and in order to comply with applicable laws, all individuals 

with access to personal information about our customers are required to follow this policy.

Our Privacy Promise

Your privacy and the confidentiality of your business records are important to us. Information and 

the analysis of information is essential to the business of insurance and critical to our ability to 

provide to you excellent, cost-effective service and products. We understand that gaining and 

keeping your trust depends upon the security and integrity of our records concerning you. 

Accordingly, we promise that:

1. We will follow strict standards of security and confidentiality to protect any information you 

share with us or information that we receive about you;

2. We will verify and exchange information regarding your credit and financial status only for the 

purposes of underwriting, policy administration, or risk management and only with reputable 

references and clearinghouse services;

3. We will not collect and use information about you and your business other than the minimum 

amount of information necessary to advise you about and deliver to you excellent service and 

products and to administer our business;

4. We will train our employees to handle information about you or your business in a secure and 

confidential manner and only permit employees authorized to use such information to have 

access to such information;

5. We will not disclose information about you or your business to any organization outside the 

Aspen insurance group of Companies or to third party service providers unless we disclose to 

you our intent to do so or we are required to do so by law;

6. We will not disclose medical information about you, your employees, or any claimants under 

any policy of insurance, unless you provide us with written authorization to do so, or unless 

the disclosure is for any specific business exception provided in the law; 

7. We will attempt, with your help, to keep our records regarding you and your business 

complete and accurate, and will advise you how and where to access your account 

information (unless prohibited by law), and will advise you how to correct errors or make 

changes to that information; and

8. We will audit and assess our operations, personnel and third party service providers to 

assure that your privacy is respected.

Collection and Sources of Information

We collect from a customer or potential customer only the personal information that is necessary 

for (a) determining eligibility for the product or service sought by the customer, (b) administering 

the product or service obtained, and (c) advising the customer about our products and services. 

The information we collect generally comes from the following sources:

 Submission – During the submission process, you provide us with information about you and 

your business, such as your name, address, phone number, e-mail address, and other types 

of personal identification information;

 Quotes – We collect information to enable us to determine your eligibility for the particular 

insurance product and to determine the cost of such insurance to you. The information we 

collect will vary with the type of insurance you seek;

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NOTICE TO POLICYHOLDERS

WK CP 03 07 09

 Transactions – We will maintain records of all transactions with us, our affiliates, and our third 

party service providers, including your insurance coverage selections, premiums, billing and 

payment information, claims history, and other information related to your account;

 Claims – If you obtain insurance from us, we will maintain records related to any claims that 

may be made under your policies. The investigation of a claim necessarily involves collection 

of a broad range of information about many issues, some of which does not directly involve 

you. We will share with you any facts that we collect about your claim unless we are 

prohibited by law from doing so. The process of claim investigation, evaluation, and 

settlement also involves, however, the collection of advice, opinions, and comments from 

many people, including attorneys and experts, to aid the claim specialist in determining how 

best to handle your claim. In order to protect the legal and transactional confidentiality and 

privileges associated with such opinions, comments and advice, we will not disclose this 

information to you; and

 Credit and Financial Reports – We may receive information about you and your business 

regarding your credit. We use this information to verify information you provide during the 

submission and quote processes and to help underwrite and provide to you the most 

accurate and cost-effective insurance quote we can provide.

Retention and Correction of Personal Information

We retain personal information only as long as required by our business practices and applicable 

law. If we become aware that an item of personal information may be materially inaccurate, we 

will make reasonable effort to re-verify its accuracy and correct any error as appropriate.

Storage of Personal Information

We have in place safeguards to protect data and paper files containing personal information.

Sharing/Disclosing of Personal Information

We maintain procedures to assure that we do not share personal information with an unaffiliated 

third party for marketing purposes unless such sharing is permitted by law. Personal information 

may be disclosed to an unaffiliated third party for necessary servicing of the product or service or 

for other normal business transactions as permitted by law.

We do not disclose personal information to an unaffiliated third party for servicing purposes or 

joint marketing purposes unless a contract containing a confidentiality/non-disclosure provision 

has been signed by us and the third party. Unless a consumer consents, we do not disclose 

“consumer credit report” type information obtained from an application or a credit report regarding 

a customer who applies for a financial product to any unaffiliated third party for the purpose of 

serving as a factor in establishing a consumer’s eligibility for credit, insurance or employment. 

“Consumer credit report type information” means such things as net worth, credit worthiness, 

lifestyle information (piloting, skydiving, etc.) solvency, etc. We also do not disclose to any 

unaffiliated third party a policy or account number for use in marketing. We may share with our 

affiliated companies information that relates to our experience and transactions with the 

customer.

Policy for Personal Information Relating to Nonpublic Personal Health Information

We do not disclose nonpublic personal health information about a customer unless an 

authorization is obtained from the customer whose nonpublic personal information is sought to be 

disclosed. However, an authorization shall not be prohibited, restricted or required for the 

disclosure of certain insurance functions, including, but not limited to, claims administration, 

claims adjustment and management, detection, investigation or reporting of actual or potential 

fraud, misrepresentation or criminal activity, underwriting, policy placement or issuance, loss 

control and/or auditing.

64

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NOTICE TO POLICYHOLDERS

WK CP 03 07 09

Access to Your Information

Our employees, employees of our affiliated companies, and third party service providers will have 

access to information we collect about you and your business as is necessary to effect 

transactions with you. We may also disclose information about you to the following categories of 

person or entities:

 Your independent insurance agent or broker;

 An independent claim adjuster or investigator, or an attorney or expert involved in the claim;

 Persons or organizations that conduct scientific studies, including actuaries and accountants;

 An insurance support organization;

 Another insurer if to prevent fraud or to properly underwrite a risk;

 A state insurance department or other governmental agency, if required by federal, state or 

local laws; or

 Any persons entitled to receive information as ordered by a summons, court order, search 

warrant, or subpoena.

Violation of the Privacy Policy

Any person violating the Privacy Policy will be subject to discipline, up to and including 

termination.

For more information or to address questions regarding this privacy statement, please contact 

your broker.

65

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COMMERCIAL PROPERTY 

WK CP 07 01 11 

WK CP 07 01 11 

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

 Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

ABSOLUTE MOLD EXCLUSION (PROPERTY) 

The following Exclusion is added to the policy: 

This policy does not apply to any loss, demand, claim, occurrence, direct physical loss or damage, 

expense or suit arising out of or related in any way to: 

A. Physical loss of or direct physical loss or damage to Property or Interest Covered arising out of, 

resulting from, caused by or contributed to by any fungus, mildew, mold, spores, mycotoxins, wet 

or dry rot or by-products produced or released by any of the foregoing; 

B. Any additional coverage, coverage extension or endorsement that the policy may contain, 

including but not limited to Debris Removal, Preservation of Property, Sue and Labor, Fire 

Department Service Charge or Pollutant Clean Up and Removal, arising out of, resulting from, 

caused by or contributed to by any fungus, mildew, mold, spores, mycotoxins, wet or dry rot or byproducts produced or released by any of the foregoing; 

C. Any loss of Business Income, Extra Expense, or other Time Element exposure arising out of, 

resulting from, caused by or contributed to by: 

1. Any fungus, mildew, mold, spores, mycotoxins, wet or dry rot or byproducts produced or 

released by any of the foregoing; or 

2. Any damage to Property or Interest Covered arising out of, resulting from, caused by or 

contributed to by any fungus, mildew, mold, spores, mycotoxins, wet or dry rot or byproducts produced or released by any of the foregoing; 

D. The costs of testing, assessment, diagnosis, monitoring, containment, abatement, mitigation, 

removal or disposal of any fungus, mildew, mold, spores, mycotoxins, wet or dry rot or by-products 

produced or released by any of the foregoing. 

