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Home My WebLink AboutAVHS Certificates of Insurance from 2016-2020_expires 9-23-202110/6/2020 Rice Insurance LLC 1400 Broadway P.O. Box 639 Bellingham WA 98227 Sandi Jones (360)734-1161 (360)734-1173 sandi@riceinsurance.com Auburn Valley Humane Society 4910 A. St. SE Auburn WA 98092 Nova Casualty Company Austin Mutual Insurance Co 13412 Carolina Casualty Ins Co CL16122139691 A X X X X VETIB1000074900 9/23/2016 9/23/2017 1,000,000 50,000 10,000 1,000,000 2,000,000 2,000,000 WA Stop Gap 1,000,000 A X X VETIB1000074900 9/23/2016 9/23/2017 Included A VETERINARIANS PROFESSIONAL LIABILITY VETIB1000074900 9/30/2016 9/30/2017 Limit per Occurrence 1,000,000 Aggregate Limit 2,000,000 City of Auburn is listed as additional insured as required by written contract City Of Auburn 910 9th St. SE Auburn, WA 98002 avaldez@auburnwa.gov Tyler Wate/SAN The ACORD name and logo are registered marks of ACORD CERTIFICATE HOLDER ©1988-2014 ACORD CORPORATION.All rights reserved. ACORD 25 (2014/01) AUTHORIZED REPRESENTATIVE CANCELLATION DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE LOCJECTPRO-POLICY GEN'L AGGREGATE LIMIT APPLIES PER: OCCURCLAIMS-MADE COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence)$DAMAGE TO RENTED EACH OCCURRENCE $ MED EXP (Any one person)$ PERSONAL &ADV INJURY $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG $ $RETENTIONDED CLAIMS-MADE OCCUR $ AGGREGATE $ EACH OCCURRENCE $UMBRELLA LIAB EXCESS LIAB DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) INSRLTR TYPE OF INSURANCE POLICY NUMBER POLICY EFF(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)LIMITS PER STATUTE OTH- ER E.L.EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT $ $ $ ANY PROPRIETOR/PARTNER/EXECUTIVE If yes,describe under DESCRIPTION OF OPERATIONS below (Mandatory in NH) OFFICER/MEMBER EXCLUDED? WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N AUTOMOBILE LIABILITY ANY AUTO ALL OWNED SCHEDULED HIRED AUTOS NON-OWNED AUTOS AUTOS AUTOS COMBINED SINGLE LIMIT BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE $ $ $ $ THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSD ADDL WVD SUBR N / A $ $ (Ea accident) (Per accident) OTHER: THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: INSURED PHONE(A/C, No, Ext): PRODUCER ADDRESS: E-MAIL FAX (A/C, No): CONTACTNAME: NAIC # INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : INSURER(S)AFFORDING COVERAGE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INS025 (201401) 10/06/2020 Rice Insurance LLC 1400 Broadway P.O. Box 639 Bellingham WA 98227 Jennifer Davis (360) 734-1161 (360) 734-1173 jenniferd@riceinsurance.com Auburn Valley Humane Society 4910 A St SE Auburn WA 98092 Nova Casualty Company Austin Mutual Insurance Co 13412 Carolina Casualty Ins Co CL1792145674 A Y VETIB1000074901 09/23/2017 09/23/2018 1,000,000 50,000 10,000 1,000,000 2,000,000 2,000,000 WA Stop Gap 1,000,000 B BA192580401 09/23/2017 09/23/2018 1,000,000 Uninsured motorist combined single limit 1,000,000 C Veterinarians Professional VETIB1000074901 09/30/2017 09/30/2018 Limit Per Occurance 1,000,000 Aggregate Limit 2,000,000 Certificate Holder is Additional Insured per attached form ABP0138 0215. City Of Auburn 910 9th St. SE Auburn WA 98002 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 1 of 33 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY VETERINARIANS AND PET SERVICES EXTRA ENDORSEMENT - WASHINGTON This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM VETERINARIANS PROFESSIONAL LIABILITY SUMMARY OF COVERAGES AND LIMITS This is a summary of the various coverages and limits provided by this endorsement. No coverage is provided by this summary. Refer to the provisions of Sections A. through C. to determine the scope of the insurance protection provided by this endorsement. A. SCHEDULED COVERAGES Limit Page 1. Animal Bailee Coverage $50,000 3 2. Animal Damage To Property Included 5 3. Backup Of Water And Sump Overflow Included 5 4. Boundary Extension 1,000 feet 6 5. Brands And Labels $10,000 6 6. Broad Form Water Damage Included 6 7. Building Damage From Theft Included 7 8. Building Enhanced Replacement Cost Included 7 9. Business Income (Loss Of) 24 Months ALS 8 10. Business Personal Property- Automatic Increase 2% Quarterly 8 11. Catastrophe Allowance $10,000 8 12. Civil Authority 6 Consecutive Weeks No Waiting Period 8 13. Commercial Tools and Equipment $5,000 per occurrence $1,000 per tool $2,500 per tool box 8 14. Covered Property – Amended Building Definition Included 9 15. Covered Property- Enhanced Replacement Cost Included 10 16. Deductibles Various 11 17. Deferred Payments $5,000 12 18. Employee Dishonesty Including ERISA Compliance $50,000 12 19. Extended Business Income 365 Days 13 20. Fine Arts $10,000 13 21. Forgery And Alteration $50,000 13 22. Garages, Storage Buildings And Other Appurtenant Structures $50,000 13 23. Glass Expenses Included 14 24. Identity Theft Expense $25,000 14 25. Installation $5,000 15 26. Leasehold Interest (Tenant’s only) $10,000 15 27. Marring And Scratching Included 16 28. Money And Securities Inside The Premises Money And Securities Outside The Premises $50,000 $50,000 16 29. Money Orders And Counterfeit Paper Currency $25,000 16 30. Newly Acquired Or Constructed Property 180 days 16 31. Newly Acquired Or Constructed Property – Business Income And Extra Expense $500,000 16 32. Ordinance Or Law – Demolition Cost Coverage Ordinance Or Law – Increased Cost Of Construction Ordinance Or Law – Increased Period Of Restoration Ordinance Or Law – Tenant’s Improvement Extension Building Limit Plus $50,000 Building Limit Plus $50,000 $10,000 Included 16 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 2 of 33 A. SCHEDULED COVERAGES Limit Page 33. Personal Effects $10,000 19 34. Personal Property In Transit $50,000 19 35. Preservation Of Property – Expense $25,000 20 36. Salesperson’s Samples $5,000 20 37. Soft Costs $10,000 20 38. Spoilage- Animal Semen $10,000 21 39. Temporary Relocation Of Property $50,000 21 40. Tenant Signs (Tenants only) $5,000 21 41. Unauthorized Business Credit Card use $5,000 21 42. Vacancy Loss Condition Deleted 22 43. Valuation – Medical Equipment Replacement Cost Plus 15% 22 44. Virus and Hacking Coverage $10,000 22 B. BLANKET COVERAGES Limit $1,000,000 Page 1. Accounts Receivable Included 23 2. Business Income From Dependent Properties Included 23 3. Extra Expense From Dependent Properties Included 23 4. Business Income And Extra Expense – Mobile Veterinary Clinic Included 23 5. Computer Equipment Included 24 6. Expediting Expense Included 25 7. Fire Department Service Charge Included 25 8. Inventory And Loss Appraisal Included 25 9. Key Replacement And Lock Repair Included 25 10. Lessor’s Lease Cancellation Included 25 11. Outdoor Property – Per Item Limit $5,000 Included 26 12. Personal Property Off-Premises Included 26 13. Special Event Cancellation – Rental Expense Included 26 14. Tenant Relocation Expense Included 26 15. Utility Services – Direct Damage Utility Services – Time Element Included Included 27 16. Valuable Papers And Records Included 27 C. SECTION II- LIABILITY Page 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Included 28 2. Alienated Premises Included 28 3. Bodily Injury Redefined Included 28 4. Broad Form Property Damage- Borrowed Equipment, Customers Goods and use of Elevators Included 28 5. Broadened Named Insured Included 28 6. Broadened “Personal And Advertising Injury” Included 29 7. Damage To Premises Rented To You – Revised Limit $1,000,000 29 8. Fellow Employee Coverage Included 30 9. Newly Acquired Organizations 180 Days 30 10. Product Recall Expense $25,000 Occurrence $50,000 Aggregate 31 11. Supplementary Payments – Cost Of Bail Bonds Broadened Actual cost 31 12. Unintentional Failure to Disclose Hazards Included 31 13. Unintentional Failure to Notify Included 31 14. Veterinarians Professional Liability – Broadened Definition Of “Employee” Included 32 15. Veterinarians Professional Liability – Consent To Settle Included 32 16. Veterinarians Professional Liability – Legal Defense Expense – Veterinarian Medical Board Extension Coverage $100,000 Per Claim $100,000 Aggregate Per Vet 32 17. Veterinarians Professional Liability - Veterinary Technicians Included 32 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 3 of 33 COVERAGES Unless otherwise indicated, the limits shown in this endorsement are not additional amounts of insurance to the Limits of Insurance provided by your policy. The Building and Business Personal Property Deductibles shown on the Declarations apply unless otherwise indicated. If this endorsement and any other coverage part, form, endorsement or policy that is issued to you by us apply to the same loss, damage or expense, the maximum Limit of Insurance combined shall not exceed the highest applicable Limit of Insurance under any one coverage part, form, endorsement or policy. A. SCHEDULED COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the BUSINESSOWNERS COVERAGE FORM. 1. Animal Bailee Coverage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss or damage to “covered animals” while in your care, custody or control for veterinary services at any insured premises or while in transit in your owned, leased or hired vehicles. Such veterinary services include treatment, breeding, grooming, and boarding. Loss under this Additional Coverage includes escape. For purposes of this Additional Coverage, the following definition is added: “Covered animals” means animals of others while in your care, custody or control and includes animals of others at any insured premises awaiting or receiving veterinary services or animals owned by you or your “employees”. “Covered animals” does not include animals held for sale, lease or rental to others. For purposes of this Additional Coverage, under Paragraph A.2. Property Not Covered, Sub- Paragraph j. is deleted. b. Under this Additional Coverage, we will also pay for the following: (1) Legal Liability (a) Damages We will pay all sums you become legally obligated to pay as damages because of your liability for loss to “covered animals” caused by or resulting from a Covered Cause of Loss. Our obligation for payment of damages under this coverage does not apply to your liability for the actual value of the “covered animals” as insured elsewhere under this Additional Coverage. (b) Defense We will have the right and duty to defend any “suit” against you seeking damages for loss to “covered animals” caused by or resulting from an “occurrence”, even if any of the allegatio ns of the “suit” are not true. However, we will have no duty to defend the insured against any “suit” seeking damages for loss to “covered animals” to which this insurance does not apply. We may, at our discretion, investigate any “occurrence” and settle any claim or “suit” that may result. After we have paid the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage in a settlement or pursuant to a judgment, we have no duty: i. To pay any other sums as damages; or ii. To defend any “suit” including the one which has been settled or on which a judgment has been paid. (c) Supplementary Payments In addition to the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage, we will pay: i. Expenses we incur to adjust claims or suits; ii. Costs, including all expenses of litigation taxed against you in any “suit” we defend; iii. All interest which accrues after the entry of a judgment in a “suit” we defend. Our duty to pay interest ends when we pay that part of the judgment which does not exceed our Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage. iv. Premiums on appeal bonds: (i) In any “suit” we defend; (ii) To release attachments in any “suit” we defend. But we will not pay the premiums for bond amounts greater than the applicable Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage, and we have no obligation to apply for or defend against a claim or “suit”. These payments will not reduce the limit of liability. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 4 of 33 (2) Additional Expenses We will pay the reasonable expense you incur for: (a) The recovery of a “covered animal”; and (b) Putting a “covered animal” to death when such death is made necessary by a Covered Cause of Loss. This Additional Coverage does not apply to any: (a) Expense for advertising; or (b) Reward offered. The most we will pay in any one loss under this Additional Expense provision, regardless of the number of “covered animals” in your care, custody or control is $2,500. The most we will pay under this Additional Expense provision in any one policy period, regardless of the number of “occurrences” is $5,000.+ (3) Preservation Expense If it is necessary to move “covered animals” to preserve them from loss by a Covered Cause of Loss, we will pay the actual expense to move the “covered animal” to safety. The most we will pay in any one “occurrence” for moving the “covered animals” is $25,000, regardless of how many “covered animals” are in your care, custody or control. (4) Uncollectible Accounts (a) In the event of loss to “covered animals” caused by or resulting from a Covered Cause of Loss, we will also pay your accrued charges not collected from the customers as a result of the loss. There will be no recovery for accrued charges which were more than ninety (90) days delinquent from the end of the month in which the payment was due. Uncollectible accounts that predate the policy effective date do not qualify under this provision. (b) The most we will pay for accrued charges due from any one customer is $250. The most we will pay for accrued charges in any one “occurrence” is $1,000. We will not pay for uncollectible charges on any claim for which the loss to the “covered animals” is less than the deductible that applies to such loss. (5) Advertising and Reward (a) We will pay the cost of advertising in newspapers to aid in the recovery of “covered animals” that are lost or stolen while in your care, custody or control. “Covered animals” stolen by your “employees” are not covered under this coverage. (b) We will also pay a reward to the person or persons, who are not “employees”, who provide information leading to the recovery of the “covered animals” lost or stolen. The most we will pay in any one “occurrence” for advertising expense and rewards under this coverage provision, regardless of the number of “covered animals” lost or stolen, is $2,500. c. Cause Of Loss We will pay risks of direct physical loss to “covered animals” from any cause of loss except where limited or excluded in Paragraph d. below. d. Exclusions For purposes of this Additional Coverage, the following apply: (1) Section I – Property, B. Exclusions and Section I – Property, 4. A. Coverage, Paragraph 4. Limitations, apply to this Additional Coverage. (2) 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) Any rendering or failure to render professional services; (b) Conditions, including but not limited to, injury or illness, which existed prior to the animal coming into your care, custody or control. (c) Any disease or sickness, or death by natural causes; or (d) The seizure or destruction of animals by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is otherwise covered under this policy, subject to the Limit Of Insurance under paragraph e. below. e. Limit Of Insurance The most we will pay under this Additional Coverage, regardless of the number of “covered animals” in your care, custody or control is $50,000 unless this limit has been increased by an endorsement attached to this policy. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 5 of 33 2. Animal Damage To Property Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for the actual direct physical loss or damage to Covered Property caused by or resulting from animals which you do not own but are in your care, custody or control for treatment, grooming, boarding, daycare, breeding or training. The loss or damage must be caused by or the result of a Covered Cause of Loss. b. For purposes of this Additional Coverage, the following Exclusions are added to paragraph B. Exclusions: (1) Caused by or resulting from wear or tear; (2) Caused by or resulting from your failure to use care in the maintenance of the property; or (3) Which cannot be identified as occurring at a specific point in time and did not become known to you within 48 hours thereafter. c. If the covered loss or damage is to real property which you own, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Building at the premises where the loss or damage occurred. If the covered loss or damage is to real property which you do not own but which you occupy for your business for which you have a contractual responsibility to insure, or to Business Personal Property, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Business Personal Property. d. Payments under this Additional Coverage do not increase the Limit Of Insurance that applies to your Building or to your Business Personal Property. The Limit Of Insurance that applies to your Business Personal Property is the most we will pay in any one “occurrence” for loss or damage to your Business Personal Property and for loss arising from animal damage to property you do not own but which you occupy for business combined. e. Coverage provided under this Additional Coverage for Animal Damage to property that you occupy for business for which you have a contractual responsibility to insure is primary insurance and will not seek contribution from any other insurance available to the lessor. 3. Backup Of Water And Sump Overflow Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property, covered under Section I – Property, caused by or resulting from: (1) Water or waterborne material which backs up through or overflows or is otherwise discharged from a sewer or drain; or (2) Water or waterborne material which overflows or is otherwise discharged from a sump, sump pump or related equipment, even if the overflow or discharge results from mechanical breakdown of a sump pump or its related equipment; or However, with respect to paragraph a.(2), we will not pay the cost of repairing or replacing a sump pump or its related equipment in the event of mechanical breakdown. b. The coverage described in paragraph a. of this endorsement does not apply to loss or damage resulting from: (1) An insured's failure to keep a sump pump or its related equipment in proper working condition; (2) An insured's failure to perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions; or (3) Sump pump failure which is caused by or results from failure of power, unless this policy is endorsed to cover power failure affecting the described premises. c. Regardless of the number of insured locations involved, the most we will pay under this Additional Coverage for loss or damage in any one “occurrence” is included in the Limits Of Insurance for Covered Property. This Additional Coverage does not increase the Limits Of Insurance. d. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: Water (1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 6 of 33 (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in paragraphs (1) through (4), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, 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 (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the back up of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. e. For the purposes of this endorsement, the term drain includes a roof drain and related fixtures. 4. Boundary Extension All references to property “within 100 feet of the described premises” are changed to property “within 1,000 feet of the described premises”. 5. Brands and Labels Under paragraph A. 6. Coverage Extensions, the following is added: If Covered Property that has a brand or label is damaged by a Covered Cause of Loss, and we elect to take all or any part of the property at an agreed or appraised value, you may extend the insurance that applies to your Business Personal Property to pay expenses incurred to: a. Stamp salvage on the property or its container, if the stamp will not physically damage the property; or b. Remove the brand or label, if doing so will not physically damage the property or its container, and re- label the merchandise or its containers to comply with the law. The most we will pay for any loss under this Extension is $10,000 per “occurrence”. Payment of these expenses is included within the applicable Limit Of Insurance. 6. Broad Form Water Damage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property caused by or resulting from water under the ground surface pressing on, or flowing or seeping through: (1) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings. b. We will not pay for loss or damage in any one “occurrence” until the amount of loss or damage exceeds $1,000. This deductible is to apply separately: (1) To each building, including personal property therein; (2) To personal property in each building if no coverage is provided on the containing building; and (3) To personal property in the open. The aggregate amount of this deductible in any one “occurrence” shall not exceed $5,000. We will then pay the amount of loss or damage in excess of the deductible up to the applicable Limit of Insurance. c. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: (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; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 7 of 33 (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; or (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies if any of the above, in paragraphs (1) through (4): (1) Occurs independently; (2) Is caused by an act of nature; (3) Is caused by an act or omission of humans or animals; or (4) Is attributable to the failure, in whole or in part, of a dam, levee, seawall or other boundary or containment system. But if any of the above, in (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. 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. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the backup of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. 7. Building Damage From Theft Under paragraph A. 1. Covered Property, sub-paragraph b. Business Personal Property, the following is added: Physical damage to a building leased to you from theft or attempted theft, burglary or robbery. Theft means any act of stealing. 8. Building Enhanced Replacement Cost Under paragraph C. Limits Of Insurance, sub-paragraph 4. Building Limit – Automatic Increase is replaced with the following: a. If Covered Property is written on a Replacement Cost basis: (1) The Limit of Insurance for Buildings will automatically be revised by changes that occurred in the cost of construction during the preceding policy year. (2) The amount of increase will be determined by reports of a recognized valuation method. (3) We will inform you of such adjusted values. Upon their acceptance, you agree to pay any additional premium for the adjusted limit. Payment of your renewal premium which includes the revised Limit of Insurance, shall constitute acceptance. (4) We will pay the replacement cost value of the damaged portion of the building at the time of loss, but not more than 150% of the Limit of Insurance for Building if: (a) The amount of any loss covered by this policy exceeds the Limit of Insurance for Building stated in the Declarations for the damaged Building; and (b) The Building Enhanced Replacement Cost does not apply to loss payable under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Construction property, (1) Buildings. (c) The actual repair or replacement is completed within one year of the date of loss. b. The Building Limit – Automatic Increase clause will not apply if: (1) You do not accept the adjusted value; or (2) You do not inform us of changes to covered Building: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 8 of 33 (a) Within sixty (60) days of the date any additions, improvements or enlargements to the building are begun, and (b) When the replacement value of the changes are more than 5% of the Limit of Insurance for the building 9. Loss of Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph f.(1)(b), is replaced with the following: We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within 24 consecutive months beginning immediately after the date of direct physical loss or damage. For purposes of this insurance, all recoverable loss ceases when the “period of restoration” ends. 10. Business Personal Property- Automatic Increase Under paragraph C. Limits of Insurance, the following is added: Your coverage for Business Personal Property will be automatically increased each quarter by 2%. Adjustment in the Limit of Insurance for Business Personal Property will occur at each anniversary subject to a cap of 8% annually. 11. Catastrophe Allowance Under paragraph A.6. Coverage Extensions, the following is added: a. This Coverage Extension applies when the direct physical loss or damage to Building and Business Personal Property is the result of an insured event for which Property Claims Service has publicly designated a catastrophe number to the event. b. You may extend the insurance provided under this Extension if the limits provided under Section C. Limits Of Insurance for Building and Business Personal Property Coverage are insufficient to compensate you for covered loss or damage you incur as a result of the insured Catastrophe event. c. This Extension may not be applied to the deductible amount of this policy or any other policy. It also may not be used to cover any loss or damage that would not be covered under this policy. The most we will pay under this Extension in any one “occurrence” is $10,000. The most we will pay under this Extension during each separate 12 month period of this policy is $10,000. 12. Civil Authority Under paragraph A.5. Additional Coverages, sub-paragraph i. Civil Authority, is replaced with the following: When Loss of Business Income Coverage is provided under this policy: We will pay for the actual loss of Business Income (not including Extended Business Income, you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property within 1 mile of the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin immediately after the time of that action and will apply for a period of up to six consecutive weeks after coverage begins. 13. Commercial Tools and Small Equipment Under paragraph A.5. Additional Coverages, the following is added: This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to commercial tools and small equipment including communication devices and diagnostic equipment usual to your business “operations” which are: (1) your property (2) the property of others in your care, custody or control or (3) the property of your “employees”. Damage to the property of your “employees” is limited to while on the described premises. b. This coverage only applies to any one tool or piece of small equipment with an actual cash value of $2,500 or less, unless listed on a schedule included with the policy. c. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”, or the amount shown in the Additional Property Coverage Schedule, but not more than $1,000 for any one tool and not more than $2,500 for any one tool box, including the tools contained therein, or piece of small equipment. d. This Additional Coverage is not subject to the Limits of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 9 of 33 e. In addition to items listed within Property Not Covered, we will not pay for any loss to the following property: (1) Watercraft or watercraft parts and equipment; (2) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (3) Tires or tire tubes, attached or unattached, for use with Commercial tools and small equipment, unless the loss or damage is caused by “theft”, malicious mischief, or the result one of a ”specified cause of loss”; or (4) Any property while underground, airborne or waterborne. (5) Exclusions B.1.b. and B.1.g. of the Businessowners Coverage Form do not apply to this Additional Coverage. f. We will not pay for any loss caused by or resulting from: (1) Any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion; (2) “Theft” from an unattended vehicle including loss: (a) From inside a vehicle, including trailers; or from a permanently-mounted toolbox; except when i. securely locked, ii. there is visible evidence that entry was forced, and iii. when inside a vehicles or trailer, that its windows were fully closed; or (b) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: i. was secured, ii. was protected by privacy locks; and iii. there is visible evidence that removal was accomplished by force. 14. Covered Property – Amended Building Definition a. Under paragraph A.1. Covered Property, the following are added to paragraph a.: (1) Animal runs, pens, cages and fencing; (2) X-ray equipment. Including only x-ray unit, tube, controls, developing tanks, viewer and lead shields; (3) Surgical lamps attached to the building; (4) Surgical and examination tables; (5) Incinerators; (6) Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (7) Retaining walls that are not part of a building. We will not pay for loss or damage to retaining walls that are used, in whole or in part, to contain water; (8) Signs, whether or not they are attached to buildings or structures; and (9) Interior and exterior building glass. b. Under paragraph A. 2. Property Not Covered, paragraph e. is replaced with the following: Outdoor trees, shrubs or plants, all except as provided in the Outdoor Property Coverage Extension c. Under paragraph C. Limits of Insurance, paragraph 2. is deleted. d. Under paragraph D. Deductibles, paragraph 2.c. is deleted. e. Under paragraph G. Optional Coverages, paragraph 1. is deleted. f. Under paragraph A.6. Coverage Extensions, c. Outdoor Property, is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Windstorm; (7) Ice, snow, sleet and hail. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 10 of 33 The most we will pay for loss or damage under this Extension is $5,000 but not more than $1,000 for any one tree, shrub or plant. 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. 15. Covered Property- Enhanced Replacement Cost Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following: We will determine the value of Covered Property as follows: a. At replacement cost without deduction for depreciation except as provided in b. through p. below. (1) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (2) We will not pay on a replacement cost basis for any loss or damage: (a) Until the loss or damaged property is actually repaired or replaced; (b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage; and (c) Unless the repairs or replacement are completed within: i. 24 months (for personal property), ii. 24 months (for buildings and other real property), after the loss or damage, unless extended in writing by us. However, if the cost to repair or replace the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs a.(1) and a.(2) above whether or not the actual repair or replacement is complete. (3) We will not pay more for loss or damage on a replacement cost basis than the least of: (a) The cost to replace, on the same premises, the lost or damaged property with other property: i. Of comparable material and quality; and ii. Used for the same purpose; or (b) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (4) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. b. If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, Paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. c. The following property at actual cash value: (1) Used or second-hand merchandise held in storage or for sale; (2) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (3) Household contents, except personal property in apartments or rooms furnished by you as landlord; (4) Manuscripts ; (5) Works of art, “antiques” or rare articles, including but not limited to, etchings, pictures, statuary, marbles, bronzes, porcelains, glassware and bric-a-brac; or (6) Commercial Tools and Small Equipment and Contractors Tools and Equipment. This does not apply to your Commercial Tools and Small Equipment permanently installed or exclusively used at the described premises. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenants’ Improvements and Betterments at: (1) Replacement cost if you make repairs promptly. (2) A proportion of your original cost if you, as the tenant, do not make repairs promptly. We will determine the proportionate value as follows: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 11 of 33 (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. (4) Nothing if you have no lease. f. Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement, including the cost of data entry, re-programming, computer consultation services and the media on which the data or programs reside. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. g. “Money” at its face value; and h. “Securities” at their value at the close of business on the day the loss is discovered. i. Applicable only to Accounts Receivable: (1) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (a) We will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (b) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (2) The following will be deducted from the total amount of accounts receivable, however that amount is established: (a) The amount of the accounts for which there is no loss or damage; (b) The amount of the accounts that you are able to re-establish or collect; (c) An amount to allow for probable bad debts that you are normally unable to collect; and (d) All unearned interest and service charges. j. “Stock” you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. k. Finished “stock” you manufactured at selling price less discounts and expenses you otherwise would have had. l. Property in Transit (other than “stock” you have sold) at the amount of invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. m. “Electronic data”, media and computer software programs. For media, at the actual costs of repairi ng or replacing the media with material of like kind and quality. “Electronic data” and computer software programs at the actual cost of reproducing the “electronic data” or computer software program, provided you actually reproduce or replace it. To the extent that “electronic data” is not replaced or restored, the loss will be valued at the cost of repair or replacement of the media on which the “electronic data” was stored, with blank media of substantially identical type. n. Prepackaged software programs and computer equipment that cannot be replaced, at the cost of functionally equivalent software or hardware. o. Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. p. Fine Arts. The value of covered property is not agreed upon, but will be determined at the time of loss or damage. We will not pay more than the least of the following: (1) The actual cash value of the property at the time of loss or damage; or (2) The amount for which you could reasonably expect to pay to have the property repaired to its condition immediately prior to the loss. 16. Deductibles a. Under paragraph D. Deductibles, paragraph 2. is deleted. b. Under paragraph D. Deductibles, paragraph 3. is replaced with the following: No deductible applies to the following coverages: (1) Arson and “Theft” Reward; (2) Business Income; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 12 of 33 (3) Civil Authority; (4) Debris Removal; (5) Deferred Payment; (6) Extra Expense; (7) ERISA Compliance; (8) Fire Department Service Charge; (9) Fire Extinguisher Recharge; (10) Inventory and Appraisal; (11) Leasehold Interest (tenant’s only); (12) Ordinance or Law; (13) Pollutant Clean-Up and Removal; (14) Preservation of Property; and (15) Unauthorized Business Credit Card Use. c. Under paragraph D. Deductibles, the following are added: (1) A $250 deductible applies to the following coverages: (a) Glass- interior and exterior; and (b) Glass Expenses. (2) A $500 deductible applies to all of the Property coverages scheduled in the Declarations unless otherwise indicated in item a., b.(1) or b.(3) of this section. (3) A $1,000 deductible applies to the following coverages: (a) Employee Dishonesty (except ERISA compliance); (b) Salesperson’s Samples; and (c) Installation. (4) Each deductible applies separately, but only to the coverage specified. The total deductible for all losses in one “occurrence” will be the highest deductible amount that applies to the “occurrence”. 17. Deferred Payments Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for your interest in lost or damaged Personal Property sold by you under a conditional sale or trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. b. The most we will pay for loss under this Additional Coverage is $5,000. When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (1) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (2) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. When loss occurs and the buyer continues to pay you, there will be no loss payment. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 18. Employee Dishonesty Including ERISA Compliance The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph a. is replaced with the following: We will pay for direct loss of or damage to Business Personal Property and "money" and "securities", Covered Property of others and animals you do not own but which are in your care, custody or control for treatment, grooming, boarding, training or breeding, resulting from dishonest or criminal acts committed by any of your “employees” acting alone or in collusion with other per sons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any “employee”; or (b) Any other person or organization. b. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph c. is replaced with the following: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 13 of 33 The most we will pay for loss or damage in any one “occurrence” is $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits Of Insurance for Section I – Property. c. For purposes of this Optional Coverage, paragraph a.(4) under paragraph A.4. Limitations is deleted. d. Under paragraph G. Optional Coverages, paragraph 3. Employee Dishonesty, the following is added: Welfare and Pension Plan ERISA Compliance In compliance with certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA): (1) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance for the Employee Dishonesty coverage that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (2) If the Insured first named in the Declarations is an entity other than a Plan, any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and benefit of the Plan(s) sustaining the loss. (3) If two or more Plans are insured under this insurance, any payment we make for loss: (a) Sustained by two or more Plans; or (b) Of commingled funds or other property of two or more Plans that arises out of one “occurrence” because of dishonest acts of “employees” is to be shared by each Plan sustaining loss in the proportion that the amount of insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (4) The Deductible Condition applicable to the “Employee” Dishonesty Optional Coverage does not apply to loss sustained by any Plan subject to ERISA which is insured under this insurance. 19. Extended Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph (2)(a)(ii) is replaced with the following: 365 consecutive days or the number of consecutive dates shown in the Declarations for this Additional Coverage after the date determined in (2)(a)(i) above. 20. Fine Arts Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct loss of or damage to Fine Arts, whether owned by: (1) You; or (2) Others, and in your care, custody or control. b. Fine arts includes, but is not limited to, antiques, paintings, etchings, drawings, tapestries, sculptures and fragile property such as porcelains, china and marble. c. Regardless of the number of insured locations affected, the most we will pay per “occurrence” under this Additional Coverage is $10,000. The amount payable under this Additional Coverage is not subject to the Limits of Insurance for Section I – Property. d. The value of fine arts will be the least of the following amounts: (1) The actual cash value of that property at the time of loss; (2) The cost of reasonably restoring that property to its condition immediately before loss; or (3) The cost of replacing that property with substantially identical property. e. In the event of loss, the value of property will be determined as of the time of loss . f. The following are added to Paragraph E. Property Loss Conditions: (1) In case of loss to any part of a pair or set we will: (a) Repair or replace any part to restore the pair or set to its value before the loss; or (b) Pay the difference between the value of the pair or set before and after the loss. (2) You must arrange for fine arts to be packed and unpacked by competent packers. 21. Forgery And Alteration Under paragraph A.5. Additional Coverages, k. Forgery And Alteration, sub-paragraph (4) is replaced with the following: The most we will pay for any loss, including legal expenses, under this Additional Coverage is $50,000, unless a higher Limit Of Insurance is shown in the Declarations. 22. Garages, Storage Buildings and Other Appurtenant Structures Under paragraph A.6. Coverage Extensions, the following is added: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 14 of 33 You may extend the insurance that applies to Building to apply to garages, storage buildings and other appurtenant structures, including, but not limited to, swimming pools; spas; and the associated equipment within 1000 feet of the described premises. The most we will pay for loss or damage under this Extension is $50,000 at each described premises regardless of the number of buildings or structures affected. 23. Glass Expenses Under paragraph A. Coverage, 5. Additional Coverages, sub-paragraph n. Glass Expenses, the following is added: When caused by or resulting from a Covered Cause of Loss, we will pay for expenses incurred to: Replace lettering, artwork, sensors or other items permanently affixed to, or a part of, the damaged glass. 24. Identity Theft Expense Under paragraph A. Coverage, 5. Additional Coverages, the following is added: a. We will pay for “Expenses” incurred by an “Insured Person” as a direct result of any one “Identity Theft” first discovered or learned of by such “Insured Person” during the policy period. Any act or series of acts committed by one or more persons, or in which such persons are aiding and abetting others against an “Insured Person”, is considered to be one “Identity Theft” even if a series of acts continues into subsequent policy period(s). b. With respect to this Additional Coverage: (1) “Expenses” means: (a) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (b) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (c) Lost income resulting from time taken off work to complete fraud affidavits or to meet or talk to law enforcement agencies, credit agencies or legal counsel; (d) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (e) Reasonable attorney fees to: i. Defend lawsuits brought against an “Insured Person” by merchants, financial institutions or their collection agencies; ii. Remove any criminal or civil judgments wrongly entered against an “Insured Person”; or iii. Challenge the accuracy or completeness of any information in a consumer credit report; (f) Charges for long distance telephone calls due to “Identity theft” to: i. Merchants; ii. Law enforcement agencies; iii. Financial institutions or other similar credit grantors; or iv. Credit agencies; and (g) Reasonable fees for professional financial advice or professional credit advice. The most we will pay for “expenses” under Paragraph b.(1) is $5,000, subject to a maximum of $200 per day. (2) For purposes of this Additional Coverage, “Identity Theft” means: The act of knowingly transferring or using, without lawful authority, a means of identification of an “Insured Person” with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law; and (3) “Insured Person” means: (a) For sole proprietorships: The individual who is the sole proprietor of the Named Insured shown in the Declarations; (b) For partnerships: Any individual that is a partner of the Named Insured shown in the Declarations; (c) For corporations or any other type of organization: The Chief Executive Officer, and any individual who has an ownership interest of at least 20% of the Named Insured, shown in the Declarations. c. The following additional exclusions apply to this Additional Coverage: We will not pay for: (1) Expenses incurred due to any fraudulent, dishonest or criminal acts by: (a) An “Insured Person”; (b) Any person aiding or abetting an “Insured Person”; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 15 of 33 (c) Any authorized representative of an “Insured Person”; whether acting alone or in collusion with others; or (2) Loss other than “Expenses”. Account balances which arise out of fraudulent or unauthorized charges would be one example of loss other than “Expenses”. d. Regardless of the amount of the deductible for Covered Property shown in the Declarations, the most we will deduct from any claim for “Expenses” under this Additional Coverage for any one “Identity Theft” is $250. e. The most we will pay under this Additional Coverage for all “Expenses” arising out of all “Identity Theft” against an “Insured Person” incurred in any one policy year, regardless of the number of “Identity Thefts” involved, is $25,000 unless a higher Limit Of Insurance is shown in the Declarations. f. In order for coverage to be provided under this Additional coverage, you must send to us, within 60 days after our request, receipts, bills or other records that support your claim for “Expenses” under “Identity Theft” coverage. 25. Installation Under paragraph A.5. Additional Coverages, the following is added: a. This coverage applies to an installation performed by you for others away from the described premises. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to materials, supplies, machinery, fixtures and equipment that will become a permanent part of your installation, while located at a site of installation, in transit by you to or from your premises and the job site, or while in temporary storage awaiting installation. This includes your property and similar property of others that is in your care, custody and control. b. This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. c. The most we will pay for any loss under this Additional Coverage is $5,000. d. We will not pay for loss or damage to property that has already been installed, whether or not your work has been accepted. e. Exclusions B.1.b. and B.1.g. do not apply to the Additional Coverage. This Additional Coverage does not increase the Limits of Insurance of Section I – Property. 26. Leasehold Interest (Tenant’s Only) Under paragraph A.5. Additional Coverages, the following is added: a. If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. b. The most we will pay for loss because of the cancellation of any lease or leases on account of the same covered cause of loss is: (1) If your lease is cancelled and either: (a) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (b) You relocate to other permanent premises and enter into a new lease. (2) For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (a) $10,000; (b) Nothing if there is no written or legally binding lease, whichever is less. c. The following provisions apply to b.(1) above: (1) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (2) If the lease has no end date (open-ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the premises. d. The following provision applies to b.(1) and b.(2)(a) above: (1) $10,000 will be the maximum amount payable regardless of the number of leases affected by the same covered cause of loss. (2) Existence of a renewal option will not increase, or have any other effect on this limit. e. We will not pay for any loss or damage: (1) If there is no written or legally binding lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 16 of 33 (2) If the unit or suite rented or leased to you where direct damage occurs has been vacant more than 60 consecutive days before the loss or damage occurs, and you have not entered into an agreement to sublease the unit or suite. (3) Caused by your cancelling the lease; or (4) Caused by the suspension, lapse or cancellation of any license. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 27. Marring And Scratching Under paragraph A. 5. Additional Coverages, the following is added: We will pay for loss or damage to Covered Property at the described premises due to sudden and accidental marring and scratching of: a. Your “stock”; b. Your printing plates; and c. Property of others that is in your care, custody or control. This Cause of Loss does not apply to: a. Property at other than the described premises; and b. Property in transit. Payment under this Extension is included within your Business Personal Property Limit Of Insurance. 28. Money And Securities The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, sub-paragraph 2. Money and Securities, the following is added to sub-paragraph a.: We will also pay any bank stop payment charges you are required to pay because of a loss that is covered under this Additional Coverage. b. Under paragraph G. Optional Coverages, sub-paragraph 2. Money And Securities, sub-paragraphs c.(1) and c.(2) are replaced with the following: (1) $50,000 or the amount shown in the Declarations for Inside the Premises for “money” and “securities” while: (a) In or on the described premises; or (b) Within a bank or savings institution in the coverage territory; and (2) $50,000 or the amount shown in the Declarations for Outside the Premises for “money” and “securities” while at any other location or in transit between locations listed in (1) above and while in the coverage territory. c. For purposes of this Optional Coverage only, the limit under paragraphs (1) and (2) above includes reimbursement of bank stop payment charges that insured is obligated to pay as a result of a covered loss under this Additional Coverage. 29. Money Orders And Counterfeit Paper Currency Under paragraph A.5. Additional Coverages, Paragraph j. Money Orders And Counterfeit Paper Currency, is replaced with the following: 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" paper currency that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $25,000. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 30. Newly Acquired Or Constructed Property Under paragraph A.6. Coverage Extensions, a. Newly Acquired Or Constructed Property, sub- paragraph (3)(b) is replaced with the following: 180 days after you acquire the property or begin construction of that part of the building that would qualify as covered property; or 31. Newly Acquired or Constructed Property – Business Income And Extra Expense Under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Constructed Property, the following is added: You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 17 of 33 32. Ordinance Or Law Under paragraph A.5. Additional Coverages, paragraph l. Increased Cost of Construction is replaced with the following: a. This Additional Coverage applies only: (1) When a Limit of Insurance for the affected building (or buildings) is shown on the Declarations, and then only (2) To buildings insured on a replacement cost basis. b. Application of Coverages: The coverages provided under this Additional Coverage apply only if (1) and (2) below are satisfied and are then subject to the qualifications found in (3) below. (1) The Ordinance or law: (a) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at the described premise; (b) Is in force at the time of loss; and (c) Was not in force at the time the involved construction was completed. But coverage under this Additional Coverage 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 Additional Coverage. (2) The building sustains direct physical damage: (a) That is covered under this Additional Coverage and as a result of such damage, you are required with the ordinance or law; or (b) 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 damage 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. (3) In the situation described in (2)(b) above, we will not pay the full amount of loss otherwise payable under the terms of coverages for Coverage for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. Instead, we will pay a proportion that covered direct physical damage bears to the total direct physical damage. However, if the covered direct physical damage alone would have resulted in enforcement of the ordinance or law, then we will pay the full amount of the loss otherwise payable under the terms of Coverages for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. c. 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”. d. Coverage (1) 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 for the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. Coverage for Loss to the Undamaged Portion of the Building is included within the Limit of Insurance shown in the Declarations as applicable to the covered building. Coverage for Loss to the Undamaged Portion of the Building does not increase the Limit of Insurance. (2) 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 the undamaged parts of the same building, as a consequence of enforcement of an ordinance or law that requires demolition of such undamaged property. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to Demolition Cost Coverage. (3) Increased Cost of Construction With respect to the building that has sustained covered direct physical damage, we will pay the increased cost to: (a) Repair or reconstruct damaged portions of that building; and/or (b) Reconstruct or remodel undamaged portions of that building, whether or not demolition is required; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 18 of 33 When the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or law. However, 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. We will not pay for the increased cost of construction if the building is not repaired, reconstructed or remodeled. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to the Increased Cost of Construction Coverage. (4) Increased Period Of Restoration If a Covered Cause of Loss occurs to property at the premises described in the Declarations, coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: i. 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 ii. 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. The most we will pay for loss under Ordinance or Law – Increased Period of Restoration is $10,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay for Ordinance or Law – Increased Period of Restoration for each described building is $10,000. The Ordinance or Law – Increased Period of Restoration coverage is not subject to the Limits of Insurance of Section I – Property. (5) Tenant’s Improvements and Betterments This Additional Coverage applies only when a Limit Of Insurance for Business Personal Property for the affected building, or buildings, is shown on the Declarations; and then only when Business Personal Property is insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant’s improvements and betterments whether collectible or not. This Additional Coverage also applies to improvements and betterments you have made to a building you do not own or occupy as a tenant and a Limit Of Insurance is shown for Business Personal Property at the described premises. Improvements and betterments covered under this Additional Coverage are described under Section I – Property A.1. Covered Property, paragraph b.(3). (6) Loss Payment (a) The following loss payment provisions, 6.(b) and (c), are subject to the apportionment procedure set forth in paragraph b.