IT IS IN POSSESSION OF ANY OF THE HOTELS, REASONABLE AND ADEQUATE AMOUNTS
OF CASUALTY, LIABILITY AND OTHER USUAL AND CUSTOMARY TYPES OF INSURANCE FOR THE
HOTELS AND THEIR OPERATIONS.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,
MANAGER SHALL OBTAIN AND MAINTAIN, WITH INSURANCE COMPANIES OF RECOGNIZED
RESPONSIBILITY, A MINIMUM OF THE FOLLOWING INSURANCE TO THE EXTENT COMMERCIALLY
AVAILABLE (REGARDLESS OF WHETHER IT IS AVAILABLE ON REASONABLE TERMS):
69
(A)
"SPECIAL FORM" PROPERTY INSURANCE,
INCLUDING INSURANCE AGAINST LOSS OR DAMAGE BY FIRE, VANDALISM AND MALICIOUS
MISCHIEF, TERRORISM (IF AVAILABLE ON COMMERCIALLY REASONABLE TERMS), EARTHQUAKE,
EXPLOSION OF STEAM BOILERS, PRESSURE VESSELS OR OTHER SIMILAR APPARATUS, NOW OR
HEREAFTER INSTALLED IN THE HOTELS, WITH EQUIVALENT COVERAGE AS THAT PROVIDED BY
THE USUAL EXTENDED COVERAGE ENDORSEMENTS, IN AN AMOUNT EQUAL TO ONE HUNDRED
PERCENT (100%) OF THE THEN FULL REPLACEMENT COST OF THE PROPERTY REQUIRING
REPLACEMENT (EXCLUDING FOUNDATIONS) FROM TIME TO TIME, INCLUDING AN INCREASED
COST OF CONSTRUCTION ENDORSEMENT;
(B)
BUSINESS INTERRUPTION AND BLANKET EARNINGS
PLUS EXTRA EXPENSE UNDER A RENTAL VALUE INSURANCE POLICY OR ENDORSEMENT COVERING
RISK OF LOSS DURING THE LESSER OF THE FIRST TWELVE (12) MONTHS OF RECONSTRUCTION
OR THE ACTUAL RECONSTRUCTION PERIOD NECESSITATED BY THE OCCURRENCE OF ANY OF THE
HAZARDS DESCRIBED IN SUBPARAGRAPH (A) ABOVE, IN SUCH AMOUNTS AS MAY BE CUSTOMARY
FOR COMPARABLE PROPERTIES MANAGED OR LEASED BY MANAGER OR ITS AFFILIATES IN THE
SURROUNDING AREA AND IN AN AMOUNT SUFFICIENT TO PREVENT OWNER OR PURCHASER FROM
BECOMING A CO-INSURER;
(C)
COMMERCIAL GENERAL LIABILITY INSURANCE,
INCLUDING BODILY INJURY AND PROPERTY DAMAGE (ON AN OCCURRENCE BASIS AND ON A
1993 ISO CGL FORM OR ON A FORM CUSTOMARILY MAINTAINED BY SIMILARLY SITUATED
HOTELS, INCLUDING, WITHOUT LIMITATION, BROAD FORM CONTRACTUAL LIABILITY,
INDEPENDENT CONTRACTOR'S HAZARD AND COMPLETED OPERATIONS COVERAGE, AGGREGATE
LIMIT AS APPLICABLE) IN AN AMOUNT NOT LESS THAN TWO MILLION DOLLARS ($2,000,000)
PER OCCURRENCE AND UMBRELLA COVERAGE OF ALL SUCH CLAIMS IN AN AMOUNT NOT LESS
THAN FIFTY MILLION DOLLARS ($50,000,000) PER OCCURRENCE;
(D)
FLOOD (IF A HOTEL IS LOCATED IN WHOLE OR IN
PART WITHIN AN AREA IDENTIFIED AS AN AREA HAVING SPECIAL FLOOD HAZARDS AND IN
WHICH FLOOD INSURANCE HAS BEEN MADE AVAILABLE UNDER THE NATIONAL FLOOD INSURANCE
ACT OF 1968, AS AMENDED, OR THE FLOOD DISASTER PROTECTION ACT OF 1973, AS
AMENDED, OR ANY SUCCESSOR ACTS THERETO) AND INSURANCE AGAINST SUCH OTHER HAZARDS
AND IN SUCH AMOUNTS AS MAY BE AVAILABLE UNDER THE NATIONAL FLOOD INSURANCE
PROGRAM AND CUSTOMARY FOR COMPARABLE PROPERTIES IN THE AREA;
(E)
WORKER'S COMPENSATION INSURANCE COVERAGE
FOR ALL PERSONS EMPLOYED BY MANAGER AT THE HOTELS WITH STATUTORY LIMITS AND
OTHERWISE WITH LIMITS OF AND PROVISIONS IN ACCORDANCE WITH LEGAL REQUIREMENTS
AND EMPLOYER'S LIABILITY INSURANCE AS IS CUSTOMARILY CARRIED BY SIMILAR
EMPLOYERS WHICH COVERAGE SHALL BE
70
WRITTEN BY AN INSURANCE COMPANY OF RECOGNIZED RESPONSIBILITY, AS A QUALIFIED
SELF-INSURER SUBJECT TO APPLICABLE STATE REQUIREMENTS AND APPROVALS, OR SPECIFIC
TO THE STATE OF TEXAS, AS A NONSUBSCRIBER;
(F)
EMPLOYMENT PRACTICES LIABILITY INSURANCE
WITH LIMITS OF TWENTY FIVE MILLION DOLLARS ($25,000,000); AND
(G)