All other terms and conditions of this policy shall remain unchanged. 

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NOTICE TO POLICYHOLDERS 

FRAUD NOTICE 

WK FN 01 10 09 Page 1 of 3 

Arkansas - Any person who knowingly presents a false or fraudulent claim for payment of a loss 

or benefit or knowingly presents false information in an application for insurance is guilty 

of a crime and may be subject to fines and confinement in prison. 

Colorado - It is unlawful to knowingly provide false, incomplete, or misleading facts or information 

to an insurance company for the purpose of defrauding or attempting to defraud the company. 

Penalties may include imprisonment, fines, denial of insurance and civil damages. Any insurance 

company or agent of an insurance company who knowingly provides false, incomplete, or 

misleading facts or information to a policyholder or claimant for the purpose of defrauding or 

attempting to defraud the policyholder or claimant with regard to a settlement or award payable 

from insurance proceeds shall be reported to the Colorado Division of Insurance within the 

Department of Regulatory Agencies. 

District of Columbia - WARNING: It is a crime to provide false or misleading information to an 

insurer for the purpose of defrauding the insurer or any other person. Penalties include 

imprisonment and/or fines. In addition, an insurer may deny insurance benefits if false information

materially related to a claim was provided by the applicant.

Florida - Any person who knowingly and with intent to injure, defraud, or deceive any insurance 

company files a statement of claim or an application containing any false, incomplete, or 

misleading information is guilty of a felony of the third degree. 

Hawaii - For your protection, Hawaii law requires you to be informed that presenting a fraudulent 

claim for payment of a loss or benefit is a crime punishable by fines or imprisonment, or both. 

Kentucky Any person who knowingly and with intent to defraud any insurance company or other 

person files an application for insurance containing any materially false information or conceals, 

for the purpose of misleading, information concerning any fact material thereto commits a 

fraudulent insurance act, which is a crime. 

Louisiana - Any person who knowingly presents a false or fraudulent claim for payment of a loss 

or benefit or knowingly presents false information in an application for insurance is guilty 

 of a crime and may be subject to fines and confinement in prison. 

Maine - It is a crime to knowingly provide false, incomplete or misleading information to an 

insurance company for the purpose of defrauding the company. Penalties may include 

imprisonment, fines, or denial of insurance benefits. 

Maryland - Any person who knowingly and willfully presents a false or fraudulent claim for 

payment of a loss or benefit or who knowingly and willfully presents false information in an 

application for insurance is guilty of a crime and may be subject to fines and confinement in 

prison. 

New Jersey - Any person who includes any false or misleading information on an application for 

an insurance policy is subject to criminal and civil penalties. 

New Mexico - Any person who knowingly presents a false or fraudulent claim for payment of a 

loss or benefit or knowingly presents false information in an application for insurance is guilty of a 

crime and may be subject to civil fines and criminal penalties. 

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NOTICE TO POLICYHOLDERS 

FRAUD NOTICE 

WK FN 01 10 09 Page 2 of 3 

New York - All Commercial Insurance Forms, Except As Provided for Automobile 

Insurance: Any person who knowingly and with intent to defraud any insurance company or 

other person files an application for insurance or statement of claim containing any materially 

false information, or conceals for the purpose of misleading, information concerning any fact 

material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject 

to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each 

such violation. Automobile Insurance Forms: Any person who knowingly makes or knowingly 

assists, abets, solicits or conspires with another to make a false report of the theft, destruction, 

damage or conversion of any motor vehicle to a law enforcement agency, the department of 

motor vehicles or an insurance company, commits a fraudulent insurance act, which is a crime, 

and shall also be subject to a civil penalty not to exceed five thousand dollars and the value of the 

subject motor vehicle or stated claim for each violation. Fire Insurance: Any person who 

knowingly and with intent to defraud any insurance company or other person files an application 

for insurance containing any false information, or conceals for the purpose of misleading, 

information concerning any fact material thereto, commits a fraudulent insurance act, which is a 

crime. The proposed insured affirms that the foregoing information is true and agrees that these 

applications shall constitute a part of any policy issued whether attached or not and that any 

willful concealment or misrepresentation of a material fact or circumstances shall be grounds to 

rescind the insurance policy. 

Ohio- Any person who, with intent to defraud or knowing that he is facilitating a fraud against an 

insurer, submits an application or files a claim containing a false or deceptive statement is guilty 

of insurance fraud. 

Oklahoma - WARNING: Any person who knowingly, and with intent to injure, defraud or deceive 

any insurer, makes any claim for the proceeds of an insurance policy containing any false, 

incomplete or misleading information is guilty of a felony. 

Pennsylvania - Any person who knowingly and with intent to defraud any insurance company or 

other person files an application for insurance or statement of claim containing any materially 

false information or conceals for the purpose of misleading, information concerning any fact 

material thereto commits a fraudulent insurance act, which is a crime and subjects such person to 

criminal and civil penalties. Automobile Insurance Forms: Any person who knowingly and with 

intent to injure or defraud any insurer files an application or claim containing any false, incomplete 

or misleading information shall, upon conviction, be subject to imprisonment for up to seven years 

and the payment of a fine of up to $15,000. 

Puerto Rico - Any person who knowingly and with the intention to defraud includes false 

information in an application for insurance or file, assist or abet in the filing of a fraudulent claim to 

obtain payment of a loss or other benefit, or files more than one claim for the same loss or 

damage, commits a felony and if found guilty shall be punished for each violation with a fine of no 

less than five thousands dollars ($5,000), not to exceed ten thousands dollars ($10,000); or 

imprisoned for a fixed term of three (3) years, or both. If aggravating circumstances exist, the 

fixed jail term may be increased to a maximum of five (5) years; and if mitigating circumstances 

are present, the jail term may be reduced to a minimum of two (2) years. 

Rhode Island - Failing to disclose a conviction of arson in an application for insurance is subject 

to criminal penalty. 

Tennessee - It is a crime to knowingly provide false, incomplete or misleading information to an 

insurance company for the purpose of defrauding the company. Penalties include imprisonment, 

fines and denial of insurance benefits. Workers Compensation: It is a crime to knowingly 

provide false, incomplete or misleading information to any party to a workers compensation 

transaction for the purpose of committing fraud. Penalties include imprisonment, fines and denial 

of insurance benefits. 

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NOTICE TO POLICYHOLDERS 

FRAUD NOTICE 

WK FN 01 10 09 Page 3 of 3 

Utah - Workers Compensation: Any person who knowingly presents false or fraudulent 

underwriting information, files or causes to be filed a false or fraudulent claim for disability 

compensation or medical benefits, or submits a false or fraudulent report or billing for health care 

fees or other professional services is guilty of a crime and may be subject to fines and 

confinement in state prison. 