(3) of this coverage. (b) When there is a loss in value of an undamaged portion of the building to which Coverage for Loss to the Undamaged Portion of the building applies, the loss payment for that building, including damaged and undamaged portions, will be determined as follows: i. If the property is repaired or replaced on the same or another premises, we will not pay more than the lesser of: (i) The amount you 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 (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 19 of 33 ii. If the property is not repaired or replaced. We will not pay more than the lesser of: (i) The actual cash value of the building at the time of loss; or (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. (c) The most we will pay, for the total of all covered losses for Demolition Cost and Increased Cost of Construction is the Limit of Insurance shown below. Subject to this combined Limit of Insurance, the following loss payment provisions apply: i. For Demolition Cost, we will not pay for more than the amount you actually spend to demolish and clear the site of the described premises. ii. With respect to the Increased Cost of Construction: (i) 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 repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. iii. 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. iv. 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. v. The most we will pay for loss under Demolition Cost is the Limit Of Insurance shown in the Declarations for Building plus $50,000 or the amount shown in the Additional Property Coverage Schedule for Demolition Cost. The most we will pay for loss under Increased Cost of Construction is the Limit Of Insurance shown in the Declarations for Building plus $50,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule for Increased Cost Of Construction. If a damaged building(s) is covered under a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for Demolition Cost is the replacement cost for the damaged building plus $50,000 and the most we will pay for loss under the Increased Cost of Construction is the replacement cost for the damaged building plus $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. (7) Under this coverage, 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 building was undamaged; and (b) You failed to comply with. 33. Personal Effects Under paragraph A. 6. Coverage Extensions, sub-paragraph d. Personal Effects, the last paragraph is replaced with the following: The most we will pay for loss or damage under this Extension is $10,000 at each described premises. 34. Personal Property In Transit Under paragraph A. 6. Coverage Extensions, the following is added: a. You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, to apply to your personal property or property of others in your care, custody or control while it is in the course of transit. This Extension applies to property while it is in transit more than 1,000 feet from the described premises and while between points in the coverage territory while: (1) In a vehicle owned, leased or operated by you; or (2) In the custody of a common carrier, contract carrier or registered mail carrier. b. We do not pay for any loss or damage caused by or resulting from “theft” from an unattended vehicle, including loss: (1) From inside a vehicle, including trailers; or from an exterior storage container or box, except when: (a) securely locked, (b) there is visible evidence that entry into the vehicle was forced, and (c) inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 20 of 33 (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. c. This Extension does not apply to the following property: (1) Shipments that belong to others that you are transporting for a fee; (2) Property while waterborne; or (3) Salespersons samples d. Exclusions B.1.b., and B.1.g. of the Businessowners Coverage Form do not apply to this Coverage Extension. e. The most we will pay for loss or damage under this Extension is $50,000 per “occurrence”. 35. Preservation Of Property – Expense Under paragraph A.5. Additional Coverages, the following is added: a. 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 your expenses to move or store the Covered Property. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will pay under this Additional Coverage is $25,000 per “occurrence”. This Additional Coverage is not subject to Section I – Limits of Insurance. 36. Salesperson’s Samples Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to samples of your “stock” in trade (including containers) while: (1) In the custody of your sales representative, agent or any "employee" who travels with sales samples; (2) In your custody while you are acting as a sales representative; or (3) In transit between premises that you own, lease or operate and your sales representative. b. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. c. We will not pay for any loss to the following property: (1) Property which has been sold; (2) Jewelry, precious or semi-precious stones, gold, silver, platinum, or other precious metals or alloys; (a) Furs, fur garments or garments trimmed with fur; or (b) Any property while waterborne d. Exclusions B.2.g., B.2.l.(4), and B.2.l.(7) of the Businessowners Coverage Form do not apply to this Additional Coverage. e. We will not pay for any loss or damage caused by “theft” from an unattended vehicle including: (1) Loss from inside a vehicle, including trailers, or from a permanently-mounted exterior toolbox except when: (a) securely locked, (b) there is visible evidence that entry was forced, and (c) when inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 37. Soft Costs Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the actual “soft costs” that you incur due to direct physical loss or damage to Covered Property by a Covered Cause of Loss. We will only pay those “soft costs”: (1) That are over and above your normal expenditures; and (2) That are incurred during the period of time: (a) That begins on the date the direct physical loss occurs; and (b) Ends one year after the date on which the construction, repairs, or replacement would be scheduled for completion. b. We will only pay “soft costs” if: (1) The valuation for Building and Business Personal Property is based on Replacement Cost; and (2) You repair or replace the damaged Covered Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 21 of 33 c. Normal Expenditures are expenses that would have been incurred by your operation had no loss or damage occurred. d. The most we will pay under this Additional Coverage for “soft costs” arising for a Covered Cause of Loss in any one “occurrence” is $10,000. e. For purposes of this Additional Coverage, “soft costs” means: (1) Realty taxes and other assessments attributed to the increased property values that result directly from construction or repair costs associated with the loss or damage by a Covered Cause of Loss. (a) Increased interest charges and fees necessitated by the operation of a mortgage acceleration clause; and (b) Advertising and promotional expenses. This Additional Coverage is not subject to the Limits of Insurance under Section I – Property. 38. Spoilage - Animal Semen Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay: (1) For physical damage to animal semen due to change in temperature or humidity resulting from mechanical breakdown or mechanical failure of a cryogenic storage device; (2) For physical damage to animal semen due to contamination from the release of refrigerant, including but not limited to ammonia; and (3) Any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. b. Animal semen means extracted animal semen owned by you or by others that is in your care, custody or control and which is contained in a cryogenic storage device. Coverage applies while: (1) Animal semen is contained in a cryogenic storage device and is in transit from point of extraction to insured’s premises or other premises; and (2) During the transfer from the cryogenic storage device to a refrigeration system. Coverage ends when animal semen is placed in a refrigeration system. c. Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following for purposes of this Additional Coverage: We will determine the value of animal semen as follows: (1) For animal semen you have sold but not delivered, at the selling price less discounts and expenses you otherwise would have had; (2) For other animal semen, at actual cash value. d. The most we will pay for all covered losses to animal semen under this Additional Coverage, regardless of the number of occurrences of loss or damage, is $10,000. 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 loss occurred. e. This Additional Coverage is subject to the Deductible Amount shown in the Policy Declarations. 39. Temporary Relocation Of Property Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss of or damage to Covered Property from a Covered Cause of Loss while it is away from the described premises, if it is being stored temporarily at a location you do not own, lease or operate while the described premises is being renovated or remodeled. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. c. The most we will pay under this Additional Coverage is $50,000. This Additional Coverage is not subject to Section I – Property. 40. Tenant Signs (Tenants only) Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to all tenant signs at the described premises: (1) Owned by you; or (2) Owned by others but in your care, custody or control. (a) The most we will pay for loss or damage in any one “occurrence” is $5,000 regardless of the number of locations or buildings involved. (b) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 22 of 33 (c) This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 41. Unauthorized Business Credit Card Use Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss resulting from the “theft” or unauthorized use of Bus iness Credit Cards issued to you or registered in your name. b. We do not cover use of a Business Credit Card: (1) By a person who has been entrusted with the card; or (2) Any of your “employees”. c. All loss: (1) Caused by any one or more persons; or (2) Involving a single act or series of related acts; is considered one “occurrence” regardless of the number of individual unauthorized transactions. d. If a suit is brought against you for liability under this Additional Coverage, we will pay for reasonable legal expenses incurred in that defense. e. The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. 42. Vacancy Loss Condition Under paragraph E. Property Loss Conditions, sub-paragraph 8. Vacancy is deleted. 43. Valuation – Medical Equipment If medical equipment used in your “operations” is covered under this policy on a replacement cost basis, the following is added to paragraph C. Limits Of Insurance: We will pay the replacement cost value of your medical equipment at the time of loss, but no more than 115% of the Limit Of Insurance if: a. You replace medical equipment on the same premises with other medical equipment: (1) Of greater capacity or capability; and (2) Used for the same purpose; and b. The actual repair or replacement is completed within one year from the date of loss. 44. Virus and Hacking Coverage Under paragraph A.5. Additional Coverages, p. Electronic Data, sub-paragraph (2), is replaced with the following: The Covered Causes of Loss applicable to Business Personal Property include “computer hacking” or a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 23 of 33 a. “Computer hacking” means an unauthorized intrusion: (1) by an individual or group of individuals, whether employed by you or not, into a computer system or a network to which it is connected; and (2) that results in but is not limited to: (a) deletion, destruction, generation or modification of “electronic data”; (b) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of “electronic data”; (c) observation, scanning or copying of “electronic data”; (d) damage, destruction, inadequacy, malfunction, degradation or corruption of any “electronic data”; or (e) denial of access to or denial of services from your computer system or a network to which it is connected. b. We will not pay for: (1) Loss of access, loss of use or loss of functionality; or (2) Consequential loss caused by a computer virus or by “computer hacking”. B. BLANKET COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the Businessowners Coverage Form. Blanket Coverage Limit Of Insurance The following additional coverage is added: We will pay up to $1,000,000 as a Blanket Coverage Limit Of Insurance to apply at each scheduled premises and to apply to the sum of all covered losses under the coverages described in paragraphs 1. to 16. arising out of a single “occurrence” due to a Covered Cause of Loss. You may distribute this Coverage Limit among these coverages as you deem necessary. However, after a loss, we will not pay more than $1,000,000 at any one insured location per “occurrence”. 1. Accounts Receivables Under paragraph A. 6. Coverage Extensions, f. Accounts Receivables, sub-paragraph (2) is replaced with the following: The most we will pay under this Coverage Extension for loss or damage in any one “occurrence” at or away from the insured premises is subject to the Blanket Coverage Limit Of Insurance. 2. Business Income From Dependent Properties Under paragraph A. 5. Additional Coverages, m. Business Income From Dependent Properties, sub- paragraph (1) is replaced with the following: We will pay for the actual loss of Business Income (not including Extended Business Income), you sustain due to direct physical loss or damage at the premises of a dependent property caused by or resulting from a Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a dependent property or secondary dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the dependent property or secondary dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The Deductible does not apply to this Additional Coverage. The dependent property must be located in the coverage territory. 3. Extra Expense From Dependent Properties Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the necessary Extra Expense you incur, that you would not have incurred had there been no direct physical loss of or damage at the premises of a dependent property caused by or resulting from any Covered Cause of Loss. The incurred expense must be related to your business activities as provided in Paragraph b. below and deal with your actions to assist your own business activities. We will not pay for any expenses INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 24 of 33 incurred that directly or indirectly serve to speed, or otherwise assist, recovery of an affected dependent property. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The dependent property must be located in the coverage territory. b. Extra Expense means expense incurred by you to: (1) Avoid or minimize the “suspension” of business and to continue operations; or (2) Minimize the “suspension” of business if you cannot continue operations, due to covered loss of or damage to a dependent property or properties. c. For purposes of this Additional Coverage, “suspension” means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un- tenantable, if coverage for Business Income applies. d. We will only pay for Extra Expense that occurs within 12 consecutive months immediately following the date of direct physical loss or damage to the dependent property. e. The Extra Expense coverage period, as stated in paragraph d., does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of “pollutants”. f. The following also apply to this Additional Coverage: (1) Paragraph B. Exclusions, 5. Business Income and Extra Expense Exclusions; and (2) Paragraph E. Property Loss Conditions 7. Resumption of Operations, sub-paragraph b. The expiration date of this policy will not reduce the Extra Expense coverage period. 4. Business Income And Extra Expense – Mobile Veterinary Clinic Under paragraph A.5 Additional Coverages, the following is added: a. We will pay for the actual loss of Business Income and Extra Expense you sustain due to the necessary “suspension” of your operations during the “period of restoration”. The “suspension” must be caused by a covered direct physical loss of or damage to “mobile veterinary clinic” caused by or resulting from a Covered Cause of Loss including collision. The “mobile veterinary clinic” must be owned, leased or operated by you. b. For purposes of this Additional Coverage, the following definitions are added: (1) “Mobile veterinary clinic” means a motor vehicle which is specially designed as a transportable veterinary office and from which you conduct your usual veterinary operations. (2) “Suspension means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un-tenantable, if coverage for Business Income applies. c. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 5. Computer Equipment Under paragraph A. 5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to the following Covered Property which is your property or the property of others in your care, custody or control: (1) "Computer equipment" or “computer(s)”; (2) Climate control equipment and fire protective equipment used exclusively with your "computer equipment"; (3) Programming documentation and instruction manuals; and (4) The necessary loss of Business Income and Extra Expense as provided in the Additional Coverages for Business Income and Extra Expense you incur to avoid or minimize the suspension of business and to continue “operations” because of direct physical loss or damage to covered property. b. We will not pay for any loss or damage to the following property: (1) Property you rent, loan or lease to others while it is away from the described premises ; (2) Property you hold for sale, distribute or manufacture except as provided under paragraph A. 1. Covered Property, sub-paragraph b.; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 25 of 33 (3) “Software” that cannot be duplicated or replaced with similar property of equal quality and/or substantially similar functionality. c. If we provide Building coverage only, we will only pay for loss to computers that service building operations at the insured’s described premises and are located at the insured’s described premises. d. Regardless of the number of insured locations involved, the most we will pay for loss or damage under this Additional Coverage to property listed in a.(1) to a.(4) in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance under Paragraph B. Blanket Coverage. Regardless of the Blanket Limit Of Insurance, the most we will pay for Extra Expense is $5,000. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. e. This insurance is excess to any other insurance also covering “computer equipment” or “computer(s)”. f. Exclusions B. 1. b. and B. 1. g. do not apply to this Additional Coverage. g. We will not pay for loss or damage: (1) To any property not sustaining direct physical loss or damage even if covered loss or damage to other covered property renders such associated or related items unusable or otherwise unfit. (2) This exclusion applies to “software” or “hardware”. (3) Such loss to associated or related items is not considered to have suffered direct physical loss or damage for purposes of this insurance. h. For purposes of this Additional Coverage, the following definitions are added: (1) “Computer” means: (a) Programmable electronic equipment that is used to store, retrieve and process data; and (b) Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. (2) “Computer equipment “ means: (a) computer “hardware” and related component parts. Component parts include but are not limited to modems, printers, keyboards and scanners; (b) computer control systems including uninterruptable power supply systems, line conditioner and voltage regulator; and (c) “software”; and (d) “electronic data”. (3) “Hardware” means an assemblage of electronic machine components capable of accepting instructions and information according to the instructions, and producing desired results. (4) “Software” means processing, recording, or storage media used for computer processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells. 6. Expediting Expense Under paragraph A.5. Additional Coverages, the following is added: a. When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (1) Make temporary repairs; (2) Expedite permanent repair or replacement of damaged property; or (3) Provide training on replacement machines or equipment. b. The most we will pay for loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. 7. Fire Department Service Charge Under paragraph A.5. Additional Coverages, paragraph c. Fire Department Service Charge is replaced with the following: When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay for your liability for fire department service charges unless a higher Limit Of Insurance is shown in the Declarations if: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. The most we will pay for loss under this Additional Coverage in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance. 8. Inventory And Loss Appraisal INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 26 of 33 Under paragraph A. 6. Coverage Extensions, the following is added: a. We will pay for all reasonable expenses you incur at our request to assist us in: (1) The investigation of a claim; (2) The determination of the amount of loss, such as taking inventory; or (3) The cost of preparing specific loss documents and other supporting exhibits. b. The most we will pay under this Coverage Extension per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to these expenses. c. We will not pay for: (1) Expenses incurred to perform your duties in the event of a loss under Section I – E. Property Loss Conditions; (2) Expenses to prove that loss or damage is covered; (3) Expenses billed by and payable to independent or public adjusters; attorneys; or any of their affiliated or associated entities; (4) Expenses to prepare claims not covered by this Coverage Form; or (5) Expenses incurred under any appraisal provisions within the policy. 9. Key Replacement And Lock Repair Under paragraph A.6. Coverage Extensions, the following is added: You may extend the insurance provided under this Coverage Form to apply to consequential loss or damage, caused by or resulting from a covered Cause of Loss, for the cost incurred for: a. The actual cost to replace keys; b. Consequential loss to keys and locks if a master key is lost or damaged resulting from a Covered Cause of Loss; or c. Rekeying or replacing lock sets, including new locks and installation costs. The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 10. Lessor’s Lease Cancellation Under paragraph A.5. Additional Coverages, the following is added: a. We will pay the actual loss of business income you sustain due to the cancellation of a lease by your tenants in a Covered Building due to untenantability that is caused by direct physical loss or damage to that building from a Covered Cause of Loss. This Additional Coverage only applies if at the time of loss the building was occupied and business was being conducted by the tenant cancelling the lease or their sublessee. b. We will pay for loss of business income that you sustain after tenantability is restored and until the earlier of: (1) The date you lease the premises to another tenant; or (2) 12 months immediately following the “period of restoration”. c. Regardless of the number of tenants cancelling a lease at the described premises, the most we will pay under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. d. We will not pay for: (1) Lease cancelled after the “period of restoration”; (2) Lease cancelled, suspended or allowed to lapse by you; (3) Return of prepaid rent or security and other deposits made by tenants; or (4) Lease cancelled at the normal expiration date. 11. Outdoor Property a. Under paragraph A.6. Coverage Extensions, sub-paragraph c. Outdoor Property is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Vehicles that you do not own, operate or lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 27 of 33 The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance, but not more than $5,000 for any one, tree, shrub or plant. 12. Personal Property Off-Premises Under paragraph A.6. Coverage Extensions, sub-paragraph b. Personal Property Off-Premises, is replaced with the following: (1) You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, but other than “money” and “securities, “valuable papers and records” or accounts receivable, while: (a) Temporarily at a location you do not own, lease or operate; or (b) At any fair, trade show or exhibition. (2) The most we will pay for loss or damage under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 13. Special Event Cancellation – Rental Expenses Under paragraph A.5. Additional Coverages, the following is added: If you have scheduled a special event directly related to your business as a Veterinarian and that event is cancelled due to loss or damage to Covered Property from a Covered Cause of Loss, we will reimburse you for expenses you paid to rent equipment for that event including rental of tent, or other such enclosures, tables, chairs and sound systems. The most we will pay for loss under this Additional Coverage in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 14. Tenant Relocation Expense Under paragraph A.5. Additional Coverages, the following is added: a. In the event that your tenants must temporarily vacate the covered Building at the described premises due to untenantability caused by direct physical loss or damage by a Covered Cause of Loss, we will pay the following expenses you actually incur to move those tenants out of and back into your covered Building. b. We will only pay for the following expenses: (1) Packing, and transporting tenant’s Business Personal Property including the cost of insuring the move out and back and any necessary disassembly and reassembly or setup of fixtures and equipment; and (2) The net cost to discontinue and re-establish the tenants’ utility and telephone services, after any refunds due the tenants. (3) Costs to unpack and reshelf stock and supplies. Covered Relocation Costs do not include: (a) Loss caused by the termination of a lease or other agreement; or (b) Security deposits or other payments, forfeiture or penalties to the landlord or lessor of other premises. c. We will only pay for these expenses that you actually incur within 30 days of the date that the damaged buildings has been repaired or rebuilt. Regardless of the number of tenants’ involved, the most we will pay in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 15. Utility Services a. Under paragraph A.5. Additional Coverages, the following is added: (1) We will pay for loss of or damage to Covered Property caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown below in paragraph (3) below. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. (2) We will pay for loss of Business Income (not including Extended Business Income) or Extra Expense caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 28 of 33 (3) Services: (a) Water Supply Services, meaning the following types of property supplying water to the described premises: i. Pumping stations; and ii. Water mains. (b) Communication Supply Services, meaning property supplying communication services, including telephone, radio, microwave or television services to the described premises, such as: i. Communication transmission lines, including optic fiber transmission lines; ii. Coaxial cables; and iii. Microwave radio relays except satellites. It does not include overhead transmission lines or overhead distribution lines. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: i. Utility generating plants; ii. Switching stations; iii. Substations; iv. Transformers; and v. Transmission lines, But does not include overhead transmission lines, overhead distribution lines, overhead transformers or any other overhead service equipment or similar (however mounted and whatever mounted upon) equipment. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. b. Under paragraph B. Exclusions, e. Utility Services, the last paragraph is replaced with the following: This exclusion does not apply to loss or damage to “computer(s)” and “electronic data” or to the Utility Services Additional Coverage. 16. Valuable Papers And Records Under paragraph A. 6. Coverage Extensions, e. Valuable Papers And Records, paragraph (3) is replaced with the following: Regardless of the number of locations involved, the most we will pay under this Coverage Extension for loss or damage in any one “occurrence” for “valuable papers” at the described premises or “valuable papers” not at the described premises, is subject to the Blanket Coverage Limit Of Insurance. C. SECTION II- LIABILITY The following paragraphs amend coverage provided under SECTION II – LIABILITY of the Businessowners Coverage Form. 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Paragraph C. Who Is An Insured is amended to include as an insured any person or organization for whom you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy. The insurance provided to the additional insured is limited as follows: a. That person or organization is only an additional insured with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused in whole or in part by: (1) Premises you own, rent, lease, or occupy; or (2) Your ongoing operations performed for that insured. (3) In connection with “your work” and included within the “products-completed operations hazard”, but only if: (a) The written contract or written agreement requires you to provide such coverage to the additional insured; and (b) This policy provides coverage for “bodily injury” or “property damage” included within the “products-completed operations hazard”. b. With respect to the insurance afforded to these additional insureds, the following is added to paragraph D. Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: (1) Required by the contract or agreement; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 29 of 33 (2) Available under the applicable Limits Of Insurance shown in the Declarations; whichever is less. c. If specifically required by a contract, agreement or permit, coverage provided by this insurance shall be primary and any other insurance available to the additional insured shall be excess and non- contributing. 2. Alienated Premises Paragraph B.1. Exclusions, sub-paragraph k.(2) is replaced with the following: Premises you sell, give away or abandon, if the “property damage” arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 3. Bodily Injury Redefined Paragraph F. Liability and Medical Expenses Definitions, sub-paragraph 3. “Bodily Injury” is replaced with the following: “Bodily injury” means bodily injury, disability, sickness or disease sustained by a person, including death resulting from any of these at any time. “Bodily Injury” includes mental anguish, mental injury, shock, fright or death resulting from “bodily injury”, sickness or disease. 4. Broad Form Property Damage – Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to paragraph B. 1. Exclusions, sub-paragraph k.: Sub-paragraph (4) does not apply to “property damage” to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to “property damage” to “customers goods” while on your premises nor to the use of elevators. b. The following definition is added to paragraph F. Liability and Medical Expenses Definitions: “Customers goods” means property of your customer on your premises for the purpose of being: (1) Worked on; or (2) Used in your manufacturing process. (3) The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Broadened Named Insured For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 3. is added as follows: All of your subsidiaries, companies, corporations, firms, or organizations, as now or hereafter constituted, qualify as insureds under this policy if: a. You have the responsibility of placing insurance for each such entity; and b. Coverage for the entity is not otherwise more specifically provided; and c. The entity is incorporated or organized under the laws of the United States of America. But each entity is insured only while you own, during the policy period, a controlling interest in such entity of greater than 50% of the stock or assets. However coverage: (1) Under this provision is afforded only until the end of the policy period, or the 12 month anniversary of the policy inception date, whichever is earlier; (2) Does not apply to “bodily injury” or “property damage” that occurred before you acquired or formed the organization; and (3) Does not apply to “personal and advertising injury” arising out of an of fense committed before you acquired or formed the organization. 6. Broadened “Personal And Advertising Injury” a. For purposes of the coverage provided by this endorsement, definition, F. Liability And Medical Expenses Definitions, paragraph 14. “Personal And Advertising Injury” is replaced with the following: “Personal and advertising injury” means injury, including consequential “bodily injury”, arising out of one or more of the following offenses: (1) False arrest, detention or imprisonment; (2) Malicious prosecution; (3) The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 30 of 33 (4) Oral or written, televised or videotaped publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; (5) Oral or written, televised or videotaped publication, in any manner, of material that violates a person's right of privacy; (6) The use of another's advertising idea in your "advertisement"; (7) Infringing upon another's copyright, trade dress or slogan in your "advertisement"; (8) Infringement of trademark, copyright, title, trade secret or slogan; (9) Misappropriation of advertising ideas or style of doing business. b. For purposes of the coverage provided by this endorsement, definition, B.1. Exclusions Applicable to Business Liability Coverage, paragraph p. Personal and Advertising Injury, sub-paragraph (12) is replaced with the following: Arising out of the infringement of patent. 7. Damage to Premises Rented To You – Revised Limit For purposes of the coverage provided by this endorsement, D. Liability And Medical Expenses Limits Of Insurance, paragraph 3. is replaced with the following: The most we will pay under Business Liability Coverage for damages because of “property damage” to any one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit Of Insurance for Damage to Premises Rented To You shown in the Declarations. 8. Fellow Employee Coverage For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 2.a. is replaced with the following: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 9. Newly Acquired Organizations For purposes of the coverage provided by this endorsement, C. Who Is An Insured, the following is added: Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Business Liability Coverage does not apply to: (1) “Bodily injury” or “property damage that occurred before you acquired or formed the organization; and INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 31 of 33 (2) “Personal and advertising injury” arising out of an offense committed before you acquired or formed the organization. (3) “Bodily injury” or “property damage” do not apply to “product recall expense” arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 10. Product Recall Expense a. The following is added to paragraph B. 1. Exclusions, sub-paragraph o. Recall of Products, Work or Impaired Property This exclusion does not apply to “product recall expenses” that you incur for the “covered recall” of “your product”. However, this exception does not apply to “product recall expenses” resulting from: (1) Failure of any products to accomplish their intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of “your product” which has been recalled by like products or substitutes; (5) Caprice or whim of the insured; (6) A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (7) Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (8) Recall of “your products” that have no known or suspected defect solely because a known or suspected defect in another of “your products” has been found. b. The following is added to paragraph E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated “covered recall” that may result in “product recall expense”: (1) Give us prompt notice of any discovery or notification that “your product” must be withdrawn or recalled. Include a description of “your product” and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. c. The following definitions are added to paragraph F. Liability and Medical Expenses Definitions: (1) “Covered recall” means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in “your product” has resulted or will result in “bodily injury” or “property damage”. (2) “Product recall expense(s)” means: (a) Necessary and reasonable expenses for: i. Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; ii. Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; iii. Remuneration paid to your regular “employees” for necessary overtime; iv. Hiring additional persons, other than your regular “employees”; v. Expenses incurred by “employees” including transportation and accommodations; vi. Expenses to rent additional warehouse or storage space; vii. Disposal of “your product”, but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid “bodily injury” or “property damage” as a result of such disposal, you incur exclusively for the purpose of recalling “your product”; and (b) Your lost profit resulting from such “covered recall”. d. The following are added to paragraph D. Liability and Medical Expenses Limits of Insurance: The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) An Aggregate Limit of $50,000 is the most that we will reimburse you for the sum of all “product recall expenses” incurred for all “product recall expenses” initiated during the policy period. (2) An Occurrence Limit of $25,000 is the most we will pay in connection with any one defect or deficiency. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 32 of 33 (a) All “product recall expenses” in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one “occurrence”. (b) Any amount reimbursed for “product recall expenses” in connection with any one “occurrence” will reduce the amount of the Aggregate Limit available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (c) If the Aggregate Limit has been reduced by reimbursement of “product recall expenses” to an amount that is less than the Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (3) This coverage is not subject to the Limits of Insurance of SECTION II – LIABILITY. (4) A deductible of $500 applies per each “occurrence”. 11. Supplementary Payments – Cost of Bail Bonds Broadened For purposes of the coverage provided by this endorsement, A.1. Business Liability, paragraph f. Coverage Extension – Supplementary Payments, sub-paragraph (1)(b) is replaced with the following: The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability for “bodily injury” applies. We do not have to furnish these bonds. 12. Unintentional Failure to Disclose Hazards The following is added to paragraph E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional and you provide immediate notification of the failure or omission to the company. 13. Unintentional Failure to Notify The following is added to paragraph E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: Your rights afforded under this Coverage Form shall not be prejudiced if you fail to give us notice of an “occurrence”, offense, claim or “suit”, solely due to your reasonable and documented belief that the “bodily injury” or “property damage” is not covered under this Policy. The following paragraphs amend coverage provided under the Veterinarians Professional Liability form and apply only if Veterinarians Professional Liability coverage is provided under this policy. 14. Veterinarians Professional Liability - Broadened Definition Of “Employee” The definition of “employee” in Paragraph F. Liability and Medical Expenses Definitions is replaced with the following: “Employee” includes a “leased worker”, a “volunteer worker”, an intern and an extern, unlicensed “employee” while acting at the direction of a licensed professional or “temporary worker”. “Employee” also includes a pet groomer, a pet trainer or an animal behaviorist who is employed by you or performing services on your behalf. However, “employee” does not include a pet trainer or animal behaviorist while training any animal for attack or guard purposes. 15. Veterinarians Professional Liability - Consent To Settle The following is added: We will not settle any claim or “suit” without the insured’s consent. 16. Veterinarians Professional Liability - Legal Defense Expense – Veterinary Medical Board Extension Coverage The following is added: Coverage Extension – Supplementary Payments: a. We will pay the costs to defend legal actions resulting from inquiries, lawsuits, and challenges from the state licensing Veterinary Medical Board or their representative. We will provide payment for consultations and expert witnesses hired to aid in the defense of allegations, whether groundless or not. b. Coverage is provided for the following costs: (1) Legal defense expenses; (2) Consultant fees; (3) Expert witness fees; and (4) Other reasonable expenses to defend Veterinarian’s Medical Board Actions. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 33 of 33 However, we will not pay for the following: (5) Fees to reimburse the veterinarian’s time or expenses; or (6) Fines and penalties assessed as a result of an inquiry, lawsuit or challenge from the state licensing Veterinary Medical Board. The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph D. Liability And Medical Expenses Limits Of Insurance: Subject to paragraph 4. Aggregate Limits, coverage provided under the Legal Defense Expense – Veterinary Medical Board Coverage Extension is limited to sub-limits of $100,000 per claim and $100,000 in the aggregate applicable separately to each veterinarian who is an insured under the Veterinarians Professional Liability. Our duty to defend ends when we have exhausted such sub-limit. 17. Veterinarians Professional Liability - Veterinary Technicians The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph B.3. Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage- Nuclear Energy Liability Exclusion: However, this exclusion does not apply to registered veterinary technicians. All other terms and conditions of the policy remain unchanged. INSURED 05/03/2019 Rice Insurance LLC 1400 Broadway P.O. Box 639 Bellingham WA 98227 Molly Marroy (360) 734-1161 (360) 734-1173 mollym@riceinsurance.com Auburn Valley Humane Society 4910 A St SE Auburn WA 98092 Nova Casualty Company Austin Mutual Insurance Co 13412 Carolina Casualty Ins Co CL195362715 A Y VETIB1000074902 09/23/2018 09/23/2019 1,000,000 50,000 10,000 1,000,000 2,000,000 2,000,000 B BA192580402 09/23/2018 09/23/2019 1,000,000 C Vetrinary Professional VETIB1000074901 09/30/2018 09/30/2019 Limit Per Occurance 1,000,000 Aggregate Limit 2,000,000 Certificate Holder is Additional Insured per attached form ABP0138 0215. City Of Auburn 910 9th St. SE Auburn WA 98002 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY Professional Liability PROF 1,000,000 2,000,000 $450.00 Hired Non Owned Auto HDNON 1,000,000 Medical payments MEDPM 5,000 ADDITIONAL COVERAGES Ref #Description Edition DateForm No.Coverage Code Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Ref #Description Coverage Code Form No.Edition Date Limit 1 Limit 2 Limit 3 Deductible Amount Deductible Type Premium Copyright 2001, AMS Services, Inc.OFADTLCV BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 1 of 33 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY VETERINARIANS AND PET SERVICES EXTRA ENDORSEMENT - WASHINGTON This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM VETERINARIANS PROFESSIONAL LIABILITY SUMMARY OF COVERAGES AND LIMITS This is a summary of the various coverages and limits provided by this endorsement. No coverage is provided by this summary. Refer to the provisions of Sections A. through C. to determine the scope of the insurance protection provided by this endorsement. A. SCHEDULED COVERAGES Limit Page 1. Animal Bailee Coverage $50,000 3 2. Animal Damage To Property Included 5 3. Backup Of Water And Sump Overflow Included 5 4. Boundary Extension 1,000 feet 6 5. Brands And Labels $10,000 6 6. Broad Form Water Damage Included 6 7. Building Damage From Theft Included 7 8. Building Enhanced Replacement Cost Included 7 9. Business Income (Loss Of) 24 Months ALS 8 10. Business Personal Property- Automatic Increase 2% Quarterly 8 11. Catastrophe Allowance $10,000 8 12. Civil Authority 6 Consecutive Weeks No Waiting Period 8 13. Commercial Tools and Equipment $5,000 per occurrence $1,000 per tool $2,500 per tool box 8 14. Covered Property – Amended Building Definition Included 9 15. Covered Property- Enhanced Replacement Cost Included 10 16. Deductibles Various 11 17. Deferred Payments $5,000 12 18. Employee Dishonesty Including ERISA Compliance $50,000 12 19. Extended Business Income 365 Days 13 20. Fine Arts $10,000 13 21. Forgery And Alteration $50,000 13 22. Garages, Storage Buildings And Other Appurtenant Structures $50,000 13 23. Glass Expenses Included 14 24. Identity Theft Expense $25,000 14 25. Installation $5,000 15 26. Leasehold Interest (Tenant’s only) $10,000 15 27. Marring And Scratching Included 16 28. Money And Securities Inside The Premises Money And Securities Outside The Premises $50,000 $50,000 16 29. Money Orders And Counterfeit Paper Currency $25,000 16 30. Newly Acquired Or Constructed Property 180 days 16 31. Newly Acquired Or Constructed Property – Business Income And Extra Expense $500,000 16 32. Ordinance Or Law – Demolition Cost Coverage Ordinance Or Law – Increased Cost Of Construction Ordinance Or Law – Increased Period Of Restoration Ordinance Or Law – Tenant’s Improvement Extension Building Limit Plus $50,000 Building Limit Plus $50,000 $10,000 Included 16 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 2 of 33 A. SCHEDULED COVERAGES Limit Page 33. Personal Effects $10,000 19 34. Personal Property In Transit $50,000 19 35. Preservation Of Property – Expense $25,000 20 36. Salesperson’s Samples $5,000 20 37. Soft Costs $10,000 20 38. Spoilage- Animal Semen $10,000 21 39. Temporary Relocation Of Property $50,000 21 40. Tenant Signs (Tenants only) $5,000 21 41. Unauthorized Business Credit Card use $5,000 21 42. Vacancy Loss Condition Deleted 22 43. Valuation – Medical Equipment Replacement Cost Plus 15% 22 44. Virus and Hacking Coverage $10,000 22 B. BLANKET COVERAGES Limit $1,000,000 Page 1. Accounts Receivable Included 23 2. Business Income From Dependent Properties Included 23 3. Extra Expense From Dependent Properties Included 23 4. Business Income And Extra Expense – Mobile Veterinary Clinic Included 23 5. Computer Equipment Included 24 6. Expediting Expense Included 25 7. Fire Department Service Charge Included 25 8. Inventory And Loss Appraisal Included 25 9. Key Replacement And Lock Repair Included 25 10. Lessor’s Lease Cancellation Included 25 11. Outdoor Property – Per Item Limit $5,000 Included 26 12. Personal Property Off-Premises Included 26 13. Special Event Cancellation – Rental Expense Included 26 14. Tenant Relocation Expense Included 26 15. Utility Services – Direct Damage Utility Services – Time Element Included Included 27 16. Valuable Papers And Records Included 27 C. SECTION II- LIABILITY Page 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Included 28 2. Alienated Premises Included 28 3. Bodily Injury Redefined Included 28 4. Broad Form Property Damage- Borrowed Equipment, Customers Goods and use of Elevators Included 28 5. Broadened Named Insured Included 28 6. Broadened “Personal And Advertising Injury” Included 29 7. Damage To Premises Rented To You – Revised Limit $1,000,000 29 8. Fellow Employee Coverage Included 30 9. Newly Acquired Organizations 180 Days 30 10. Product Recall Expense $25,000 Occurrence $50,000 Aggregate 31 11. Supplementary Payments – Cost Of Bail Bonds Broadened Actual cost 31 12. Unintentional Failure to Disclose Hazards Included 31 13. Unintentional Failure to Notify Included 31 14. Veterinarians Professional Liability – Broadened Definition Of “Employee” Included 32 15. Veterinarians Professional Liability – Consent To Settle Included 32 16. Veterinarians Professional Liability – Legal Defense Expense – Veterinarian Medical Board Extension Coverage $100,000 Per Claim $100,000 Aggregate Per Vet 32 17. Veterinarians Professional Liability - Veterinary Technicians Included 32 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 3 of 33 COVERAGES Unless otherwise indicated, the limits shown in this endorsement are not additional amounts of insurance to the Limits of Insurance provided by your policy. The Building and Business Personal Property Deductibles shown on the Declarations apply unless otherwise indicated. If this endorsement and any other coverage part, form, endorsement or policy that is issued to you by us apply to the same loss, damage or expense, the maximum Limit of Insurance combined shall not exceed the highest applicable Limit of Insurance under any one coverage part, form, endorsement or policy. A. SCHEDULED COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the BUSINESSOWNERS COVERAGE FORM. 1. Animal Bailee Coverage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss or damage to “covered animals” while in your care, custody or control for veterinary services at any insured premises or while in transit in your owned, leased or hired vehicles. Such veterinary services include treatment, breeding, grooming, and boarding. Loss under this Additional Coverage includes escape. For purposes of this Additional Coverage, the following definition is added: “Covered animals” means animals of others while in your care, custody or control and includes animals of others at any insured premises awaiting or receiving veterinary services or animals owned by you or your “employees”. “Covered animals” does not include animals held for sale, lease or rental to others. For purposes of this Additional Coverage, under Paragraph A.2. Property Not Covered, Sub- Paragraph j. is deleted. b. Under this Additional Coverage, we will also pay for the following: (1) Legal Liability (a) Damages We will pay all sums you become legally obligated to pay as damages because of your liability for loss to “covered animals” caused by or resulting from a Covered Cause of Loss. Our obligation for payment of damages under this coverage does not apply to your liability for the actual value of the “covered animals” as insured elsewhere under this Additional Coverage. (b) Defense We will have the right and duty to defend any “suit” against you seeking damages for loss to “covered animals” caused by or resulting from an “occurrence”, even if any of the allegatio ns of the “suit” are not true. However, we will have no duty to defend the insured against any “suit” seeking damages for loss to “covered animals” to which this insurance does not apply. We may, at our discretion, investigate any “occurrence” and settle any claim or “suit” that may result. After we have paid the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage in a settlement or pursuant to a judgment, we have no duty: i. To pay any other sums as damages; or ii. To defend any “suit” including the one which has been settled or on which a judgment has been paid. (c) Supplementary Payments In addition to the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage, we will pay: i. Expenses we incur to adjust claims or suits; ii. Costs, including all expenses of litigation taxed against you in any “suit” we defend; iii. All interest which accrues after the entry of a judgment in a “suit” we defend. Our duty to pay interest ends when we pay that part of the judgment which does not exceed our Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage. iv. Premiums on appeal bonds: (i) In any “suit” we defend; (ii) To release attachments in any “suit” we defend. But we will not pay the premiums for bond amounts greater than the applicable Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage, and we have no obligation to apply for or defend against a claim or “suit”. These payments will not reduce the limit of liability. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 4 of 33 (2) Additional Expenses We will pay the reasonable expense you incur for: (a) The recovery of a “covered animal”; and (b) Putting a “covered animal” to death when such death is made necessary by a Covered Cause of Loss. This Additional Coverage does not apply to any: (a) Expense for advertising; or (b) Reward offered. The most we will pay in any one loss under this Additional Expense provision, regardless of the number of “covered animals” in your care, custody or control is $2,500. The most we will pay under this Additional Expense provision in any one policy period, regardless of the number of “occurrences” is $5,000.+ (3) Preservation Expense If it is necessary to move “covered animals” to preserve them from loss by a Covered Cause of Loss, we will pay the actual expense to move the “covered animal” to safety. The most we will pay in any one “occurrence” for moving the “covered animals” is $25,000, regardless of how many “covered animals” are in your care, custody or control. (4) Uncollectible Accounts (a) In the event of loss to “covered animals” caused by or resulting from a Covered Cause of Loss, we will also pay your accrued charges not collected from the customers as a result of the loss. There will be no recovery for accrued charges which were more than ninety (90) days delinquent from the end of the month in which the payment was due. Uncollectible accounts that predate the policy effective date do not qualify under this provision. (b) The most we will pay for accrued charges due from any one customer is $250. The most we will pay for accrued charges in any one “occurrence” is $1,000. We will not pay for uncollectible charges on any claim for which the loss to the “covered animals” is less than the deductible that applies to such loss. (5) Advertising and Reward (a) We will pay the cost of advertising in newspapers to aid in the recovery of “covered animals” that are lost or stolen while in your care, custody or control. “Covered animals” stolen by your “employees” are not covered under this coverage. (b) We will also pay a reward to the person or persons, who are not “employees”, who provide information leading to the recovery of the “covered animals” lost or stolen. The most we will pay in any one “occurrence” for advertising expense and rewards under this coverage provision, regardless of the number of “covered animals” lost or stolen, is $2,500. c. Cause Of Loss We will pay risks of direct physical loss to “covered animals” from any cause of loss except where limited or excluded in Paragraph d. below. d. Exclusions For purposes of this Additional Coverage, the following apply: (1) Section I – Property, B. Exclusions and Section I – Property, 4. A. Coverage, Paragraph 4. Limitations, apply to this Additional Coverage. (2) 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) Any rendering or failure to render professional services; (b) Conditions, including but not limited to, injury or illness, which existed prior to the animal coming into your care, custody or control. (c) Any disease or sickness, or death by natural causes; or (d) The seizure or destruction of animals by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is otherwise covered under this policy, subject to the Limit Of Insurance under paragraph e. below. e. Limit Of Insurance The most we will pay under this Additional Coverage, regardless of the number of “covered animals” in your care, custody or control is $50,000 unless this limit has been increased by an endorsement attached to this policy. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 5 of 33 2. Animal Damage To Property Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for the actual direct physical loss or damage to Covered Property caused by or resulting from animals which you do not own but are in your care, custody or control for treatment, grooming, boarding, daycare, breeding or training. The loss or damage must be caused by or the result of a Covered Cause of Loss. b. For purposes of this Additional Coverage, the following Exclusions are added to paragraph B. Exclusions: (1) Caused by or resulting from wear or tear; (2) Caused by or resulting from your failure to use care in the maintenance of the property; or (3) Which cannot be identified as occurring at a specific point in time and did not become known to you within 48 hours thereafter. c. If the covered loss or damage is to real property which you own, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Building at the premises where the loss or damage occurred. If the covered loss or damage is to real property which you do not own but which you occupy for your business for which you have a contractual responsibility to insure, or to Business Personal Property, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Business Personal Property. d. Payments under this Additional Coverage do not increase the Limit Of Insurance that applies to your Building or to your Business Personal Property. The Limit Of Insurance that applies to your Business Personal Property is the most we will pay in any one “occurrence” for loss or damage to your Business Personal Property and for loss arising from animal damage to property you do not own but which you occupy for business combined. e. Coverage provided under this Additional Coverage for Animal Damage to property that you occupy for business for which you have a contractual responsibility to insure is primary insurance and will not seek contribution from any other insurance available to the lessor. 3. Backup Of Water And Sump Overflow Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property, covered under Section I – Property, caused by or resulting from: (1) Water or waterborne material which backs up through or overflows or is otherwise discharged from a sewer or drain; or (2) Water or waterborne material which overflows or is otherwise discharged from a sump, sump pump or related equipment, even if the overflow or discharge results from mechanical breakdown of a sump pump or its related equipment; or However, with respect to paragraph a.(2), we will not pay the cost of repairing or replacing a sump pump or its related equipment in the event of mechanical breakdown. b. The coverage described in paragraph a. of this endorsement does not apply to loss or damage resulting from: (1) An insured's failure to keep a sump pump or its related equipment in proper working condition; (2) An insured's failure to perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions; or (3) Sump pump failure which is caused by or results from failure of power, unless this policy is endorsed to cover power failure affecting the described premises. c. Regardless of the number of insured locations involved, the most we will pay under this Additional Coverage for loss or damage in any one “occurrence” is included in the Limits Of Insurance for Covered Property. This Additional Coverage does not increase the Limits Of Insurance. d. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: Water (1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 6 of 33 (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in paragraphs (1) through (4), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, 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 (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the back up of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. e. For the purposes of this endorsement, the term drain includes a roof drain and related fixtures. 4. Boundary Extension All references to property “within 100 feet of the described premises” are changed to property “within 1,000 feet of the described premises”. 5. Brands and Labels Under paragraph A. 6. Coverage Extensions, the following is added: If Covered Property that has a brand or label is damaged by a Covered Cause of Loss, and we elect to take all or any part of the property at an agreed or appraised value, you may extend the insurance that applies to your Business Personal Property to pay expenses incurred to: a. Stamp salvage on the property or its container, if the stamp will not physically damage the property; or b. Remove the brand or label, if doing so will not physically damage the property or its container, and re- label the merchandise or its containers to comply with the law. The most we will pay for any loss under this Extension is $10,000 per “occurrence”. Payment of these expenses is included within the applicable Limit Of Insurance. 6. Broad Form Water Damage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property caused by or resulting from water under the ground surface pressing on, or flowing or seeping through: (1) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings. b. We will not pay for loss or damage in any one “occurrence” until the amount of loss or damage exceeds $1,000. This deductible is to apply separately: (1) To each building, including personal property therein; (2) To personal property in each building if no coverage is provided on the containing building; and (3) To personal property in the open. The aggregate amount of this deductible in any one “occurrence” shall not exceed $5,000. We will then pay the amount of loss or damage in excess of the deductible up to the applicable Limit of Insurance. c. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: (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; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 7 of 33 (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; or (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies if any of the above, in paragraphs (1) through (4): (1) Occurs independently; (2) Is caused by an act of nature; (3) Is caused by an act or omission of humans or animals; or (4) Is attributable to the failure, in whole or in part, of a dam, levee, seawall or other boundary or containment system. But if any of the above, in (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. 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. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the backup of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. 7. Building Damage From Theft Under paragraph A. 1. Covered Property, sub-paragraph b. Business Personal Property, the following is added: Physical damage to a building leased to you from theft or attempted theft, burglary or robbery. Theft means any act of stealing. 8. Building Enhanced Replacement Cost Under paragraph C. Limits Of Insurance, sub-paragraph 4. Building Limit – Automatic Increase is replaced with the following: a. If Covered Property is written on a Replacement Cost basis: (1) The Limit of Insurance for Buildings will automatically be revised by changes that occurred in the cost of construction during the preceding policy year. (2) The amount of increase will be determined by reports of a recognized valuation method. (3) We will inform you of such adjusted values. Upon their acceptance, you agree to pay any additional premium for the adjusted limit. Payment of your renewal premium which includes the revised Limit of Insurance, shall constitute acceptance. (4) We will pay the replacement cost value of the damaged portion of the building at the time of loss, but not more than 150% of the Limit of Insurance for Building if: (a) The amount of any loss covered by this policy exceeds the Limit of Insurance for Building stated in the Declarations for the damaged Building; and (b) The Building Enhanced Replacement Cost does not apply to loss payable under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Construction property, (1) Buildings. (c) The actual repair or replacement is completed within one year of the date of loss. b. The Building Limit – Automatic Increase clause will not apply if: (1) You do not accept the adjusted value; or (2) You do not inform us of changes to covered Building: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 8 of 33 (a) Within sixty (60) days of the date any additions, improvements or enlargements to the building are begun, and (b) When the replacement value of the changes are more than 5% of the Limit of Insurance for the building 9. Loss of Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph f.(1)(b), is replaced with the following: We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within 24 consecutive months beginning immediately after the date of direct physical loss or damage. For purposes of this insurance, all recoverable loss ceases when the “period of restoration” ends. 10. Business Personal Property- Automatic Increase Under paragraph C. Limits of Insurance, the following is added: Your coverage for Business Personal Property will be automatically increased each quarter by 2%. Adjustment in the Limit of Insurance for Business Personal Property will occur at each anniversary subject to a cap of 8% annually. 11. Catastrophe Allowance Under paragraph A.6. Coverage Extensions, the following is added: a. This Coverage Extension applies when the direct physical loss or damage to Building and Business Personal Property is the result of an insured event for which Property Claims Service has publicly designated a catastrophe number to the event. b. You may extend the insurance provided under this Extension if the limits provided under Section C. Limits Of Insurance for Building and Business Personal Property Coverage are insufficient to compensate you for covered loss or damage you incur as a result of the insured Catastrophe event. c. This Extension may not be applied to the deductible amount of this policy or any other policy. It also may not be used to cover any loss or damage that would not be covered under this policy. The most we will pay under this Extension in any one “occurrence” is $10,000. The most we will pay under this Extension during each separate 12 month period of this policy is $10,000. 12. Civil Authority Under paragraph A.5. Additional Coverages, sub-paragraph i. Civil Authority, is replaced with the following: When Loss of Business Income Coverage is provided under this policy: We will pay for the actual loss of Business Income (not including Extended Business Income, you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property within 1 mile of the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin immediately after the time of that action and will apply for a period of up to six consecutive weeks after coverage begins. 13. Commercial Tools and Small Equipment Under paragraph A.5. Additional Coverages, the following is added: This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to commercial tools and small equipment including communication devices and diagnostic equipment usual to your business “operations” which are: (1) your property (2) the property of others in your care, custody or control or (3) the property of your “employees”. Damage to the property of your “employees” is limited to while on the described premises. b. This coverage only applies to any one tool or piece of small equipment with an actual cash value of $2,500 or less, unless listed on a schedule included with the policy. c. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”, or the amount shown in the Additional Property Coverage Schedule, but not more than $1,000 for any one tool and not more than $2,500 for any one tool box, including the tools contained therein, or piece of small equipment. d. This Additional Coverage is not subject to the Limits of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 9 of 33 e. In addition to items listed within Property Not Covered, we will not pay for any loss to the following property: (1) Watercraft or watercraft parts and equipment; (2) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (3) Tires or tire tubes, attached or unattached, for use with Commercial tools and small equipment, unless the loss or damage is caused by “theft”, malicious mischief, or the result one of a ”specified cause of loss”; or (4) Any property while underground, airborne or waterborne. (5) Exclusions B.1.b. and B.1.g. of the Businessowners Coverage Form do not apply to this Additional Coverage. f. We will not pay for any loss caused by or resulting from: (1) Any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion; (2) “Theft” from an unattended vehicle including loss: (a) From inside a vehicle, including trailers; or from a permanently-mounted toolbox; except when i. securely locked, ii. there is visible evidence that entry was forced, and iii. when inside a vehicles or trailer, that its windows were fully closed; or (b) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: i. was secured, ii. was protected by privacy locks; and iii. there is visible evidence that removal was accomplished by force. 14. Covered Property – Amended Building Definition a. Under paragraph A.1. Covered Property, the following are added to paragraph a.: (1) Animal runs, pens, cages and fencing; (2) X-ray equipment. Including only x-ray unit, tube, controls, developing tanks, viewer and lead shields; (3) Surgical lamps attached to the building; (4) Surgical and examination tables; (5) Incinerators; (6) Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (7) Retaining walls that are not part of a building. We will not pay for loss or damage to retaining walls that are used, in whole or in part, to contain water; (8) Signs, whether or not they are attached to buildings or structures; and (9) Interior and exterior building glass. b. Under paragraph A. 2. Property Not Covered, paragraph e. is replaced with the following: Outdoor trees, shrubs or plants, all except as provided in the Outdoor Property Coverage Extension c. Under paragraph C. Limits of Insurance, paragraph 2. is deleted. d. Under paragraph D. Deductibles, paragraph 2.c. is deleted. e. Under paragraph G. Optional Coverages, paragraph 1. is deleted. f. Under paragraph A.6. Coverage Extensions, c. Outdoor Property, is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Windstorm; (7) Ice, snow, sleet and hail. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 10 of 33 The most we will pay for loss or damage under this Extension is $5,000 but not more than $1,000 for any one tree, shrub or plant. 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. 15. Covered Property- Enhanced Replacement Cost Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following: We will determine the value of Covered Property as follows: a. At replacement cost without deduction for depreciation except as provided in b. through p. below. (1) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (2) We will not pay on a replacement cost basis for any loss or damage: (a) Until the loss or damaged property is actually repaired or replaced; (b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage; and (c) Unless the repairs or replacement are completed within: i. 24 months (for personal property), ii. 24 months (for buildings and other real property), after the loss or damage, unless extended in writing by us. However, if the cost to repair or replace the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs a.(1) and a.(2) above whether or not the actual repair or replacement is complete. (3) We will not pay more for loss or damage on a replacement cost basis than the least of: (a) The cost to replace, on the same premises, the lost or damaged property with other property: i. Of comparable material and quality; and ii. Used for the same purpose; or (b) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (4) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. b. If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, Paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. c. The following property at actual cash value: (1) Used or second-hand merchandise held in storage or for sale; (2) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (3) Household contents, except personal property in apartments or rooms furnished by you as landlord; (4) Manuscripts ; (5) Works of art, “antiques” or rare articles, including but not limited to, etchings, pictures, statuary, marbles, bronzes, porcelains, glassware and bric-a-brac; or (6) Commercial Tools and Small Equipment and Contractors Tools and Equipment. This does not apply to your Commercial Tools and Small Equipment permanently installed or exclusively used at the described premises. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenants’ Improvements and Betterments at: (1) Replacement cost if you make repairs promptly. (2) A proportion of your original cost if you, as the tenant, do not make repairs promptly. We will determine the proportionate value as follows: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 11 of 33 (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. (4) Nothing if you have no lease. f. Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement, including the cost of data entry, re-programming, computer consultation services and the media on which the data or programs reside. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. g. “Money” at its face value; and h. “Securities” at their value at the close of business on the day the loss is discovered. i. Applicable only to Accounts Receivable: (1) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (a) We will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (b) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (2) The following will be deducted from the total amount of accounts receivable, however that amount is established: (a) The amount of the accounts for which there is no loss or damage; (b) The amount of the accounts that you are able to re-establish or collect; (c) An amount to allow for probable bad debts that you are normally unable to collect; and (d) All unearned interest and service charges. j. “Stock” you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. k. Finished “stock” you manufactured at selling price less discounts and expenses you otherwise would have had. l. Property in Transit (other than “stock” you have sold) at the amount of invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. m. “Electronic data”, media and computer software programs. For media, at the actual costs of repairi ng or replacing the media with material of like kind and quality. “Electronic data” and computer software programs at the actual cost of reproducing the “electronic data” or computer software program, provided you actually reproduce or replace it. To the extent that “electronic data” is not replaced or restored, the loss will be valued at the cost of repair or replacement of the media on which the “electronic data” was stored, with blank media of substantially identical type. n. Prepackaged software programs and computer equipment that cannot be replaced, at the cost of functionally equivalent software or hardware. o. Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. p. Fine Arts. The value of covered property is not agreed upon, but will be determined at the time of loss or damage. We will not pay more than the least of the following: (1) The actual cash value of the property at the time of loss or damage; or (2) The amount for which you could reasonably expect to pay to have the property repaired to its condition immediately prior to the loss. 16. Deductibles a. Under paragraph D. Deductibles, paragraph 2. is deleted. b. Under paragraph D. Deductibles, paragraph 3. is replaced with the following: No deductible applies to the following coverages: (1) Arson and “Theft” Reward; (2) Business Income; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 12 of 33 (3) Civil Authority; (4) Debris Removal; (5) Deferred Payment; (6) Extra Expense; (7) ERISA Compliance; (8) Fire Department Service Charge; (9) Fire Extinguisher Recharge; (10) Inventory and Appraisal; (11) Leasehold Interest (tenant’s only); (12) Ordinance or Law; (13) Pollutant Clean-Up and Removal; (14) Preservation of Property; and (15) Unauthorized Business Credit Card Use. c. Under paragraph D. Deductibles, the following are added: (1) A $250 deductible applies to the following coverages: (a) Glass- interior and exterior; and (b) Glass Expenses. (2) A $500 deductible applies to all of the Property coverages scheduled in the Declarations unless otherwise indicated in item a., b.(1) or b.(3) of this section. (3) A $1,000 deductible applies to the following coverages: (a) Employee Dishonesty (except ERISA compliance); (b) Salesperson’s Samples; and (c) Installation. (4) Each deductible applies separately, but only to the coverage specified. The total deductible for all losses in one “occurrence” will be the highest deductible amount that applies to the “occurrence”. 17. Deferred Payments Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for your interest in lost or damaged Personal Property sold by you under a conditional sale or trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. b. The most we will pay for loss under this Additional Coverage is $5,000. When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (1) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (2) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. When loss occurs and the buyer continues to pay you, there will be no loss payment. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 18. Employee Dishonesty Including ERISA Compliance The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph a. is replaced with the following: We will pay for direct loss of or damage to Business Personal Property and "money" and "securities", Covered Property of others and animals you do not own but which are in your care, custody or control for treatment, grooming, boarding, training or breeding, resulting from dishonest or criminal acts committed by any of your “employees” acting alone or in collusion with other per sons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any “employee”; or (b) Any other person or organization. b. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph c. is replaced with the following: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 13 of 33 The most we will pay for loss or damage in any one “occurrence” is $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits Of Insurance for Section I – Property. c. For purposes of this Optional Coverage, paragraph a.(4) under paragraph A.4. Limitations is deleted. d. Under paragraph G. Optional Coverages, paragraph 3. Employee Dishonesty, the following is added: Welfare and Pension Plan ERISA Compliance In compliance with certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA): (1) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance for the Employee Dishonesty coverage that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (2) If the Insured first named in the Declarations is an entity other than a Plan, any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and benefit of the Plan(s) sustaining the loss. (3) If two or more Plans are insured under this insurance, any payment we make for loss: (a) Sustained by two or more Plans; or (b) Of commingled funds or other property of two or more Plans that arises out of one “occurrence” because of dishonest acts of “employees” is to be shared by each Plan sustaining loss in the proportion that the amount of insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (4) The Deductible Condition applicable to the “Employee” Dishonesty Optional Coverage does not apply to loss sustained by any Plan subject to ERISA which is insured under this insurance. 19. Extended Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph (2)(a)(ii) is replaced with the following: 365 consecutive days or the number of consecutive dates shown in the Declarations for this Additional Coverage after the date determined in (2)(a)(i) above. 20. Fine Arts Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct loss of or damage to Fine Arts, whether owned by: (1) You; or (2) Others, and in your care, custody or control. b. Fine arts includes, but is not limited to, antiques, paintings, etchings, drawings, tapestries, sculptures and fragile property such as porcelains, china and marble. c. Regardless of the number of insured locations affected, the most we will pay per “occurrence” under this Additional Coverage is $10,000. The amount payable under this Additional Coverage is not subject to the Limits of Insurance for Section I – Property. d. The value of fine arts will be the least of the following amounts: (1) The actual cash value of that property at the time of loss; (2) The cost of reasonably restoring that property to its condition immediately before loss; or (3) The cost of replacing that property with substantially identical property. e. In the event of loss, the value of property will be determined as of the time of loss . f. The following are added to Paragraph E. Property Loss Conditions: (1) In case of loss to any part of a pair or set we will: (a) Repair or replace any part to restore the pair or set to its value before the loss; or (b) Pay the difference between the value of the pair or set before and after the loss. (2) You must arrange for fine arts to be packed and unpacked by competent packers. 21. Forgery And Alteration Under paragraph A.5. Additional Coverages, k. Forgery And Alteration, sub-paragraph (4) is replaced with the following: The most we will pay for any loss, including legal expenses, under this Additional Coverage is $50,000, unless a higher Limit Of Insurance is shown in the Declarations. 22. Garages, Storage Buildings and Other Appurtenant Structures Under paragraph A.6. Coverage Extensions, the following is added: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 14 of 33 You may extend the insurance that applies to Building to apply to garages, storage buildings and other appurtenant structures, including, but not limited to, swimming pools; spas; and the associated equipment within 1000 feet of the described premises. The most we will pay for loss or damage under this Extension is $50,000 at each described premises regardless of the number of buildings or structures affected. 23. Glass Expenses Under paragraph A. Coverage, 5. Additional Coverages, sub-paragraph n. Glass Expenses, the following is added: When caused by or resulting from a Covered Cause of Loss, we will pay for expenses incurred to: Replace lettering, artwork, sensors or other items permanently affixed to, or a part of, the damaged glass. 24. Identity Theft Expense Under paragraph A. Coverage, 5. Additional Coverages, the following is added: a. We will pay for “Expenses” incurred by an “Insured Person” as a direct result of any one “Identity Theft” first discovered or learned of by such “Insured Person” during the policy period. Any act or series of acts committed by one or more persons, or in which such persons are aiding and abetting others against an “Insured Person”, is considered to be one “Identity Theft” even if a series of acts continues into subsequent policy period(s). b. With respect to this Additional Coverage: (1) “Expenses” means: (a) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (b) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (c) Lost income resulting from time taken off work to complete fraud affidavits or to meet or talk to law enforcement agencies, credit agencies or legal counsel; (d) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (e) Reasonable attorney fees to: i. Defend lawsuits brought against an “Insured Person” by merchants, financial institutions or their collection agencies; ii. Remove any criminal or civil judgments wrongly entered against an “Insured Person”; or iii. Challenge the accuracy or completeness of any information in a consumer credit report; (f) Charges for long distance telephone calls due to “Identity theft” to: i. Merchants; ii. Law enforcement agencies; iii. Financial institutions or other similar credit grantors; or iv. Credit agencies; and (g) Reasonable fees for professional financial advice or professional credit advice. The most we will pay for “expenses” under Paragraph b.(1) is $5,000, subject to a maximum of $200 per day. (2) For purposes of this Additional Coverage, “Identity Theft” means: The act of knowingly transferring or using, without lawful authority, a means of identification of an “Insured Person” with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law; and (3) “Insured Person” means: (a) For sole proprietorships: The individual who is the sole proprietor of the Named Insured shown in the Declarations; (b) For partnerships: Any individual that is a partner of the Named Insured shown in the Declarations; (c) For corporations or any other type of organization: The Chief Executive Officer, and any individual who has an ownership interest of at least 20% of the Named Insured, shown in the Declarations. c. The following additional exclusions apply to this Additional Coverage: We will not pay for: (1) Expenses incurred due to any fraudulent, dishonest or criminal acts by: (a) An “Insured Person”; (b) Any person aiding or abetting an “Insured Person”; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 15 of 33 (c) Any authorized representative of an “Insured Person”; whether acting alone or in collusion with others; or (2) Loss other than “Expenses”. Account balances which arise out of fraudulent or unauthorized charges would be one example of loss other than “Expenses”. d. Regardless of the amount of the deductible for Covered Property shown in the Declarations, the most we will deduct from any claim for “Expenses” under this Additional Coverage for any one “Identity Theft” is $250. e. The most we will pay under this Additional Coverage for all “Expenses” arising out of all “Identity Theft” against an “Insured Person” incurred in any one policy year, regardless of the number of “Identity Thefts” involved, is $25,000 unless a higher Limit Of Insurance is shown in the Declarations. f. In order for coverage to be provided under this Additional coverage, you must send to us, within 60 days after our request, receipts, bills or other records that support your claim for “Expenses” under “Identity Theft” coverage. 25. Installation Under paragraph A.5. Additional Coverages, the following is added: a. This coverage applies to an installation performed by you for others away from the described premises. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to materials, supplies, machinery, fixtures and equipment that will become a permanent part of your installation, while located at a site of installation, in transit by you to or from your premises and the job site, or while in temporary storage awaiting installation. This includes your property and similar property of others that is in your care, custody and control. b. This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. c. The most we will pay for any loss under this Additional Coverage is $5,000. d. We will not pay for loss or damage to property that has already been installed, whether or not your work has been accepted. e. Exclusions B.1.b. and B.1.g. do not apply to the Additional Coverage. This Additional Coverage does not increase the Limits of Insurance of Section I – Property. 26. Leasehold Interest (Tenant’s Only) Under paragraph A.5. Additional Coverages, the following is added: a. If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. b. The most we will pay for loss because of the cancellation of any lease or leases on account of the same covered cause of loss is: (1) If your lease is cancelled and either: (a) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (b) You relocate to other permanent premises and enter into a new lease. (2) For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (a) $10,000; (b) Nothing if there is no written or legally binding lease, whichever is less. c. The following provisions apply to b.(1) above: (1) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (2) If the lease has no end date (open-ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the premises. d. The following provision applies to b.(1) and b.(2)(a) above: (1) $10,000 will be the maximum amount payable regardless of the number of leases affected by the same covered cause of loss. (2) Existence of a renewal option will not increase, or have any other effect on this limit. e. We will not pay for any loss or damage: (1) If there is no written or legally binding lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 16 of 33 (2) If the unit or suite rented or leased to you where direct damage occurs has been vacant more than 60 consecutive days before the loss or damage occurs, and you have not entered into an agreement to sublease the unit or suite. (3) Caused by your cancelling the lease; or (4) Caused by the suspension, lapse or cancellation of any license. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 27. Marring And Scratching Under paragraph A. 5. Additional Coverages, the following is added: We will pay for loss or damage to Covered Property at the described premises due to sudden and accidental marring and scratching of: a. Your “stock”; b. Your printing plates; and c. Property of others that is in your care, custody or control. This Cause of Loss does not apply to: a. Property at other than the described premises; and b. Property in transit. Payment under this Extension is included within your Business Personal Property Limit Of Insurance. 28. Money And Securities The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, sub-paragraph 2. Money and Securities, the following is added to sub-paragraph a.: We will also pay any bank stop payment charges you are required to pay because of a loss that is covered under this Additional Coverage. b. Under paragraph G. Optional Coverages, sub-paragraph 2. Money And Securities, sub-paragraphs c.(1) and c.(2) are replaced with the following: (1) $50,000 or the amount shown in the Declarations for Inside the Premises for “money” and “securities” while: (a) In or on the described premises; or (b) Within a bank or savings institution in the coverage territory; and (2) $50,000 or the amount shown in the Declarations for Outside the Premises for “money” and “securities” while at any other location or in transit between locations listed in (1) above and while in the coverage territory. c. For purposes of this Optional Coverage only, the limit under paragraphs (1) and (2) above includes reimbursement of bank stop payment charges that insured is obligated to pay as a result of a covered loss under this Additional Coverage. 29. Money Orders And Counterfeit Paper Currency Under paragraph A.5. Additional Coverages, Paragraph j. Money Orders And Counterfeit Paper Currency, is replaced with the following: 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" paper currency that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $25,000. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 30. Newly Acquired Or Constructed Property Under paragraph A.6. Coverage Extensions, a. Newly Acquired Or Constructed Property, sub- paragraph (3)(b) is replaced with the following: 180 days after you acquire the property or begin construction of that part of the building that would qualify as covered property; or 31. Newly Acquired or Constructed Property – Business Income And Extra Expense Under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Constructed Property, the following is added: You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 17 of 33 32. Ordinance Or Law Under paragraph A.5. Additional Coverages, paragraph l. Increased Cost of Construction is replaced with the following: a. This Additional Coverage applies only: (1) When a Limit of Insurance for the affected building (or buildings) is shown on the Declarations, and then only (2) To buildings insured on a replacement cost basis. b. Application of Coverages: The coverages provided under this Additional Coverage apply only if (1) and (2) below are satisfied and are then subject to the qualifications found in (3) below. (1) The Ordinance or law: (a) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at the described premise; (b) Is in force at the time of loss; and (c) Was not in force at the time the involved construction was completed. But coverage under this Additional Coverage 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 Additional Coverage. (2) The building sustains direct physical damage: (a) That is covered under this Additional Coverage and as a result of such damage, you are required with the ordinance or law; or (b) 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 damage 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. (3) In the situation described in (2)(b) above, we will not pay the full amount of loss otherwise payable under the terms of coverages for Coverage for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. Instead, we will pay a proportion that covered direct physical damage bears to the total direct physical damage. However, if the covered direct physical damage alone would have resulted in enforcement of the ordinance or law, then we will pay the full amount of the loss otherwise payable under the terms of Coverages for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. c. 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”. d. Coverage (1) 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 for the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. Coverage for Loss to the Undamaged Portion of the Building is included within the Limit of Insurance shown in the Declarations as applicable to the covered building. Coverage for Loss to the Undamaged Portion of the Building does not increase the Limit of Insurance. (2) 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 the undamaged parts of the same building, as a consequence of enforcement of an ordinance or law that requires demolition of such undamaged property. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to Demolition Cost Coverage. (3) Increased Cost of Construction With respect to the building that has sustained covered direct physical damage, we will pay the increased cost to: (a) Repair or reconstruct damaged portions of that building; and/or (b) Reconstruct or remodel undamaged portions of that building, whether or not demolition is required; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 18 of 33 When the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or law. However, 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. We will not pay for the increased cost of construction if the building is not repaired, reconstructed or remodeled. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to the Increased Cost of Construction Coverage. (4) Increased Period Of Restoration If a Covered Cause of Loss occurs to property at the premises described in the Declarations, coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: i. 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 ii. 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. The most we will pay for loss under Ordinance or Law – Increased Period of Restoration is $10,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay for Ordinance or Law – Increased Period of Restoration for each described building is $10,000. The Ordinance or Law – Increased Period of Restoration coverage is not subject to the Limits of Insurance of Section I – Property. (5) Tenant’s Improvements and Betterments This Additional Coverage applies only when a Limit Of Insurance for Business Personal Property for the affected building, or buildings, is shown on the Declarations; and then only when Business Personal Property is insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant’s improvements and betterments whether collectible or not. This Additional Coverage also applies to improvements and betterments you have made to a building you do not own or occupy as a tenant and a Limit Of Insurance is shown for Business Personal Property at the described premises. Improvements and betterments covered under this Additional Coverage are described under Section I – Property A.1. Covered Property, paragraph b.(3). (6) Loss Payment (a) The following loss payment provisions, 6.(b) and (c), are subject to the apportionment procedure set forth in paragraph b.(3) of this coverage. (b) When there is a loss in value of an undamaged portion of the building to which Coverage for Loss to the Undamaged Portion of the building applies, the loss payment for that building, including damaged and undamaged portions, will be determined as follows: i. If the property is repaired or replaced on the same or another premises, we will not pay more than the lesser of: (i) The amount you 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 (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 19 of 33 ii. If the property is not repaired or replaced. We will not pay more than the lesser of: (i) The actual cash value of the building at the time of loss; or (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. (c) The most we will pay, for the total of all covered losses for Demolition Cost and Increased Cost of Construction is the Limit of Insurance shown below. Subject to this combined Limit of Insurance, the following loss payment provisions apply: i. For Demolition Cost, we will not pay for more than the amount you actually spend to demolish and clear the site of the described premises. ii. With respect to the Increased Cost of Construction: (i) 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 repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. iii. 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. iv. 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. v. The most we will pay for loss under Demolition Cost is the Limit Of Insurance shown in the Declarations for Building plus $50,000 or the amount shown in the Additional Property Coverage Schedule for Demolition Cost. The most we will pay for loss under Increased Cost of Construction is the Limit Of Insurance shown in the Declarations for Building plus $50,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule for Increased Cost Of Construction. If a damaged building(s) is covered under a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for Demolition Cost is the replacement cost for the damaged building plus $50,000 and the most we will pay for loss under the Increased Cost of Construction is the replacement cost for the damaged building plus $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. (7) Under this coverage, 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 building was undamaged; and (b) You failed to comply with. 33. Personal Effects Under paragraph A. 6. Coverage Extensions, sub-paragraph d. Personal Effects, the last paragraph is replaced with the following: The most we will pay for loss or damage under this Extension is $10,000 at each described premises. 34. Personal Property In Transit Under paragraph A. 6. Coverage Extensions, the following is added: a. You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, to apply to your personal property or property of others in your care, custody or control while it is in the course of transit. This Extension applies to property while it is in transit more than 1,000 feet from the described premises and while between points in the coverage territory while: (1) In a vehicle owned, leased or operated by you; or (2) In the custody of a common carrier, contract carrier or registered mail carrier. b. We do not pay for any loss or damage caused by or resulting from “theft” from an unattended vehicle, including loss: (1) From inside a vehicle, including trailers; or from an exterior storage container or box, except when: (a) securely locked, (b) there is visible evidence that entry into the vehicle was forced, and (c) inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 20 of 33 (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. c. This Extension does not apply to the following property: (1) Shipments that belong to others that you are transporting for a fee; (2) Property while waterborne; or (3) Salespersons samples d. Exclusions B.1.b., and B.1.g. of the Businessowners Coverage Form do not apply to this Coverage Extension. e. The most we will pay for loss or damage under this Extension is $50,000 per “occurrence”. 35. Preservation Of Property – Expense Under paragraph A.5. Additional Coverages, the following is added: a. 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 your expenses to move or store the Covered Property. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will pay under this Additional Coverage is $25,000 per “occurrence”. This Additional Coverage is not subject to Section I – Limits of Insurance. 36. Salesperson’s Samples Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to samples of your “stock” in trade (including containers) while: (1) In the custody of your sales representative, agent or any "employee" who travels with sales samples; (2) In your custody while you are acting as a sales representative; or (3) In transit between premises that you own, lease or operate and your sales representative. b. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. c. We will not pay for any loss to the following property: (1) Property which has been sold; (2) Jewelry, precious or semi-precious stones, gold, silver, platinum, or other precious metals or alloys; (a) Furs, fur garments or garments trimmed with fur; or (b) Any property while waterborne d. Exclusions B.2.g., B.2.l.(4), and B.2.l.(7) of the Businessowners Coverage Form do not apply to this Additional Coverage. e. We will not pay for any loss or damage caused by “theft” from an unattended vehicle including: (1) Loss from inside a vehicle, including trailers, or from a permanently-mounted exterior toolbox except when: (a) securely locked, (b) there is visible evidence that entry was forced, and (c) when inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 37. Soft Costs Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the actual “soft costs” that you incur due to direct physical loss or damage to Covered Property by a Covered Cause of Loss. We will only pay those “soft costs”: (1) That are over and above your normal expenditures; and (2) That are incurred during the period of time: (a) That begins on the date the direct physical loss occurs; and (b) Ends one year after the date on which the construction, repairs, or replacement would be scheduled for completion. b. We will only pay “soft costs” if: (1) The valuation for Building and Business Personal Property is based on Replacement Cost; and (2) You repair or replace the damaged Covered Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 21 of 33 c. Normal Expenditures are expenses that would have been incurred by your operation had no loss or damage occurred. d. The most we will pay under this Additional Coverage for “soft costs” arising for a Covered Cause of Loss in any one “occurrence” is $10,000. e. For purposes of this Additional Coverage, “soft costs” means: (1) Realty taxes and other assessments attributed to the increased property values that result directly from construction or repair costs associated with the loss or damage by a Covered Cause of Loss. (a) Increased interest charges and fees necessitated by the operation of a mortgage acceleration clause; and (b) Advertising and promotional expenses. This Additional Coverage is not subject to the Limits of Insurance under Section I – Property. 38. Spoilage - Animal Semen Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay: (1) For physical damage to animal semen due to change in temperature or humidity resulting from mechanical breakdown or mechanical failure of a cryogenic storage device; (2) For physical damage to animal semen due to contamination from the release of refrigerant, including but not limited to ammonia; and (3) Any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. b. Animal semen means extracted animal semen owned by you or by others that is in your care, custody or control and which is contained in a cryogenic storage device. Coverage applies while: (1) Animal semen is contained in a cryogenic storage device and is in transit from point of extraction to insured’s premises or other premises; and (2) During the transfer from the cryogenic storage device to a refrigeration system. Coverage ends when animal semen is placed in a refrigeration system. c. Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following for purposes of this Additional Coverage: We will determine the value of animal semen as follows: (1) For animal semen you have sold but not delivered, at the selling price less discounts and expenses you otherwise would have had; (2) For other animal semen, at actual cash value. d. The most we will pay for all covered losses to animal semen under this Additional Coverage, regardless of the number of occurrences of loss or damage, is $10,000. 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 loss occurred. e. This Additional Coverage is subject to the Deductible Amount shown in the Policy Declarations. 39. Temporary Relocation Of Property Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss of or damage to Covered Property from a Covered Cause of Loss while it is away from the described premises, if it is being stored temporarily at a location you do not own, lease or operate while the described premises is being renovated or remodeled. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. c. The most we will pay under this Additional Coverage is $50,000. This Additional Coverage is not subject to Section I – Property. 40. Tenant Signs (Tenants only) Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to all tenant signs at the described premises: (1) Owned by you; or (2) Owned by others but in your care, custody or control. (a) The most we will pay for loss or damage in any one “occurrence” is $5,000 regardless of the number of locations or buildings involved. (b) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 22 of 33 (c) This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 41. Unauthorized Business Credit Card Use Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss resulting from the “theft” or unauthorized use of Bus iness Credit Cards issued to you or registered in your name. b. We do not cover use of a Business Credit Card: (1) By a person who has been entrusted with the card; or (2) Any of your “employees”. c. All loss: (1) Caused by any one or more persons; or (2) Involving a single act or series of related acts; is considered one “occurrence” regardless of the number of individual unauthorized transactions. d. If a suit is brought against you for liability under this Additional Coverage, we will pay for reasonable legal expenses incurred in that defense. e. The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. 42. Vacancy Loss Condition Under paragraph E. Property Loss Conditions, sub-paragraph 8. Vacancy is deleted. 43. Valuation – Medical Equipment If medical equipment used in your “operations” is covered under this policy on a replacement cost basis, the following is added to paragraph C. Limits Of Insurance: We will pay the replacement cost value of your medical equipment at the time of loss, but no more than 115% of the Limit Of Insurance if: a. You replace medical equipment on the same premises with other medical equipment: (1) Of greater capacity or capability; and (2) Used for the same purpose; and b. The actual repair or replacement is completed within one year from the date of loss. 44. Virus and Hacking Coverage Under paragraph A.5. Additional Coverages, p. Electronic Data, sub-paragraph (2), is replaced with the following: The Covered Causes of Loss applicable to Business Personal Property include “computer hacking” or a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 23 of 33 a. “Computer hacking” means an unauthorized intrusion: (1) by an individual or group of individuals, whether employed by you or not, into a computer system or a network to which it is connected; and (2) that results in but is not limited to: (a) deletion, destruction, generation or modification of “electronic data”; (b) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of “electronic data”; (c) observation, scanning or copying of “electronic data”; (d) damage, destruction, inadequacy, malfunction, degradation or corruption of any “electronic data”; or (e) denial of access to or denial of services from your computer system or a network to which it is connected. b. We will not pay for: (1) Loss of access, loss of use or loss of functionality; or (2) Consequential loss caused by a computer virus or by “computer hacking”. B. BLANKET COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the Businessowners Coverage Form. Blanket Coverage Limit Of Insurance The following additional coverage is added: We will pay up to $1,000,000 as a Blanket Coverage Limit Of Insurance to apply at each scheduled premises and to apply to the sum of all covered losses under the coverages described in paragraphs 1. to 16. arising out of a single “occurrence” due to a Covered Cause of Loss. You may distribute this Coverage Limit among these coverages as you deem necessary. However, after a loss, we will not pay more than $1,000,000 at any one insured location per “occurrence”. 1. Accounts Receivables Under paragraph A. 6. Coverage Extensions, f. Accounts Receivables, sub-paragraph (2) is replaced with the following: The most we will pay under this Coverage Extension for loss or damage in any one “occurrence” at or away from the insured premises is subject to the Blanket Coverage Limit Of Insurance. 2. Business Income From Dependent Properties Under paragraph A. 5. Additional Coverages, m. Business Income From Dependent Properties, sub- paragraph (1) is replaced with the following: We will pay for the actual loss of Business Income (not including Extended Business Income), you sustain due to direct physical loss or damage at the premises of a dependent property caused by or resulting from a Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a dependent property or secondary dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the dependent property or secondary dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The Deductible does not apply to this Additional Coverage. The dependent property must be located in the coverage territory. 3. Extra Expense From Dependent Properties Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the necessary Extra Expense you incur, that you would not have incurred had there been no direct physical loss of or damage at the premises of a dependent property caused by or resulting from any Covered Cause of Loss. The incurred expense must be related to your business activities as provided in Paragraph b. below and deal with your actions to assist your own business activities. We will not pay for any expenses INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 24 of 33 incurred that directly or indirectly serve to speed, or otherwise assist, recovery of an affected dependent property. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The dependent property must be located in the coverage territory. b. Extra Expense means expense incurred by you to: (1) Avoid or minimize the “suspension” of business and to continue operations; or (2) Minimize the “suspension” of business if you cannot continue operations, due to covered loss of or damage to a dependent property or properties. c. For purposes of this Additional Coverage, “suspension” means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un- tenantable, if coverage for Business Income applies. d. We will only pay for Extra Expense that occurs within 12 consecutive months immediately following the date of direct physical loss or damage to the dependent property. e. The Extra Expense coverage period, as stated in paragraph d., does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of “pollutants”. f. The following also apply to this Additional Coverage: (1) Paragraph B. Exclusions, 5. Business Income and Extra Expense Exclusions; and (2) Paragraph E. Property Loss Conditions 7. Resumption of Operations, sub-paragraph b. The expiration date of this policy will not reduce the Extra Expense coverage period. 