Virginia - It is a crime to knowingly provide false, incomplete or misleading information to an 

insurance company for the purpose of defrauding the company. Penalties include imprisonment, 

fines and denial of insurance benefits. 

Washington- It is a crime to knowingly provide false, incomplete or misleading information to an 

insurance company for the purpose of defrauding the company. Penalties include imprisonment, 

fines and denial of insurance benefits. 

West Virginia - Any person who knowingly presents a false or fraudulent claim for payment of a 

loss or benefit or knowingly presents false information in an application for insurance is guilty of a 

crime and may be subject to fines and confinement in prison. 

All Other States Any person who knowingly and willfully presents false information in an 

application for insurance may be guilty of insurance fraud and subject to fines and confinement in 

prison. 

69

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WK HM 01 07 07 © ISO Properties, Inc., 2006 Page 1 of 13 †

COMMERCIAL PROPERTY 

WK HM 01 07 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

HOTELS, MOTELS AND INNS

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART – BUILDING AND PERSONAL PROPERTY COVERAGE 

FORM 

COMMERCIAL PROPERTY COVERAGE PART – CAUSES OF LOSS – SPECIAL FORM 

The provisions of the Building And Personal Property 

Coverage Form, Causes Of Loss – Special Form and 

the Commercial General Liability Coverage Part apply 

except as otherwise provided in this endorsement. 

This endorsement applies only if the Coverage Forms 

and Coverage Part named above are all included in 

this policy. All numbers and letters used to designate 

paragraphs in this endorsement are specific to this 

endorsement only. They do not reference paragraphs 

in the Commercial Property or Commercial General 

Liability Coverage Parts. 

I. Changes To The Building And Personal

Property Coverage Form

A. The Fire Department Service Charge Limit of 

Insurance is increased to $5,000 unless a different Limit of Insurance for fire department 

service charge is shown in the Declarations. 

B. The Debris Removal additional debris removal 

expense is increased to $25,000. 

C. The following coverages are added to Additional Coverages in the Coverage Section: 

1. 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. 

b. We will pay only for loss of "money" and 

"securities" resulting from: 

(1) Theft, meaning any act of stealing; 

(2) Disappearance; or 

(3) Destruction. 

c. 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 moneyoperated device unless the amount 

of "money" deposited in it is recorded 

by a continuous reading instrument 

in the device. 

d. The most we will pay for all loss in any 

one "occurrence" is $10,000 unless a 

different Limit of Insurance for "money" 

and "securities" is shown in the Declarations. 

e. You must keep records of all "money" 

and "securities" so we can verify the 

amount of any loss or damage.

f. To the extent that coverage for "money" 

and "securities" is provided under this 

Additional Coverage, the Property Not 

Covered Provisions in the Coverage 

Section do not apply. 

2. Fire Extinguisher Systems Expense 

a. We will pay: 

(1) The cost of recharging or replacing, 

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

needed) if they are discharged on or 

within 100 feet of the described 

premises; and 

(2) For loss or damage to Covered 

Property if such loss or damage is 

the result of an accidental discharge 

of chemicals from a fire extinguisher 

or fire extinguishing system. 

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Page 2 of 13 Contains copyrighted material from ISO Properties, Inc. WK HM 01 07 07 †

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

c. The most we will pay under this Additional Coverage is $15,000 in any one 

occurrence. 

d. No deductible applies to this Additional

Coverage. 

3. Reward Payment

a. We will reimburse you for rewards paid 

as follows: 

(1) Up to $5,000 to an eligible person for 

information leading to the arrest and 

conviction of any person or persons 

committing a crime resulting in loss 

to Covered Property from a Covered 

Cause of Loss. However, we will pay 

no more than the lesser of the following amounts: 

(a) Actual cash value of the Covered 

Property at the time of loss or 

damage, but not more than the 

amount required to repair or replace it; or 

(b) The amount determined by the 

loss settlement procedure applicable to the Covered Property 

under the Loss Payment Condition. 

(2) Up to $5,000 to an eligible person for 

the return of stolen Covered Property, when the loss is caused by 

theft. However, we will pay no more 

than the lesser of the following 

amounts:

(a) Actual cash value based on the 

condition of the Covered Property 

at the time it is returned, but not 

more than the amount required to 

repair or replace it; or 

(b) The amount determined by the 

loss settlement procedure applicable to the returned Covered 

Property under the Loss Payment 

Condition. 

b. This Additional Coverage applies subject to the following conditions: 

(1) An eligible person means that person designated by a law enforcement agency as being the first to 

voluntarily provide the information 

leading to the arrest and conviction 

or return the stolen Covered Property, and who is not: 

(a) You or any family member; 

(b) Your employee or any of his or 

her family members; 

(c) An employee of a law enforcement agency; 

(d) An employee of a business engaged in property protection;

(e) Any person who had custody of 

the Covered Property at the time 

the theft was committed; or 

(f) Any person involved in the crime.

(2) No reward will be reimbursed unless 

and until the person(s) committing 

the crime is (are) convicted or the 

Covered Property is returned. 

(3) The lesser of the amount of the 

reward or $5,000 is the most we will 

reimburse for loss under this Additional Coverage in any one occurrence.

4. Computer Fraud

a. We will pay for loss of or damage to 

"money", "securities" and other property 

resulting directly from the use of any 

"computer" to fraudulently cause a 

transfer of that property from inside a 

building at the described premises or 

from any bank or similar safe depository: 

(1) To a person outside those premises; 

or

(2) To a place outside those premises. 

b. The most we will pay under this Additional Coverage for loss or damage in 

any one "occurrence" is $25,000 unless 

a different Limit of Insurance for computer fraud is shown in the Declarations. 

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c. With respect to this Additional Coverage, the following are added to the Additional Conditions Section: 

(1) We cover loss or damage commencing during the policy period shown in 

the Declarations and within the coverage territory. 

(2) The coverage territory is anywhere in 

the world.

5. Money Orders And Counterfeit Money

We will pay for loss resulting directly from 

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

a. Money orders issued by any post office, 

express company or bank that are not 

paid upon presentation; or 

b. "Counterfeit money" that is acquired 

during the regular course of business. 

The most we will pay for any loss in any 

one "occurrence" under this Additional 

Coverage is $1,500 unless a different Limit 

of Insurance for money orders and counterfeit money is shown in the Declarations. 

6. Forgery Or Alteration

a. We will pay for loss resulting directly 

from "forgery" or alteration of checks, 

drafts, promissory notes, or similar written promises, orders or directions to pay 

a sum certain in "money" that are: 

(1) Made or drawn by or drawn upon 

you; or 

(2) Made or drawn by one acting as your 

agent; 

or that are purported to have been so 

made or drawn.

b. If you are sued for refusing to pay any 

instrument covered in Paragraph a. 

above, 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 and pay in that 

defense. 

c. We will treat mechanically reproduced 

facsimile signatures the same as handwritten signatures. 

d. 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.

e. The most we will pay for any loss in any 

one "occurrence", including legal expenses, under this Additional Coverage 

is $2,500 unless a different Limit of Insurance for forgery or alteration is 

shown in the Declarations. 