4. Business Income And Extra Expense – Mobile Veterinary Clinic Under paragraph A.5 Additional Coverages, the following is added: a. We will pay for the actual loss of Business Income and Extra Expense you sustain due to the necessary “suspension” of your operations during the “period of restoration”. The “suspension” must be caused by a covered direct physical loss of or damage to “mobile veterinary clinic” caused by or resulting from a Covered Cause of Loss including collision. The “mobile veterinary clinic” must be owned, leased or operated by you. b. For purposes of this Additional Coverage, the following definitions are added: (1) “Mobile veterinary clinic” means a motor vehicle which is specially designed as a transportable veterinary office and from which you conduct your usual veterinary operations. (2) “Suspension means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un-tenantable, if coverage for Business Income applies. c. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 5. Computer Equipment Under paragraph A. 5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to the following Covered Property which is your property or the property of others in your care, custody or control: (1) "Computer equipment" or “computer(s)”; (2) Climate control equipment and fire protective equipment used exclusively with your "computer equipment"; (3) Programming documentation and instruction manuals; and (4) The necessary loss of Business Income and Extra Expense as provided in the Additional Coverages for Business Income and Extra Expense you incur to avoid or minimize the suspension of business and to continue “operations” because of direct physical loss or damage to covered property. b. We will not pay for any loss or damage to the following property: (1) Property you rent, loan or lease to others while it is away from the described premises ; (2) Property you hold for sale, distribute or manufacture except as provided under paragraph A. 1. Covered Property, sub-paragraph b.; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 25 of 33 (3) “Software” that cannot be duplicated or replaced with similar property of equal quality and/or substantially similar functionality. c. If we provide Building coverage only, we will only pay for loss to computers that service building operations at the insured’s described premises and are located at the insured’s described premises. d. Regardless of the number of insured locations involved, the most we will pay for loss or damage under this Additional Coverage to property listed in a.(1) to a.(4) in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance under Paragraph B. Blanket Coverage. Regardless of the Blanket Limit Of Insurance, the most we will pay for Extra Expense is $5,000. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. e. This insurance is excess to any other insurance also covering “computer equipment” or “computer(s)”. f. Exclusions B. 1. b. and B. 1. g. do not apply to this Additional Coverage. g. We will not pay for loss or damage: (1) To any property not sustaining direct physical loss or damage even if covered loss or damage to other covered property renders such associated or related items unusable or otherwise unfit. (2) This exclusion applies to “software” or “hardware”. (3) Such loss to associated or related items is not considered to have suffered direct physical loss or damage for purposes of this insurance. h. For purposes of this Additional Coverage, the following definitions are added: (1) “Computer” means: (a) Programmable electronic equipment that is used to store, retrieve and process data; and (b) Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. (2) “Computer equipment “ means: (a) computer “hardware” and related component parts. Component parts include but are not limited to modems, printers, keyboards and scanners; (b) computer control systems including uninterruptable power supply systems, line conditioner and voltage regulator; and (c) “software”; and (d) “electronic data”. (3) “Hardware” means an assemblage of electronic machine components capable of accepting instructions and information according to the instructions, and producing desired results. (4) “Software” means processing, recording, or storage media used for computer processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells. 6. Expediting Expense Under paragraph A.5. Additional Coverages, the following is added: a. When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (1) Make temporary repairs; (2) Expedite permanent repair or replacement of damaged property; or (3) Provide training on replacement machines or equipment. b. The most we will pay for loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. 7. Fire Department Service Charge Under paragraph A.5. Additional Coverages, paragraph c. Fire Department Service Charge is replaced with the following: When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay for your liability for fire department service charges unless a higher Limit Of Insurance is shown in the Declarations if: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. The most we will pay for loss under this Additional Coverage in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance. 8. Inventory And Loss Appraisal INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 26 of 33 Under paragraph A. 6. Coverage Extensions, the following is added: a. We will pay for all reasonable expenses you incur at our request to assist us in: (1) The investigation of a claim; (2) The determination of the amount of loss, such as taking inventory; or (3) The cost of preparing specific loss documents and other supporting exhibits. b. The most we will pay under this Coverage Extension per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to these expenses. c. We will not pay for: (1) Expenses incurred to perform your duties in the event of a loss under Section I – E. Property Loss Conditions; (2) Expenses to prove that loss or damage is covered; (3) Expenses billed by and payable to independent or public adjusters; attorneys; or any of their affiliated or associated entities; (4) Expenses to prepare claims not covered by this Coverage Form; or (5) Expenses incurred under any appraisal provisions within the policy. 9. Key Replacement And Lock Repair Under paragraph A.6. Coverage Extensions, the following is added: You may extend the insurance provided under this Coverage Form to apply to consequential loss or damage, caused by or resulting from a covered Cause of Loss, for the cost incurred for: a. The actual cost to replace keys; b. Consequential loss to keys and locks if a master key is lost or damaged resulting from a Covered Cause of Loss; or c. Rekeying or replacing lock sets, including new locks and installation costs. The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 10. Lessor’s Lease Cancellation Under paragraph A.5. Additional Coverages, the following is added: a. We will pay the actual loss of business income you sustain due to the cancellation of a lease by your tenants in a Covered Building due to untenantability that is caused by direct physical loss or damage to that building from a Covered Cause of Loss. This Additional Coverage only applies if at the time of loss the building was occupied and business was being conducted by the tenant cancelling the lease or their sublessee. b. We will pay for loss of business income that you sustain after tenantability is restored and until the earlier of: (1) The date you lease the premises to another tenant; or (2) 12 months immediately following the “period of restoration”. c. Regardless of the number of tenants cancelling a lease at the described premises, the most we will pay under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. d. We will not pay for: (1) Lease cancelled after the “period of restoration”; (2) Lease cancelled, suspended or allowed to lapse by you; (3) Return of prepaid rent or security and other deposits made by tenants; or (4) Lease cancelled at the normal expiration date. 11. Outdoor Property a. Under paragraph A.6. Coverage Extensions, sub-paragraph c. Outdoor Property is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Vehicles that you do not own, operate or lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 27 of 33 The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance, but not more than $5,000 for any one, tree, shrub or plant. 12. Personal Property Off-Premises Under paragraph A.6. Coverage Extensions, sub-paragraph b. Personal Property Off-Premises, is replaced with the following: (1) You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, but other than “money” and “securities, “valuable papers and records” or accounts receivable, while: (a) Temporarily at a location you do not own, lease or operate; or (b) At any fair, trade show or exhibition. (2) The most we will pay for loss or damage under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 13. Special Event Cancellation – Rental Expenses Under paragraph A.5. Additional Coverages, the following is added: If you have scheduled a special event directly related to your business as a Veterinarian and that event is cancelled due to loss or damage to Covered Property from a Covered Cause of Loss, we will reimburse you for expenses you paid to rent equipment for that event including rental of tent, or other such enclosures, tables, chairs and sound systems. The most we will pay for loss under this Additional Coverage in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 14. Tenant Relocation Expense Under paragraph A.5. Additional Coverages, the following is added: a. In the event that your tenants must temporarily vacate the covered Building at the described premises due to untenantability caused by direct physical loss or damage by a Covered Cause of Loss, we will pay the following expenses you actually incur to move those tenants out of and back into your covered Building. b. We will only pay for the following expenses: (1) Packing, and transporting tenant’s Business Personal Property including the cost of insuring the move out and back and any necessary disassembly and reassembly or setup of fixtures and equipment; and (2) The net cost to discontinue and re-establish the tenants’ utility and telephone services, after any refunds due the tenants. (3) Costs to unpack and reshelf stock and supplies. Covered Relocation Costs do not include: (a) Loss caused by the termination of a lease or other agreement; or (b) Security deposits or other payments, forfeiture or penalties to the landlord or lessor of other premises. c. We will only pay for these expenses that you actually incur within 30 days of the date that the damaged buildings has been repaired or rebuilt. Regardless of the number of tenants’ involved, the most we will pay in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 15. Utility Services a. Under paragraph A.5. Additional Coverages, the following is added: (1) We will pay for loss of or damage to Covered Property caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown below in paragraph (3) below. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. (2) We will pay for loss of Business Income (not including Extended Business Income) or Extra Expense caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 28 of 33 (3) Services: (a) Water Supply Services, meaning the following types of property supplying water to the described premises: i. Pumping stations; and ii. Water mains. (b) Communication Supply Services, meaning property supplying communication services, including telephone, radio, microwave or television services to the described premises, such as: i. Communication transmission lines, including optic fiber transmission lines; ii. Coaxial cables; and iii. Microwave radio relays except satellites. It does not include overhead transmission lines or overhead distribution lines. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: i. Utility generating plants; ii. Switching stations; iii. Substations; iv. Transformers; and v. Transmission lines, But does not include overhead transmission lines, overhead distribution lines, overhead transformers or any other overhead service equipment or similar (however mounted and whatever mounted upon) equipment. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. b. Under paragraph B. Exclusions, e. Utility Services, the last paragraph is replaced with the following: This exclusion does not apply to loss or damage to “computer(s)” and “electronic data” or to the Utility Services Additional Coverage. 16. Valuable Papers And Records Under paragraph A. 6. Coverage Extensions, e. Valuable Papers And Records, paragraph (3) is replaced with the following: Regardless of the number of locations involved, the most we will pay under this Coverage Extension for loss or damage in any one “occurrence” for “valuable papers” at the described premises or “valuable papers” not at the described premises, is subject to the Blanket Coverage Limit Of Insurance. C. SECTION II- LIABILITY The following paragraphs amend coverage provided under SECTION II – LIABILITY of the Businessowners Coverage Form. 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Paragraph C. Who Is An Insured is amended to include as an insured any person or organization for whom you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy. The insurance provided to the additional insured is limited as follows: a. That person or organization is only an additional insured with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused in whole or in part by: (1) Premises you own, rent, lease, or occupy; or (2) Your ongoing operations performed for that insured. (3) In connection with “your work” and included within the “products-completed operations hazard”, but only if: (a) The written contract or written agreement requires you to provide such coverage to the additional insured; and (b) This policy provides coverage for “bodily injury” or “property damage” included within the “products-completed operations hazard”. b. With respect to the insurance afforded to these additional insureds, the following is added to paragraph D. Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: (1) Required by the contract or agreement; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 29 of 33 (2) Available under the applicable Limits Of Insurance shown in the Declarations; whichever is less. c. If specifically required by a contract, agreement or permit, coverage provided by this insurance shall be primary and any other insurance available to the additional insured shall be excess and non- contributing. 2. Alienated Premises Paragraph B.1. Exclusions, sub-paragraph k.(2) is replaced with the following: Premises you sell, give away or abandon, if the “property damage” arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 3. Bodily Injury Redefined Paragraph F. Liability and Medical Expenses Definitions, sub-paragraph 3. “Bodily Injury” is replaced with the following: “Bodily injury” means bodily injury, disability, sickness or disease sustained by a person, including death resulting from any of these at any time. “Bodily Injury” includes mental anguish, mental injury, shock, fright or death resulting from “bodily injury”, sickness or disease. 4. Broad Form Property Damage – Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to paragraph B. 1. Exclusions, sub-paragraph k.: Sub-paragraph (4) does not apply to “property damage” to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to “property damage” to “customers goods” while on your premises nor to the use of elevators. b. The following definition is added to paragraph F. Liability and Medical Expenses Definitions: “Customers goods” means property of your customer on your premises for the purpose of being: (1) Worked on; or (2) Used in your manufacturing process. (3) The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Broadened Named Insured For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 3. is added as follows: All of your subsidiaries, companies, corporations, firms, or organizations, as now or hereafter constituted, qualify as insureds under this policy if: a. You have the responsibility of placing insurance for each such entity; and b. Coverage for the entity is not otherwise more specifically provided; and c. The entity is incorporated or organized under the laws of the United States of America. But each entity is insured only while you own, during the policy period, a controlling interest in such entity of greater than 50% of the stock or assets. However coverage: (1) Under this provision is afforded only until the end of the policy period, or the 12 month anniversary of the policy inception date, whichever is earlier; (2) Does not apply to “bodily injury” or “property damage” that occurred before you acquired or formed the organization; and (3) Does not apply to “personal and advertising injury” arising out of an of fense committed before you acquired or formed the organization. 6. Broadened “Personal And Advertising Injury” a. For purposes of the coverage provided by this endorsement, definition, F. Liability And Medical Expenses Definitions, paragraph 14. “Personal And Advertising Injury” is replaced with the following: “Personal and advertising injury” means injury, including consequential “bodily injury”, arising out of one or more of the following offenses: (1) False arrest, detention or imprisonment; (2) Malicious prosecution; (3) The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 30 of 33 (4) Oral or written, televised or videotaped publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; (5) Oral or written, televised or videotaped publication, in any manner, of material that violates a person's right of privacy; (6) The use of another's advertising idea in your "advertisement"; (7) Infringing upon another's copyright, trade dress or slogan in your "advertisement"; (8) Infringement of trademark, copyright, title, trade secret or slogan; (9) Misappropriation of advertising ideas or style of doing business. b. For purposes of the coverage provided by this endorsement, definition, B.1. Exclusions Applicable to Business Liability Coverage, paragraph p. Personal and Advertising Injury, sub-paragraph (12) is replaced with the following: Arising out of the infringement of patent. 7. Damage to Premises Rented To You – Revised Limit For purposes of the coverage provided by this endorsement, D. Liability And Medical Expenses Limits Of Insurance, paragraph 3. is replaced with the following: The most we will pay under Business Liability Coverage for damages because of “property damage” to any one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit Of Insurance for Damage to Premises Rented To You shown in the Declarations. 8. Fellow Employee Coverage For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 2.a. is replaced with the following: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 9. Newly Acquired Organizations For purposes of the coverage provided by this endorsement, C. Who Is An Insured, the following is added: Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Business Liability Coverage does not apply to: (1) “Bodily injury” or “property damage that occurred before you acquired or formed the organization; and INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 31 of 33 (2) “Personal and advertising injury” arising out of an offense committed before you acquired or formed the organization. (3) “Bodily injury” or “property damage” do not apply to “product recall expense” arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 10. Product Recall Expense a. The following is added to paragraph B. 1. Exclusions, sub-paragraph o. Recall of Products, Work or Impaired Property This exclusion does not apply to “product recall expenses” that you incur for the “covered recall” of “your product”. However, this exception does not apply to “product recall expenses” resulting from: (1) Failure of any products to accomplish their intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of “your product” which has been recalled by like products or substitutes; (5) Caprice or whim of the insured; (6) A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (7) Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (8) Recall of “your products” that have no known or suspected defect solely because a known or suspected defect in another of “your products” has been found. b. The following is added to paragraph E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated “covered recall” that may result in “product recall expense”: (1) Give us prompt notice of any discovery or notification that “your product” must be withdrawn or recalled. Include a description of “your product” and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. c. The following definitions are added to paragraph F. Liability and Medical Expenses Definitions: (1) “Covered recall” means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in “your product” has resulted or will result in “bodily injury” or “property damage”. (2) “Product recall expense(s)” means: (a) Necessary and reasonable expenses for: i. Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; ii. Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; iii. Remuneration paid to your regular “employees” for necessary overtime; iv. Hiring additional persons, other than your regular “employees”; v. Expenses incurred by “employees” including transportation and accommodations; vi. Expenses to rent additional warehouse or storage space; vii. Disposal of “your product”, but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid “bodily injury” or “property damage” as a result of such disposal, you incur exclusively for the purpose of recalling “your product”; and (b) Your lost profit resulting from such “covered recall”. d. The following are added to paragraph D. Liability and Medical Expenses Limits of Insurance: The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) An Aggregate Limit of $50,000 is the most that we will reimburse you for the sum of all “product recall expenses” incurred for all “product recall expenses” initiated during the policy period. (2) An Occurrence Limit of $25,000 is the most we will pay in connection with any one defect or deficiency. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 32 of 33 (a) All “product recall expenses” in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one “occurrence”. (b) Any amount reimbursed for “product recall expenses” in connection with any one “occurrence” will reduce the amount of the Aggregate Limit available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (c) If the Aggregate Limit has been reduced by reimbursement of “product recall expenses” to an amount that is less than the Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (3) This coverage is not subject to the Limits of Insurance of SECTION II – LIABILITY. (4) A deductible of $500 applies per each “occurrence”. 11. Supplementary Payments – Cost of Bail Bonds Broadened For purposes of the coverage provided by this endorsement, A.1. Business Liability, paragraph f. Coverage Extension – Supplementary Payments, sub-paragraph (1)(b) is replaced with the following: The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability for “bodily injury” applies. We do not have to furnish these bonds. 12. Unintentional Failure to Disclose Hazards The following is added to paragraph E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional and you provide immediate notification of the failure or omission to the company. 13. Unintentional Failure to Notify The following is added to paragraph E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: Your rights afforded under this Coverage Form shall not be prejudiced if you fail to give us notice of an “occurrence”, offense, claim or “suit”, solely due to your reasonable and documented belief that the “bodily injury” or “property damage” is not covered under this Policy. The following paragraphs amend coverage provided under the Veterinarians Professional Liability form and apply only if Veterinarians Professional Liability coverage is provided under this policy. 14. Veterinarians Professional Liability - Broadened Definition Of “Employee” The definition of “employee” in Paragraph F. Liability and Medical Expenses Definitions is replaced with the following: “Employee” includes a “leased worker”, a “volunteer worker”, an intern and an extern, unlicensed “employee” while acting at the direction of a licensed professional or “temporary worker”. “Employee” also includes a pet groomer, a pet trainer or an animal behaviorist who is employed by you or performing services on your behalf. However, “employee” does not include a pet trainer or animal behaviorist while training any animal for attack or guard purposes. 15. Veterinarians Professional Liability - Consent To Settle The following is added: We will not settle any claim or “suit” without the insured’s consent. 16. Veterinarians Professional Liability - Legal Defense Expense – Veterinary Medical Board Extension Coverage The following is added: Coverage Extension – Supplementary Payments: a. We will pay the costs to defend legal actions resulting from inquiries, lawsuits, and challenges from the state licensing Veterinary Medical Board or their representative. We will provide payment for consultations and expert witnesses hired to aid in the defense of allegations, whether groundless or not. b. Coverage is provided for the following costs: (1) Legal defense expenses; (2) Consultant fees; (3) Expert witness fees; and (4) Other reasonable expenses to defend Veterinarian’s Medical Board Actions. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 33 of 33 However, we will not pay for the following: (5) Fees to reimburse the veterinarian’s time or expenses; or (6) Fines and penalties assessed as a result of an inquiry, lawsuit or challenge from the state licensing Veterinary Medical Board. The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph D. Liability And Medical Expenses Limits Of Insurance: Subject to paragraph 4. Aggregate Limits, coverage provided under the Legal Defense Expense – Veterinary Medical Board Coverage Extension is limited to sub-limits of $100,000 per claim and $100,000 in the aggregate applicable separately to each veterinarian who is an insured under the Veterinarians Professional Liability. Our duty to defend ends when we have exhausted such sub-limit. 17. Veterinarians Professional Liability - Veterinary Technicians The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph B.3. Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage- Nuclear Energy Liability Exclusion: However, this exclusion does not apply to registered veterinary technicians. All other terms and conditions of the policy remain unchanged. INSURED 10/06/2020 Rice Insurance LLC 1400 Broadway P.O. Box 639 Bellingham WA 98227 Molly Marroy (360) 734-1161 (360) 734-1173 mollym@riceinsurance.com Auburn Valley Humane Society 4910 A St SE Auburn WA 98092 Nova Casualty Company Austin Mutual Insurance Co 13412M CL203471508 A Y VETIB1000074903 09/23/2019 09/23/2020 1,000,000 50,000 10,000 1,000,000 2,000,000 2,000,000 B B1P1339P 09/23/2019 09/23/2020 1,000,000 A VETIB1000074903 09/23/2019 09/23/2020 WA Stop Gap 1,000,000 1,000,000 1,000,000 A Veterinarians Professional Liability VETIB1000074903 09/23/2019 09/23/2020 Each Occurrence $1,000,000 Aggregate $2,000,000 Certificate Holder is Additional Insured per attached form ABP0138 0215. City of Auburn 25 W Main Street Auburn WA 98001 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 1 of 33 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY VETERINARIANS AND PET SERVICES EXTRA ENDORSEMENT - WASHINGTON This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM VETERINARIANS PROFESSIONAL LIABILITY SUMMARY OF COVERAGES AND LIMITS This is a summary of the various coverages and limits provided by this endorsement. No coverage is provided by this summary. Refer to the provisions of Sections A. through C. to determine the scope of the insurance protection provided by this endorsement. A. SCHEDULED COVERAGES Limit Page 1. Animal Bailee Coverage $50,000 3 2. Animal Damage To Property Included 5 3. Backup Of Water And Sump Overflow Included 5 4. Boundary Extension 1,000 feet 6 5. Brands And Labels $10,000 6 6. Broad Form Water Damage Included 6 7. Building Damage From Theft Included 7 8. Building Enhanced Replacement Cost Included 7 9. Business Income (Loss Of) 24 Months ALS 8 10. Business Personal Property- Automatic Increase 2% Quarterly 8 11. Catastrophe Allowance $10,000 8 12. Civil Authority 6 Consecutive Weeks No Waiting Period 8 13. Commercial Tools and Equipment $5,000 per occurrence $1,000 per tool $2,500 per tool box 8 14. Covered Property – Amended Building Definition Included 9 15. Covered Property- Enhanced Replacement Cost Included 10 16. Deductibles Various 11 17. Deferred Payments $5,000 12 18. Employee Dishonesty Including ERISA Compliance $50,000 12 19. Extended Business Income 365 Days 13 20. Fine Arts $10,000 13 21. Forgery And Alteration $50,000 13 22. Garages, Storage Buildings And Other Appurtenant Structures $50,000 13 23. Glass Expenses Included 14 24. Identity Theft Expense $25,000 14 25. Installation $5,000 15 26. Leasehold Interest (Tenant’s only) $10,000 15 27. Marring And Scratching Included 16 28. Money And Securities Inside The Premises Money And Securities Outside The Premises $50,000 $50,000 16 29. Money Orders And Counterfeit Paper Currency $25,000 16 30. Newly Acquired Or Constructed Property 180 days 16 31. Newly Acquired Or Constructed Property – Business Income And Extra Expense $500,000 16 32. Ordinance Or Law – Demolition Cost Coverage Ordinance Or Law – Increased Cost Of Construction Ordinance Or Law – Increased Period Of Restoration Ordinance Or Law – Tenant’s Improvement Extension Building Limit Plus $50,000 Building Limit Plus $50,000 $10,000 Included 16 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 2 of 33 A. SCHEDULED COVERAGES Limit Page 33. Personal Effects $10,000 19 34. Personal Property In Transit $50,000 19 35. Preservation Of Property – Expense $25,000 20 36. Salesperson’s Samples $5,000 20 37. Soft Costs $10,000 20 38. Spoilage- Animal Semen $10,000 21 39. Temporary Relocation Of Property $50,000 21 40. Tenant Signs (Tenants only) $5,000 21 41. Unauthorized Business Credit Card use $5,000 21 42. Vacancy Loss Condition Deleted 22 43. Valuation – Medical Equipment Replacement Cost Plus 15% 22 44. Virus and Hacking Coverage $10,000 22 B. BLANKET COVERAGES Limit $1,000,000 Page 1. Accounts Receivable Included 23 2. Business Income From Dependent Properties Included 23 3. Extra Expense From Dependent Properties Included 23 4. Business Income And Extra Expense – Mobile Veterinary Clinic Included 23 5. Computer Equipment Included 24 6. Expediting Expense Included 25 7. Fire Department Service Charge Included 25 8. Inventory And Loss Appraisal Included 25 9. Key Replacement And Lock Repair Included 25 10. Lessor’s Lease Cancellation Included 25 11. Outdoor Property – Per Item Limit $5,000 Included 26 12. Personal Property Off-Premises Included 26 13. Special Event Cancellation – Rental Expense Included 26 14. Tenant Relocation Expense Included 26 15. Utility Services – Direct Damage Utility Services – Time Element Included Included 27 16. Valuable Papers And Records Included 27 C. SECTION II- LIABILITY Page 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Included 28 2. Alienated Premises Included 28 3. Bodily Injury Redefined Included 28 4. Broad Form Property Damage- Borrowed Equipment, Customers Goods and use of Elevators Included 28 5. Broadened Named Insured Included 28 6. Broadened “Personal And Advertising Injury” Included 29 7. Damage To Premises Rented To You – Revised Limit $1,000,000 29 8. Fellow Employee Coverage Included 30 9. Newly Acquired Organizations 180 Days 30 10. Product Recall Expense $25,000 Occurrence $50,000 Aggregate 31 11. Supplementary Payments – Cost Of Bail Bonds Broadened Actual cost 31 12. Unintentional Failure to Disclose Hazards Included 31 13. Unintentional Failure to Notify Included 31 14. Veterinarians Professional Liability – Broadened Definition Of “Employee” Included 32 15. Veterinarians Professional Liability – Consent To Settle Included 32 16. Veterinarians Professional Liability – Legal Defense Expense – Veterinarian Medical Board Extension Coverage $100,000 Per Claim $100,000 Aggregate Per Vet 32 17. Veterinarians Professional Liability - Veterinary Technicians Included 32 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 3 of 33 COVERAGES Unless otherwise indicated, the limits shown in this endorsement are not additional amounts of insurance to the Limits of Insurance provided by your policy. The Building and Business Personal Property Deductibles shown on the Declarations apply unless otherwise indicated. If this endorsement and any other coverage part, form, endorsement or policy that is issued to you by us apply to the same loss, damage or expense, the maximum Limit of Insurance combined shall not exceed the highest applicable Limit of Insurance under any one coverage part, form, endorsement or policy. A. SCHEDULED COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the BUSINESSOWNERS COVERAGE FORM. 1. Animal Bailee Coverage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss or damage to “covered animals” while in your care, custody or control for veterinary services at any insured premises or while in transit in your owned, leased or hired vehicles. Such veterinary services include treatment, breeding, grooming, and boarding. Loss under this Additional Coverage includes escape. For purposes of this Additional Coverage, the following definition is added: “Covered animals” means animals of others while in your care, custody or control and includes animals of others at any insured premises awaiting or receiving veterinary services or animals owned by you or your “employees”. “Covered animals” does not include animals held for sale, lease or rental to others. For purposes of this Additional Coverage, under Paragraph A.2. Property Not Covered, Sub- Paragraph j. is deleted. b. Under this Additional Coverage, we will also pay for the following: (1) Legal Liability (a) Damages We will pay all sums you become legally obligated to pay as damages because of your liability for loss to “covered animals” caused by or resulting from a Covered Cause of Loss. Our obligation for payment of damages under this coverage does not apply to your liability for the actual value of the “covered animals” as insured elsewhere under this Additional Coverage. (b) Defense We will have the right and duty to defend any “suit” against you seeking damages for loss to “covered animals” caused by or resulting from an “occurrence”, even if any of the allegatio ns of the “suit” are not true. However, we will have no duty to defend the insured against any “suit” seeking damages for loss to “covered animals” to which this insurance does not apply. We may, at our discretion, investigate any “occurrence” and settle any claim or “suit” that may result. After we have paid the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage in a settlement or pursuant to a judgment, we have no duty: i. To pay any other sums as damages; or ii. To defend any “suit” including the one which has been settled or on which a judgment has been paid. (c) Supplementary Payments In addition to the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage, we will pay: i. Expenses we incur to adjust claims or suits; ii. Costs, including all expenses of litigation taxed against you in any “suit” we defend; iii. All interest which accrues after the entry of a judgment in a “suit” we defend. Our duty to pay interest ends when we pay that part of the judgment which does not exceed our Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage. iv. Premiums on appeal bonds: (i) In any “suit” we defend; (ii) To release attachments in any “suit” we defend. But we will not pay the premiums for bond amounts greater than the applicable Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage, and we have no obligation to apply for or defend against a claim or “suit”. These payments will not reduce the limit of liability. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 4 of 33 (2) Additional Expenses We will pay the reasonable expense you incur for: (a) The recovery of a “covered animal”; and (b) Putting a “covered animal” to death when such death is made necessary by a Covered Cause of Loss. This Additional Coverage does not apply to any: (a) Expense for advertising; or (b) Reward offered. The most we will pay in any one loss under this Additional Expense provision, regardless of the number of “covered animals” in your care, custody or control is $2,500. The most we will pay under this Additional Expense provision in any one policy period, regardless of the number of “occurrences” is $5,000.+ (3) Preservation Expense If it is necessary to move “covered animals” to preserve them from loss by a Covered Cause of Loss, we will pay the actual expense to move the “covered animal” to safety. The most we will pay in any one “occurrence” for moving the “covered animals” is $25,000, regardless of how many “covered animals” are in your care, custody or control. (4) Uncollectible Accounts (a) In the event of loss to “covered animals” caused by or resulting from a Covered Cause of Loss, we will also pay your accrued charges not collected from the customers as a result of the loss. There will be no recovery for accrued charges which were more than ninety (90) days delinquent from the end of the month in which the payment was due. Uncollectible accounts that predate the policy effective date do not qualify under this provision. (b) The most we will pay for accrued charges due from any one customer is $250. The most we will pay for accrued charges in any one “occurrence” is $1,000. We will not pay for uncollectible charges on any claim for which the loss to the “covered animals” is less than the deductible that applies to such loss. (5) Advertising and Reward (a) We will pay the cost of advertising in newspapers to aid in the recovery of “covered animals” that are lost or stolen while in your care, custody or control. “Covered animals” stolen by your “employees” are not covered under this coverage. (b) We will also pay a reward to the person or persons, who are not “employees”, who provide information leading to the recovery of the “covered animals” lost or stolen. The most we will pay in any one “occurrence” for advertising expense and rewards under this coverage provision, regardless of the number of “covered animals” lost or stolen, is $2,500. c. Cause Of Loss We will pay risks of direct physical loss to “covered animals” from any cause of loss except where limited or excluded in Paragraph d. below. d. Exclusions For purposes of this Additional Coverage, the following apply: (1) Section I – Property, B. Exclusions and Section I – Property, 4. A. Coverage, Paragraph 4. Limitations, apply to this Additional Coverage. (2) 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) Any rendering or failure to render professional services; (b) Conditions, including but not limited to, injury or illness, which existed prior to the animal coming into your care, custody or control. (c) Any disease or sickness, or death by natural causes; or (d) The seizure or destruction of animals by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is otherwise covered under this policy, subject to the Limit Of Insurance under paragraph e. below. e. Limit Of Insurance The most we will pay under this Additional Coverage, regardless of the number of “covered animals” in your care, custody or control is $50,000 unless this limit has been increased by an endorsement attached to this policy. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 5 of 33 2. Animal Damage To Property Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for the actual direct physical loss or damage to Covered Property caused by or resulting from animals which you do not own but are in your care, custody or control for treatment, grooming, boarding, daycare, breeding or training. The loss or damage must be caused by or the result of a Covered Cause of Loss. b. For purposes of this Additional Coverage, the following Exclusions are added to paragraph B. Exclusions: (1) Caused by or resulting from wear or tear; (2) Caused by or resulting from your failure to use care in the maintenance of the property; or (3) Which cannot be identified as occurring at a specific point in time and did not become known to you within 48 hours thereafter. c. If the covered loss or damage is to real property which you own, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Building at the premises where the loss or damage occurred. If the covered loss or damage is to real property which you do not own but which you occupy for your business for which you have a contractual responsibility to insure, or to Business Personal Property, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Business Personal Property. d. Payments under this Additional Coverage do not increase the Limit Of Insurance that applies to your Building or to your Business Personal Property. The Limit Of Insurance that applies to your Business Personal Property is the most we will pay in any one “occurrence” for loss or damage to your Business Personal Property and for loss arising from animal damage to property you do not own but which you occupy for business combined. e. Coverage provided under this Additional Coverage for Animal Damage to property that you occupy for business for which you have a contractual responsibility to insure is primary insurance and will not seek contribution from any other insurance available to the lessor. 3. Backup Of Water And Sump Overflow Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property, covered under Section I – Property, caused by or resulting from: (1) Water or waterborne material which backs up through or overflows or is otherwise discharged from a sewer or drain; or (2) Water or waterborne material which overflows or is otherwise discharged from a sump, sump pump or related equipment, even if the overflow or discharge results from mechanical breakdown of a sump pump or its related equipment; or However, with respect to paragraph a.(2), we will not pay the cost of repairing or replacing a sump pump or its related equipment in the event of mechanical breakdown. b. The coverage described in paragraph a. of this endorsement does not apply to loss or damage resulting from: (1) An insured's failure to keep a sump pump or its related equipment in proper working condition; (2) An insured's failure to perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions; or (3) Sump pump failure which is caused by or results from failure of power, unless this policy is endorsed to cover power failure affecting the described premises. c. Regardless of the number of insured locations involved, the most we will pay under this Additional Coverage for loss or damage in any one “occurrence” is included in the Limits Of Insurance for Covered Property. This Additional Coverage does not increase the Limits Of Insurance. d. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: Water (1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 6 of 33 (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in paragraphs (1) through (4), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, 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 (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the back up of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. e. For the purposes of this endorsement, the term drain includes a roof drain and related fixtures. 4. Boundary Extension All references to property “within 100 feet of the described premises” are changed to property “within 1,000 feet of the described premises”. 5. Brands and Labels Under paragraph A. 6. Coverage Extensions, the following is added: If Covered Property that has a brand or label is damaged by a Covered Cause of Loss, and we elect to take all or any part of the property at an agreed or appraised value, you may extend the insurance that applies to your Business Personal Property to pay expenses incurred to: a. Stamp salvage on the property or its container, if the stamp will not physically damage the property; or b. Remove the brand or label, if doing so will not physically damage the property or its container, and re- label the merchandise or its containers to comply with the law. The most we will pay for any loss under this Extension is $10,000 per “occurrence”. Payment of these expenses is included within the applicable Limit Of Insurance. 6. Broad Form Water Damage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property caused by or resulting from water under the ground surface pressing on, or flowing or seeping through: (1) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings. b. We will not pay for loss or damage in any one “occurrence” until the amount of loss or damage exceeds $1,000. This deductible is to apply separately: (1) To each building, including personal property therein; (2) To personal property in each building if no coverage is provided on the containing building; and (3) To personal property in the open. The aggregate amount of this deductible in any one “occurrence” shall not exceed $5,000. We will then pay the amount of loss or damage in excess of the deductible up to the applicable Limit of Insurance. c. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: (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; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 7 of 33 (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; or (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies if any of the above, in paragraphs (1) through (4): (1) Occurs independently; (2) Is caused by an act of nature; (3) Is caused by an act or omission of humans or animals; or (4) Is attributable to the failure, in whole or in part, of a dam, levee, seawall or other boundary or containment system. But if any of the above, in (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. 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. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the backup of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. 7. Building Damage From Theft Under paragraph A. 1. Covered Property, sub-paragraph b. Business Personal Property, the following is added: Physical damage to a building leased to you from theft or attempted theft, burglary or robbery. Theft means any act of stealing. 8. Building Enhanced Replacement Cost Under paragraph C. Limits Of Insurance, sub-paragraph 4. Building Limit – Automatic Increase is replaced with the following: a. If Covered Property is written on a Replacement Cost basis: (1) The Limit of Insurance for Buildings will automatically be revised by changes that occurred in the cost of construction during the preceding policy year. (2) The amount of increase will be determined by reports of a recognized valuation method. (3) We will inform you of such adjusted values. Upon their acceptance, you agree to pay any additional premium for the adjusted limit. Payment of your renewal premium which includes the revised Limit of Insurance, shall constitute acceptance. (4) We will pay the replacement cost value of the damaged portion of the building at the time of loss, but not more than 150% of the Limit of Insurance for Building if: (a) The amount of any loss covered by this policy exceeds the Limit of Insurance for Building stated in the Declarations for the damaged Building; and (b) The Building Enhanced Replacement Cost does not apply to loss payable under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Construction property, (1) Buildings. (c) The actual repair or replacement is completed within one year of the date of loss. b. The Building Limit – Automatic Increase clause will not apply if: (1) You do not accept the adjusted value; or (2) You do not inform us of changes to covered Building: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 8 of 33 (a) Within sixty (60) days of the date any additions, improvements or enlargements to the building are begun, and (b) When the replacement value of the changes are more than 5% of the Limit of Insurance for the building 9. Loss of Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph f.(1)(b), is replaced with the following: We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within 24 consecutive months beginning immediately after the date of direct physical loss or damage. For purposes of this insurance, all recoverable loss ceases when the “period of restoration” ends. 10. Business Personal Property- Automatic Increase Under paragraph C. Limits of Insurance, the following is added: Your coverage for Business Personal Property will be automatically increased each quarter by 2%. Adjustment in the Limit of Insurance for Business Personal Property will occur at each anniversary subject to a cap of 8% annually. 11. Catastrophe Allowance Under paragraph A.6. Coverage Extensions, the following is added: a. This Coverage Extension applies when the direct physical loss or damage to Building and Business Personal Property is the result of an insured event for which Property Claims Service has publicly designated a catastrophe number to the event. b. You may extend the insurance provided under this Extension if the limits provided under Section C. Limits Of Insurance for Building and Business Personal Property Coverage are insufficient to compensate you for covered loss or damage you incur as a result of the insured Catastrophe event. c. This Extension may not be applied to the deductible amount of this policy or any other policy. It also may not be used to cover any loss or damage that would not be covered under this policy. The most we will pay under this Extension in any one “occurrence” is $10,000. The most we will pay under this Extension during each separate 12 month period of this policy is $10,000. 12. Civil Authority Under paragraph A.5. Additional Coverages, sub-paragraph i. Civil Authority, is replaced with the following: When Loss of Business Income Coverage is provided under this policy: We will pay for the actual loss of Business Income (not including Extended Business Income, you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property within 1 mile of the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin immediately after the time of that action and will apply for a period of up to six consecutive weeks after coverage begins. 13. Commercial Tools and Small Equipment Under paragraph A.5. Additional Coverages, the following is added: This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to commercial tools and small equipment including communication devices and diagnostic equipment usual to your business “operations” which are: (1) your property (2) the property of others in your care, custody or control or (3) the property of your “employees”. Damage to the property of your “employees” is limited to while on the described premises. b. This coverage only applies to any one tool or piece of small equipment with an actual cash value of $2,500 or less, unless listed on a schedule included with the policy. c. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”, or the amount shown in the Additional Property Coverage Schedule, but not more than $1,000 for any one tool and not more than $2,500 for any one tool box, including the tools contained therein, or piece of small equipment. d. This Additional Coverage is not subject to the Limits of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 9 of 33 e. In addition to items listed within Property Not Covered, we will not pay for any loss to the following property: (1) Watercraft or watercraft parts and equipment; (2) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (3) Tires or tire tubes, attached or unattached, for use with Commercial tools and small equipment, unless the loss or damage is caused by “theft”, malicious mischief, or the result one of a ”specified cause of loss”; or (4) Any property while underground, airborne or waterborne. (5) Exclusions B.1.b. and B.1.g. of the Businessowners Coverage Form do not apply to this Additional Coverage. f. We will not pay for any loss caused by or resulting from: (1) Any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion; (2) “Theft” from an unattended vehicle including loss: (a) From inside a vehicle, including trailers; or from a permanently-mounted toolbox; except when i. securely locked, ii. there is visible evidence that entry was forced, and iii. when inside a vehicles or trailer, that its windows were fully closed; or (b) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: i. was secured, ii. was protected by privacy locks; and iii. there is visible evidence that removal was accomplished by force. 14. Covered Property – Amended Building Definition a. Under paragraph A.1. Covered Property, the following are added to paragraph a.: (1) Animal runs, pens, cages and fencing; (2) X-ray equipment. Including only x-ray unit, tube, controls, developing tanks, viewer and lead shields; (3) Surgical lamps attached to the building; (4) Surgical and examination tables; (5) Incinerators; (6) Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (7) Retaining walls that are not part of a building. We will not pay for loss or damage to retaining walls that are used, in whole or in part, to contain water; (8) Signs, whether or not they are attached to buildings or structures; and (9) Interior and exterior building glass. b. Under paragraph A. 2. Property Not Covered, paragraph e. is replaced with the following: Outdoor trees, shrubs or plants, all except as provided in the Outdoor Property Coverage Extension c. Under paragraph C. Limits of Insurance, paragraph 2. is deleted. d. Under paragraph D. Deductibles, paragraph 2.c. is deleted. e. Under paragraph G. Optional Coverages, paragraph 1. is deleted. f. Under paragraph A.6. Coverage Extensions, c. Outdoor Property, is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Windstorm; (7) Ice, snow, sleet and hail. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 10 of 33 The most we will pay for loss or damage under this Extension is $5,000 but not more than $1,000 for any one tree, shrub or plant. 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. 15. Covered Property- Enhanced Replacement Cost Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following: We will determine the value of Covered Property as follows: a. At replacement cost without deduction for depreciation except as provided in b. through p. below. (1) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (2) We will not pay on a replacement cost basis for any loss or damage: (a) Until the loss or damaged property is actually repaired or replaced; (b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage; and (c) Unless the repairs or replacement are completed within: i. 24 months (for personal property), ii. 24 months (for buildings and other real property), after the loss or damage, unless extended in writing by us. However, if the cost to repair or replace the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs a.(1) and a.(2) above whether or not the actual repair or replacement is complete. (3) We will not pay more for loss or damage on a replacement cost basis than the least of: (a) The cost to replace, on the same premises, the lost or damaged property with other property: i. Of comparable material and quality; and ii. Used for the same purpose; or (b) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (4) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. b. If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, Paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. c. The following property at actual cash value: (1) Used or second-hand merchandise held in storage or for sale; (2) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (3) Household contents, except personal property in apartments or rooms furnished by you as landlord; (4) Manuscripts ; (5) Works of art, “antiques” or rare articles, including but not limited to, etchings, pictures, statuary, marbles, bronzes, porcelains, glassware and bric-a-brac; or (6) Commercial Tools and Small Equipment and Contractors Tools and Equipment. This does not apply to your Commercial Tools and Small Equipment permanently installed or exclusively used at the described premises. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenants’ Improvements and Betterments at: (1) Replacement cost if you make repairs promptly. (2) A proportion of your original cost if you, as the tenant, do not make repairs promptly. We will determine the proportionate value as follows: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 11 of 33 (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. (4) Nothing if you have no lease. f. Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement, including the cost of data entry, re-programming, computer consultation services and the media on which the data or programs reside. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. g. “Money” at its face value; and h. “Securities” at their value at the close of business on the day the loss is discovered. i. Applicable only to Accounts Receivable: (1) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (a) We will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (b) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (2) The following will be deducted from the total amount of accounts receivable, however that amount is established: (a) The amount of the accounts for which there is no loss or damage; (b) The amount of the accounts that you are able to re-establish or collect; (c) An amount to allow for probable bad debts that you are normally unable to collect; and (d) All unearned interest and service charges. j. “Stock” you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. k. Finished “stock” you manufactured at selling price less discounts and expenses you otherwise would have had. l. Property in Transit (other than “stock” you have sold) at the amount of invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. m. “Electronic data”, media and computer software programs. For media, at the actual costs of repairi ng or replacing the media with material of like kind and quality. “Electronic data” and computer software programs at the actual cost of reproducing the “electronic data” or computer software program, provided you actually reproduce or replace it. To the extent that “electronic data” is not replaced or restored, the loss will be valued at the cost of repair or replacement of the media on which the “electronic data” was stored, with blank media of substantially identical type. n. Prepackaged software programs and computer equipment that cannot be replaced, at the cost of functionally equivalent software or hardware. o. Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. p. Fine Arts. The value of covered property is not agreed upon, but will be determined at the time of loss or damage. We will not pay more than the least of the following: (1) The actual cash value of the property at the time of loss or damage; or (2) The amount for which you could reasonably expect to pay to have the property repaired to its condition immediately prior to the loss. 16. Deductibles a. Under paragraph D. Deductibles, paragraph 2. is deleted. b. Under paragraph D. Deductibles, paragraph 3. is replaced with the following: No deductible applies to the following coverages: (1) Arson and “Theft” Reward; (2) Business Income; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 12 of 33 (3) Civil Authority; (4) Debris Removal; (5) Deferred Payment; (6) Extra Expense; (7) ERISA Compliance; (8) Fire Department Service Charge; (9) Fire Extinguisher Recharge; (10) Inventory and Appraisal; (11) Leasehold Interest (tenant’s only); (12) Ordinance or Law; (13) Pollutant Clean-Up and Removal; (14) Preservation of Property; and (15) Unauthorized Business Credit Card Use. c. Under paragraph D. Deductibles, the following are added: (1) A $250 deductible applies to the following coverages: (a) Glass- interior and exterior; and (b) Glass Expenses. (2) A $500 deductible applies to all of the Property coverages scheduled in the Declarations unless otherwise indicated in item a., b.(1) or b.(3) of this section. (3) A $1,000 deductible applies to the following coverages: (a) Employee Dishonesty (except ERISA compliance); (b) Salesperson’s Samples; and (c) Installation. (4) Each deductible applies separately, but only to the coverage specified. The total deductible for all losses in one “occurrence” will be the highest deductible amount that applies to the “occurrence”. 17. Deferred Payments Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for your interest in lost or damaged Personal Property sold by you under a conditional sale or trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. b. The most we will pay for loss under this Additional Coverage is $5,000. When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (1) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (2) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. When loss occurs and the buyer continues to pay you, there will be no loss payment. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 18. Employee Dishonesty Including ERISA Compliance The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph a. is replaced with the following: We will pay for direct loss of or damage to Business Personal Property and "money" and "securities", Covered Property of others and animals you do not own but which are in your care, custody or control for treatment, grooming, boarding, training or breeding, resulting from dishonest or criminal acts committed by any of your “employees” acting alone or in collusion with other per sons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any “employee”; or (b) Any other person or organization. b. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph c. is replaced with the following: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 13 of 33 The most we will pay for loss or damage in any one “occurrence” is $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits Of Insurance for Section I – Property. c. For purposes of this Optional Coverage, paragraph a.(4) under paragraph A.4. Limitations is deleted. d. Under paragraph G. Optional Coverages, paragraph 3. Employee Dishonesty, the following is added: Welfare and Pension Plan ERISA Compliance In compliance with certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA): (1) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance for the Employee Dishonesty coverage that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (2) If the Insured first named in the Declarations is an entity other than a Plan, any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and benefit of the Plan(s) sustaining the loss. (3) If two or more Plans are insured under this insurance, any payment we make for loss: (a) Sustained by two or more Plans; or (b) Of commingled funds or other property of two or more Plans that arises out of one “occurrence” because of dishonest acts of “employees” is to be shared by each Plan sustaining loss in the proportion that the amount of insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (4) The Deductible Condition applicable to the “Employee” Dishonesty Optional Coverage does not apply to loss sustained by any Plan subject to ERISA which is insured under this insurance. 19. Extended Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph (2)(a)(ii) is replaced with the following: 365 consecutive days or the number of consecutive dates shown in the Declarations for this Additional Coverage after the date determined in (2)(a)(i) above. 20. Fine Arts Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct loss of or damage to Fine Arts, whether owned by: (1) You; or (2) Others, and in your care, custody or control. b. Fine arts includes, but is not limited to, antiques, paintings, etchings, drawings, tapestries, sculptures and fragile property such as porcelains, china and marble. c. Regardless of the number of insured locations affected, the most we will pay per “occurrence” under this Additional Coverage is $10,000. The amount payable under this Additional Coverage is not subject to the Limits of Insurance for Section I – Property. d. The value of fine arts will be the least of the following amounts: (1) The actual cash value of that property at the time of loss; (2) The cost of reasonably restoring that property to its condition immediately before loss; or (3) The cost of replacing that property with substantially identical property. e. In the event of loss, the value of property will be determined as of the time of loss . f. The following are added to Paragraph E. Property Loss Conditions: (1) In case of loss to any part of a pair or set we will: (a) Repair or replace any part to restore the pair or set to its value before the loss; or (b) Pay the difference between the value of the pair or set before and after the loss. (2) You must arrange for fine arts to be packed and unpacked by competent packers. 21. Forgery And Alteration Under paragraph A.5. Additional Coverages, k. Forgery And Alteration, sub-paragraph (4) is replaced with the following: The most we will pay for any loss, including legal expenses, under this Additional Coverage is $50,000, unless a higher Limit Of Insurance is shown in the Declarations. 22. Garages, Storage Buildings and Other Appurtenant Structures Under paragraph A.6. Coverage Extensions, the following is added: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 14 of 33 You may extend the insurance that applies to Building to apply to garages, storage buildings and other appurtenant structures, including, but not limited to, swimming pools; spas; and the associated equipment within 1000 feet of the described premises. The most we will pay for loss or damage under this Extension is $50,000 at each described premises regardless of the number of buildings or structures affected. 23. Glass Expenses Under paragraph A. Coverage, 5. Additional Coverages, sub-paragraph n. Glass Expenses, the following is added: When caused by or resulting from a Covered Cause of Loss, we will pay for expenses incurred to: Replace lettering, artwork, sensors or other items permanently affixed to, or a part of, the damaged glass. 24. Identity Theft Expense Under paragraph A. Coverage, 5. Additional Coverages, the following is added: a. We will pay for “Expenses” incurred by an “Insured Person” as a direct result of any one “Identity Theft” first discovered or learned of by such “Insured Person” during the policy period. Any act or series of acts committed by one or more persons, or in which such persons are aiding and abetting others against an “Insured Person”, is considered to be one “Identity Theft” even if a series of acts continues into subsequent policy period(s). b. With respect to this Additional Coverage: (1) “Expenses” means: (a) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (b) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (c) Lost income resulting from time taken off work to complete fraud affidavits or to meet or talk to law enforcement agencies, credit agencies or legal counsel; (d) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (e) Reasonable attorney fees to: i. Defend lawsuits brought against an “Insured Person” by merchants, financial institutions or their collection agencies; ii. Remove any criminal or civil judgments wrongly entered against an “Insured Person”; or iii. Challenge the accuracy or completeness of any information in a consumer credit report; (f) Charges for long distance telephone calls due to “Identity theft” to: i. Merchants; ii. Law enforcement agencies; iii. Financial institutions or other similar credit grantors; or iv. Credit agencies; and (g) Reasonable fees for professional financial advice or professional credit advice. The most we will pay for “expenses” under Paragraph b.(1) is $5,000, subject to a maximum of $200 per day. (2) For purposes of this Additional Coverage, “Identity Theft” means: The act of knowingly transferring or using, without lawful authority, a means of identification of an “Insured Person” with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law; and (3) “Insured Person” means: (a) For sole proprietorships: The individual who is the sole proprietor of the Named Insured shown in the Declarations; (b) For partnerships: Any individual that is a partner of the Named Insured shown in the Declarations; (c) For corporations or any other type of organization: The Chief Executive Officer, and any individual who has an ownership interest of at least 20% of the Named Insured, shown in the Declarations. c. The following additional exclusions apply to this Additional Coverage: We will not pay for: (1) Expenses incurred due to any fraudulent, dishonest or criminal acts by: (a) An “Insured Person”; (b) Any person aiding or abetting an “Insured Person”; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 15 of 33 (c) Any authorized representative of an “Insured Person”; whether acting alone or in collusion with others; or (2) Loss other than “Expenses”. Account balances which arise out of fraudulent or unauthorized charges would be one example of loss other than “Expenses”. d. Regardless of the amount of the deductible for Covered Property shown in the Declarations, the most we will deduct from any claim for “Expenses” under this Additional Coverage for any one “Identity Theft” is $250. e. The most we will pay under this Additional Coverage for all “Expenses” arising out of all “Identity Theft” against an “Insured Person” incurred in any one policy year, regardless of the number of “Identity Thefts” involved, is $25,000 unless a higher Limit Of Insurance is shown in the Declarations. f. In order for coverage to be provided under this Additional coverage, you must send to us, within 60 days after our request, receipts, bills or other records that support your claim for “Expenses” under “Identity Theft” coverage. 25. Installation Under paragraph A.5. Additional Coverages, the following is added: a. This coverage applies to an installation performed by you for others away from the described premises. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to materials, supplies, machinery, fixtures and equipment that will become a permanent part of your installation, while located at a site of installation, in transit by you to or from your premises and the job site, or while in temporary storage awaiting installation. This includes your property and similar property of others that is in your care, custody and control. b. This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. c. The most we will pay for any loss under this Additional Coverage is $5,000. d. We will not pay for loss or damage to property that has already been installed, whether or not your work has been accepted. e. Exclusions B.1.b. and B.1.g. do not apply to the Additional Coverage. This Additional Coverage does not increase the Limits of Insurance of Section I – Property. 26. Leasehold Interest (Tenant’s Only) Under paragraph A.5. Additional Coverages, the following is added: a. If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. b. The most we will pay for loss because of the cancellation of any lease or leases on account of the same covered cause of loss is: (1) If your lease is cancelled and either: (a) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (b) You relocate to other permanent premises and enter into a new lease. (2) For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (a) $10,000; (b) Nothing if there is no written or legally binding lease, whichever is less. c. The following provisions apply to b.(1) above: (1) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (2) If the lease has no end date (open-ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the premises. d. The following provision applies to b.(1) and b.(2)(a) above: (1) $10,000 will be the maximum amount payable regardless of the number of leases affected by the same covered cause of loss. (2) Existence of a renewal option will not increase, or have any other effect on this limit. e. We will not pay for any loss or damage: (1) If there is no written or legally binding lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 16 of 33 (2) If the unit or suite rented or leased to you where direct damage occurs has been vacant more than 60 consecutive days before the loss or damage occurs, and you have not entered into an agreement to sublease the unit or suite. (3) Caused by your cancelling the lease; or (4) Caused by the suspension, lapse or cancellation of any license. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 27. Marring And Scratching Under paragraph A. 5. Additional Coverages, the following is added: We will pay for loss or damage to Covered Property at the described premises due to sudden and accidental marring and scratching of: a. Your “stock”; b. Your printing plates; and c. Property of others that is in your care, custody or control. This Cause of Loss does not apply to: a. Property at other than the described premises; and b. Property in transit. Payment under this Extension is included within your Business Personal Property Limit Of Insurance. 28. Money And Securities The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, sub-paragraph 2. Money and Securities, the following is added to sub-paragraph a.: We will also pay any bank stop payment charges you are required to pay because of a loss that is covered under this Additional Coverage. b. Under paragraph G. Optional Coverages, sub-paragraph 2. Money And Securities, sub-paragraphs c.(1) and c.(2) are replaced with the following: (1) $50,000 or the amount shown in the Declarations for Inside the Premises for “money” and “securities” while: (a) In or on the described premises; or (b) Within a bank or savings institution in the coverage territory; and (2) $50,000 or the amount shown in the Declarations for Outside the Premises for “money” and “securities” while at any other location or in transit between locations listed in (1) above and while in the coverage territory. c. For purposes of this Optional Coverage only, the limit under paragraphs (1) and (2) above includes reimbursement of bank stop payment charges that insured is obligated to pay as a result of a covered loss under this Additional Coverage. 29. Money Orders And Counterfeit Paper Currency Under paragraph A.5. Additional Coverages, Paragraph j. Money Orders And Counterfeit Paper Currency, is replaced with the following: 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" paper currency that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $25,000. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 30. Newly Acquired Or Constructed Property Under paragraph A.6. Coverage Extensions, a. Newly Acquired Or Constructed Property, sub- paragraph (3)(b) is replaced with the following: 180 days after you acquire the property or begin construction of that part of the building that would qualify as covered property; or 31. Newly Acquired or Constructed Property – Business Income And Extra Expense Under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Constructed Property, the following is added: You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 17 of 33 32. Ordinance Or Law Under paragraph A.5. Additional Coverages, paragraph l. Increased Cost of Construction is replaced with the following: a. This Additional Coverage applies only: (1) When a Limit of Insurance for the affected building (or buildings) is shown on the Declarations, and then only (2) To buildings insured on a replacement cost basis. b. Application of Coverages: The coverages provided under this Additional Coverage apply only if (1) and (2) below are satisfied and are then subject to the qualifications found in (3) below. (1) The Ordinance or law: (a) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at the described premise; (b) Is in force at the time of loss; and (c) Was not in force at the time the involved construction was completed. But coverage under this Additional Coverage 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 Additional Coverage. (2) The building sustains direct physical damage: (a) That is covered under this Additional Coverage and as a result of such damage, you are required with the ordinance or law; or (b) 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 damage 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. (3) In the situation described in (2)(b) above, we will not pay the full amount of loss otherwise payable under the terms of coverages for Coverage for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. Instead, we will pay a proportion that covered direct physical damage bears to the total direct physical damage. However, if the covered direct physical damage alone would have resulted in enforcement of the ordinance or law, then we will pay the full amount of the loss otherwise payable under the terms of Coverages for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. c. 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”. d. Coverage (1) 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 for the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. Coverage for Loss to the Undamaged Portion of the Building is included within the Limit of Insurance shown in the Declarations as applicable to the covered building. Coverage for Loss to the Undamaged Portion of the Building does not increase the Limit of Insurance. (2) 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 the undamaged parts of the same building, as a consequence of enforcement of an ordinance or law that requires demolition of such undamaged property. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to Demolition Cost Coverage. (3) Increased Cost of Construction With respect to the building that has sustained covered direct physical damage, we will pay the increased cost to: (a) Repair or reconstruct damaged portions of that building; and/or (b) Reconstruct or remodel undamaged portions of that building, whether or not demolition is required; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 18 of 33 When the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or law. However, 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. We will not pay for the increased cost of construction if the building is not repaired, reconstructed or remodeled. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to the Increased Cost of Construction Coverage. (4) Increased Period Of Restoration If a Covered Cause of Loss occurs to property at the premises described in the Declarations, coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: i. 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 ii. 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. The most we will pay for loss under Ordinance or Law – Increased Period of Restoration is $10,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay for Ordinance or Law – Increased Period of Restoration for each described building is $10,000. The Ordinance or Law – Increased Period of Restoration coverage is not subject to the Limits of Insurance of Section I – Property. (5) Tenant’s Improvements and Betterments This Additional Coverage applies only when a Limit Of Insurance for Business Personal Property for the affected building, or buildings, is shown on the Declarations; and then only when Business Personal Property is insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant’s improvements and betterments whether collectible or not. This Additional Coverage also applies to improvements and betterments you have made to a building you do not own or occupy as a tenant and a Limit Of Insurance is shown for Business Personal Property at the described premises. Improvements and betterments covered under this Additional Coverage are described under Section I – Property A.1. Covered Property, paragraph b.(3). (6) Loss Payment (a) The following loss payment provisions, 6.(b) and (c), are subject to the apportionment procedure set forth in paragraph b.(3) of this coverage. (b) When there is a loss in value of an undamaged portion of the building to which Coverage for Loss to the Undamaged Portion of the building applies, the loss payment for that building, including damaged and undamaged portions, will be determined as follows: i. If the property is repaired or replaced on the same or another premises, we will not pay more than the lesser of: (i) The amount you 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 (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 19 of 33 ii. If the property is not repaired or replaced. We will not pay more than the lesser of: (i) The actual cash value of the building at the time of loss; or (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. (c) The most we will pay, for the total of all covered losses for Demolition Cost and Increased Cost of Construction is the Limit of Insurance shown below. Subject to this combined Limit of Insurance, the following loss payment provisions apply: i. For Demolition Cost, we will not pay for more than the amount you actually spend to demolish and clear the site of the described premises. ii. With respect to the Increased Cost of Construction: (i) 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 repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. iii. 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. iv. 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. v. The most we will pay for loss under Demolition Cost is the Limit Of Insurance shown in the Declarations for Building plus $50,000 or the amount shown in the Additional Property Coverage Schedule for Demolition Cost. The most we will pay for loss under Increased Cost of Construction is the Limit Of Insurance shown in the Declarations for Building plus $50,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule for Increased Cost Of Construction. If a damaged building(s) is covered under a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for Demolition Cost is the replacement cost for the damaged building plus $50,000 and the most we will pay for loss under the Increased Cost of Construction is the replacement cost for the damaged building plus $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. (7) Under this coverage, 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 building was undamaged; and (b) You failed to comply with. 33. Personal Effects Under paragraph A. 6. Coverage Extensions, sub-paragraph d. Personal Effects, the last paragraph is replaced with the following: The most we will pay for loss or damage under this Extension is $10,000 at each described premises. 34. Personal Property In Transit Under paragraph A. 6. Coverage Extensions, the following is added: a. You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, to apply to your personal property or property of others in your care, custody or control while it is in the course of transit. This Extension applies to property while it is in transit more than 1,000 feet from the described premises and while between points in the coverage territory while: (1) In a vehicle owned, leased or operated by you; or (2) In the custody of a common carrier, contract carrier or registered mail carrier. b. We do not pay for any loss or damage caused by or resulting from “theft” from an unattended vehicle, including loss: (1) From inside a vehicle, including trailers; or from an exterior storage container or box, except when: (a) securely locked, (b) there is visible evidence that entry into the vehicle was forced, and (c) inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 20 of 33 (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. c. This Extension does not apply to the following property: (1) Shipments that belong to others that you are transporting for a fee; (2) Property while waterborne; or (3) Salespersons samples d. Exclusions B.1.b., and B.1.g. of the Businessowners Coverage Form do not apply to this Coverage Extension. e. The most we will pay for loss or damage under this Extension is $50,000 per “occurrence”. 35. Preservation Of Property – Expense Under paragraph A.5. Additional Coverages, the following is added: a. 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 your expenses to move or store the Covered Property. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will pay under this Additional Coverage is $25,000 per “occurrence”. This Additional Coverage is not subject to Section I – Limits of Insurance. 36. Salesperson’s Samples Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to samples of your “stock” in trade (including containers) while: (1) In the custody of your sales representative, agent or any "employee" who travels with sales samples; (2) In your custody while you are acting as a sales representative; or (3) In transit between premises that you own, lease or operate and your sales representative. b. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. c. We will not pay for any loss to the following property: (1) Property which has been sold; (2) Jewelry, precious or semi-precious stones, gold, silver, platinum, or other precious metals or alloys; (a) Furs, fur garments or garments trimmed with fur; or (b) Any property while waterborne d. Exclusions B.2.g., B.2.l.(4), and B.2.l.(7) of the Businessowners Coverage Form do not apply to this Additional Coverage. e. We will not pay for any loss or damage caused by “theft” from an unattended vehicle including: (1) Loss from inside a vehicle, including trailers, or from a permanently-mounted exterior toolbox except when: (a) securely locked, (b) there is visible evidence that entry was forced, and (c) when inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 37. Soft Costs Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the actual “soft costs” that you incur due to direct physical loss or damage to Covered Property by a Covered Cause of Loss. We will only pay those “soft costs”: (1) That are over and above your normal expenditures; and (2) That are incurred during the period of time: (a) That begins on the date the direct physical loss occurs; and (b) Ends one year after the date on which the construction, repairs, or replacement would be scheduled for completion. b. We will only pay “soft costs” if: (1) The valuation for Building and Business Personal Property is based on Replacement Cost; and (2) You repair or replace the damaged Covered Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 21 of 33 c. Normal Expenditures are expenses that would have been incurred by your operation had no loss or damage occurred. d. The most we will pay under this Additional Coverage for “soft costs” arising for a Covered Cause of Loss in any one “occurrence” is $10,000. e. For purposes of this Additional Coverage, “soft costs” means: (1) Realty taxes and other assessments attributed to the increased property values that result directly from construction or repair costs associated with the loss or damage by a Covered Cause of Loss. (a) Increased interest charges and fees necessitated by the operation of a mortgage acceleration clause; and (b) Advertising and promotional expenses. This Additional Coverage is not subject to the Limits of Insurance under Section I – Property. 38. Spoilage - Animal Semen Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay: (1) For physical damage to animal semen due to change in temperature or humidity resulting from mechanical breakdown or mechanical failure of a cryogenic storage device; (2) For physical damage to animal semen due to contamination from the release of refrigerant, including but not limited to ammonia; and (3) Any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. b. Animal semen means extracted animal semen owned by you or by others that is in your care, custody or control and which is contained in a cryogenic storage device. Coverage applies while: (1) Animal semen is contained in a cryogenic storage device and is in transit from point of extraction to insured’s premises or other premises; and (2) During the transfer from the cryogenic storage device to a refrigeration system. Coverage ends when animal semen is placed in a refrigeration system. c. Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following for purposes of this Additional Coverage: We will determine the value of animal semen as follows: (1) For animal semen you have sold but not delivered, at the selling price less discounts and expenses you otherwise would have had; (2) For other animal semen, at actual cash value. d. The most we will pay for all covered losses to animal semen under this Additional Coverage, regardless of the number of occurrences of loss or damage, is $10,000. 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 loss occurred. e. This Additional Coverage is subject to the Deductible Amount shown in the Policy Declarations. 39. Temporary Relocation Of Property Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss of or damage to Covered Property from a Covered Cause of Loss while it is away from the described premises, if it is being stored temporarily at a location you do not own, lease or operate while the described premises is being renovated or remodeled. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. c. The most we will pay under this Additional Coverage is $50,000. This Additional Coverage is not subject to Section I – Property. 40. Tenant Signs (Tenants only) Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to all tenant signs at the described premises: (1) Owned by you; or (2) Owned by others but in your care, custody or control. (a) The most we will pay for loss or damage in any one “occurrence” is $5,000 regardless of the number of locations or buildings involved. (b) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 22 of 33 (c) This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 41. Unauthorized Business Credit Card Use Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss resulting from the “theft” or unauthorized use of Bus iness Credit Cards issued to you or registered in your name. b. We do not cover use of a Business Credit Card: (1) By a person who has been entrusted with the card; or (2) Any of your “employees”. c. All loss: (1) Caused by any one or more persons; or (2) Involving a single act or series of related acts; is considered one “occurrence” regardless of the number of individual unauthorized transactions. d. If a suit is brought against you for liability under this Additional Coverage, we will pay for reasonable legal expenses incurred in that defense. e. The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. 42. Vacancy Loss Condition Under paragraph E. Property Loss Conditions, sub-paragraph 8. Vacancy is deleted. 43. Valuation – Medical Equipment If medical equipment used in your “operations” is covered under this policy on a replacement cost basis, the following is added to paragraph C. Limits Of Insurance: We will pay the replacement cost value of your medical equipment at the time of loss, but no more than 115% of the Limit Of Insurance if: a. You replace medical equipment on the same premises with other medical equipment: (1) Of greater capacity or capability; and (2) Used for the same purpose; and b. The actual repair or replacement is completed within one year from the date of loss. 44. Virus and Hacking Coverage Under paragraph A.5. Additional Coverages, p. Electronic Data, sub-paragraph (2), is replaced with the following: The Covered Causes of Loss applicable to Business Personal Property include “computer hacking” or a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 23 of 33 a. “Computer hacking” means an unauthorized intrusion: (1) by an individual or group of individuals, whether employed by you or not, into a computer system or a network to which it is connected; and (2) that results in but is not limited to: (a) deletion, destruction, generation or modification of “electronic data”; (b) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of “electronic data”; (c) observation, scanning or copying of “electronic data”; (d) damage, destruction, inadequacy, malfunction, degradation or corruption of any “electronic data”; or (e) denial of access to or denial of services from your computer system or a network to which it is connected. b. We will not pay for: (1) Loss of access, loss of use or loss of functionality; or (2) Consequential loss caused by a computer virus or by “computer hacking”. B. BLANKET COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the Businessowners Coverage Form. Blanket Coverage Limit Of Insurance The following additional coverage is added: We will pay up to $1,000,000 as a Blanket Coverage Limit Of Insurance to apply at each scheduled premises and to apply to the sum of all covered losses under the coverages described in paragraphs 1. to 16. arising out of a single “occurrence” due to a Covered Cause of Loss. You may distribute this Coverage Limit among these coverages as you deem necessary. However, after a loss, we will not pay more than $1,000,000 at any one insured location per “occurrence”. 1. Accounts Receivables Under paragraph A. 6. Coverage Extensions, f. Accounts Receivables, sub-paragraph (2) is replaced with the following: The most we will pay under this Coverage Extension for loss or damage in any one “occurrence” at or away from the insured premises is subject to the Blanket Coverage Limit Of Insurance. 2. Business Income From Dependent Properties Under paragraph A. 5. Additional Coverages, m. Business Income From Dependent Properties, sub- paragraph (1) is replaced with the following: We will pay for the actual loss of Business Income (not including Extended Business Income), you sustain due to direct physical loss or damage at the premises of a dependent property caused by or resulting from a Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a dependent property or secondary dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the dependent property or secondary dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The Deductible does not apply to this Additional Coverage. The dependent property must be located in the coverage territory. 3. Extra Expense From Dependent Properties Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the necessary Extra Expense you incur, that you would not have incurred had there been no direct physical loss of or damage at the premises of a dependent property caused by or resulting from any Covered Cause of Loss. The incurred expense must be related to your business activities as provided in Paragraph b. below and deal with your actions to assist your own business activities. We will not pay for any expenses INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 24 of 33 incurred that directly or indirectly serve to speed, or otherwise assist, recovery of an affected dependent property. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The dependent property must be located in the coverage territory. b. Extra Expense means expense incurred by you to: (1) Avoid or minimize the “suspension” of business and to continue operations; or (2) Minimize the “suspension” of business if you cannot continue operations, due to covered loss of or damage to a dependent property or properties. c. For purposes of this Additional Coverage, “suspension” means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un- tenantable, if coverage for Business Income applies. d. We will only pay for Extra Expense that occurs within 12 consecutive months immediately following the date of direct physical loss or damage to the dependent property. e. The Extra Expense coverage period, as stated in paragraph d., does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of “pollutants”. f. The following also apply to this Additional Coverage: (1) Paragraph B. Exclusions, 5. Business Income and Extra Expense Exclusions; and (2) Paragraph E. Property Loss Conditions 7. Resumption of Operations, sub-paragraph b. The expiration date of this policy will not reduce the Extra Expense coverage period. 4. Business Income And Extra Expense – Mobile Veterinary Clinic Under paragraph A.5 Additional Coverages, the following is added: a. We will pay for the actual loss of Business Income and Extra Expense you sustain due to the necessary “suspension” of your operations during the “period of restoration”. The “suspension” must be caused by a covered direct physical loss of or damage to “mobile veterinary clinic” caused by or resulting from a Covered Cause of Loss including collision. The “mobile veterinary clinic” must be owned, leased or operated by you. b. For purposes of this Additional Coverage, the following definitions are added: (1) “Mobile veterinary clinic” means a motor vehicle which is specially designed as a transportable veterinary office and from which you conduct your usual veterinary operations. (2) “Suspension means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un-tenantable, if coverage for Business Income applies. c. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 5. Computer Equipment Under paragraph A. 5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to the following Covered Property which is your property or the property of others in your care, custody or control: (1) "Computer equipment" or “computer(s)”; (2) Climate control equipment and fire protective equipment used exclusively with your "computer equipment"; (3) Programming documentation and instruction manuals; and (4) The necessary loss of Business Income and Extra Expense as provided in the Additional Coverages for Business Income and Extra Expense you incur to avoid or minimize the suspension of business and to continue “operations” because of direct physical loss or damage to covered property. b. We will not pay for any loss or damage to the following property: (1) Property you rent, loan or lease to others while it is away from the described premises ; (2) Property you hold for sale, distribute or manufacture except as provided under paragraph A. 1. Covered Property, sub-paragraph b.; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 25 of 33 (3) “Software” that cannot be duplicated or replaced with similar property of equal quality and/or substantially similar functionality. c. If we provide Building coverage only, we will only pay for loss to computers that service building operations at the insured’s described premises and are located at the insured’s described premises. d. Regardless of the number of insured locations involved, the most we will pay for loss or damage under this Additional Coverage to property listed in a.(1) to a.(4) in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance under Paragraph B. Blanket Coverage. Regardless of the Blanket Limit Of Insurance, the most we will pay for Extra Expense is $5,000. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. e. This insurance is excess to any other insurance also covering “computer equipment” or “computer(s)”. f. Exclusions B. 1. b. and B. 1. g. do not apply to this Additional Coverage. g. We will not pay for loss or damage: (1) To any property not sustaining direct physical loss or damage even if covered loss or damage to other covered property renders such associated or related items unusable or otherwise unfit. (2) This exclusion applies to “software” or “hardware”. (3) Such loss to associated or related items is not considered to have suffered direct physical loss or damage for purposes of this insurance. h. For purposes of this Additional Coverage, the following definitions are added: (1) “Computer” means: (a) Programmable electronic equipment that is used to store, retrieve and process data; and (b) Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. (2) “Computer equipment “ means: (a) computer “hardware” and related component parts. Component parts include but are not limited to modems, printers, keyboards and scanners; (b) computer control systems including uninterruptable power supply systems, line conditioner and voltage regulator; and (c) “software”; and (d) “electronic data”. (3) “Hardware” means an assemblage of electronic machine components capable of accepting instructions and information according to the instructions, and producing desired results. (4) “Software” means processing, recording, or storage media used for computer processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells. 6. Expediting Expense Under paragraph A.5. Additional Coverages, the following is added: a. When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (1) Make temporary repairs; (2) Expedite permanent repair or replacement of damaged property; or (3) Provide training on replacement machines or equipment. b. The most we will pay for loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. 7. Fire Department Service Charge Under paragraph A.5. Additional Coverages, paragraph c. Fire Department Service Charge is replaced with the following: When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay for your liability for fire department service charges unless a higher Limit Of Insurance is shown in the Declarations if: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. The most we will pay for loss under this Additional Coverage in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance. 8. Inventory And Loss Appraisal INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 26 of 33 Under paragraph A. 6. Coverage Extensions, the following is added: a. We will pay for all reasonable expenses you incur at our request to assist us in: (1) The investigation of a claim; (2) The determination of the amount of loss, such as taking inventory; or (3) The cost of preparing specific loss documents and other supporting exhibits. b. The most we will pay under this Coverage Extension per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to these expenses. c. We will not pay for: (1) Expenses incurred to perform your duties in the event of a loss under Section I – E. Property Loss Conditions; (2) Expenses to prove that loss or damage is covered; (3) Expenses billed by and payable to independent or public adjusters; attorneys; or any of their affiliated or associated entities; (4) Expenses to prepare claims not covered by this Coverage Form; or (5) Expenses incurred under any appraisal provisions within the policy. 9. Key Replacement And Lock Repair Under paragraph A.6. Coverage Extensions, the following is added: You may extend the insurance provided under this Coverage Form to apply to consequential loss or damage, caused by or resulting from a covered Cause of Loss, for the cost incurred for: a. The actual cost to replace keys; b. Consequential loss to keys and locks if a master key is lost or damaged resulting from a Covered Cause of Loss; or c. Rekeying or replacing lock sets, including new locks and installation costs. The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 10. Lessor’s Lease Cancellation Under paragraph A.5. Additional Coverages, the following is added: a. We will pay the actual loss of business income you sustain due to the cancellation of a lease by your tenants in a Covered Building due to untenantability that is caused by direct physical loss or damage to that building from a Covered Cause of Loss. This Additional Coverage only applies if at the time of loss the building was occupied and business was being conducted by the tenant cancelling the lease or their sublessee. b. We will pay for loss of business income that you sustain after tenantability is restored and until the earlier of: (1) The date you lease the premises to another tenant; or (2) 12 months immediately following the “period of restoration”. c. Regardless of the number of tenants cancelling a lease at the described premises, the most we will pay under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. d. We will not pay for: (1) Lease cancelled after the “period of restoration”; (2) Lease cancelled, suspended or allowed to lapse by you; (3) Return of prepaid rent or security and other deposits made by tenants; or (4) Lease cancelled at the normal expiration date. 11. Outdoor Property a. Under paragraph A.6. Coverage Extensions, sub-paragraph c. Outdoor Property is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Vehicles that you do not own, operate or lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 27 of 33 The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance, but not more than $5,000 for any one, tree, shrub or plant. 12. Personal Property Off-Premises Under paragraph A.6. Coverage Extensions, sub-paragraph b. Personal Property Off-Premises, is replaced with the following: (1) You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, but other than “money” and “securities, “valuable papers and records” or accounts receivable, while: (a) Temporarily at a location you do not own, lease or operate; or (b) At any fair, trade show or exhibition. (2) The most we will pay for loss or damage under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 13. Special Event Cancellation – Rental Expenses Under paragraph A.5. Additional Coverages, the following is added: If you have scheduled a special event directly related to your business as a Veterinarian and that event is cancelled due to loss or damage to Covered Property from a Covered Cause of Loss, we will reimburse you for expenses you paid to rent equipment for that event including rental of tent, or other such enclosures, tables, chairs and sound systems. The most we will pay for loss under this Additional Coverage in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 14. Tenant Relocation Expense Under paragraph A.5. Additional Coverages, the following is added: a. In the event that your tenants must temporarily vacate the covered Building at the described premises due to untenantability caused by direct physical loss or damage by a Covered Cause of Loss, we will pay the following expenses you actually incur to move those tenants out of and back into your covered Building. b. We will only pay for the following expenses: (1) Packing, and transporting tenant’s Business Personal Property including the cost of insuring the move out and back and any necessary disassembly and reassembly or setup of fixtures and equipment; and (2) The net cost to discontinue and re-establish the tenants’ utility and telephone services, after any refunds due the tenants. (3) Costs to unpack and reshelf stock and supplies. Covered Relocation Costs do not include: (a) Loss caused by the termination of a lease or other agreement; or (b) Security deposits or other payments, forfeiture or penalties to the landlord or lessor of other premises. c. We will only pay for these expenses that you actually incur within 30 days of the date that the damaged buildings has been repaired or rebuilt. Regardless of the number of tenants’ involved, the most we will pay in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 15. Utility Services a. Under paragraph A.5. Additional Coverages, the following is added: (1) We will pay for loss of or damage to Covered Property caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown below in paragraph (3) below. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. (2) We will pay for loss of Business Income (not including Extended Business Income) or Extra Expense caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 28 of 33 (3) Services: (a) Water Supply Services, meaning the following types of property supplying water to the described premises: i. Pumping stations; and ii. Water mains. (b) Communication Supply Services, meaning property supplying communication services, including telephone, radio, microwave or television services to the described premises, such as: i. Communication transmission lines, including optic fiber transmission lines; ii. Coaxial cables; and iii. Microwave radio relays except satellites. It does not include overhead transmission lines or overhead distribution lines. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: i. Utility generating plants; ii. Switching stations; iii. Substations; iv. Transformers; and v. Transmission lines, But does not include overhead transmission lines, overhead distribution lines, overhead transformers or any other overhead service equipment or similar (however mounted and whatever mounted upon) equipment. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. b. Under paragraph B. Exclusions, e. Utility Services, the last paragraph is replaced with the following: This exclusion does not apply to loss or damage to “computer(s)” and “electronic data” or to the Utility Services Additional Coverage. 16. Valuable Papers And Records Under paragraph A. 6. Coverage Extensions, e. Valuable Papers And Records, paragraph (3) is replaced with the following: Regardless of the number of locations involved, the most we will pay under this Coverage Extension for loss or damage in any one “occurrence” for “valuable papers” at the described premises or “valuable papers” not at the described premises, is subject to the Blanket Coverage Limit Of Insurance. C. SECTION II- LIABILITY The following paragraphs amend coverage provided under SECTION II – LIABILITY of the Businessowners Coverage Form. 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Paragraph C. Who Is An Insured is amended to include as an insured any person or organization for whom you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy. The insurance provided to the additional insured is limited as follows: a. That person or organization is only an additional insured with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused in whole or in part by: (1) Premises you own, rent, lease, or occupy; or (2) Your ongoing operations performed for that insured. (3) In connection with “your work” and included within the “products-completed operations hazard”, but only if: (a) The written contract or written agreement requires you to provide such coverage to the additional insured; and (b) This policy provides coverage for “bodily injury” or “property damage” included within the “products-completed operations hazard”. b. With respect to the insurance afforded to these additional insureds, the following is added to paragraph D. Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: (1) Required by the contract or agreement; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 29 of 33 (2) Available under the applicable Limits Of Insurance shown in the Declarations; whichever is less. c. If specifically required by a contract, agreement or permit, coverage provided by this insurance shall be primary and any other insurance available to the additional insured shall be excess and non- contributing. 2. Alienated Premises Paragraph B.1. Exclusions, sub-paragraph k.(2) is replaced with the following: Premises you sell, give away or abandon, if the “property damage” arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 3. Bodily Injury Redefined Paragraph F. Liability and Medical Expenses Definitions, sub-paragraph 3. “Bodily Injury” is replaced with the following: “Bodily injury” means bodily injury, disability, sickness or disease sustained by a person, including death resulting from any of these at any time. “Bodily Injury” includes mental anguish, mental injury, shock, fright or death resulting from “bodily injury”, sickness or disease. 4. Broad Form Property Damage – Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to paragraph B. 1. Exclusions, sub-paragraph k.: Sub-paragraph (4) does not apply to “property damage” to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to “property damage” to “customers goods” while on your premises nor to the use of elevators. b. The following definition is added to paragraph F. Liability and Medical Expenses Definitions: “Customers goods” means property of your customer on your premises for the purpose of being: (1) Worked on; or (2) Used in your manufacturing process. (3) The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Broadened Named Insured For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 3. is added as follows: All of your subsidiaries, companies, corporations, firms, or organizations, as now or hereafter constituted, qualify as insureds under this policy if: a. You have the responsibility of placing insurance for each such entity; and b. Coverage for the entity is not otherwise more specifically provided; and c. The entity is incorporated or organized under the laws of the United States of America. But each entity is insured only while you own, during the policy period, a controlling interest in such entity of greater than 50% of the stock or assets. However coverage: (1) Under this provision is afforded only until the end of the policy period, or the 12 month anniversary of the policy inception date, whichever is earlier; (2) Does not apply to “bodily injury” or “property damage” that occurred before you acquired or formed the organization; and (3) Does not apply to “personal and advertising injury” arising out of an of fense committed before you acquired or formed the organization. 