7. 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. The most we will pay under this Additional Coverage for loss or damage in 

any one occurrence is $10,000 unless a 

different Limit of Insurance for outdoor 

signs is shown in the Declarations. 

c. The provisions of this Additional Coverage supersede all other outdoor signs 

coverage references in the Building And 

Personal Property Coverage Form. 

8. Employee Dishonesty

a. We will pay for direct loss of or damage 

to Your Business Personal Property and 

your "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 partners, "members" or "managers") 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: 

(1) Loss or damage resulting from any 

dishonest or criminal act that you or 

any of your partners, "members", officers, "managers", directors, trustees, authorized representatives or 

anyone to whom you entrust the 

property for any purpose commit, 

whether acting alone or in collusion 

with other persons;

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(2) Loss or damage that is an indirect 

result of any act covered by this insurance including, but not limited to, 

loss or damage resulting from: 

(a) Your inability to realize income 

that you would have realized had 

there been no loss of or damage 

to "money" or "securities"; 

(b) Payment of damages of any type 

for which you are legally liable. 

But we will pay compensatory 

damages arising directly from a 

loss covered under this insurance; or 

(c) Payment of costs, fees or other 

expenses you incur in establishing either the existence or the 

amount of loss under this insurance; 

(3) Expenses related to any legal action; 

or

(4) Loss or damage the only proof of 

which as to its existence or amount 

is one or both of the following: 

(a) An inventory computation; or 

(b) A profit and loss computation. 

c. The most we will pay under this Additional Coverage for loss or damage in 

any one "occurrence" is $25,000 unless 

a different Limit of Insurance for employee dishonesty is shown in the Declarations. 

d. 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. 

e. This Additional Coverage does not apply 

to loss caused by any "employee" after 

discovery by: 

(1) You; or 

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

of any dishonest act committed by that 

"employee" before or after being hired 

by you. 

f. We will pay only for covered loss or 

damage discovered no later than one 

year from the end of the policy period.

g. If you discover a loss or damage during 

the policy period that you (or any predecessor in interest) sustained during the 

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 Additional 

Coverage, provided: 

(1) This Additional Coverage became 

effective at the time of cancellation 

or termination of the prior insurance; 

and

(2) The loss or damage would have 

been covered by this Additional 

Coverage had it been in effect when 

the acts or events causing the loss 

or damage were committed or occurred.

Discovery also occurs when you receive 

notice of an actual or potential claim 

against you alleging facts that if true 

would constitute a covered loss under 

this Additional Coverage. 

h. The insurance under Paragraph g. 

above is provided within, and not in addition to, the Limit of Insurance applying 

to this Additional Coverage and is limited to the lesser of the amount recoverable under: 

(1) This Additional Coverage as of its 

effective date; or

(2) The prior insurance, had it remained 

in effect.

9. Ordinance Or Law – Equipment

Coverage

a. Subject to Paragraph b., if a Covered 

Cause of Loss occurs to equipment that 

is Covered Property, we will pay the 

costs to repair or replace the equipment 

as required by law. 

b. If a Covered Cause of Loss occurs to 

refrigeration equipment that is Covered 

Property, we will pay: 

(1) The cost to reclaim the refrigerant as 

required by law; 

(2) The cost to retrofit the equipment to 

use a non-CFC refrigerant as required by the Clean Air Act of 1990 

and any amendments thereto or any 

other similar laws; and 

(3) The increased cost to recharge the 

system with a non-CFC refrigerant. 

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c. The terms of this coverage apply separately to each piece of covered equipment. 

d. We will not pay under this Additional 

Coverage for the costs associated with 

the enforcement of any ordinance or law 

which requires any insured or others to 

test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in 

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

e. Loss to the equipment will be determined as follows: 

(1) If the replacement cost coverage 

applies and the equipment is repaired or replaced, on the same or 

another premises, we will not pay 

more than the lesser of: 

(a) The amount you actually spend 

to repair the equipment, but not 

for more than the amount it would 

cost to replace the equipment 

with equipment of the same kind 

and quality; or 

(b) The Limit of Insurance shown in 

the Declarations as applicable to 

the covered Building or Your 

Business Personal Property. 

(2) If the replacement cost coverage 

applies and the equipment is not repaired or replaced, or if the replacement cost coverage does not apply, 

we will not pay more than the lesser 

of: 

(a) The actual cash value of the 

equipment at the time of loss; or 

(b) The Limit of Insurance shown in 

the Declarations as applicable to 

the Building or Your Business 

Personal Property. 

(3) We will not pay for loss due to any 

ordinance or law that: 

(a) You were required to comply with 

before the loss, even if the 

equipment was undamaged; and

(b) You failed to comply with. 

f. The Coinsurance Additional Condition 

does not apply to this coverage. 

10. Lock Replacement

a. We will pay for the cost to repair or 

replace locks at the described premises 

due to theft or other loss to keys. 

b. The most we will pay under this Additional Coverage for all loss or damage in 

any one occurrence is $5,000.

c. A per occurrence deductible of $100 will 

apply. 

11. Artificially Generated Electrical Current

We will pay for loss or damage to "computers" due to artificially generated electrical current if such loss or damage is caused 

by or results from: 

a. An occurrence that took place within 

1,000 feet of the described premises; or

b. Interruption of electric power supply, 

power surge, blackout or brownout if the 

cause of such occurrence took place 

within 1,000 feet of the described premises. 

If such loss or damage as specified above 

exceeds in any one occurrence the applicable 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 for the equipment. 

12. Guests' Property 

a. We will pay: 

(1) For loss of or damage to "guests' 

property" for which you are legally liable while the property is in a safe 

deposit box inside a building at the 

described premises. 

(2) For loss of or damage to "guests' 

property" for which you are legally liable while the property is at the described premises or in your possession. 

If you are sued for refusing to pay for 

loss of or damage to "guests' property", 

and you have our written consent to defend against the suit, we will pay for any 

reasonable legal expenses that you incur and pay in that defense. The amount 

that we will pay is in addition to the applicable Limit of Insurance shown in the 

Declarations. 

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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 liability you assume 

under any written agreement. However, this exclusion does not apply 

under Paragraph a.(2), to any written 

agreement entered into with a guest 

before the "occurrence" of any loss 

or damage that increases to an 

amount not exceeding $1,000 any 

lesser amount you may otherwise be 

liable under any statute. 

(3) To property resulting from fire, however caused. 

(4) Under Paragraph a.(1), to property in 

any wall safe or other container used 

for safekeeping that is in a guest's 

quarters. 

(5) Under Paragraph a.(2), to property 

resulting from the spilling, upsetting 

or leaking of any food or liquid. 

(6) Under Paragraph a.(2), to property 

while in your care and custody for 

laundering or cleaning. 

(7) Resulting from your release of any 

other person or organization from legal liability. 

(8) Under Paragraph a.(2), to samples 

or articles carried or held for sale or 

delivery after sale. 