6. Broadened “Personal And Advertising Injury” a. For purposes of the coverage provided by this endorsement, definition, F. Liability And Medical Expenses Definitions, paragraph 14. “Personal And Advertising Injury” is replaced with the following: “Personal and advertising injury” means injury, including consequential “bodily injury”, arising out of one or more of the following offenses: (1) False arrest, detention or imprisonment; (2) Malicious prosecution; (3) The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 30 of 33 (4) Oral or written, televised or videotaped publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; (5) Oral or written, televised or videotaped publication, in any manner, of material that violates a person's right of privacy; (6) The use of another's advertising idea in your "advertisement"; (7) Infringing upon another's copyright, trade dress or slogan in your "advertisement"; (8) Infringement of trademark, copyright, title, trade secret or slogan; (9) Misappropriation of advertising ideas or style of doing business. b. For purposes of the coverage provided by this endorsement, definition, B.1. Exclusions Applicable to Business Liability Coverage, paragraph p. Personal and Advertising Injury, sub-paragraph (12) is replaced with the following: Arising out of the infringement of patent. 7. Damage to Premises Rented To You – Revised Limit For purposes of the coverage provided by this endorsement, D. Liability And Medical Expenses Limits Of Insurance, paragraph 3. is replaced with the following: The most we will pay under Business Liability Coverage for damages because of “property damage” to any one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit Of Insurance for Damage to Premises Rented To You shown in the Declarations. 8. Fellow Employee Coverage For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 2.a. is replaced with the following: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 9. Newly Acquired Organizations For purposes of the coverage provided by this endorsement, C. Who Is An Insured, the following is added: Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Business Liability Coverage does not apply to: (1) “Bodily injury” or “property damage that occurred before you acquired or formed the organization; and INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 31 of 33 (2) “Personal and advertising injury” arising out of an offense committed before you acquired or formed the organization. (3) “Bodily injury” or “property damage” do not apply to “product recall expense” arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 10. Product Recall Expense a. The following is added to paragraph B. 1. Exclusions, sub-paragraph o. Recall of Products, Work or Impaired Property This exclusion does not apply to “product recall expenses” that you incur for the “covered recall” of “your product”. However, this exception does not apply to “product recall expenses” resulting from: (1) Failure of any products to accomplish their intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of “your product” which has been recalled by like products or substitutes; (5) Caprice or whim of the insured; (6) A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (7) Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (8) Recall of “your products” that have no known or suspected defect solely because a known or suspected defect in another of “your products” has been found. b. The following is added to paragraph E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated “covered recall” that may result in “product recall expense”: (1) Give us prompt notice of any discovery or notification that “your product” must be withdrawn or recalled. Include a description of “your product” and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. c. The following definitions are added to paragraph F. Liability and Medical Expenses Definitions: (1) “Covered recall” means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in “your product” has resulted or will result in “bodily injury” or “property damage”. (2) “Product recall expense(s)” means: (a) Necessary and reasonable expenses for: i. Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; ii. Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; iii. Remuneration paid to your regular “employees” for necessary overtime; iv. Hiring additional persons, other than your regular “employees”; v. Expenses incurred by “employees” including transportation and accommodations; vi. Expenses to rent additional warehouse or storage space; vii. Disposal of “your product”, but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid “bodily injury” or “property damage” as a result of such disposal, you incur exclusively for the purpose of recalling “your product”; and (b) Your lost profit resulting from such “covered recall”. d. The following are added to paragraph D. Liability and Medical Expenses Limits of Insurance: The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) An Aggregate Limit of $50,000 is the most that we will reimburse you for the sum of all “product recall expenses” incurred for all “product recall expenses” initiated during the policy period. (2) An Occurrence Limit of $25,000 is the most we will pay in connection with any one defect or deficiency. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 32 of 33 (a) All “product recall expenses” in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one “occurrence”. (b) Any amount reimbursed for “product recall expenses” in connection with any one “occurrence” will reduce the amount of the Aggregate Limit available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (c) If the Aggregate Limit has been reduced by reimbursement of “product recall expenses” to an amount that is less than the Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (3) This coverage is not subject to the Limits of Insurance of SECTION II – LIABILITY. (4) A deductible of $500 applies per each “occurrence”. 11. Supplementary Payments – Cost of Bail Bonds Broadened For purposes of the coverage provided by this endorsement, A.1. Business Liability, paragraph f. Coverage Extension – Supplementary Payments, sub-paragraph (1)(b) is replaced with the following: The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability for “bodily injury” applies. We do not have to furnish these bonds. 12. Unintentional Failure to Disclose Hazards The following is added to paragraph E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional and you provide immediate notification of the failure or omission to the company. 13. Unintentional Failure to Notify The following is added to paragraph E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: Your rights afforded under this Coverage Form shall not be prejudiced if you fail to give us notice of an “occurrence”, offense, claim or “suit”, solely due to your reasonable and documented belief that the “bodily injury” or “property damage” is not covered under this Policy. The following paragraphs amend coverage provided under the Veterinarians Professional Liability form and apply only if Veterinarians Professional Liability coverage is provided under this policy. 14. Veterinarians Professional Liability - Broadened Definition Of “Employee” The definition of “employee” in Paragraph F. Liability and Medical Expenses Definitions is replaced with the following: “Employee” includes a “leased worker”, a “volunteer worker”, an intern and an extern, unlicensed “employee” while acting at the direction of a licensed professional or “temporary worker”. “Employee” also includes a pet groomer, a pet trainer or an animal behaviorist who is employed by you or performing services on your behalf. However, “employee” does not include a pet trainer or animal behaviorist while training any animal for attack or guard purposes. 15. Veterinarians Professional Liability - Consent To Settle The following is added: We will not settle any claim or “suit” without the insured’s consent. 16. Veterinarians Professional Liability - Legal Defense Expense – Veterinary Medical Board Extension Coverage The following is added: Coverage Extension – Supplementary Payments: a. We will pay the costs to defend legal actions resulting from inquiries, lawsuits, and challenges from the state licensing Veterinary Medical Board or their representative. We will provide payment for consultations and expert witnesses hired to aid in the defense of allegations, whether groundless or not. b. Coverage is provided for the following costs: (1) Legal defense expenses; (2) Consultant fees; (3) Expert witness fees; and (4) Other reasonable expenses to defend Veterinarian’s Medical Board Actions. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 33 of 33 However, we will not pay for the following: (5) Fees to reimburse the veterinarian’s time or expenses; or (6) Fines and penalties assessed as a result of an inquiry, lawsuit or challenge from the state licensing Veterinary Medical Board. The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph D. Liability And Medical Expenses Limits Of Insurance: Subject to paragraph 4. Aggregate Limits, coverage provided under the Legal Defense Expense – Veterinary Medical Board Coverage Extension is limited to sub-limits of $100,000 per claim and $100,000 in the aggregate applicable separately to each veterinarian who is an insured under the Veterinarians Professional Liability. Our duty to defend ends when we have exhausted such sub-limit. 17. Veterinarians Professional Liability - Veterinary Technicians The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph B.3. Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage- Nuclear Energy Liability Exclusion: However, this exclusion does not apply to registered veterinary technicians. All other terms and conditions of the policy remain unchanged. INSURED 09/30/2020 Rice Insurance LLC 1400 Broadway P.O. Box 639 Bellingham WA 98227 Molly Marroy (360) 734-1161 (360) 734-1173 mollym@riceinsurance.com Auburn Valley Humane Society 4910 A St SE Auburn WA 98092 Nova Casualty Company Austin Mutual Insurance Co 13412M CL2082475788 A Y VETIB1000074904 09/23/2020 09/23/2021 1,000,000 50,000 10,000 1,000,000 2,000,000 2,000,000 B B1P1339P 09/23/2020 09/23/2021 1,000,000 A VETIB1000074904 WA Stop Gap 09/23/2020 09/23/2021 1,000,000 1,000,000 1,000,000 A Veterinarians Professional Liability VETIB1000074904 09/23/2020 09/23/2021 Each Occurance 1,000,000 Aggregate 2,000,000 Certificate Holder is Additional Insured per attached form ABP0138 0215. City of Auburn 25 W Main Street Auburn WA 98001 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 1 of 33 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY VETERINARIANS AND PET SERVICES EXTRA ENDORSEMENT - WASHINGTON This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM VETERINARIANS PROFESSIONAL LIABILITY SUMMARY OF COVERAGES AND LIMITS This is a summary of the various coverages and limits provided by this endorsement. No coverage is provided by this summary. Refer to the provisions of Sections A. through C. to determine the scope of the insurance protection provided by this endorsement. A. SCHEDULED COVERAGES Limit Page 1. Animal Bailee Coverage $50,000 3 2. Animal Damage To Property Included 5 3. Backup Of Water And Sump Overflow Included 5 4. Boundary Extension 1,000 feet 6 5. Brands And Labels $10,000 6 6. Broad Form Water Damage Included 6 7. Building Damage From Theft Included 7 8. Building Enhanced Replacement Cost Included 7 9. Business Income (Loss Of) 24 Months ALS 8 10. Business Personal Property- Automatic Increase 2% Quarterly 8 11. Catastrophe Allowance $10,000 8 12. Civil Authority 6 Consecutive Weeks No Waiting Period 8 13. Commercial Tools and Equipment $5,000 per occurrence $1,000 per tool $2,500 per tool box 8 14. Covered Property – Amended Building Definition Included 9 15. Covered Property- Enhanced Replacement Cost Included 10 16. Deductibles Various 11 17. Deferred Payments $5,000 12 18. Employee Dishonesty Including ERISA Compliance $50,000 12 19. Extended Business Income 365 Days 13 20. Fine Arts $10,000 13 21. Forgery And Alteration $50,000 13 22. Garages, Storage Buildings And Other Appurtenant Structures $50,000 13 23. Glass Expenses Included 14 24. Identity Theft Expense $25,000 14 25. Installation $5,000 15 26. Leasehold Interest (Tenant’s only) $10,000 15 27. Marring And Scratching Included 16 28. Money And Securities Inside The Premises Money And Securities Outside The Premises $50,000 $50,000 16 29. Money Orders And Counterfeit Paper Currency $25,000 16 30. Newly Acquired Or Constructed Property 180 days 16 31. Newly Acquired Or Constructed Property – Business Income And Extra Expense $500,000 16 32. Ordinance Or Law – Demolition Cost Coverage Ordinance Or Law – Increased Cost Of Construction Ordinance Or Law – Increased Period Of Restoration Ordinance Or Law – Tenant’s Improvement Extension Building Limit Plus $50,000 Building Limit Plus $50,000 $10,000 Included 16 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 2 of 33 A. SCHEDULED COVERAGES Limit Page 33. Personal Effects $10,000 19 34. Personal Property In Transit $50,000 19 35. Preservation Of Property – Expense $25,000 20 36. Salesperson’s Samples $5,000 20 37. Soft Costs $10,000 20 38. Spoilage- Animal Semen $10,000 21 39. Temporary Relocation Of Property $50,000 21 40. Tenant Signs (Tenants only) $5,000 21 41. Unauthorized Business Credit Card use $5,000 21 42. Vacancy Loss Condition Deleted 22 43. Valuation – Medical Equipment Replacement Cost Plus 15% 22 44. Virus and Hacking Coverage $10,000 22 B. BLANKET COVERAGES Limit $1,000,000 Page 1. Accounts Receivable Included 23 2. Business Income From Dependent Properties Included 23 3. Extra Expense From Dependent Properties Included 23 4. Business Income And Extra Expense – Mobile Veterinary Clinic Included 23 5. Computer Equipment Included 24 6. Expediting Expense Included 25 7. Fire Department Service Charge Included 25 8. Inventory And Loss Appraisal Included 25 9. Key Replacement And Lock Repair Included 25 10. Lessor’s Lease Cancellation Included 25 11. Outdoor Property – Per Item Limit $5,000 Included 26 12. Personal Property Off-Premises Included 26 13. Special Event Cancellation – Rental Expense Included 26 14. Tenant Relocation Expense Included 26 15. Utility Services – Direct Damage Utility Services – Time Element Included Included 27 16. Valuable Papers And Records Included 27 C. SECTION II- LIABILITY Page 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Included 28 2. Alienated Premises Included 28 3. Bodily Injury Redefined Included 28 4. Broad Form Property Damage- Borrowed Equipment, Customers Goods and use of Elevators Included 28 5. Broadened Named Insured Included 28 6. Broadened “Personal And Advertising Injury” Included 29 7. Damage To Premises Rented To You – Revised Limit $1,000,000 29 8. Fellow Employee Coverage Included 30 9. Newly Acquired Organizations 180 Days 30 10. Product Recall Expense $25,000 Occurrence $50,000 Aggregate 31 11. Supplementary Payments – Cost Of Bail Bonds Broadened Actual cost 31 12. Unintentional Failure to Disclose Hazards Included 31 13. Unintentional Failure to Notify Included 31 14. Veterinarians Professional Liability – Broadened Definition Of “Employee” Included 32 15. Veterinarians Professional Liability – Consent To Settle Included 32 16. Veterinarians Professional Liability – Legal Defense Expense – Veterinarian Medical Board Extension Coverage $100,000 Per Claim $100,000 Aggregate Per Vet 32 17. Veterinarians Professional Liability - Veterinary Technicians Included 32 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 3 of 33 COVERAGES Unless otherwise indicated, the limits shown in this endorsement are not additional amounts of insurance to the Limits of Insurance provided by your policy. The Building and Business Personal Property Deductibles shown on the Declarations apply unless otherwise indicated. If this endorsement and any other coverage part, form, endorsement or policy that is issued to you by us apply to the same loss, damage or expense, the maximum Limit of Insurance combined shall not exceed the highest applicable Limit of Insurance under any one coverage part, form, endorsement or policy. A. SCHEDULED COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the BUSINESSOWNERS COVERAGE FORM. 1. Animal Bailee Coverage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss or damage to “covered animals” while in your care, custody or control for veterinary services at any insured premises or while in transit in your owned, leased or hired vehicles. Such veterinary services include treatment, breeding, grooming, and boarding. Loss under this Additional Coverage includes escape. For purposes of this Additional Coverage, the following definition is added: “Covered animals” means animals of others while in your care, custody or control and includes animals of others at any insured premises awaiting or receiving veterinary services or animals owned by you or your “employees”. “Covered animals” does not include animals held for sale, lease or rental to others. For purposes of this Additional Coverage, under Paragraph A.2. Property Not Covered, Sub- Paragraph j. is deleted. b. Under this Additional Coverage, we will also pay for the following: (1) Legal Liability (a) Damages We will pay all sums you become legally obligated to pay as damages because of your liability for loss to “covered animals” caused by or resulting from a Covered Cause of Loss. Our obligation for payment of damages under this coverage does not apply to your liability for the actual value of the “covered animals” as insured elsewhere under this Additional Coverage. (b) Defense We will have the right and duty to defend any “suit” against you seeking damages for loss to “covered animals” caused by or resulting from an “occurrence”, even if any of the allegatio ns of the “suit” are not true. However, we will have no duty to defend the insured against any “suit” seeking damages for loss to “covered animals” to which this insurance does not apply. We may, at our discretion, investigate any “occurrence” and settle any claim or “suit” that may result. After we have paid the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage in a settlement or pursuant to a judgment, we have no duty: i. To pay any other sums as damages; or ii. To defend any “suit” including the one which has been settled or on which a judgment has been paid. (c) Supplementary Payments In addition to the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage, we will pay: i. Expenses we incur to adjust claims or suits; ii. Costs, including all expenses of litigation taxed against you in any “suit” we defend; iii. All interest which accrues after the entry of a judgment in a “suit” we defend. Our duty to pay interest ends when we pay that part of the judgment which does not exceed our Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage. iv. Premiums on appeal bonds: (i) In any “suit” we defend; (ii) To release attachments in any “suit” we defend. But we will not pay the premiums for bond amounts greater than the applicable Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage, and we have no obligation to apply for or defend against a claim or “suit”. These payments will not reduce the limit of liability. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 4 of 33 (2) Additional Expenses We will pay the reasonable expense you incur for: (a) The recovery of a “covered animal”; and (b) Putting a “covered animal” to death when such death is made necessary by a Covered Cause of Loss. This Additional Coverage does not apply to any: (a) Expense for advertising; or (b) Reward offered. The most we will pay in any one loss under this Additional Expense provision, regardless of the number of “covered animals” in your care, custody or control is $2,500. The most we will pay under this Additional Expense provision in any one policy period, regardless of the number of “occurrences” is $5,000.+ (3) Preservation Expense If it is necessary to move “covered animals” to preserve them from loss by a Covered Cause of Loss, we will pay the actual expense to move the “covered animal” to safety. The most we will pay in any one “occurrence” for moving the “covered animals” is $25,000, regardless of how many “covered animals” are in your care, custody or control. (4) Uncollectible Accounts (a) In the event of loss to “covered animals” caused by or resulting from a Covered Cause of Loss, we will also pay your accrued charges not collected from the customers as a result of the loss. There will be no recovery for accrued charges which were more than ninety (90) days delinquent from the end of the month in which the payment was due. Uncollectible accounts that predate the policy effective date do not qualify under this provision. (b) The most we will pay for accrued charges due from any one customer is $250. The most we will pay for accrued charges in any one “occurrence” is $1,000. We will not pay for uncollectible charges on any claim for which the loss to the “covered animals” is less than the deductible that applies to such loss. (5) Advertising and Reward (a) We will pay the cost of advertising in newspapers to aid in the recovery of “covered animals” that are lost or stolen while in your care, custody or control. “Covered animals” stolen by your “employees” are not covered under this coverage. (b) We will also pay a reward to the person or persons, who are not “employees”, who provide information leading to the recovery of the “covered animals” lost or stolen. The most we will pay in any one “occurrence” for advertising expense and rewards under this coverage provision, regardless of the number of “covered animals” lost or stolen, is $2,500. c. Cause Of Loss We will pay risks of direct physical loss to “covered animals” from any cause of loss except where limited or excluded in Paragraph d. below. d. Exclusions For purposes of this Additional Coverage, the following apply: (1) Section I – Property, B. Exclusions and Section I – Property, 4. A. Coverage, Paragraph 4. Limitations, apply to this Additional Coverage. (2) 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) Any rendering or failure to render professional services; (b) Conditions, including but not limited to, injury or illness, which existed prior to the animal coming into your care, custody or control. (c) Any disease or sickness, or death by natural causes; or (d) The seizure or destruction of animals by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is otherwise covered under this policy, subject to the Limit Of Insurance under paragraph e. below. e. Limit Of Insurance The most we will pay under this Additional Coverage, regardless of the number of “covered animals” in your care, custody or control is $50,000 unless this limit has been increased by an endorsement attached to this policy. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 5 of 33 2. Animal Damage To Property Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for the actual direct physical loss or damage to Covered Property caused by or resulting from animals which you do not own but are in your care, custody or control for treatment, grooming, boarding, daycare, breeding or training. The loss or damage must be caused by or the result of a Covered Cause of Loss. b. For purposes of this Additional Coverage, the following Exclusions are added to paragraph B. Exclusions: (1) Caused by or resulting from wear or tear; (2) Caused by or resulting from your failure to use care in the maintenance of the property; or (3) Which cannot be identified as occurring at a specific point in time and did not become known to you within 48 hours thereafter. c. If the covered loss or damage is to real property which you own, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Building at the premises where the loss or damage occurred. If the covered loss or damage is to real property which you do not own but which you occupy for your business for which you have a contractual responsibility to insure, or to Business Personal Property, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Business Personal Property. d. Payments under this Additional Coverage do not increase the Limit Of Insurance that applies to your Building or to your Business Personal Property. The Limit Of Insurance that applies to your Business Personal Property is the most we will pay in any one “occurrence” for loss or damage to your Business Personal Property and for loss arising from animal damage to property you do not own but which you occupy for business combined. e. Coverage provided under this Additional Coverage for Animal Damage to property that you occupy for business for which you have a contractual responsibility to insure is primary insurance and will not seek contribution from any other insurance available to the lessor. 3. Backup Of Water And Sump Overflow Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property, covered under Section I – Property, caused by or resulting from: (1) Water or waterborne material which backs up through or overflows or is otherwise discharged from a sewer or drain; or (2) Water or waterborne material which overflows or is otherwise discharged from a sump, sump pump or related equipment, even if the overflow or discharge results from mechanical breakdown of a sump pump or its related equipment; or However, with respect to paragraph a.(2), we will not pay the cost of repairing or replacing a sump pump or its related equipment in the event of mechanical breakdown. b. The coverage described in paragraph a. of this endorsement does not apply to loss or damage resulting from: (1) An insured's failure to keep a sump pump or its related equipment in proper working condition; (2) An insured's failure to perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions; or (3) Sump pump failure which is caused by or results from failure of power, unless this policy is endorsed to cover power failure affecting the described premises. c. Regardless of the number of insured locations involved, the most we will pay under this Additional Coverage for loss or damage in any one “occurrence” is included in the Limits Of Insurance for Covered Property. This Additional Coverage does not increase the Limits Of Insurance. d. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: Water (1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 6 of 33 (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in paragraphs (1) through (4), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, 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 (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the back up of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. e. For the purposes of this endorsement, the term drain includes a roof drain and related fixtures. 4. Boundary Extension All references to property “within 100 feet of the described premises” are changed to property “within 1,000 feet of the described premises”. 5. Brands and Labels Under paragraph A. 6. Coverage Extensions, the following is added: If Covered Property that has a brand or label is damaged by a Covered Cause of Loss, and we elect to take all or any part of the property at an agreed or appraised value, you may extend the insurance that applies to your Business Personal Property to pay expenses incurred to: a. Stamp salvage on the property or its container, if the stamp will not physically damage the property; or b. Remove the brand or label, if doing so will not physically damage the property or its container, and re- label the merchandise or its containers to comply with the law. The most we will pay for any loss under this Extension is $10,000 per “occurrence”. Payment of these expenses is included within the applicable Limit Of Insurance. 6. Broad Form Water Damage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property caused by or resulting from water under the ground surface pressing on, or flowing or seeping through: (1) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings. b. We will not pay for loss or damage in any one “occurrence” until the amount of loss or damage exceeds $1,000. This deductible is to apply separately: (1) To each building, including personal property therein; (2) To personal property in each building if no coverage is provided on the containing building; and (3) To personal property in the open. The aggregate amount of this deductible in any one “occurrence” shall not exceed $5,000. We will then pay the amount of loss or damage in excess of the deductible up to the applicable Limit of Insurance. c. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: (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; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 7 of 33 (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; or (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies if any of the above, in paragraphs (1) through (4): (1) Occurs independently; (2) Is caused by an act of nature; (3) Is caused by an act or omission of humans or animals; or (4) Is attributable to the failure, in whole or in part, of a dam, levee, seawall or other boundary or containment system. But if any of the above, in (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. 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. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the backup of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. 7. Building Damage From Theft Under paragraph A. 1. Covered Property, sub-paragraph b. Business Personal Property, the following is added: Physical damage to a building leased to you from theft or attempted theft, burglary or robbery. Theft means any act of stealing. 8. Building Enhanced Replacement Cost Under paragraph C. Limits Of Insurance, sub-paragraph 4. Building Limit – Automatic Increase is replaced with the following: a. If Covered Property is written on a Replacement Cost basis: (1) The Limit of Insurance for Buildings will automatically be revised by changes that occurred in the cost of construction during the preceding policy year. (2) The amount of increase will be determined by reports of a recognized valuation method. (3) We will inform you of such adjusted values. Upon their acceptance, you agree to pay any additional premium for the adjusted limit. Payment of your renewal premium which includes the revised Limit of Insurance, shall constitute acceptance. (4) We will pay the replacement cost value of the damaged portion of the building at the time of loss, but not more than 150% of the Limit of Insurance for Building if: (a) The amount of any loss covered by this policy exceeds the Limit of Insurance for Building stated in the Declarations for the damaged Building; and (b) The Building Enhanced Replacement Cost does not apply to loss payable under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Construction property, (1) Buildings. (c) The actual repair or replacement is completed within one year of the date of loss. b. The Building Limit – Automatic Increase clause will not apply if: (1) You do not accept the adjusted value; or (2) You do not inform us of changes to covered Building: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 8 of 33 (a) Within sixty (60) days of the date any additions, improvements or enlargements to the building are begun, and (b) When the replacement value of the changes are more than 5% of the Limit of Insurance for the building 9. Loss of Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph f.(1)(b), is replaced with the following: We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within 24 consecutive months beginning immediately after the date of direct physical loss or damage. For purposes of this insurance, all recoverable loss ceases when the “period of restoration” ends. 10. Business Personal Property- Automatic Increase Under paragraph C. Limits of Insurance, the following is added: Your coverage for Business Personal Property will be automatically increased each quarter by 2%. Adjustment in the Limit of Insurance for Business Personal Property will occur at each anniversary subject to a cap of 8% annually. 11. Catastrophe Allowance Under paragraph A.6. Coverage Extensions, the following is added: a. This Coverage Extension applies when the direct physical loss or damage to Building and Business Personal Property is the result of an insured event for which Property Claims Service has publicly designated a catastrophe number to the event. b. You may extend the insurance provided under this Extension if the limits provided under Section C. Limits Of Insurance for Building and Business Personal Property Coverage are insufficient to compensate you for covered loss or damage you incur as a result of the insured Catastrophe event. c. This Extension may not be applied to the deductible amount of this policy or any other policy. It also may not be used to cover any loss or damage that would not be covered under this policy. The most we will pay under this Extension in any one “occurrence” is $10,000. The most we will pay under this Extension during each separate 12 month period of this policy is $10,000. 12. Civil Authority Under paragraph A.5. Additional Coverages, sub-paragraph i. Civil Authority, is replaced with the following: When Loss of Business Income Coverage is provided under this policy: We will pay for the actual loss of Business Income (not including Extended Business Income, you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property within 1 mile of the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin immediately after the time of that action and will apply for a period of up to six consecutive weeks after coverage begins. 13. Commercial Tools and Small Equipment Under paragraph A.5. Additional Coverages, the following is added: This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to commercial tools and small equipment including communication devices and diagnostic equipment usual to your business “operations” which are: (1) your property (2) the property of others in your care, custody or control or (3) the property of your “employees”. Damage to the property of your “employees” is limited to while on the described premises. b. This coverage only applies to any one tool or piece of small equipment with an actual cash value of $2,500 or less, unless listed on a schedule included with the policy. c. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”, or the amount shown in the Additional Property Coverage Schedule, but not more than $1,000 for any one tool and not more than $2,500 for any one tool box, including the tools contained therein, or piece of small equipment. d. This Additional Coverage is not subject to the Limits of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 9 of 33 e. In addition to items listed within Property Not Covered, we will not pay for any loss to the following property: (1) Watercraft or watercraft parts and equipment; (2) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (3) Tires or tire tubes, attached or unattached, for use with Commercial tools and small equipment, unless the loss or damage is caused by “theft”, malicious mischief, or the result one of a ”specified cause of loss”; or (4) Any property while underground, airborne or waterborne. (5) Exclusions B.1.b. and B.1.g. of the Businessowners Coverage Form do not apply to this Additional Coverage. f. We will not pay for any loss caused by or resulting from: (1) Any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion; (2) “Theft” from an unattended vehicle including loss: (a) From inside a vehicle, including trailers; or from a permanently-mounted toolbox; except when i. securely locked, ii. there is visible evidence that entry was forced, and iii. when inside a vehicles or trailer, that its windows were fully closed; or (b) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: i. was secured, ii. was protected by privacy locks; and iii. there is visible evidence that removal was accomplished by force. 14. Covered Property – Amended Building Definition a. Under paragraph A.1. Covered Property, the following are added to paragraph a.: (1) Animal runs, pens, cages and fencing; (2) X-ray equipment. Including only x-ray unit, tube, controls, developing tanks, viewer and lead shields; (3) Surgical lamps attached to the building; (4) Surgical and examination tables; (5) Incinerators; (6) Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (7) Retaining walls that are not part of a building. We will not pay for loss or damage to retaining walls that are used, in whole or in part, to contain water; (8) Signs, whether or not they are attached to buildings or structures; and (9) Interior and exterior building glass. b. Under paragraph A. 2. Property Not Covered, paragraph e. is replaced with the following: Outdoor trees, shrubs or plants, all except as provided in the Outdoor Property Coverage Extension c. Under paragraph C. Limits of Insurance, paragraph 2. is deleted. d. Under paragraph D. Deductibles, paragraph 2.c. is deleted. e. Under paragraph G. Optional Coverages, paragraph 1. is deleted. f. Under paragraph A.6. Coverage Extensions, c. Outdoor Property, is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Windstorm; (7) Ice, snow, sleet and hail. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 10 of 33 The most we will pay for loss or damage under this Extension is $5,000 but not more than $1,000 for any one tree, shrub or plant. 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. 15. Covered Property- Enhanced Replacement Cost Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following: We will determine the value of Covered Property as follows: a. At replacement cost without deduction for depreciation except as provided in b. through p. below. (1) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (2) We will not pay on a replacement cost basis for any loss or damage: (a) Until the loss or damaged property is actually repaired or replaced; (b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage; and (c) Unless the repairs or replacement are completed within: i. 24 months (for personal property), ii. 24 months (for buildings and other real property), after the loss or damage, unless extended in writing by us. However, if the cost to repair or replace the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs a.(1) and a.(2) above whether or not the actual repair or replacement is complete. (3) We will not pay more for loss or damage on a replacement cost basis than the least of: (a) The cost to replace, on the same premises, the lost or damaged property with other property: i. Of comparable material and quality; and ii. Used for the same purpose; or (b) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (4) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. b. If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, Paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. c. The following property at actual cash value: (1) Used or second-hand merchandise held in storage or for sale; (2) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (3) Household contents, except personal property in apartments or rooms furnished by you as landlord; (4) Manuscripts ; (5) Works of art, “antiques” or rare articles, including but not limited to, etchings, pictures, statuary, marbles, bronzes, porcelains, glassware and bric-a-brac; or (6) Commercial Tools and Small Equipment and Contractors Tools and Equipment. This does not apply to your Commercial Tools and Small Equipment permanently installed or exclusively used at the described premises. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenants’ Improvements and Betterments at: (1) Replacement cost if you make repairs promptly. (2) A proportion of your original cost if you, as the tenant, do not make repairs promptly. We will determine the proportionate value as follows: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 11 of 33 (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. (4) Nothing if you have no lease. f. Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement, including the cost of data entry, re-programming, computer consultation services and the media on which the data or programs reside. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. g. “Money” at its face value; and h. “Securities” at their value at the close of business on the day the loss is discovered. i. Applicable only to Accounts Receivable: (1) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (a) We will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (b) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (2) The following will be deducted from the total amount of accounts receivable, however that amount is established: (a) The amount of the accounts for which there is no loss or damage; (b) The amount of the accounts that you are able to re-establish or collect; (c) An amount to allow for probable bad debts that you are normally unable to collect; and (d) All unearned interest and service charges. j. “Stock” you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. k. Finished “stock” you manufactured at selling price less discounts and expenses you otherwise would have had. l. Property in Transit (other than “stock” you have sold) at the amount of invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. m. “Electronic data”, media and computer software programs. For media, at the actual costs of repairi ng or replacing the media with material of like kind and quality. “Electronic data” and computer software programs at the actual cost of reproducing the “electronic data” or computer software program, provided you actually reproduce or replace it. To the extent that “electronic data” is not replaced or restored, the loss will be valued at the cost of repair or replacement of the media on which the “electronic data” was stored, with blank media of substantially identical type. n. Prepackaged software programs and computer equipment that cannot be replaced, at the cost of functionally equivalent software or hardware. o. Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. p. Fine Arts. The value of covered property is not agreed upon, but will be determined at the time of loss or damage. We will not pay more than the least of the following: (1) The actual cash value of the property at the time of loss or damage; or (2) The amount for which you could reasonably expect to pay to have the property repaired to its condition immediately prior to the loss. 16. Deductibles a. Under paragraph D. Deductibles, paragraph 2. is deleted. b. Under paragraph D. Deductibles, paragraph 3. is replaced with the following: No deductible applies to the following coverages: (1) Arson and “Theft” Reward; (2) Business Income; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 12 of 33 (3) Civil Authority; (4) Debris Removal; (5) Deferred Payment; (6) Extra Expense; (7) ERISA Compliance; (8) Fire Department Service Charge; (9) Fire Extinguisher Recharge; (10) Inventory and Appraisal; (11) Leasehold Interest (tenant’s only); (12) Ordinance or Law; (13) Pollutant Clean-Up and Removal; (14) Preservation of Property; and (15) Unauthorized Business Credit Card Use. c. Under paragraph D. Deductibles, the following are added: (1) A $250 deductible applies to the following coverages: (a) Glass- interior and exterior; and (b) Glass Expenses. (2) A $500 deductible applies to all of the Property coverages scheduled in the Declarations unless otherwise indicated in item a., b.(1) or b.(3) of this section. (3) A $1,000 deductible applies to the following coverages: (a) Employee Dishonesty (except ERISA compliance); (b) Salesperson’s Samples; and (c) Installation. (4) Each deductible applies separately, but only to the coverage specified. The total deductible for all losses in one “occurrence” will be the highest deductible amount that applies to the “occurrence”. 17. Deferred Payments Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for your interest in lost or damaged Personal Property sold by you under a conditional sale or trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. b. The most we will pay for loss under this Additional Coverage is $5,000. When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (1) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (2) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. When loss occurs and the buyer continues to pay you, there will be no loss payment. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 18. Employee Dishonesty Including ERISA Compliance The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph a. is replaced with the following: We will pay for direct loss of or damage to Business Personal Property and "money" and "securities", Covered Property of others and animals you do not own but which are in your care, custody or control for treatment, grooming, boarding, training or breeding, resulting from dishonest or criminal acts committed by any of your “employees” acting alone or in collusion with other per sons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any “employee”; or (b) Any other person or organization. b. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph c. is replaced with the following: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 13 of 33 The most we will pay for loss or damage in any one “occurrence” is $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits Of Insurance for Section I – Property. c. For purposes of this Optional Coverage, paragraph a.(4) under paragraph A.4. Limitations is deleted. d. Under paragraph G. Optional Coverages, paragraph 3. Employee Dishonesty, the following is added: Welfare and Pension Plan ERISA Compliance In compliance with certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA): (1) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance for the Employee Dishonesty coverage that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (2) If the Insured first named in the Declarations is an entity other than a Plan, any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and benefit of the Plan(s) sustaining the loss. (3) If two or more Plans are insured under this insurance, any payment we make for loss: (a) Sustained by two or more Plans; or (b) Of commingled funds or other property of two or more Plans that arises out of one “occurrence” because of dishonest acts of “employees” is to be shared by each Plan sustaining loss in the proportion that the amount of insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (4) The Deductible Condition applicable to the “Employee” Dishonesty Optional Coverage does not apply to loss sustained by any Plan subject to ERISA which is insured under this insurance. 19. Extended Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph (2)(a)(ii) is replaced with the following: 365 consecutive days or the number of consecutive dates shown in the Declarations for this Additional Coverage after the date determined in (2)(a)(i) above. 20. Fine Arts Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct loss of or damage to Fine Arts, whether owned by: (1) You; or (2) Others, and in your care, custody or control. b. Fine arts includes, but is not limited to, antiques, paintings, etchings, drawings, tapestries, sculptures and fragile property such as porcelains, china and marble. c. Regardless of the number of insured locations affected, the most we will pay per “occurrence” under this Additional Coverage is $10,000. The amount payable under this Additional Coverage is not subject to the Limits of Insurance for Section I – Property. d. The value of fine arts will be the least of the following amounts: (1) The actual cash value of that property at the time of loss; (2) The cost of reasonably restoring that property to its condition immediately before loss; or (3) The cost of replacing that property with substantially identical property. e. In the event of loss, the value of property will be determined as of the time of loss . f. The following are added to Paragraph E. Property Loss Conditions: (1) In case of loss to any part of a pair or set we will: (a) Repair or replace any part to restore the pair or set to its value before the loss; or (b) Pay the difference between the value of the pair or set before and after the loss. (2) You must arrange for fine arts to be packed and unpacked by competent packers. 21. Forgery And Alteration Under paragraph A.5. Additional Coverages, k. Forgery And Alteration, sub-paragraph (4) is replaced with the following: The most we will pay for any loss, including legal expenses, under this Additional Coverage is $50,000, unless a higher Limit Of Insurance is shown in the Declarations. 22. Garages, Storage Buildings and Other Appurtenant Structures Under paragraph A.6. Coverage Extensions, the following is added: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 14 of 33 You may extend the insurance that applies to Building to apply to garages, storage buildings and other appurtenant structures, including, but not limited to, swimming pools; spas; and the associated equipment within 1000 feet of the described premises. The most we will pay for loss or damage under this Extension is $50,000 at each described premises regardless of the number of buildings or structures affected. 23. Glass Expenses Under paragraph A. Coverage, 5. Additional Coverages, sub-paragraph n. Glass Expenses, the following is added: When caused by or resulting from a Covered Cause of Loss, we will pay for expenses incurred to: Replace lettering, artwork, sensors or other items permanently affixed to, or a part of, the damaged glass. 24. Identity Theft Expense Under paragraph A. Coverage, 5. Additional Coverages, the following is added: a. We will pay for “Expenses” incurred by an “Insured Person” as a direct result of any one “Identity Theft” first discovered or learned of by such “Insured Person” during the policy period. Any act or series of acts committed by one or more persons, or in which such persons are aiding and abetting others against an “Insured Person”, is considered to be one “Identity Theft” even if a series of acts continues into subsequent policy period(s). b. With respect to this Additional Coverage: (1) “Expenses” means: (a) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (b) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (c) Lost income resulting from time taken off work to complete fraud affidavits or to meet or talk to law enforcement agencies, credit agencies or legal counsel; (d) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (e) Reasonable attorney fees to: i. Defend lawsuits brought against an “Insured Person” by merchants, financial institutions or their collection agencies; ii. Remove any criminal or civil judgments wrongly entered against an “Insured Person”; or iii. Challenge the accuracy or completeness of any information in a consumer credit report; (f) Charges for long distance telephone calls due to “Identity theft” to: i. Merchants; ii. Law enforcement agencies; iii. Financial institutions or other similar credit grantors; or iv. Credit agencies; and (g) Reasonable fees for professional financial advice or professional credit advice. The most we will pay for “expenses” under Paragraph b.(1) is $5,000, subject to a maximum of $200 per day. (2) For purposes of this Additional Coverage, “Identity Theft” means: The act of knowingly transferring or using, without lawful authority, a means of identification of an “Insured Person” with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law; and (3) “Insured Person” means: (a) For sole proprietorships: The individual who is the sole proprietor of the Named Insured shown in the Declarations; (b) For partnerships: Any individual that is a partner of the Named Insured shown in the Declarations; (c) For corporations or any other type of organization: The Chief Executive Officer, and any individual who has an ownership interest of at least 20% of the Named Insured, shown in the Declarations. c. The following additional exclusions apply to this Additional Coverage: We will not pay for: (1) Expenses incurred due to any fraudulent, dishonest or criminal acts by: (a) An “Insured Person”; (b) Any person aiding or abetting an “Insured Person”; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 15 of 33 (c) Any authorized representative of an “Insured Person”; whether acting alone or in collusion with others; or (2) Loss other than “Expenses”. Account balances which arise out of fraudulent or unauthorized charges would be one example of loss other than “Expenses”. d. Regardless of the amount of the deductible for Covered Property shown in the Declarations, the most we will deduct from any claim for “Expenses” under this Additional Coverage for any one “Identity Theft” is $250. e. The most we will pay under this Additional Coverage for all “Expenses” arising out of all “Identity Theft” against an “Insured Person” incurred in any one policy year, regardless of the number of “Identity Thefts” involved, is $25,000 unless a higher Limit Of Insurance is shown in the Declarations. f. In order for coverage to be provided under this Additional coverage, you must send to us, within 60 days after our request, receipts, bills or other records that support your claim for “Expenses” under “Identity Theft” coverage. 25. Installation Under paragraph A.5. Additional Coverages, the following is added: a. This coverage applies to an installation performed by you for others away from the described premises. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to materials, supplies, machinery, fixtures and equipment that will become a permanent part of your installation, while located at a site of installation, in transit by you to or from your premises and the job site, or while in temporary storage awaiting installation. This includes your property and similar property of others that is in your care, custody and control. b. This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. c. The most we will pay for any loss under this Additional Coverage is $5,000. d. We will not pay for loss or damage to property that has already been installed, whether or not your work has been accepted. e. Exclusions B.1.b. and B.1.g. do not apply to the Additional Coverage. This Additional Coverage does not increase the Limits of Insurance of Section I – Property. 26. Leasehold Interest (Tenant’s Only) Under paragraph A.5. Additional Coverages, the following is added: a. If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. b. The most we will pay for loss because of the cancellation of any lease or leases on account of the same covered cause of loss is: (1) If your lease is cancelled and either: (a) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (b) You relocate to other permanent premises and enter into a new lease. (2) For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (a) $10,000; (b) Nothing if there is no written or legally binding lease, whichever is less. c. The following provisions apply to b.(1) above: (1) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (2) If the lease has no end date (open-ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the premises. d. The following provision applies to b.(1) and b.(2)(a) above: (1) $10,000 will be the maximum amount payable regardless of the number of leases affected by the same covered cause of loss. (2) Existence of a renewal option will not increase, or have any other effect on this limit. e. We will not pay for any loss or damage: (1) If there is no written or legally binding lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 16 of 33 (2) If the unit or suite rented or leased to you where direct damage occurs has been vacant more than 60 consecutive days before the loss or damage occurs, and you have not entered into an agreement to sublease the unit or suite. (3) Caused by your cancelling the lease; or (4) Caused by the suspension, lapse or cancellation of any license. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 27. Marring And Scratching Under paragraph A. 5. Additional Coverages, the following is added: We will pay for loss or damage to Covered Property at the described premises due to sudden and accidental marring and scratching of: a. Your “stock”; b. Your printing plates; and c. Property of others that is in your care, custody or control. This Cause of Loss does not apply to: a. Property at other than the described premises; and b. Property in transit. Payment under this Extension is included within your Business Personal Property Limit Of Insurance. 28. Money And Securities The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, sub-paragraph 2. Money and Securities, the following is added to sub-paragraph a.: We will also pay any bank stop payment charges you are required to pay because of a loss that is covered under this Additional Coverage. b. Under paragraph G. Optional Coverages, sub-paragraph 2. Money And Securities, sub-paragraphs c.(1) and c.(2) are replaced with the following: (1) $50,000 or the amount shown in the Declarations for Inside the Premises for “money” and “securities” while: (a) In or on the described premises; or (b) Within a bank or savings institution in the coverage territory; and (2) $50,000 or the amount shown in the Declarations for Outside the Premises for “money” and “securities” while at any other location or in transit between locations listed in (1) above and while in the coverage territory. c. For purposes of this Optional Coverage only, the limit under paragraphs (1) and (2) above includes reimbursement of bank stop payment charges that insured is obligated to pay as a result of a covered loss under this Additional Coverage. 29. Money Orders And Counterfeit Paper Currency Under paragraph A.5. Additional Coverages, Paragraph j. Money Orders And Counterfeit Paper Currency, is replaced with the following: 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" paper currency that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $25,000. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 30. Newly Acquired Or Constructed Property Under paragraph A.6. Coverage Extensions, a. Newly Acquired Or Constructed Property, sub- paragraph (3)(b) is replaced with the following: 180 days after you acquire the property or begin construction of that part of the building that would qualify as covered property; or 31. Newly Acquired or Constructed Property – Business Income And Extra Expense Under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Constructed Property, the following is added: You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 17 of 33 32. Ordinance Or Law Under paragraph A.5. Additional Coverages, paragraph l. Increased Cost of Construction is replaced with the following: a. This Additional Coverage applies only: (1) When a Limit of Insurance for the affected building (or buildings) is shown on the Declarations, and then only (2) To buildings insured on a replacement cost basis. b. Application of Coverages: The coverages provided under this Additional Coverage apply only if (1) and (2) below are satisfied and are then subject to the qualifications found in (3) below. (1) The Ordinance or law: (a) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at the described premise; (b) Is in force at the time of loss; and (c) Was not in force at the time the involved construction was completed. But coverage under this Additional Coverage 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 Additional Coverage. (2) The building sustains direct physical damage: (a) That is covered under this Additional Coverage and as a result of such damage, you are required with the ordinance or law; or (b) 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 damage 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. (3) In the situation described in (2)(b) above, we will not pay the full amount of loss otherwise payable under the terms of coverages for Coverage for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. Instead, we will pay a proportion that covered direct physical damage bears to the total direct physical damage. However, if the covered direct physical damage alone would have resulted in enforcement of the ordinance or law, then we will pay the full amount of the loss otherwise payable under the terms of Coverages for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. c. 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”. d. Coverage (1) 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 for the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. Coverage for Loss to the Undamaged Portion of the Building is included within the Limit of Insurance shown in the Declarations as applicable to the covered building. Coverage for Loss to the Undamaged Portion of the Building does not increase the Limit of Insurance. (2) 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 the undamaged parts of the same building, as a consequence of enforcement of an ordinance or law that requires demolition of such undamaged property. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to Demolition Cost Coverage. (3) Increased Cost of Construction With respect to the building that has sustained covered direct physical damage, we will pay the increased cost to: (a) Repair or reconstruct damaged portions of that building; and/or (b) Reconstruct or remodel undamaged portions of that building, whether or not demolition is required; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 18 of 33 When the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or law. However, 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. We will not pay for the increased cost of construction if the building is not repaired, reconstructed or remodeled. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to the Increased Cost of Construction Coverage. (4) Increased Period Of Restoration If a Covered Cause of Loss occurs to property at the premises described in the Declarations, coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: i. 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 ii. 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. The most we will pay for loss under Ordinance or Law – Increased Period of Restoration is $10,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay for Ordinance or Law – Increased Period of Restoration for each described building is $10,000. The Ordinance or Law – Increased Period of Restoration coverage is not subject to the Limits of Insurance of Section I – Property. (5) Tenant’s Improvements and Betterments This Additional Coverage applies only when a Limit Of Insurance for Business Personal Property for the affected building, or buildings, is shown on the Declarations; and then only when Business Personal Property is insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant’s improvements and betterments whether collectible or not. This Additional Coverage also applies to improvements and betterments you have made to a building you do not own or occupy as a tenant and a Limit Of Insurance is shown for Business Personal Property at the described premises. Improvements and betterments covered under this Additional Coverage are described under Section I – Property A.1. Covered Property, paragraph b.(3). (6) Loss Payment (a) The following loss payment provisions, 6.(b) and (c), are subject to the apportionment procedure set forth in paragraph b.(3) of this coverage. (b) When there is a loss in value of an undamaged portion of the building to which Coverage for Loss to the Undamaged Portion of the building applies, the loss payment for that building, including damaged and undamaged portions, will be determined as follows: i. If the property is repaired or replaced on the same or another premises, we will not pay more than the lesser of: (i) The amount you 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 (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 19 of 33 ii. If the property is not repaired or replaced. We will not pay more than the lesser of: (i) The actual cash value of the building at the time of loss; or (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. (c) The most we will pay, for the total of all covered losses for Demolition Cost and Increased Cost of Construction is the Limit of Insurance shown below. Subject to this combined Limit of Insurance, the following loss payment provisions apply: i. For Demolition Cost, we will not pay for more than the amount you actually spend to demolish and clear the site of the described premises. ii. With respect to the Increased Cost of Construction: (i) 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 repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. iii. 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. iv. 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. v. The most we will pay for loss under Demolition Cost is the Limit Of Insurance shown in the Declarations for Building plus $50,000 or the amount shown in the Additional Property Coverage Schedule for Demolition Cost. The most we will pay for loss under Increased Cost of Construction is the Limit Of Insurance shown in the Declarations for Building plus $50,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule for Increased Cost Of Construction. If a damaged building(s) is covered under a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for Demolition Cost is the replacement cost for the damaged building plus $50,000 and the most we will pay for loss under the Increased Cost of Construction is the replacement cost for the damaged building plus $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. (7) Under this coverage, 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 building was undamaged; and (b) You failed to comply with. 33. Personal Effects Under paragraph A. 6. Coverage Extensions, sub-paragraph d. Personal Effects, the last paragraph is replaced with the following: The most we will pay for loss or damage under this Extension is $10,000 at each described premises. 34. Personal Property In Transit Under paragraph A. 6. Coverage Extensions, the following is added: a. You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, to apply to your personal property or property of others in your care, custody or control while it is in the course of transit. This Extension applies to property while it is in transit more than 1,000 feet from the described premises and while between points in the coverage territory while: (1) In a vehicle owned, leased or operated by you; or (2) In the custody of a common carrier, contract carrier or registered mail carrier. b. We do not pay for any loss or damage caused by or resulting from “theft” from an unattended vehicle, including loss: (1) From inside a vehicle, including trailers; or from an exterior storage container or box, except when: (a) securely locked, (b) there is visible evidence that entry into the vehicle was forced, and (c) inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 20 of 33 (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. c. This Extension does not apply to the following property: (1) Shipments that belong to others that you are transporting for a fee; (2) Property while waterborne; or (3) Salespersons samples d. Exclusions B.1.b., and B.1.g. of the Businessowners Coverage Form do not apply to this Coverage Extension. e. The most we will pay for loss or damage under this Extension is $50,000 per “occurrence”. 35. Preservation Of Property – Expense Under paragraph A.5. Additional Coverages, the following is added: a. 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 your expenses to move or store the Covered Property. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will pay under this Additional Coverage is $25,000 per “occurrence”. This Additional Coverage is not subject to Section I – Limits of Insurance. 36. Salesperson’s Samples Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to samples of your “stock” in trade (including containers) while: (1) In the custody of your sales representative, agent or any "employee" who travels with sales samples; (2) In your custody while you are acting as a sales representative; or (3) In transit between premises that you own, lease or operate and your sales representative. b. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. c. We will not pay for any loss to the following property: (1) Property which has been sold; (2) Jewelry, precious or semi-precious stones, gold, silver, platinum, or other precious metals or alloys; (a) Furs, fur garments or garments trimmed with fur; or (b) Any property while waterborne d. Exclusions B.2.g., B.2.l.(4), and B.2.l.(7) of the Businessowners Coverage Form do not apply to this Additional Coverage. e. We will not pay for any loss or damage caused by “theft” from an unattended vehicle including: (1) Loss from inside a vehicle, including trailers, or from a permanently-mounted exterior toolbox except when: (a) securely locked, (b) there is visible evidence that entry was forced, and (c) when inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 37. Soft Costs Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the actual “soft costs” that you incur due to direct physical loss or damage to Covered Property by a Covered Cause of Loss. We will only pay those “soft costs”: (1) That are over and above your normal expenditures; and (2) That are incurred during the period of time: (a) That begins on the date the direct physical loss occurs; and (b) Ends one year after the date on which the construction, repairs, or replacement would be scheduled for completion. b. We will only pay “soft costs” if: (1) The valuation for Building and Business Personal Property is based on Replacement Cost; and (2) You repair or replace the damaged Covered Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 21 of 33 c. Normal Expenditures are expenses that would have been incurred by your operation had no loss or damage occurred. d. The most we will pay under this Additional Coverage for “soft costs” arising for a Covered Cause of Loss in any one “occurrence” is $10,000. e. For purposes of this Additional Coverage, “soft costs” means: (1) Realty taxes and other assessments attributed to the increased property values that result directly from construction or repair costs associated with the loss or damage by a Covered Cause of Loss. (a) Increased interest charges and fees necessitated by the operation of a mortgage acceleration clause; and (b) Advertising and promotional expenses. This Additional Coverage is not subject to the Limits of Insurance under Section I – Property. 38. Spoilage - Animal Semen Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay: (1) For physical damage to animal semen due to change in temperature or humidity resulting from mechanical breakdown or mechanical failure of a cryogenic storage device; (2) For physical damage to animal semen due to contamination from the release of refrigerant, including but not limited to ammonia; and (3) Any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. b. Animal semen means extracted animal semen owned by you or by others that is in your care, custody or control and which is contained in a cryogenic storage device. Coverage applies while: (1) Animal semen is contained in a cryogenic storage device and is in transit from point of extraction to insured’s premises or other premises; and (2) During the transfer from the cryogenic storage device to a refrigeration system. Coverage ends when animal semen is placed in a refrigeration system. c. Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following for purposes of this Additional Coverage: We will determine the value of animal semen as follows: (1) For animal semen you have sold but not delivered, at the selling price less discounts and expenses you otherwise would have had; (2) For other animal semen, at actual cash value. d. The most we will pay for all covered losses to animal semen under this Additional Coverage, regardless of the number of occurrences of loss or damage, is $10,000. 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 loss occurred. e. This Additional Coverage is subject to the Deductible Amount shown in the Policy Declarations. 39. Temporary Relocation Of Property Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss of or damage to Covered Property from a Covered Cause of Loss while it is away from the described premises, if it is being stored temporarily at a location you do not own, lease or operate while the described premises is being renovated or remodeled. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. c. The most we will pay under this Additional Coverage is $50,000. This Additional Coverage is not subject to Section I – Property. 40. Tenant Signs (Tenants only) Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to all tenant signs at the described premises: (1) Owned by you; or (2) Owned by others but in your care, custody or control. (a) The most we will pay for loss or damage in any one “occurrence” is $5,000 regardless of the number of locations or buildings involved. (b) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 22 of 33 (c) This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 41. Unauthorized Business Credit Card Use Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss resulting from the “theft” or unauthorized use of Bus iness Credit Cards issued to you or registered in your name. b. We do not cover use of a Business Credit Card: (1) By a person who has been entrusted with the card; or (2) Any of your “employees”. c. All loss: (1) Caused by any one or more persons; or (2) Involving a single act or series of related acts; is considered one “occurrence” regardless of the number of individual unauthorized transactions. d. If a suit is brought against you for liability under this Additional Coverage, we will pay for reasonable legal expenses incurred in that defense. e. The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. 42. Vacancy Loss Condition Under paragraph E. Property Loss Conditions, sub-paragraph 8. Vacancy is deleted. 43. Valuation – Medical Equipment If medical equipment used in your “operations” is covered under this policy on a replacement cost basis, the following is added to paragraph C. Limits Of Insurance: We will pay the replacement cost value of your medical equipment at the time of loss, but no more than 115% of the Limit Of Insurance if: a. You replace medical equipment on the same premises with other medical equipment: (1) Of greater capacity or capability; and (2) Used for the same purpose; and b. The actual repair or replacement is completed within one year from the date of loss. 44. Virus and Hacking Coverage Under paragraph A.5. Additional Coverages, p. Electronic Data, sub-paragraph (2), is replaced with the following: The Covered Causes of Loss applicable to Business Personal Property include “computer hacking” or a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 23 of 33 a. “Computer hacking” means an unauthorized intrusion: (1) by an individual or group of individuals, whether employed by you or not, into a computer system or a network to which it is connected; and (2) that results in but is not limited to: (a) deletion, destruction, generation or modification of “electronic data”; (b) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of “electronic data”; (c) observation, scanning or copying of “electronic data”; (d) damage, destruction, inadequacy, malfunction, degradation or corruption of any “electronic data”; or (e) denial of access to or denial of services from your computer system or a network to which it is connected. b. We will not pay for: (1) Loss of access, loss of use or loss of functionality; or (2) Consequential loss caused by a computer virus or by “computer hacking”. B. BLANKET COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the Businessowners Coverage Form. Blanket Coverage Limit Of Insurance The following additional coverage is added: We will pay up to $1,000,000 as a Blanket Coverage Limit Of Insurance to apply at each scheduled premises and to apply to the sum of all covered losses under the coverages described in paragraphs 1. to 16. arising out of a single “occurrence” due to a Covered Cause of Loss. You may distribute this Coverage Limit among these coverages as you deem necessary. However, after a loss, we will not pay more than $1,000,000 at any one insured location per “occurrence”. 1. Accounts Receivables Under paragraph A. 6. Coverage Extensions, f. Accounts Receivables, sub-paragraph (2) is replaced with the following: The most we will pay under this Coverage Extension for loss or damage in any one “occurrence” at or away from the insured premises is subject to the Blanket Coverage Limit Of Insurance. 2. Business Income From Dependent Properties Under paragraph A. 5. Additional Coverages, m. Business Income From Dependent Properties, sub- paragraph (1) is replaced with the following: We will pay for the actual loss of Business Income (not including Extended Business Income), you sustain due to direct physical loss or damage at the premises of a dependent property caused by or resulting from a Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a dependent property or secondary dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the dependent property or secondary dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The Deductible does not apply to this Additional Coverage. The dependent property must be located in the coverage territory. 3. Extra Expense From Dependent Properties Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the necessary Extra Expense you incur, that you would not have incurred had there been no direct physical loss of or damage at the premises of a dependent property caused by or resulting from any Covered Cause of Loss. The incurred expense must be related to your business activities as provided in Paragraph b. below and deal with your actions to assist your own business activities. We will not pay for any expenses INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 24 of 33 incurred that directly or indirectly serve to speed, or otherwise assist, recovery of an affected dependent property. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The dependent property must be located in the coverage territory. b. Extra Expense means expense incurred by you to: (1) Avoid or minimize the “suspension” of business and to continue operations; or (2) Minimize the “suspension” of business if you cannot continue operations, due to covered loss of or damage to a dependent property or properties. c. For purposes of this Additional Coverage, “suspension” means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un- tenantable, if coverage for Business Income applies. d. We will only pay for Extra Expense that occurs within 12 consecutive months immediately following the date of direct physical loss or damage to the dependent property. e. The Extra Expense coverage period, as stated in paragraph d., does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of “pollutants”. f. The following also apply to this Additional Coverage: (1) Paragraph B. Exclusions, 5. Business Income and Extra Expense Exclusions; and (2) Paragraph E. Property Loss Conditions 7. Resumption of Operations, sub-paragraph b. The expiration date of this policy will not reduce the Extra Expense coverage period. 4. Business Income And Extra Expense – Mobile Veterinary Clinic Under paragraph A.5 Additional Coverages, the following is added: a. We will pay for the actual loss of Business Income and Extra Expense you sustain due to the necessary “suspension” of your operations during the “period of restoration”. The “suspension” must be caused by a covered direct physical loss of or damage to “mobile veterinary clinic” caused by or resulting from a Covered Cause of Loss including collision. The “mobile veterinary clinic” must be owned, leased or operated by you. b. For purposes of this Additional Coverage, the following definitions are added: (1) “Mobile veterinary clinic” means a motor vehicle which is specially designed as a transportable veterinary office and from which you conduct your usual veterinary operations. (2) “Suspension means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un-tenantable, if coverage for Business Income applies. c. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 5. Computer Equipment Under paragraph A. 5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to the following Covered Property which is your property or the property of others in your care, custody or control: (1) "Computer equipment" or “computer(s)”; (2) Climate control equipment and fire protective equipment used exclusively with your "computer equipment"; (3) Programming documentation and instruction manuals; and (4) The necessary loss of Business Income and Extra Expense as provided in the Additional Coverages for Business Income and Extra Expense you incur to avoid or minimize the suspension of business and to continue “operations” because of direct physical loss or damage to covered property. b. We will not pay for any loss or damage to the following property: (1) Property you rent, loan or lease to others while it is away from the described premises ; (2) Property you hold for sale, distribute or manufacture except as provided under paragraph A. 1. Covered Property, sub-paragraph b.; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 25 of 33 (3) “Software” that cannot be duplicated or replaced with similar property of equal quality and/or substantially similar functionality. c. If we provide Building coverage only, we will only pay for loss to computers that service building operations at the insured’s described premises and are located at the insured’s described premises. d. Regardless of the number of insured locations involved, the most we will pay for loss or damage under this Additional Coverage to property listed in a.(1) to a.(4) in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance under Paragraph B. Blanket Coverage. Regardless of the Blanket Limit Of Insurance, the most we will pay for Extra Expense is $5,000. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. e. This insurance is excess to any other insurance also covering “computer equipment” or “computer(s)”. f. Exclusions B. 1. b. and B. 1. g. do not apply to this Additional Coverage. g. We will not pay for loss or damage: (1) To any property not sustaining direct physical loss or damage even if covered loss or damage to other covered property renders such associated or related items unusable or otherwise unfit. (2) This exclusion applies to “software” or “hardware”. (3) Such loss to associated or related items is not considered to have suffered direct physical loss or damage for purposes of this insurance. h. For purposes of this Additional Coverage, the following definitions are added: (1) “Computer” means: (a) Programmable electronic equipment that is used to store, retrieve and process data; and (b) Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. (2) “Computer equipment “ means: (a) computer “hardware” and related component parts. Component parts include but are not limited to modems, printers, keyboards and scanners; (b) computer control systems including uninterruptable power supply systems, line conditioner and voltage regulator; and (c) “software”; and (d) “electronic data”. (3) “Hardware” means an assemblage of electronic machine components capable of accepting instructions and information according to the instructions, and producing desired results. (4) “Software” means processing, recording, or storage media used for computer processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells. 6. Expediting Expense Under paragraph A.5. Additional Coverages, the following is added: a. When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (1) Make temporary repairs; (2) Expedite permanent repair or replacement of damaged property; or (3) Provide training on replacement machines or equipment. b. The most we will pay for loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. 7. Fire Department Service Charge Under paragraph A.5. Additional Coverages, paragraph c. Fire Department Service Charge is replaced with the following: When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay for your liability for fire department service charges unless a higher Limit Of Insurance is shown in the Declarations if: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. The most we will pay for loss under this Additional Coverage in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance. 8. Inventory And Loss Appraisal INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 26 of 33 Under paragraph A. 6. Coverage Extensions, the following is added: a. We will pay for all reasonable expenses you incur at our request to assist us in: (1) The investigation of a claim; (2) The determination of the amount of loss, such as taking inventory; or (3) The cost of preparing specific loss documents and other supporting exhibits. b. The most we will pay under this Coverage Extension per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to these expenses. c. We will not pay for: (1) Expenses incurred to perform your duties in the event of a loss under Section I – E. Property Loss Conditions; (2) Expenses to prove that loss or damage is covered; (3) Expenses billed by and payable to independent or public adjusters; attorneys; or any of their affiliated or associated entities; (4) Expenses to prepare claims not covered by this Coverage Form; or (5) Expenses incurred under any appraisal provisions within the policy. 9. Key Replacement And Lock Repair Under paragraph A.6. Coverage Extensions, the following is added: You may extend the insurance provided under this Coverage Form to apply to consequential loss or damage, caused by or resulting from a covered Cause of Loss, for the cost incurred for: a. The actual cost to replace keys; b. Consequential loss to keys and locks if a master key is lost or damaged resulting from a Covered Cause of Loss; or c. Rekeying or replacing lock sets, including new locks and installation costs. The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 10. Lessor’s Lease Cancellation Under paragraph A.5. Additional Coverages, the following is added: a. We will pay the actual loss of business income you sustain due to the cancellation of a lease by your tenants in a Covered Building due to untenantability that is caused by direct physical loss or damage to that building from a Covered Cause of Loss. This Additional Coverage only applies if at the time of loss the building was occupied and business was being conducted by the tenant cancelling the lease or their sublessee. b. We will pay for loss of business income that you sustain after tenantability is restored and until the earlier of: (1) The date you lease the premises to another tenant; or (2) 12 months immediately following the “period of restoration”. c. Regardless of the number of tenants cancelling a lease at the described premises, the most we will pay under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. d. We will not pay for: (1) Lease cancelled after the “period of restoration”; (2) Lease cancelled, suspended or allowed to lapse by you; (3) Return of prepaid rent or security and other deposits made by tenants; or (4) Lease cancelled at the normal expiration date. 11. Outdoor Property a. Under paragraph A.6. Coverage Extensions, sub-paragraph c. Outdoor Property is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Vehicles that you do not own, operate or lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 27 of 33 The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance, but not more than $5,000 for any one, tree, shrub or plant. 12. Personal Property Off-Premises Under paragraph A.6. Coverage Extensions, sub-paragraph b. Personal Property Off-Premises, is replaced with the following: (1) You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, but other than “money” and “securities, “valuable papers and records” or accounts receivable, while: (a) Temporarily at a location you do not own, lease or operate; or (b) At any fair, trade show or exhibition. (2) The most we will pay for loss or damage under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 13. Special Event Cancellation – Rental Expenses Under paragraph A.5. Additional Coverages, the following is added: If you have scheduled a special event directly related to your business as a Veterinarian and that event is cancelled due to loss or damage to Covered Property from a Covered Cause of Loss, we will reimburse you for expenses you paid to rent equipment for that event including rental of tent, or other such enclosures, tables, chairs and sound systems. The most we will pay for loss under this Additional Coverage in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 14. Tenant Relocation Expense Under paragraph A.5. Additional Coverages, the following is added: a. In the event that your tenants must temporarily vacate the covered Building at the described premises due to untenantability caused by direct physical loss or damage by a Covered Cause of Loss, we will pay the following expenses you actually incur to move those tenants out of and back into your covered Building. b. We will only pay for the following expenses: (1) Packing, and transporting tenant’s Business Personal Property including the cost of insuring the move out and back and any necessary disassembly and reassembly or setup of fixtures and equipment; and (2) The net cost to discontinue and re-establish the tenants’ utility and telephone services, after any refunds due the tenants. (3) Costs to unpack and reshelf stock and supplies. Covered Relocation Costs do not include: (a) Loss caused by the termination of a lease or other agreement; or (b) Security deposits or other payments, forfeiture or penalties to the landlord or lessor of other premises. c. We will only pay for these expenses that you actually incur within 30 days of the date that the damaged buildings has been repaired or rebuilt. Regardless of the number of tenants’ involved, the most we will pay in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 15. Utility Services a. Under paragraph A.5. Additional Coverages, the following is added: (1) We will pay for loss of or damage to Covered Property caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown below in paragraph (3) below. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. (2) We will pay for loss of Business Income (not including Extended Business Income) or Extra Expense caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 28 of 33 (3) Services: (a) Water Supply Services, meaning the following types of property supplying water to the described premises: i. Pumping stations; and ii. Water mains. (b) Communication Supply Services, meaning property supplying communication services, including telephone, radio, microwave or television services to the described premises, such as: i. Communication transmission lines, including optic fiber transmission lines; ii. Coaxial cables; and iii. Microwave radio relays except satellites. It does not include overhead transmission lines or overhead distribution lines. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: i. Utility generating plants; ii. Switching stations; iii. Substations; iv. Transformers; and v. Transmission lines, But does not include overhead transmission lines, overhead distribution lines, overhead transformers or any other overhead service equipment or similar (however mounted and whatever mounted upon) equipment. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. b. Under paragraph B. Exclusions, e. Utility Services, the last paragraph is replaced with the following: This exclusion does not apply to loss or damage to “computer(s)” and “electronic data” or to the Utility Services Additional Coverage. 16. Valuable Papers And Records Under paragraph A. 6. Coverage Extensions, e. Valuable Papers And Records, paragraph (3) is replaced with the following: Regardless of the number of locations involved, the most we will pay under this Coverage Extension for loss or damage in any one “occurrence” for “valuable papers” at the described premises or “valuable papers” not at the described premises, is subject to the Blanket Coverage Limit Of Insurance. C. SECTION II- LIABILITY The following paragraphs amend coverage provided under SECTION II – LIABILITY of the Businessowners Coverage Form. 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Paragraph C. Who Is An Insured is amended to include as an insured any person or organization for whom you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy. The insurance provided to the additional insured is limited as follows: a. That person or organization is only an additional insured with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused in whole or in part by: (1) Premises you own, rent, lease, or occupy; or (2) Your ongoing operations performed for that insured. (3) In connection with “your work” and included within the “products-completed operations hazard”, but only if: (a) The written contract or written agreement requires you to provide such coverage to the additional insured; and (b) This policy provides coverage for “bodily injury” or “property damage” included within the “products-completed operations hazard”. b. With respect to the insurance afforded to these additional insureds, the following is added to paragraph D. Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: (1) Required by the contract or agreement; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 29 of 33 (2) Available under the applicable Limits Of Insurance shown in the Declarations; whichever is less. c. If specifically required by a contract, agreement or permit, coverage provided by this insurance shall be primary and any other insurance available to the additional insured shall be excess and non- contributing. 2. Alienated Premises Paragraph B.1. Exclusions, sub-paragraph k.(2) is replaced with the following: Premises you sell, give away or abandon, if the “property damage” arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 3. Bodily Injury Redefined Paragraph F. Liability and Medical Expenses Definitions, sub-paragraph 3. “Bodily Injury” is replaced with the following: “Bodily injury” means bodily injury, disability, sickness or disease sustained by a person, including death resulting from any of these at any time. “Bodily Injury” includes mental anguish, mental injury, shock, fright or death resulting from “bodily injury”, sickness or disease. 4. Broad Form Property Damage – Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to paragraph B. 1. Exclusions, sub-paragraph k.: Sub-paragraph (4) does not apply to “property damage” to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to “property damage” to “customers goods” while on your premises nor to the use of elevators. b. The following definition is added to paragraph F. Liability and Medical Expenses Definitions: “Customers goods” means property of your customer on your premises for the purpose of being: (1) Worked on; or (2) Used in your manufacturing process. (3) The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Broadened Named Insured For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 3. is added as follows: All of your subsidiaries, companies, corporations, firms, or organizations, as now or hereafter constituted, qualify as insureds under this policy if: a. You have the responsibility of placing insurance for each such entity; and b. Coverage for the entity is not otherwise more specifically provided; and c. The entity is incorporated or organized under the laws of the United States of America. But each entity is insured only while you own, during the policy period, a controlling interest in such entity of greater than 50% of the stock or assets. However coverage: (1) Under this provision is afforded only until the end of the policy period, or the 12 month anniversary of the policy inception date, whichever is earlier; (2) Does not apply to “bodily injury” or “property damage” that occurred before you acquired or formed the organization; and (3) Does not apply to “personal and advertising injury” arising out of an of fense committed before you acquired or formed the organization. 6. Broadened “Personal And Advertising Injury” a. For purposes of the coverage provided by this endorsement, definition, F. Liability And Medical Expenses Definitions, paragraph 14. “Personal And Advertising Injury” is replaced with the following: “Personal and advertising injury” means injury, including consequential “bodily injury”, arising out of one or more of the following offenses: (1) False arrest, detention or imprisonment; (2) Malicious prosecution; (3) The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 30 of 33 (4) Oral or written, televised or videotaped publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; (5) Oral or written, televised or videotaped publication, in any manner, of material that violates a person's right of privacy; (6) The use of another's advertising idea in your "advertisement"; (7) Infringing upon another's copyright, trade dress or slogan in your "advertisement"; (8) Infringement of trademark, copyright, title, trade secret or slogan; (9) Misappropriation of advertising ideas or style of doing business. b. For purposes of the coverage provided by this endorsement, definition, B.1. Exclusions Applicable to Business Liability Coverage, paragraph p. Personal and Advertising Injury, sub-paragraph (12) is replaced with the following: Arising out of the infringement of patent. 7. Damage to Premises Rented To You – Revised Limit For purposes of the coverage provided by this endorsement, D. Liability And Medical Expenses Limits Of Insurance, paragraph 3. is replaced with the following: The most we will pay under Business Liability Coverage for damages because of “property damage” to any one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit Of Insurance for Damage to Premises Rented To You shown in the Declarations. 8. Fellow Employee Coverage For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 2.a. is replaced with the following: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 9. Newly Acquired Organizations For purposes of the coverage provided by this endorsement, C. Who Is An Insured, the following is added: Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Business Liability Coverage does not apply to: (1) “Bodily injury” or “property damage that occurred before you acquired or formed the organization; and INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 31 of 33 (2) “Personal and advertising injury” arising out of an offense committed before you acquired or formed the organization. (3) “Bodily injury” or “property damage” do not apply to “product recall expense” arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 10. Product Recall Expense a. The following is added to paragraph B. 1. Exclusions, sub-paragraph o. Recall of Products, Work or Impaired Property This exclusion does not apply to “product recall expenses” that you incur for the “covered recall” of “your product”. However, this exception does not apply to “product recall expenses” resulting from: (1) Failure of any products to accomplish their intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of “your product” which has been recalled by like products or substitutes; (5) Caprice or whim of the insured; (6) A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (7) Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (8) Recall of “your products” that have no known or suspected defect solely because a known or suspected defect in another of “your products” has been found. b. The following is added to paragraph E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated “covered recall” that may result in “product recall expense”: (1) Give us prompt notice of any discovery or notification that “your product” must be withdrawn or recalled. Include a description of “your product” and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. c. The following definitions are added to paragraph F. Liability and Medical Expenses Definitions: (1) “Covered recall” means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in “your product” has resulted or will result in “bodily injury” or “property damage”. (2) “Product recall expense(s)” means: (a) Necessary and reasonable expenses for: i. Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; ii. Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; iii. Remuneration paid to your regular “employees” for necessary overtime; iv. Hiring additional persons, other than your regular “employees”; v. Expenses incurred by “employees” including transportation and accommodations; vi. Expenses to rent additional warehouse or storage space; vii. Disposal of “your product”, but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid “bodily injury” or “property damage” as a result of such disposal, you incur exclusively for the purpose of recalling “your product”; and (b) Your lost profit resulting from such “covered recall”. d. The following are added to paragraph D. Liability and Medical Expenses Limits of Insurance: The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) An Aggregate Limit of $50,000 is the most that we will reimburse you for the sum of all “product recall expenses” incurred for all “product recall expenses” initiated during the policy period. (2) An Occurrence Limit of $25,000 is the most we will pay in connection with any one defect or deficiency. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 32 of 33 (a) All “product recall expenses” in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one “occurrence”. (b) Any amount reimbursed for “product recall expenses” in connection with any one “occurrence” will reduce the amount of the Aggregate Limit available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (c) If the Aggregate Limit has been reduced by reimbursement of “product recall expenses” to an amount that is less than the Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (3) This coverage is not subject to the Limits of Insurance of SECTION II – LIABILITY. (4) A deductible of $500 applies per each “occurrence”. 11. Supplementary Payments – Cost of Bail Bonds Broadened For purposes of the coverage provided by this endorsement, A.1. Business Liability, paragraph f. Coverage Extension – Supplementary Payments, sub-paragraph (1)(b) is replaced with the following: The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability for “bodily injury” applies. We do not have to furnish these bonds. 12. Unintentional Failure to Disclose Hazards The following is added to paragraph E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional and you provide immediate notification of the failure or omission to the company. 13. Unintentional Failure to Notify The following is added to paragraph E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: Your rights afforded under this Coverage Form shall not be prejudiced if you fail to give us notice of an “occurrence”, offense, claim or “suit”, solely due to your reasonable and documented belief that the “bodily injury” or “property damage” is not covered under this Policy. The following paragraphs amend coverage provided under the Veterinarians Professional Liability form and apply only if Veterinarians Professional Liability coverage is provided under this policy. 14. Veterinarians Professional Liability - Broadened Definition Of “Employee” The definition of “employee” in Paragraph F. Liability and Medical Expenses Definitions is replaced with the following: “Employee” includes a “leased worker”, a “volunteer worker”, an intern and an extern, unlicensed “employee” while acting at the direction of a licensed professional or “temporary worker”. “Employee” also includes a pet groomer, a pet trainer or an animal behaviorist who is employed by you or performing services on your behalf. However, “employee” does not include a pet trainer or animal behaviorist while training any animal for attack or guard purposes. 15. Veterinarians Professional Liability - Consent To Settle The following is added: We will not settle any claim or “suit” without the insured’s consent. 16. Veterinarians Professional Liability - Legal Defense Expense – Veterinary Medical Board Extension Coverage The following is added: Coverage Extension – Supplementary Payments: a. We will pay the costs to defend legal actions resulting from inquiries, lawsuits, and challenges from the state licensing Veterinary Medical Board or their representative. We will provide payment for consultations and expert witnesses hired to aid in the defense of allegations, whether groundless or not. b. Coverage is provided for the following costs: (1) Legal defense expenses; (2) Consultant fees; (3) Expert witness fees; and (4) Other reasonable expenses to defend Veterinarian’s Medical Board Actions. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 33 of 33 However, we will not pay for the following: (5) Fees to reimburse the veterinarian’s time or expenses; or (6) Fines and penalties assessed as a result of an inquiry, lawsuit or challenge from the state licensing Veterinary Medical Board. The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph D. Liability And Medical Expenses Limits Of Insurance: Subject to paragraph 4. Aggregate Limits, coverage provided under the Legal Defense Expense – Veterinary Medical Board Coverage Extension is limited to sub-limits of $100,000 per claim and $100,000 in the aggregate applicable separately to each veterinarian who is an insured under the Veterinarians Professional Liability. Our duty to defend ends when we have exhausted such sub-limit. 17. Veterinarians Professional Liability - Veterinary Technicians The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph B.3. Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage- Nuclear Energy Liability Exclusion: However, this exclusion does not apply to registered veterinary technicians. All other terms and conditions of the policy remain unchanged. INSURED 09/30/2020 Rice Insurance LLC 1400 Broadway P.O. Box 639 Bellingham WA 98227 Molly Marroy (360) 734-1161 (360) 734-1173 mollym@riceinsurance.com Auburn Valley Humane Society 4910 A St SE Auburn WA 98092 Nova Casualty Company Austin Mutual Insurance Co 13412M CL2082475788 A Y VETIB1000074904 09/23/2020 09/23/2021 1,000,000 50,000 10,000 1,000,000 2,000,000 2,000,000 B B1P1339P 09/23/2020 09/23/2021 1,000,000 A VETIB1000074904 WA Stop Gap 09/23/2020 09/23/2021 1,000,000 1,000,000 1,000,000 A Veterinarians Professional Liability VETIB1000074904 09/23/2020 09/23/2021 Each Occurance 1,000,000 Aggregate 2,000,000 Certificate Holder is Additional Insured per attached form ABP0138 0215. City of Auburn 25 W Main Street Auburn WA 98001 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 1 of 33 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY VETERINARIANS AND PET SERVICES EXTRA ENDORSEMENT - WASHINGTON This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM VETERINARIANS PROFESSIONAL LIABILITY SUMMARY OF COVERAGES AND LIMITS This is a summary of the various coverages and limits provided by this endorsement. No coverage is provided by this summary. Refer to the provisions of Sections A. through C. to determine the scope of the insurance protection provided by this endorsement. A. SCHEDULED COVERAGES Limit Page 1. Animal Bailee Coverage $50,000 3 2. Animal Damage To Property Included 5 3. Backup Of Water And Sump Overflow Included 5 4. Boundary Extension 1,000 feet 6 5. Brands And Labels $10,000 6 6. Broad Form Water Damage Included 6 7. Building Damage From Theft Included 7 8. Building Enhanced Replacement Cost Included 7 9. Business Income (Loss Of) 24 Months ALS 8 10. Business Personal Property- Automatic Increase 2% Quarterly 8 11. Catastrophe Allowance $10,000 8 12. Civil Authority 6 Consecutive Weeks No Waiting Period 8 13. Commercial Tools and Equipment $5,000 per occurrence $1,000 per tool $2,500 per tool box 8 14. Covered Property – Amended Building Definition Included 9 15. Covered Property- Enhanced Replacement Cost Included 10 16. Deductibles Various 11 17. Deferred Payments $5,000 12 18. Employee Dishonesty Including ERISA Compliance $50,000 12 19. Extended Business Income 365 Days 13 20. Fine Arts $10,000 13 21. Forgery And Alteration $50,000 13 22. Garages, Storage Buildings And Other Appurtenant Structures $50,000 13 23. Glass Expenses Included 14 24. Identity Theft Expense $25,000 14 25. Installation $5,000 15 26. Leasehold Interest (Tenant’s only) $10,000 15 27. Marring And Scratching Included 16 28. Money And Securities Inside The Premises Money And Securities Outside The Premises $50,000 $50,000 16 29. Money Orders And Counterfeit Paper Currency $25,000 16 30. Newly Acquired Or Constructed Property 180 days 16 31. Newly Acquired Or Constructed Property – Business Income And Extra Expense $500,000 16 32. Ordinance Or Law – Demolition Cost Coverage Ordinance Or Law – Increased Cost Of Construction Ordinance Or Law – Increased Period Of Restoration Ordinance Or Law – Tenant’s Improvement Extension Building Limit Plus $50,000 Building Limit Plus $50,000 $10,000 Included 16 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 2 of 33 A. SCHEDULED COVERAGES Limit Page 33. Personal Effects $10,000 19 34. Personal Property In Transit $50,000 19 35. Preservation Of Property – Expense $25,000 20 36. Salesperson’s Samples $5,000 20 37. Soft Costs $10,000 20 38. Spoilage- Animal Semen $10,000 21 39. Temporary Relocation Of Property $50,000 21 40. Tenant Signs (Tenants only) $5,000 21 41. Unauthorized Business Credit Card use $5,000 21 42. Vacancy Loss Condition Deleted 22 43. Valuation – Medical Equipment Replacement Cost Plus 15% 22 44. Virus and Hacking Coverage $10,000 22 B. BLANKET COVERAGES Limit $1,000,000 Page 1. Accounts Receivable Included 23 2. Business Income From Dependent Properties Included 23 3. Extra Expense From Dependent Properties Included 23 4. Business Income And Extra Expense – Mobile Veterinary Clinic Included 23 5. Computer Equipment Included 24 6. Expediting Expense Included 25 7. Fire Department Service Charge Included 25 8. Inventory And Loss Appraisal Included 25 9. Key Replacement And Lock Repair Included 25 10. Lessor’s Lease Cancellation Included 25 11. Outdoor Property – Per Item Limit $5,000 Included 26 12. Personal Property Off-Premises Included 26 13. Special Event Cancellation – Rental Expense Included 26 14. Tenant Relocation Expense Included 26 15. Utility Services – Direct Damage Utility Services – Time Element Included Included 27 16. Valuable Papers And Records Included 27 C. SECTION II- LIABILITY Page 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Included 28 2. Alienated Premises Included 28 3. Bodily Injury Redefined Included 28 4. Broad Form Property Damage- Borrowed Equipment, Customers Goods and use of Elevators Included 28 5. Broadened Named Insured Included 28 6. Broadened “Personal And Advertising Injury” Included 29 7. Damage To Premises Rented To You – Revised Limit $1,000,000 29 8. Fellow Employee Coverage Included 30 9. Newly Acquired Organizations 180 Days 30 10. Product Recall Expense $25,000 Occurrence $50,000 Aggregate 31 11. Supplementary Payments – Cost Of Bail Bonds Broadened Actual cost 31 12. Unintentional Failure to Disclose Hazards Included 31 13. Unintentional Failure to Notify Included 31 14. Veterinarians Professional Liability – Broadened Definition Of “Employee” Included 32 15. Veterinarians Professional Liability – Consent To Settle Included 32 16. Veterinarians Professional Liability – Legal Defense Expense – Veterinarian Medical Board Extension Coverage $100,000 Per Claim $100,000 Aggregate Per Vet 32 17. Veterinarians Professional Liability - Veterinary Technicians Included 32 INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 3 of 33 COVERAGES Unless otherwise indicated, the limits shown in this endorsement are not additional amounts of insurance to the Limits of Insurance provided by your policy. The Building and Business Personal Property Deductibles shown on the Declarations apply unless otherwise indicated. If this endorsement and any other coverage part, form, endorsement or policy that is issued to you by us apply to the same loss, damage or expense, the maximum Limit of Insurance combined shall not exceed the highest applicable Limit of Insurance under any one coverage part, form, endorsement or policy. A. SCHEDULED COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the BUSINESSOWNERS COVERAGE FORM. 1. Animal Bailee Coverage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss or damage to “covered animals” while in your care, custody or control for veterinary services at any insured premises or while in transit in your owned, leased or hired vehicles. Such veterinary services include treatment, breeding, grooming, and boarding. Loss under this Additional Coverage includes escape. For purposes of this Additional Coverage, the following definition is added: “Covered animals” means animals of others while in your care, custody or control and includes animals of others at any insured premises awaiting or receiving veterinary services or animals owned by you or your “employees”. “Covered animals” does not include animals held for sale, lease or rental to others. For purposes of this Additional Coverage, under Paragraph A.2. Property Not Covered, Sub- Paragraph j. is deleted. b. Under this Additional Coverage, we will also pay for the following: (1) Legal Liability (a) Damages We will pay all sums you become legally obligated to pay as damages because of your liability for loss to “covered animals” caused by or resulting from a Covered Cause of Loss. Our obligation for payment of damages under this coverage does not apply to your liability for the actual value of the “covered animals” as insured elsewhere under this Additional Coverage. (b) Defense We will have the right and duty to defend any “suit” against you seeking damages for loss to “covered animals” caused by or resulting from an “occurrence”, even if any of the allegatio ns of the “suit” are not true. However, we will have no duty to defend the insured against any “suit” seeking damages for loss to “covered animals” to which this insurance does not apply. We may, at our discretion, investigate any “occurrence” and settle any claim or “suit” that may result. After we have paid the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage in a settlement or pursuant to a judgment, we have no duty: i. To pay any other sums as damages; or ii. To defend any “suit” including the one which has been settled or on which a judgment has been paid. (c) Supplementary Payments In addition to the Limit Of Insurance that applies to damages under paragraph b.