(9) Under Paragraph a.(2), to any vehicle, including: 

(a) Its equipment and accessories; 

and

(b) Any property contained in or on a 

vehicle. 

c. The most we will pay is determined as 

follows: 

(1) Under Paragraph a.(1), the most we 

will pay for loss in any one "occurrence" is $25,000. Subject to that 

limit, the most we will pay for loss 

arising out of an "occurrence" for any 

one guest is $5,000. 

(2) Under Paragraph a.(2), the most we 

will pay for loss in any one "occurrence" is $25,000. Subject to that 

limit, the most we will pay for loss 

arising out of an "occurrence" for any 

one guest is $5,000. 

d. With respect to this Additional Coverage, the following are added to the Additional Conditions Section: 

(1) Bankruptcy or insolvency of you or 

your estate will not relieve us of our 

obligations under this Insuring 

Agreement.

(2) Covered Property is limited to property belonging to your guests while 

the property is in a safe deposit box, 

inside a building at the described 

premises or in your possession.

However, this insurance is for your 

benefit only. It provides no rights or 

benefits to any other person or organization, including your guest. Any 

claim for loss or damage must be 

presented by you. 

13. Spoilage Coverage

a. We will pay for the loss of "perishable 

stock" as described below caused by: 

(1) A change in temperature or humidity 

resulting from mechanical breakdown or failure of refrigeration, cooling or humidity control apparatus or 

equipment, only while such apparatus or equipment is at the described 

premises; 

(2) Contamination by a refrigerant; and 

(3) Power outage, meaning change in 

temperature or humidity resulting 

from complete or partial interruption 

of electrical power, either on or off 

the described premises, due to conditions beyond your control. 

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

occurrence under this Additional Coverage is $50,000 unless a different Limit of 

Insurance for spoilage coverage is 

shown in the Declarations. 

c. The value of the "perishable stock" will 

be the selling price, as if no loss or 

damage had occurred, less discounts 

and expenses you otherwise would 

have had. 

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d. This Additional Coverage does not apply 

if the spoilage results from: 

(1) Earth movement;

(2) Governmental action; 

(3) Nuclear hazard; 

(4) War and military action; 

(5) Water;

(6) The disconnection of any refrigerating, cooling or humidity control system from the source of power; 

(7) The deactivation of electrical power 

caused by the manipulation of any 

switch or other device used to control the flow of electrical power or 

current; 

(8) The inability of an electrical utility 

company or other power source to 

provide sufficient power due to:

(a) Lack of fuel; or 

(b) Governmental order;

(9) The inability of a power source at the 

described premises to provide sufficient power due to lack of generating 

capacity to meet demand; and 

(10) Breaking of any glass that is a permanent part of any refrigerating, 

cooling or humidity control unit. 

e. 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 that deductible, up to the applicable Limit of Insurance. No other deductible in this policy applies to the coverage provided by this Additional 

Coverage. 

f. You must maintain a refrigeration maintenance or service agreement. If you 

voluntarily terminate this agreement and 

do not notify us within 10 days, the 

spoilage coverage provided by this Additional Coverage will be automatically 

suspended at the involved location.

However, coverage provided by this Additional Coverage is restored upon: 

(1) Reinstatement of the applicable 

refrigeration maintenance or service 

agreement; or

(2) Procurement of a replacement refrigeration maintenance or service 

agreement.

14. Guests' Evacuation Expense Coverage

a. We will reimburse you for reasonable 

and necessary expenses that you incur 

to evacuate a described premises because of imminent danger to the life or 

safety of your guests posed by a Covered Cause of Loss. 

b. We will not reimburse you for any: 

(1) Planned evacuation drill; or 

(2) Strike, bomb threat or false fire 

alarm, unless the order to evacuate 

the described premises is issued by 

a civil authority having jurisdiction. 

c. The most we will reimburse you in any 

one occurrence under this Additional 

Coverage is $25,000 at each described 

premises unless a different Limit of Insurance for guests' evacuation expense 

coverage is shown in the Declarations. 

d. Coverage Extensions in the Coverage

Section is amended as follows: 

1. The Period Of Coverage provision of Newly 

Acquired Or Constructed Property is replaced by the following: 

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; 

c. With respect to "computers", when specific insurance at the newly acquired 

premises is obtained; or 

d. You report values to us. 

We will charge you additional premium for 

values reported from the date you acquire 

the property or begin construction of that 

part of the building that would qualify as 

covered property. 

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2. Personal Effects And Property Of Others

is replaced by the following:

You may extend the insurance that applies 

to Your Business Personal Property to apply to: 

a. Personal effects owned by you, your 

officers, your partners or members, your 

managers or your employees. This Extension does not apply to loss or damage by theft. 

b. Personal property of others, except 

guests, in your care, custody or control. 

The most we will pay under this Extension 

for loss or damage in any one occurrence is 

$5,000 unless a different Limit of Insurance 

for personal effects and property of others 

is shown in the Declarations. Our payment 

for loss of or damage to personal property 

of others will only be for the account of the 

owner of the property. 

3. Valuable Papers And Records (Other 

Than Electronic Data) is replaced by the 

following: 

a. You may extend the insurance that 

applies to Your 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 

Extension includes the cost to research 

lost information on valuable papers and 

records for which duplicates do not exist. But this Extension does not apply to 

valuable papers and records which exist 

as electronic data. Electronic data has 

the meaning described under Property 

Not Covered – Electronic Data. 

b. Coverage under this Extension is limited 

to the "specified causes of loss" as defined in the Causes Of Loss – Special 

Form and Collapse as set forth in that 

Form. 

c. This Extension does not apply to: 

(1) Property held as samples or for 

delivery after sale; 

(2) Property in storage away from the 

premises shown in the Declarations. 

d. The most we will pay under this Extension for loss or damage to valuable papers and records in any one occurrence 

at each described premises is $25,000 

unless a different Limit of Insurance for 

valuable papers and records is shown in 

the Declarations. 

For valuable papers and records not at a 

described premises, the most we will 

pay is $10,000 in any one occurrence. 

Such amounts are additional insurance. 

We will also pay for the cost of blank 

material for reproducing the records 

(whether or not duplicates exist) and 

(when there is a duplicate) for the cost 

of labor to transcribe or copy the records. The costs of blank material and 

labor are subject to the applicable Limit 

of Insurance on Your Business Personal 

Property and therefore coverage of such 

costs is not additional insurance.

4. Property Off-Premises is replaced by the 

following: 

a. You may extend the insurance provided 

by this Coverage Form to apply to your 

Covered Property while it is away from 

the described premises, if it is: 

(1) Temporarily at a location you do not 

own, lease or operate; 

(2) In storage at a location you lease, 

provided the lease was executed after the beginning of the current policy 

term; or 

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

This Extension also applies to "computers" 

while such property is in the course of transit. 

b. This Extension does not apply to property: 

(1) In or on a vehicle, except for "computers"; or 

(2) In the care, custody or control of 

your salespersons, unless the property is in such care, custody or control at a fair, trade show or exhibition. 

c. The most we will pay for loss or damage 

under this Extension is $10,000 in any 

one occurrence. 

5. Outdoor Property is replaced by the following: 

You may extend the insurance provided by 

this Coverage Form to apply to the following outdoor property located on the described premises: 

a. Fences or retaining walls that are not a 

part of a building. The most we will pay 

for loss or damage under this Extension 

is $15,000 in any one occurrence; 

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b. Outdoor radio, television, satellite or 

other antennas, including their masts, 

towers and lead-in and support wiring. 

The most we will pay for loss or damage 

under this Extension is $15,000 in any 

one occurrence; 

c. Trees, shrubs and plants (other than 

"stock" of trees, shrubs or plants). The 

most we will pay for loss or damage, including debris removal expense, under 

this Extension is $25,000 for any one 

occurrence, but not more than $500 for 

any one tree, shrub or plant; and

d. Bridges, roadways, walks or patios. The 

most we will pay for loss or damage under this Extension is $15,000 for any 

one occurrence; 

but only for loss caused by or resulting from 

the following causes of loss and only if they 

are Covered Causes of Loss:

(1) Fire; 

(2) Lightning;

(3) Explosion; 

(4) Riot or civil commotion; or 

(5) Aircraft. 

e. To the extent that coverage for outdoor property is provided under this 

Extension, the provisions of Property 

Not Covered in the Coverage Section 

do not apply.

6. Accounts Receivable is added as 

follows:

a. You may extend the insurance that 

applies to business personal property to 

accounts receivable. We will pay: 

(1) All amounts due from your customers that you are unable to collect; 

(2) Interest charges on any loan required to offset amounts you are unable to collect pending our payment 

of these amounts; 

(3) Collection expenses in excess of 

your normal collection expenses that 

are made necessary by loss or damage; and 

(4) 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.

b. The most we will pay under this Extension for loss or damage in any one occurrence at each described premises is

$10,000.

For accounts receivable not at described 

premises, the most we will pay is $1,500 

in any one occurrence. 

c. To the extent that coverage for accounts 

receivable is provided under this Extension, the provisions of Property Not 

Covered in the Coverage Section do not 

apply. 

II. Changes To The Causes Of Loss – Special

Form

A. The Ordinance Or Law exclusion in the Exclusions Section does not apply to the Ordinance Or Law – Equipment Coverage Additional Coverage in Section I of this 

endorsement.

B. The Mechanical Breakdown exclusion in the 

Exclusions Section does not apply to loss or 

damage to "computers". 

C. The paragraph referencing the excluded 

Causes of Loss to personal property in the Exclusions Section is replaced by the following:

We will not pay for loss or damage caused by 

or resulting from the following causes of loss to 

personal property: 

1. Dampness or dryness of atmosphere, or 

changes in or extremes of temperature, 

unless such conditions result from physical 

damage caused by a Covered Cause of 

Loss to an air conditioning unit or system, 

including equipment and parts, which is part 

of, or used with, "computers"; or 

2. Marring or scratching.

But if an excluded Cause of Loss that is listed 

in Paragraph 1. or 2. 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.

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D. The following exclusions are added to the 

Exclusions Section and apply only to coverage for "computers": 

1. We will not pay for loss or damage caused 

directly or indirectly by any of the following. 

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

the loss. 

a. Errors Or Omissions

Errors or omissions in processing, recording or storing information on media 

or "computers". 

However, we will pay for direct loss or 

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

covered by this policy.

b. Electrical Disturbance

Electrical or magnetic injury, disturbance 

or erasure of electronic recordings. 

However, we will pay for direct loss or 

damage caused by lightning.

c. Computer-Related Losses

The failure, malfunction or inadequacy 

of: 

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

(a) "Computer" hardware, including 

microprocessors; 

(b) "Computer" application software; 

(c) "Computer" operating systems 

and related software; 

(d) "Computer" networks; 

(e) Microprocessors ("computer" 

chips) not part of any "computer" 

system; or

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

or

(2) 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 c.(1) above; 

due to the inability to correctly recognize, process, distinguish, interpret or 

accept one or more dates or times. 

d. Computer Advice Or Consultation

Any advice, consultation, design, 

evaluation, inspection, 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 Exclusion c. above. 

2. If an excluded Cause of Loss as described 

in Exclusion b., c. or d. above results in a 

"specified cause of loss", or in elevator collision resulting from mechanical breakdown, 

we will pay only for the loss or damage 

caused by such "specified cause of loss" or 

elevator collision. We will not pay for repair, 

replacement or modification of any items in 

Exclusion c. above to correct any deficiencies or change any features. 

E. The Exclusions Section does not apply to the 

Employee Dishonesty and Guests' Evacuation Expense Additional Coverages in Section 

I of this endorsement, except for the following 

exclusions: 

1. Governmental Action; 

2. Nuclear Hazard; and 

3. War And Military Action. 

F. The Exclusions Section and Limitations 

Section do not apply to the Outdoor Signs 

Additional Coverage in Section I of this endorsement, except for the following exclusions: 

1. Governmental Action; 

2. Nuclear Hazard; 

3. War And Military Action; 

4. Wear and tear;

5. Rust or other corrosion, decay, deterioration, hidden or latent defect or any quality in 

property that causes it to damage or destroy itself; and

6. Mechanical breakdown, including rupture or 

bursting caused by centrifugal force. But if 

mechanical breakdown results in elevator 

collision, we will pay for the loss or damage 

caused by that elevator collision. 

G. The Exclusions Section does not apply to the 

Valuable Papers And Records (Other Than 

Electronic Data) or the Accounts Receivable 

Coverage Extensions in Section I of this endorsement, except for the following exclusions: 

1. Governmental Action; 

2. Nuclear Hazard; 

3. War And Military Action; 

4. Computer-Related Losses; 

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5. Computer Advice Or Consultation; 

6. 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; 

7. 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:

a. You do your best to maintain heat in the 

building or structure; or 

b. You drain the equipment and shut off 

the supply if the heat is not maintained; 

and

8. 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. But this exclusion 

only applies if weather conditions contribute in any way with a cause or event 

excluded in any of the following exclusions to produce the loss or damage:

(1) Ordinance Or Law; 

(2) Earth Movement;

(3) Governmental Action; 

(4) Nuclear Hazard; 

(5) Utility Services; 

(6) War And Military Action; 

(7) Water; or 

(8) "Fungus", Wet Rot, Dry Rot And 

Bacteria. 

b. Acts or decisions, including the failure to 

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

c. Faulty, inadequate or defective: 

(1) Planning, zoning, development, 

surveying, siting; 

(2) Design, specifications, workmanship, 

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

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

(4) Maintenance; 

of part or all of any property on or off the 

described premises. 

H.The following additional exclusions apply to the 

Accounts Receivable Coverage Extension 

only: 

We will not pay for: 

1. 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.

2. Loss or damage caused by or resulting 

from bookkeeping, accounting or billing errors or omissions. 

3. Any loss or damage that requires any audit 

of records or any inventory computation to 

prove its factual existence.

III. Definitions

A. "Business Income" means the: 

1. 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

2. Continuing normal operating expenses 

incurred, including payroll. 

B. "Computer" means:

1. Your programmable electronic equipment 

that is used to store, retrieve and process 

electronic data. It includes their component 

parts and dedicated air conditioning, fire 

suppression equipment and electrical 

equipment used exclusively in your "computer" operations; and 

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Page 12 of 13 Contains copyrighted material from ISO Properties, Inc. WK HM 01 07 07 †

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

output functions such as printing or auxiliary 

functions such as electronic data transmission. 

It does not include electronic data and media. 

C. "Counterfeit money" means an imitation of 

"money" that is intended to deceive and to be 

taken as genuine. 

D. "Employee": 

1. As respects the coverage provided under 

Section I of this endorsement for Money 

And Securities and Employee Dishonesty 

only, "employee" means:

a. Any natural person: 

(1) While in your service and for the first 

30 days immediately after termination of service, unless such termination is due to "theft" or any other dishonest act committed by the 

"employee"; 

(2) Who you compensate directly by 

salary, wages or commissions; and 

(3) Who you have the right to direct and 

control while performing services for 

you; 

b. Any natural person who is furnished 

temporarily to you: 

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

1.a.(1) above, who is on leave; or 

(2) To meet seasonal or short-term 

workload conditions; 

while that person is subject to your direction and control and performing services for you, excluding, however, any 

such person while having care and custody of property outside the "premises"; 

c. 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 1.b.;

d. Any natural person who is a former 

"employee", partner, "member", "manager", director or trustee retained as a 

consultant while performing services for 

you; 

e. 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 the "premises"; 

f. Any "employee" of an entity merged or 

consolidated with you prior to the effective date of this insurance; or 

g. Any of your "managers", directors or 

trustees while: 

(1) Performing acts within the scope of 

the usual duties of an "employee"; or 

(2) Acting as a member of any committee duly elected or appointed by 

resolution of your board of directors 

or board of trustees to perform specific, as distinguished from general, 

directorial acts on your behalf. 

2. As respects the coverage provided under 

Section I of this endorsement for Money 

And Securities and Employee Dishonesty 

only, "employee" does not mean any agent, 

broker, factor, commission merchant, consignee, independent contractor or representative of the same general character; or not 

specified in Paragraph D.1.

E. "Forgery" means the signing of the name of 

another person or organization with intent to 

deceive. It does not mean a signature which 

consists in whole or in part of one's own name 

signed with or without authority, in any capacity, for any purpose.

F. "Guests' property" means "money", "securities" 

and other tangible property having intrinsic 

value that belongs to your guest. 

G. "Manager", as respects the coverage provided 

under Section I of this endorsement for Employee Dishonesty only, means a person serving in a directorial capacity for a limited liability 

company. 

H. "Member", as respects the coverage provided 

under Section I of this endorsement for Employee Dishonesty only, means an owner of a 

limited liability company represented by its 

membership interest, who also may serve as a 

"manager". 

I. "Money" means: 

1. Currency, coins and bank notes in current 

use and having a face value; and 

2. Travelers' checks, register checks and 

money orders held for sale to the public. 

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WK HM 01 07 07 Contains copyrighted material from ISO Properties, Inc. Page 13 of 13 †

J. "Occurrence": 

1. As respects the coverage provided under 

Section I of this endorsement for Money 

And Securities only, "occurrence" means: 

a. An individual act; 

b. The combined total of all separate acts 

whether or not related; or 

c. A series of acts whether or not related; 

committed by a person acting alone or in 

collusion with other persons, or not committed by any person, during the policy period 

shown in the Declarations, before such policy period or both. 

2. As respects the coverage provided under 

Section I of this endorsement for Computer 

Fraud, Guests' Property and Money Orders 

And Counterfeit Money only, "occurrence" 

means:

a. An individual act or event; 

b. The combined total of all separate acts 

or events whether or not related; or 

c. A series of acts or events whether or not 

related; 

committed by a person acting alone or in 

collusion with other persons, or not committed by any person, during the policy period 

shown in the Declarations, before such policy period or both. 

3. As respects the coverage provided under 

Section I of this endorsement for Forgery 

Or Alteration only, "occurrence" means:

a. An individual act; 

b. The combined total of all separate acts 

whether or not related; or 

c. A series of acts whether or not related; 

committed by a person acting alone or in 

collusion with other persons, involving one 

or more instruments, during the policy period shown in the Declarations, before such 

policy period or both. 

4. As respects the coverage provided under 

Section I of this endorsement for Employee 

Dishonesty only, "occurrence" means: 

a. An individual act; 

b. The combined total of all separate acts 

whether or not related; or 

c. A series of acts whether or not related; 

committed by an "employee" acting alone 

or in collusion with other persons, during 

the policy period shown in the Declarations, 

before such policy period or both. 

K. "Operations" means your business activities 

occurring at the described premises. 

L. "Perishable stock" means property: 

1. Maintained under controlled conditions for 

its preservation; and 

2. Susceptible to loss or damage if the controlled conditions change.

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

1. Tokens, tickets, revenue and other stamps 

(whether represented by actual stamps or 

unused value in a meter) in current use; 

and

2. Evidences of debt issued in connection with 

credit or charge cards, which cards are not 

issued by you; 

but does not include "money".

N. "Suspension" means: 

1. The slowdown or cessation of your business activities; or 

2. That a part or all of the described premises 

is rendered untenantable, if coverage for 

"Business Income" applies. 

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ASPCO002 0213 Aspen Specialty Insurance Company Page 1 of 1 

 

GENERAL SERVICE OF SUIT NOTICE 

In the event of failure of the Company to pay any amount claimed to be due under the terms of this policy, the 

Company, at the request of the Insured, will submit to the jurisdiction of a court of competent jurisdiction within the 

United States. Nothing in this condition constitutes or should be understood to constitute a waiver of the Company’s 

rights to commence an action in any court of competent jurisdiction in the United States to remove an action to a 

United States District Court or to seek a transfer of a case to another court as permitted by the laws of the United 

States or of any state in the United States. In any suit instituted against the Company upon this policy, the Company 

will abide by the final decision of such court or of any appellate court in the event of appeal. 

It is further agreed that service of process in such suit may be made upon: Aspen Specialty Insurance Management, 

Inc., c/o General Counsel, 175 Capital Blvd., Rocky Hill, CT 06067; (860) 760-7758; Questions can be directed to: 

Compliance@aspenspecialty.com

Further, pursuant to any statute of any state, territory, or district of the United States which makes provision therefore, 

the Company hereby designates the Superintendent, Commissioner or Director of Insurance, Secretary of State, or 

other officer specified for that purpose in the statute, as its true and lawful attorney upon whom service may be made 

of any lawful process in any action, suit, or proceeding instituted by or on behalf of the Insured or any beneficiary 

hereunder arising out of this policy of insurance and hereby designates the above named General Counsel as the 

person to whom the said officer is authorized to mail such process or a true copy thereof. 

This notice does not change any other provision of the policy. 

83

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COMMERCIAL PROPERTY

WK 25 86 01 08

WK 25 86 01 08 Page 1 of 1

Named Insured: Bradley Hotel Corp

Policy Effective Date: 5/1/2019

Policy Expiration Date: 5/1/2020

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ALUMINUM WIRING EXCLUSION

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

We will not pay for loss or damage caused directly or indirectly in any way or to any extent, which arises 

out of or is related to the presence of aluminum wiring. Such loss or damage is excluded from this 

policy regardless of any other cause or event that contributes concurrently or in any sequence to the 

loss or damage.

All other terms and conditions of this policy remain unchanged.

84

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Named Insured: Bradley Hotel Corp 

Policy Effective Date: 5/1/2019

Policy Expiration Date: 5/1/2020

COOKING OR HAZARDOUS PROCESS AREAS WARRANTY

The rate of premium being fixed having regard to the fact that there is present in the risk a fully 

automatic UL300 compliant extinguishing system, it is understood and agreed that:

A) The Insured shall maintain this automatic system in operation at all times during the 

course of this policy period, otherwise this insurance shall be null and void.

B) The Insured, if owner or lessee of the system, shall provide for regular inspection and 

maintenance of the equipment, as recommended by the manufacturer, with a minimum of 

semiannual inspection of the system by the manufacture’s authorized installer.

C) The Insured shall use due diligence to see that at intervals of not more than six months the 

flues, vents, hoods, and ducts to all cooking appliances shall be examined by an 

independent contractor, and that all grease, dirt and other residue shall be removed 

chemically and any defects discovered shall be rectified by such independent contractors.

Failure to comply with the clauses specified above shall suspend this insurance in accordance 

with the provisions set forth in this policy of which this endorsement is made part of.

All other terms and conditions of this policy remain unchanged.

WK 26 65 10 07

85

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COMMERCIAL PROPERTY

WK 62 28 10 07

WK 62 28 10 07 Page 1 of 1

Named Insured: Bradley Hotel Corp

Policy Effective Date: 5/1/2019

Policy Expiration Date: 5/1/2020

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

OCCURRENCE LIMIT OF LIABILITY

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

 COMMERCIAL INLAND MARINE 

It is understood and agreed that the following special terms and conditions apply to this policy:

1. The Limit of Liability $23,916,760.00, is a limit of amount per occurrence. Notwithstanding anything 

to the contrary contained herein, in no event shall the liability of this Company exceed this limit or 

amount in one disaster, casualty, or event, irrespective of the number of locations involved.

2. The premium for this policy is based upon the Statement of Values on file with the Company, or 

attached to this policy. In the event of loss hereunder, liability of the Company shall be limited to the 

least of the following:

a) the actual adjusted amount of loss, less applicable deductible(s);

b) the total stated value for the property involved, as shown on the latest Statement 

of Values on file with the Company, less applicable deductible(s);

c) the Limit of Liability or amount of Insurance shown on the face of this policy or 

endorsed on this policy.

All other terms and conditions of this policy remain unchanged.

86

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WK 64 64 10 07

WK 64 64 10 07 Page 1 of 1

Named Insured: Bradley Hotel Corp

Policy Effective Date: 5/1/2019

Policy Expiration Date: 5/1/2020

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MINIMUM EARNED PREMIUM

In the event of cancellation of this policy by the Insured, a minimum of 25% of the total policy premium shall 

become earned. Any condition(s) of the policy notwithstanding.

Failure of the Insured to make timely payment of premium shall be considered a request by the Insured for the 

Company to cancel. In the event of such cancellation by the Company for Non-Payment of Premium, Minimum 

Premium shall be due and payable.

In the event of any other cancellation by the Company, the earned premium shall be computed pro rata not 

subject to minimum premium.

All other terms and conditions of this policy remain unchanged.

87

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COMMERCIAL PROPERTY 

WK 76 55 10 07 

WK 76 55 10 07 Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

POLLUTION AND CONTAMINATION EXCLUSION 

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

 COMMERICAL INLAND MARINE 

This policy does not cover loss or damage to covered property caused directly or indirectly by the release 

or discharge or dispersal of toxic or hazardous substances, contaminants or pollutants. Nor does it cover 

the cost of removal, disposal, decontamination or replacement of insured property which has been 

contaminated by toxic or hazardous substances, contaminants or pollutants and which by law or civil 

authority must be restored, disposed of or decontaminated. Such loss to property covered is excluded 

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

If a loss otherwise covered by this policy occurs and the cost of removal of debris is increased due to the 

presence of toxic or hazardous substances, contaminants, or pollutants, this policy will only be liable for the 

cost of debris removal which would have been incurred had no toxic or hazardous substances, 

contaminants or pollutants been present in, on or about the covered property to be removed. 

All other terms and conditions of this policy remain unchanged. 

 

88

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COMMERCIAL PROPERTY

WK 27 23 02 15

WK 27 23 02 15 Page 1 of 1

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ASBESTOS MATERIAL EXCLUSION

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

Notwithstanding any provision in the policy to which this endorsement is attached, this policy does not 

insure against loss or expense resulting from:

1. demolition or increased cost of reconstruction, repair, debris removal or loss of use necessitated 

by the enforcement of any law or ordinance involving asbestos material remediation or removal.

2. any governmental direction or request declaring that asbestos material present in or part of or 

utilized on any undamaged portion of the insured's property can no longer be used for the 

purpose for which it was intended or installed and must be removed or modified.

All other terms and conditions of this policy remain unchanged.

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WK CP 21 04 16 Page 1 of 1

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ACV ROOF COVERING ENDORSEMENT

This endorsement modifies insurance provided under the following: 

BUILDING AND PERSONAL PROPERTY COVERAGE FORM

CONDOMINIUM ASSOCIATION COVERAGE FORM

This endorsement applies:

Any Locations on File

10 Year ACV Roof Covering Endorsement 

Roof covering over 10 Years Endorsement applies to any building or location that is Frame. 

The following is added to G: Optional Coverages, 3. Replacement Cost, b:

Roof covering over ten (10) years old at the time of loss or damage and caused by the perils of

windstorm or hail will be valued at Actual Cash Value.

20 Year ACV Roof Covering Endorsement 

Roof covering over 20 Years Endorsement applies to any building or location that is not Frame.

The following is added to G: Optional Coverages, 3. Replacement Cost, b:

Roof covering over twenty (20) years old at the time of loss or damage and caused by the perils of

windstorm or hail will be valued at Actual Cash Value.

For the purposes of this endorsement, “roof covering” includes but is not limited to waterproofing materials; felts; 

tar; gravel; composition shingles; asphalt shingles; wood shingles; shakes; metal; tile; slate; or any fiberglass 

materials. “Roof covering” does not include structural supports or structural decking consisting of metal, concrete, 

particle board/OSB or wood.

90

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COMMERCIAL PROPERTY

WK CP 24 09 17

WK CP 24 09 17 Page 1 of 1

Named Insured: Bradley Hotel Corp

Policy Effective Date: 5/1/2019

Policy Expiration Date: 5/1/2020

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Existing Damage Exclusion Endorsement

This endorsement modifies insurance provided under the following:

Building and Personal Property Coverage Form 

Condominium Association Coverage Form 

This policy does not provide coverage for any damages which occurred before policy inception regardless 

of whether the damages were apparent at the inception of this policy.

This policy does not provide coverage for any claims or damages arising out of workmanship, repairs 

and/or lack of repairs arising from damage which occurred before policy inception.

This policy does not provide coverage for any damage resulting from prior damage that has not been 

completely and properly repaired.

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