(1)(a) of this Additional Coverage, we will pay: i. Expenses we incur to adjust claims or suits; ii. Costs, including all expenses of litigation taxed against you in any “suit” we defend; iii. All interest which accrues after the entry of a judgment in a “suit” we defend. Our duty to pay interest ends when we pay that part of the judgment which does not exceed our Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage. iv. Premiums on appeal bonds: (i) In any “suit” we defend; (ii) To release attachments in any “suit” we defend. But we will not pay the premiums for bond amounts greater than the applicable Limits of Insurance specified in paragraph b.(1)(a) of this Additional Coverage, and we have no obligation to apply for or defend against a claim or “suit”. These payments will not reduce the limit of liability. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 4 of 33 (2) Additional Expenses We will pay the reasonable expense you incur for: (a) The recovery of a “covered animal”; and (b) Putting a “covered animal” to death when such death is made necessary by a Covered Cause of Loss. This Additional Coverage does not apply to any: (a) Expense for advertising; or (b) Reward offered. The most we will pay in any one loss under this Additional Expense provision, regardless of the number of “covered animals” in your care, custody or control is $2,500. The most we will pay under this Additional Expense provision in any one policy period, regardless of the number of “occurrences” is $5,000.+ (3) Preservation Expense If it is necessary to move “covered animals” to preserve them from loss by a Covered Cause of Loss, we will pay the actual expense to move the “covered animal” to safety. The most we will pay in any one “occurrence” for moving the “covered animals” is $25,000, regardless of how many “covered animals” are in your care, custody or control. (4) Uncollectible Accounts (a) In the event of loss to “covered animals” caused by or resulting from a Covered Cause of Loss, we will also pay your accrued charges not collected from the customers as a result of the loss. There will be no recovery for accrued charges which were more than ninety (90) days delinquent from the end of the month in which the payment was due. Uncollectible accounts that predate the policy effective date do not qualify under this provision. (b) The most we will pay for accrued charges due from any one customer is $250. The most we will pay for accrued charges in any one “occurrence” is $1,000. We will not pay for uncollectible charges on any claim for which the loss to the “covered animals” is less than the deductible that applies to such loss. (5) Advertising and Reward (a) We will pay the cost of advertising in newspapers to aid in the recovery of “covered animals” that are lost or stolen while in your care, custody or control. “Covered animals” stolen by your “employees” are not covered under this coverage. (b) We will also pay a reward to the person or persons, who are not “employees”, who provide information leading to the recovery of the “covered animals” lost or stolen. The most we will pay in any one “occurrence” for advertising expense and rewards under this coverage provision, regardless of the number of “covered animals” lost or stolen, is $2,500. c. Cause Of Loss We will pay risks of direct physical loss to “covered animals” from any cause of loss except where limited or excluded in Paragraph d. below. d. Exclusions For purposes of this Additional Coverage, the following apply: (1) Section I – Property, B. Exclusions and Section I – Property, 4. A. Coverage, Paragraph 4. Limitations, apply to this Additional Coverage. (2) 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) Any rendering or failure to render professional services; (b) Conditions, including but not limited to, injury or illness, which existed prior to the animal coming into your care, custody or control. (c) Any disease or sickness, or death by natural causes; or (d) The seizure or destruction of animals by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is otherwise covered under this policy, subject to the Limit Of Insurance under paragraph e. below. e. Limit Of Insurance The most we will pay under this Additional Coverage, regardless of the number of “covered animals” in your care, custody or control is $50,000 unless this limit has been increased by an endorsement attached to this policy. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 5 of 33 2. Animal Damage To Property Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for the actual direct physical loss or damage to Covered Property caused by or resulting from animals which you do not own but are in your care, custody or control for treatment, grooming, boarding, daycare, breeding or training. The loss or damage must be caused by or the result of a Covered Cause of Loss. b. For purposes of this Additional Coverage, the following Exclusions are added to paragraph B. Exclusions: (1) Caused by or resulting from wear or tear; (2) Caused by or resulting from your failure to use care in the maintenance of the property; or (3) Which cannot be identified as occurring at a specific point in time and did not become known to you within 48 hours thereafter. c. If the covered loss or damage is to real property which you own, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Building at the premises where the loss or damage occurred. If the covered loss or damage is to real property which you do not own but which you occupy for your business for which you have a contractual responsibility to insure, or to Business Personal Property, the most we will pay for loss or damage under this Additional Coverage is the Limit Of Insurance that applies to your Business Personal Property. d. Payments under this Additional Coverage do not increase the Limit Of Insurance that applies to your Building or to your Business Personal Property. The Limit Of Insurance that applies to your Business Personal Property is the most we will pay in any one “occurrence” for loss or damage to your Business Personal Property and for loss arising from animal damage to property you do not own but which you occupy for business combined. e. Coverage provided under this Additional Coverage for Animal Damage to property that you occupy for business for which you have a contractual responsibility to insure is primary insurance and will not seek contribution from any other insurance available to the lessor. 3. Backup Of Water And Sump Overflow Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property, covered under Section I – Property, caused by or resulting from: (1) Water or waterborne material which backs up through or overflows or is otherwise discharged from a sewer or drain; or (2) Water or waterborne material which overflows or is otherwise discharged from a sump, sump pump or related equipment, even if the overflow or discharge results from mechanical breakdown of a sump pump or its related equipment; or However, with respect to paragraph a.(2), we will not pay the cost of repairing or replacing a sump pump or its related equipment in the event of mechanical breakdown. b. The coverage described in paragraph a. of this endorsement does not apply to loss or damage resulting from: (1) An insured's failure to keep a sump pump or its related equipment in proper working condition; (2) An insured's failure to perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions; or (3) Sump pump failure which is caused by or results from failure of power, unless this policy is endorsed to cover power failure affecting the described premises. c. Regardless of the number of insured locations involved, the most we will pay under this Additional Coverage for loss or damage in any one “occurrence” is included in the Limits Of Insurance for Covered Property. This Additional Coverage does not increase the Limits Of Insurance. d. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: Water (1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 6 of 33 (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in paragraphs (1) through (4), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, 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 (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the back up of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. e. For the purposes of this endorsement, the term drain includes a roof drain and related fixtures. 4. Boundary Extension All references to property “within 100 feet of the described premises” are changed to property “within 1,000 feet of the described premises”. 5. Brands and Labels Under paragraph A. 6. Coverage Extensions, the following is added: If Covered Property that has a brand or label is damaged by a Covered Cause of Loss, and we elect to take all or any part of the property at an agreed or appraised value, you may extend the insurance that applies to your Business Personal Property to pay expenses incurred to: a. Stamp salvage on the property or its container, if the stamp will not physically damage the property; or b. Remove the brand or label, if doing so will not physically damage the property or its container, and re- label the merchandise or its containers to comply with the law. The most we will pay for any loss under this Extension is $10,000 per “occurrence”. Payment of these expenses is included within the applicable Limit Of Insurance. 6. Broad Form Water Damage Under Paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct physical loss or damage to Covered Property caused by or resulting from water under the ground surface pressing on, or flowing or seeping through: (1) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings. b. We will not pay for loss or damage in any one “occurrence” until the amount of loss or damage exceeds $1,000. This deductible is to apply separately: (1) To each building, including personal property therein; (2) To personal property in each building if no coverage is provided on the containing building; and (3) To personal property in the open. The aggregate amount of this deductible in any one “occurrence” shall not exceed $5,000. We will then pay the amount of loss or damage in excess of the deductible up to the applicable Limit of Insurance. c. With respect to the coverage provided under this Additional Coverage, sub-paragraph g. Water of Paragraph B. Exclusions is deleted and replaced by the following: (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; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 7 of 33 (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; or (4) Waterborne material carried or otherwise moved by any of the water referred to in paragraph (1) or (3) above or material carried or otherwise moved by mudslide or mudflow. This exclusion applies if any of the above, in paragraphs (1) through (4): (1) Occurs independently; (2) Is caused by an act of nature; (3) Is caused by an act or omission of humans or animals; or (4) Is attributable to the failure, in whole or in part, of a dam, levee, seawall or other boundary or containment system. But if any of the above, in (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. 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. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. In supplement to exclusion d. Water above, the following applies: This coverage is intended to provide insurance for damage by sub-terranean water when such event is a localized incident – not part of a general, widespread flood water event. We will not pay for loss or damage to property when the subterranean water described in a. above is itself caused by any flood or general flooding conditions – including but not limited to those enumerated under the Water exclusion. We will not pay for loss or damage to property when the backup of the sewer or drain is caused by any flood or general flooding conditions. Flood and flooding conditions means surface water or other inundation of water, whether caused directly or indirectly by weather conditions, or due to overflow or breach of dams, levees, canals, retaining structures of any kind, or other structure designed to, at least in part, restrain or redirect water or any combination of the foregoing; overflow or redirection of streams, ponds, lakes, oceans or other bodies of water, or their spray, whether driven by wind or not and whether or not caused directly or indirectly by weather conditions, or any combination of the foregoing. 7. Building Damage From Theft Under paragraph A. 1. Covered Property, sub-paragraph b. Business Personal Property, the following is added: Physical damage to a building leased to you from theft or attempted theft, burglary or robbery. Theft means any act of stealing. 8. Building Enhanced Replacement Cost Under paragraph C. Limits Of Insurance, sub-paragraph 4. Building Limit – Automatic Increase is replaced with the following: a. If Covered Property is written on a Replacement Cost basis: (1) The Limit of Insurance for Buildings will automatically be revised by changes that occurred in the cost of construction during the preceding policy year. (2) The amount of increase will be determined by reports of a recognized valuation method. (3) We will inform you of such adjusted values. Upon their acceptance, you agree to pay any additional premium for the adjusted limit. Payment of your renewal premium which includes the revised Limit of Insurance, shall constitute acceptance. (4) We will pay the replacement cost value of the damaged portion of the building at the time of loss, but not more than 150% of the Limit of Insurance for Building if: (a) The amount of any loss covered by this policy exceeds the Limit of Insurance for Building stated in the Declarations for the damaged Building; and (b) The Building Enhanced Replacement Cost does not apply to loss payable under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Construction property, (1) Buildings. (c) The actual repair or replacement is completed within one year of the date of loss. b. The Building Limit – Automatic Increase clause will not apply if: (1) You do not accept the adjusted value; or (2) You do not inform us of changes to covered Building: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 8 of 33 (a) Within sixty (60) days of the date any additions, improvements or enlargements to the building are begun, and (b) When the replacement value of the changes are more than 5% of the Limit of Insurance for the building 9. Loss of Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph f.(1)(b), is replaced with the following: We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within 24 consecutive months beginning immediately after the date of direct physical loss or damage. For purposes of this insurance, all recoverable loss ceases when the “period of restoration” ends. 10. Business Personal Property- Automatic Increase Under paragraph C. Limits of Insurance, the following is added: Your coverage for Business Personal Property will be automatically increased each quarter by 2%. Adjustment in the Limit of Insurance for Business Personal Property will occur at each anniversary subject to a cap of 8% annually. 11. Catastrophe Allowance Under paragraph A.6. Coverage Extensions, the following is added: a. This Coverage Extension applies when the direct physical loss or damage to Building and Business Personal Property is the result of an insured event for which Property Claims Service has publicly designated a catastrophe number to the event. b. You may extend the insurance provided under this Extension if the limits provided under Section C. Limits Of Insurance for Building and Business Personal Property Coverage are insufficient to compensate you for covered loss or damage you incur as a result of the insured Catastrophe event. c. This Extension may not be applied to the deductible amount of this policy or any other policy. It also may not be used to cover any loss or damage that would not be covered under this policy. The most we will pay under this Extension in any one “occurrence” is $10,000. The most we will pay under this Extension during each separate 12 month period of this policy is $10,000. 12. Civil Authority Under paragraph A.5. Additional Coverages, sub-paragraph i. Civil Authority, is replaced with the following: When Loss of Business Income Coverage is provided under this policy: We will pay for the actual loss of Business Income (not including Extended Business Income, you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property within 1 mile of the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin immediately after the time of that action and will apply for a period of up to six consecutive weeks after coverage begins. 13. Commercial Tools and Small Equipment Under paragraph A.5. Additional Coverages, the following is added: This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to commercial tools and small equipment including communication devices and diagnostic equipment usual to your business “operations” which are: (1) your property (2) the property of others in your care, custody or control or (3) the property of your “employees”. Damage to the property of your “employees” is limited to while on the described premises. b. This coverage only applies to any one tool or piece of small equipment with an actual cash value of $2,500 or less, unless listed on a schedule included with the policy. c. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”, or the amount shown in the Additional Property Coverage Schedule, but not more than $1,000 for any one tool and not more than $2,500 for any one tool box, including the tools contained therein, or piece of small equipment. d. This Additional Coverage is not subject to the Limits of Section I – Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 9 of 33 e. In addition to items listed within Property Not Covered, we will not pay for any loss to the following property: (1) Watercraft or watercraft parts and equipment; (2) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (3) Tires or tire tubes, attached or unattached, for use with Commercial tools and small equipment, unless the loss or damage is caused by “theft”, malicious mischief, or the result one of a ”specified cause of loss”; or (4) Any property while underground, airborne or waterborne. (5) Exclusions B.1.b. and B.1.g. of the Businessowners Coverage Form do not apply to this Additional Coverage. f. We will not pay for any loss caused by or resulting from: (1) Any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion; (2) “Theft” from an unattended vehicle including loss: (a) From inside a vehicle, including trailers; or from a permanently-mounted toolbox; except when i. securely locked, ii. there is visible evidence that entry was forced, and iii. when inside a vehicles or trailer, that its windows were fully closed; or (b) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: i. was secured, ii. was protected by privacy locks; and iii. there is visible evidence that removal was accomplished by force. 14. Covered Property – Amended Building Definition a. Under paragraph A.1. Covered Property, the following are added to paragraph a.: (1) Animal runs, pens, cages and fencing; (2) X-ray equipment. Including only x-ray unit, tube, controls, developing tanks, viewer and lead shields; (3) Surgical lamps attached to the building; (4) Surgical and examination tables; (5) Incinerators; (6) Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (7) Retaining walls that are not part of a building. We will not pay for loss or damage to retaining walls that are used, in whole or in part, to contain water; (8) Signs, whether or not they are attached to buildings or structures; and (9) Interior and exterior building glass. b. Under paragraph A. 2. Property Not Covered, paragraph e. is replaced with the following: Outdoor trees, shrubs or plants, all except as provided in the Outdoor Property Coverage Extension c. Under paragraph C. Limits of Insurance, paragraph 2. is deleted. d. Under paragraph D. Deductibles, paragraph 2.c. is deleted. e. Under paragraph G. Optional Coverages, paragraph 1. is deleted. f. Under paragraph A.6. Coverage Extensions, c. Outdoor Property, is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Windstorm; (7) Ice, snow, sleet and hail. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 10 of 33 The most we will pay for loss or damage under this Extension is $5,000 but not more than $1,000 for any one tree, shrub or plant. 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. 15. Covered Property- Enhanced Replacement Cost Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following: We will determine the value of Covered Property as follows: a. At replacement cost without deduction for depreciation except as provided in b. through p. below. (1) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (2) We will not pay on a replacement cost basis for any loss or damage: (a) Until the loss or damaged property is actually repaired or replaced; (b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage; and (c) Unless the repairs or replacement are completed within: i. 24 months (for personal property), ii. 24 months (for buildings and other real property), after the loss or damage, unless extended in writing by us. However, if the cost to repair or replace the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs a.(1) and a.(2) above whether or not the actual repair or replacement is complete. (3) We will not pay more for loss or damage on a replacement cost basis than the least of: (a) The cost to replace, on the same premises, the lost or damaged property with other property: i. Of comparable material and quality; and ii. Used for the same purpose; or (b) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (4) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. b. If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, Paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. c. The following property at actual cash value: (1) Used or second-hand merchandise held in storage or for sale; (2) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (3) Household contents, except personal property in apartments or rooms furnished by you as landlord; (4) Manuscripts ; (5) Works of art, “antiques” or rare articles, including but not limited to, etchings, pictures, statuary, marbles, bronzes, porcelains, glassware and bric-a-brac; or (6) Commercial Tools and Small Equipment and Contractors Tools and Equipment. This does not apply to your Commercial Tools and Small Equipment permanently installed or exclusively used at the described premises. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenants’ Improvements and Betterments at: (1) Replacement cost if you make repairs promptly. (2) A proportion of your original cost if you, as the tenant, do not make repairs promptly. We will determine the proportionate value as follows: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 11 of 33 (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. (4) Nothing if you have no lease. f. Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement, including the cost of data entry, re-programming, computer consultation services and the media on which the data or programs reside. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. g. “Money” at its face value; and h. “Securities” at their value at the close of business on the day the loss is discovered. i. Applicable only to Accounts Receivable: (1) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (a) We will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (b) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (2) The following will be deducted from the total amount of accounts receivable, however that amount is established: (a) The amount of the accounts for which there is no loss or damage; (b) The amount of the accounts that you are able to re-establish or collect; (c) An amount to allow for probable bad debts that you are normally unable to collect; and (d) All unearned interest and service charges. j. “Stock” you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. k. Finished “stock” you manufactured at selling price less discounts and expenses you otherwise would have had. l. Property in Transit (other than “stock” you have sold) at the amount of invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. m. “Electronic data”, media and computer software programs. For media, at the actual costs of repairi ng or replacing the media with material of like kind and quality. “Electronic data” and computer software programs at the actual cost of reproducing the “electronic data” or computer software program, provided you actually reproduce or replace it. To the extent that “electronic data” is not replaced or restored, the loss will be valued at the cost of repair or replacement of the media on which the “electronic data” was stored, with blank media of substantially identical type. n. Prepackaged software programs and computer equipment that cannot be replaced, at the cost of functionally equivalent software or hardware. o. Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. p. Fine Arts. The value of covered property is not agreed upon, but will be determined at the time of loss or damage. We will not pay more than the least of the following: (1) The actual cash value of the property at the time of loss or damage; or (2) The amount for which you could reasonably expect to pay to have the property repaired to its condition immediately prior to the loss. 16. Deductibles a. Under paragraph D. Deductibles, paragraph 2. is deleted. b. Under paragraph D. Deductibles, paragraph 3. is replaced with the following: No deductible applies to the following coverages: (1) Arson and “Theft” Reward; (2) Business Income; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 12 of 33 (3) Civil Authority; (4) Debris Removal; (5) Deferred Payment; (6) Extra Expense; (7) ERISA Compliance; (8) Fire Department Service Charge; (9) Fire Extinguisher Recharge; (10) Inventory and Appraisal; (11) Leasehold Interest (tenant’s only); (12) Ordinance or Law; (13) Pollutant Clean-Up and Removal; (14) Preservation of Property; and (15) Unauthorized Business Credit Card Use. c. Under paragraph D. Deductibles, the following are added: (1) A $250 deductible applies to the following coverages: (a) Glass- interior and exterior; and (b) Glass Expenses. (2) A $500 deductible applies to all of the Property coverages scheduled in the Declarations unless otherwise indicated in item a., b.(1) or b.(3) of this section. (3) A $1,000 deductible applies to the following coverages: (a) Employee Dishonesty (except ERISA compliance); (b) Salesperson’s Samples; and (c) Installation. (4) Each deductible applies separately, but only to the coverage specified. The total deductible for all losses in one “occurrence” will be the highest deductible amount that applies to the “occurrence”. 17. Deferred Payments Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for your interest in lost or damaged Personal Property sold by you under a conditional sale or trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. b. The most we will pay for loss under this Additional Coverage is $5,000. When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (1) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (2) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. When loss occurs and the buyer continues to pay you, there will be no loss payment. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 18. Employee Dishonesty Including ERISA Compliance The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph a. is replaced with the following: We will pay for direct loss of or damage to Business Personal Property and "money" and "securities", Covered Property of others and animals you do not own but which are in your care, custody or control for treatment, grooming, boarding, training or breeding, resulting from dishonest or criminal acts committed by any of your “employees” acting alone or in collusion with other per sons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any “employee”; or (b) Any other person or organization. b. Under paragraph G. Optional Coverages, 3. Employee Dishonesty, sub-paragraph c. is replaced with the following: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 13 of 33 The most we will pay for loss or damage in any one “occurrence” is $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits Of Insurance for Section I – Property. c. For purposes of this Optional Coverage, paragraph a.(4) under paragraph A.4. Limitations is deleted. d. Under paragraph G. Optional Coverages, paragraph 3. Employee Dishonesty, the following is added: Welfare and Pension Plan ERISA Compliance In compliance with certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA): (1) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance for the Employee Dishonesty coverage that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (2) If the Insured first named in the Declarations is an entity other than a Plan, any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and benefit of the Plan(s) sustaining the loss. (3) If two or more Plans are insured under this insurance, any payment we make for loss: (a) Sustained by two or more Plans; or (b) Of commingled funds or other property of two or more Plans that arises out of one “occurrence” because of dishonest acts of “employees” is to be shared by each Plan sustaining loss in the proportion that the amount of insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (4) The Deductible Condition applicable to the “Employee” Dishonesty Optional Coverage does not apply to loss sustained by any Plan subject to ERISA which is insured under this insurance. 19. Extended Business Income Under paragraph A.5. Additional Coverages, f. Loss Of Business Income, sub-paragraph (2)(a)(ii) is replaced with the following: 365 consecutive days or the number of consecutive dates shown in the Declarations for this Additional Coverage after the date determined in (2)(a)(i) above. 20. Fine Arts Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for direct loss of or damage to Fine Arts, whether owned by: (1) You; or (2) Others, and in your care, custody or control. b. Fine arts includes, but is not limited to, antiques, paintings, etchings, drawings, tapestries, sculptures and fragile property such as porcelains, china and marble. c. Regardless of the number of insured locations affected, the most we will pay per “occurrence” under this Additional Coverage is $10,000. The amount payable under this Additional Coverage is not subject to the Limits of Insurance for Section I – Property. d. The value of fine arts will be the least of the following amounts: (1) The actual cash value of that property at the time of loss; (2) The cost of reasonably restoring that property to its condition immediately before loss; or (3) The cost of replacing that property with substantially identical property. e. In the event of loss, the value of property will be determined as of the time of loss . f. The following are added to Paragraph E. Property Loss Conditions: (1) In case of loss to any part of a pair or set we will: (a) Repair or replace any part to restore the pair or set to its value before the loss; or (b) Pay the difference between the value of the pair or set before and after the loss. (2) You must arrange for fine arts to be packed and unpacked by competent packers. 21. Forgery And Alteration Under paragraph A.5. Additional Coverages, k. Forgery And Alteration, sub-paragraph (4) is replaced with the following: The most we will pay for any loss, including legal expenses, under this Additional Coverage is $50,000, unless a higher Limit Of Insurance is shown in the Declarations. 22. Garages, Storage Buildings and Other Appurtenant Structures Under paragraph A.6. Coverage Extensions, the following is added: INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 14 of 33 You may extend the insurance that applies to Building to apply to garages, storage buildings and other appurtenant structures, including, but not limited to, swimming pools; spas; and the associated equipment within 1000 feet of the described premises. The most we will pay for loss or damage under this Extension is $50,000 at each described premises regardless of the number of buildings or structures affected. 23. Glass Expenses Under paragraph A. Coverage, 5. Additional Coverages, sub-paragraph n. Glass Expenses, the following is added: When caused by or resulting from a Covered Cause of Loss, we will pay for expenses incurred to: Replace lettering, artwork, sensors or other items permanently affixed to, or a part of, the damaged glass. 24. Identity Theft Expense Under paragraph A. Coverage, 5. Additional Coverages, the following is added: a. We will pay for “Expenses” incurred by an “Insured Person” as a direct result of any one “Identity Theft” first discovered or learned of by such “Insured Person” during the policy period. Any act or series of acts committed by one or more persons, or in which such persons are aiding and abetting others against an “Insured Person”, is considered to be one “Identity Theft” even if a series of acts continues into subsequent policy period(s). b. With respect to this Additional Coverage: (1) “Expenses” means: (a) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (b) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (c) Lost income resulting from time taken off work to complete fraud affidavits or to meet or talk to law enforcement agencies, credit agencies or legal counsel; (d) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (e) Reasonable attorney fees to: i. Defend lawsuits brought against an “Insured Person” by merchants, financial institutions or their collection agencies; ii. Remove any criminal or civil judgments wrongly entered against an “Insured Person”; or iii. Challenge the accuracy or completeness of any information in a consumer credit report; (f) Charges for long distance telephone calls due to “Identity theft” to: i. Merchants; ii. Law enforcement agencies; iii. Financial institutions or other similar credit grantors; or iv. Credit agencies; and (g) Reasonable fees for professional financial advice or professional credit advice. The most we will pay for “expenses” under Paragraph b.(1) is $5,000, subject to a maximum of $200 per day. (2) For purposes of this Additional Coverage, “Identity Theft” means: The act of knowingly transferring or using, without lawful authority, a means of identification of an “Insured Person” with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law; and (3) “Insured Person” means: (a) For sole proprietorships: The individual who is the sole proprietor of the Named Insured shown in the Declarations; (b) For partnerships: Any individual that is a partner of the Named Insured shown in the Declarations; (c) For corporations or any other type of organization: The Chief Executive Officer, and any individual who has an ownership interest of at least 20% of the Named Insured, shown in the Declarations. c. The following additional exclusions apply to this Additional Coverage: We will not pay for: (1) Expenses incurred due to any fraudulent, dishonest or criminal acts by: (a) An “Insured Person”; (b) Any person aiding or abetting an “Insured Person”; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 15 of 33 (c) Any authorized representative of an “Insured Person”; whether acting alone or in collusion with others; or (2) Loss other than “Expenses”. Account balances which arise out of fraudulent or unauthorized charges would be one example of loss other than “Expenses”. d. Regardless of the amount of the deductible for Covered Property shown in the Declarations, the most we will deduct from any claim for “Expenses” under this Additional Coverage for any one “Identity Theft” is $250. e. The most we will pay under this Additional Coverage for all “Expenses” arising out of all “Identity Theft” against an “Insured Person” incurred in any one policy year, regardless of the number of “Identity Thefts” involved, is $25,000 unless a higher Limit Of Insurance is shown in the Declarations. f. In order for coverage to be provided under this Additional coverage, you must send to us, within 60 days after our request, receipts, bills or other records that support your claim for “Expenses” under “Identity Theft” coverage. 25. Installation Under paragraph A.5. Additional Coverages, the following is added: a. This coverage applies to an installation performed by you for others away from the described premises. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to materials, supplies, machinery, fixtures and equipment that will become a permanent part of your installation, while located at a site of installation, in transit by you to or from your premises and the job site, or while in temporary storage awaiting installation. This includes your property and similar property of others that is in your care, custody and control. b. This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. c. The most we will pay for any loss under this Additional Coverage is $5,000. d. We will not pay for loss or damage to property that has already been installed, whether or not your work has been accepted. e. Exclusions B.1.b. and B.1.g. do not apply to the Additional Coverage. This Additional Coverage does not increase the Limits of Insurance of Section I – Property. 26. Leasehold Interest (Tenant’s Only) Under paragraph A.5. Additional Coverages, the following is added: a. If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. b. The most we will pay for loss because of the cancellation of any lease or leases on account of the same covered cause of loss is: (1) If your lease is cancelled and either: (a) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (b) You relocate to other permanent premises and enter into a new lease. (2) For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (a) $10,000; (b) Nothing if there is no written or legally binding lease, whichever is less. c. The following provisions apply to b.(1) above: (1) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (2) If the lease has no end date (open-ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the premises. d. The following provision applies to b.(1) and b.(2)(a) above: (1) $10,000 will be the maximum amount payable regardless of the number of leases affected by the same covered cause of loss. (2) Existence of a renewal option will not increase, or have any other effect on this limit. e. We will not pay for any loss or damage: (1) If there is no written or legally binding lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 16 of 33 (2) If the unit or suite rented or leased to you where direct damage occurs has been vacant more than 60 consecutive days before the loss or damage occurs, and you have not entered into an agreement to sublease the unit or suite. (3) Caused by your cancelling the lease; or (4) Caused by the suspension, lapse or cancellation of any license. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 27. Marring And Scratching Under paragraph A. 5. Additional Coverages, the following is added: We will pay for loss or damage to Covered Property at the described premises due to sudden and accidental marring and scratching of: a. Your “stock”; b. Your printing plates; and c. Property of others that is in your care, custody or control. This Cause of Loss does not apply to: a. Property at other than the described premises; and b. Property in transit. Payment under this Extension is included within your Business Personal Property Limit Of Insurance. 28. Money And Securities The following Optional Coverage is included whether or not it is shown in the Declarations and is subject to all policy conditions in the Businessowners Coverage Form unless modified below: a. Under paragraph G. Optional Coverages, sub-paragraph 2. Money and Securities, the following is added to sub-paragraph a.: We will also pay any bank stop payment charges you are required to pay because of a loss that is covered under this Additional Coverage. b. Under paragraph G. Optional Coverages, sub-paragraph 2. Money And Securities, sub-paragraphs c.(1) and c.(2) are replaced with the following: (1) $50,000 or the amount shown in the Declarations for Inside the Premises for “money” and “securities” while: (a) In or on the described premises; or (b) Within a bank or savings institution in the coverage territory; and (2) $50,000 or the amount shown in the Declarations for Outside the Premises for “money” and “securities” while at any other location or in transit between locations listed in (1) above and while in the coverage territory. c. For purposes of this Optional Coverage only, the limit under paragraphs (1) and (2) above includes reimbursement of bank stop payment charges that insured is obligated to pay as a result of a covered loss under this Additional Coverage. 29. Money Orders And Counterfeit Paper Currency Under paragraph A.5. Additional Coverages, Paragraph j. Money Orders And Counterfeit Paper Currency, is replaced with the following: 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" paper currency that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $25,000. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 30. Newly Acquired Or Constructed Property Under paragraph A.6. Coverage Extensions, a. Newly Acquired Or Constructed Property, sub- paragraph (3)(b) is replaced with the following: 180 days after you acquire the property or begin construction of that part of the building that would qualify as covered property; or 31. Newly Acquired or Constructed Property – Business Income And Extra Expense Under paragraph A.6. Coverage Extensions, sub-paragraph a. Newly Acquired Or Constructed Property, the following is added: You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 17 of 33 32. Ordinance Or Law Under paragraph A.5. Additional Coverages, paragraph l. Increased Cost of Construction is replaced with the following: a. This Additional Coverage applies only: (1) When a Limit of Insurance for the affected building (or buildings) is shown on the Declarations, and then only (2) To buildings insured on a replacement cost basis. b. Application of Coverages: The coverages provided under this Additional Coverage apply only if (1) and (2) below are satisfied and are then subject to the qualifications found in (3) below. (1) The Ordinance or law: (a) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at the described premise; (b) Is in force at the time of loss; and (c) Was not in force at the time the involved construction was completed. But coverage under this Additional Coverage 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 Additional Coverage. (2) The building sustains direct physical damage: (a) That is covered under this Additional Coverage and as a result of such damage, you are required with the ordinance or law; or (b) 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 damage 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. (3) In the situation described in (2)(b) above, we will not pay the full amount of loss otherwise payable under the terms of coverages for Coverage for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. Instead, we will pay a proportion that covered direct physical damage bears to the total direct physical damage. However, if the covered direct physical damage alone would have resulted in enforcement of the ordinance or law, then we will pay the full amount of the loss otherwise payable under the terms of Coverages for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. c. 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”. d. Coverage (1) 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 for the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. Coverage for Loss to the Undamaged Portion of the Building is included within the Limit of Insurance shown in the Declarations as applicable to the covered building. Coverage for Loss to the Undamaged Portion of the Building does not increase the Limit of Insurance. (2) 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 the undamaged parts of the same building, as a consequence of enforcement of an ordinance or law that requires demolition of such undamaged property. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to Demolition Cost Coverage. (3) Increased Cost of Construction With respect to the building that has sustained covered direct physical damage, we will pay the increased cost to: (a) Repair or reconstruct damaged portions of that building; and/or (b) Reconstruct or remodel undamaged portions of that building, whether or not demolition is required; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 18 of 33 When the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or law. However, 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. We will not pay for the increased cost of construction if the building is not repaired, reconstructed or remodeled. Paragraph E.5.d. Loss Payment Property Loss Condition does not apply to the Increased Cost of Construction Coverage. (4) Increased Period Of Restoration If a Covered Cause of Loss occurs to property at the premises described in the Declarations, coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: i. 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 ii. 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. The most we will pay for loss under Ordinance or Law – Increased Period of Restoration is $10,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay for Ordinance or Law – Increased Period of Restoration for each described building is $10,000. The Ordinance or Law – Increased Period of Restoration coverage is not subject to the Limits of Insurance of Section I – Property. (5) Tenant’s Improvements and Betterments This Additional Coverage applies only when a Limit Of Insurance for Business Personal Property for the affected building, or buildings, is shown on the Declarations; and then only when Business Personal Property is insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant’s improvements and betterments whether collectible or not. This Additional Coverage also applies to improvements and betterments you have made to a building you do not own or occupy as a tenant and a Limit Of Insurance is shown for Business Personal Property at the described premises. Improvements and betterments covered under this Additional Coverage are described under Section I – Property A.1. Covered Property, paragraph b.(3). (6) Loss Payment (a) The following loss payment provisions, 6.(b) and (c), are subject to the apportionment procedure set forth in paragraph b.(3) of this coverage. (b) When there is a loss in value of an undamaged portion of the building to which Coverage for Loss to the Undamaged Portion of the building applies, the loss payment for that building, including damaged and undamaged portions, will be determined as follows: i. If the property is repaired or replaced on the same or another premises, we will not pay more than the lesser of: (i) The amount you 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 (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 19 of 33 ii. If the property is not repaired or replaced. We will not pay more than the lesser of: (i) The actual cash value of the building at the time of loss; or (ii) The Limit of Insurance shown in the Declarations as applicable to the covered building. (c) The most we will pay, for the total of all covered losses for Demolition Cost and Increased Cost of Construction is the Limit of Insurance shown below. Subject to this combined Limit of Insurance, the following loss payment provisions apply: i. For Demolition Cost, we will not pay for more than the amount you actually spend to demolish and clear the site of the described premises. ii. With respect to the Increased Cost of Construction: (i) 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 repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. iii. 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. iv. 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. v. The most we will pay for loss under Demolition Cost is the Limit Of Insurance shown in the Declarations for Building plus $50,000 or the amount shown in the Additional Property Coverage Schedule for Demolition Cost. The most we will pay for loss under Increased Cost of Construction is the Limit Of Insurance shown in the Declarations for Building plus $50,000 for each described building insured under this coverage form or the amount shown in the Additional Property Coverage Schedule for Increased Cost Of Construction. If a damaged building(s) is covered under a blanket Limit Of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for Demolition Cost is the replacement cost for the damaged building plus $50,000 and the most we will pay for loss under the Increased Cost of Construction is the replacement cost for the damaged building plus $50,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. (7) Under this coverage, 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 building was undamaged; and (b) You failed to comply with. 33. Personal Effects Under paragraph A. 6. Coverage Extensions, sub-paragraph d. Personal Effects, the last paragraph is replaced with the following: The most we will pay for loss or damage under this Extension is $10,000 at each described premises. 34. Personal Property In Transit Under paragraph A. 6. Coverage Extensions, the following is added: a. You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, to apply to your personal property or property of others in your care, custody or control while it is in the course of transit. This Extension applies to property while it is in transit more than 1,000 feet from the described premises and while between points in the coverage territory while: (1) In a vehicle owned, leased or operated by you; or (2) In the custody of a common carrier, contract carrier or registered mail carrier. b. We do not pay for any loss or damage caused by or resulting from “theft” from an unattended vehicle, including loss: (1) From inside a vehicle, including trailers; or from an exterior storage container or box, except when: (a) securely locked, (b) there is visible evidence that entry into the vehicle was forced, and (c) inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 20 of 33 (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. c. This Extension does not apply to the following property: (1) Shipments that belong to others that you are transporting for a fee; (2) Property while waterborne; or (3) Salespersons samples d. Exclusions B.1.b., and B.1.g. of the Businessowners Coverage Form do not apply to this Coverage Extension. e. The most we will pay for loss or damage under this Extension is $50,000 per “occurrence”. 35. Preservation Of Property – Expense Under paragraph A.5. Additional Coverages, the following is added: a. 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 your expenses to move or store the Covered Property. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will pay under this Additional Coverage is $25,000 per “occurrence”. This Additional Coverage is not subject to Section I – Limits of Insurance. 36. Salesperson’s Samples Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to samples of your “stock” in trade (including containers) while: (1) In the custody of your sales representative, agent or any "employee" who travels with sales samples; (2) In your custody while you are acting as a sales representative; or (3) In transit between premises that you own, lease or operate and your sales representative. b. The most we will pay for any loss under this Additional Coverage is $5,000 per “occurrence”. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. c. We will not pay for any loss to the following property: (1) Property which has been sold; (2) Jewelry, precious or semi-precious stones, gold, silver, platinum, or other precious metals or alloys; (a) Furs, fur garments or garments trimmed with fur; or (b) Any property while waterborne d. Exclusions B.2.g., B.2.l.(4), and B.2.l.(7) of the Businessowners Coverage Form do not apply to this Additional Coverage. e. We will not pay for any loss or damage caused by “theft” from an unattended vehicle including: (1) Loss from inside a vehicle, including trailers, or from a permanently-mounted exterior toolbox except when: (a) securely locked, (b) there is visible evidence that entry was forced, and (c) when inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (a) was secured, (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 37. Soft Costs Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the actual “soft costs” that you incur due to direct physical loss or damage to Covered Property by a Covered Cause of Loss. We will only pay those “soft costs”: (1) That are over and above your normal expenditures; and (2) That are incurred during the period of time: (a) That begins on the date the direct physical loss occurs; and (b) Ends one year after the date on which the construction, repairs, or replacement would be scheduled for completion. b. We will only pay “soft costs” if: (1) The valuation for Building and Business Personal Property is based on Replacement Cost; and (2) You repair or replace the damaged Covered Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 21 of 33 c. Normal Expenditures are expenses that would have been incurred by your operation had no loss or damage occurred. d. The most we will pay under this Additional Coverage for “soft costs” arising for a Covered Cause of Loss in any one “occurrence” is $10,000. e. For purposes of this Additional Coverage, “soft costs” means: (1) Realty taxes and other assessments attributed to the increased property values that result directly from construction or repair costs associated with the loss or damage by a Covered Cause of Loss. (a) Increased interest charges and fees necessitated by the operation of a mortgage acceleration clause; and (b) Advertising and promotional expenses. This Additional Coverage is not subject to the Limits of Insurance under Section I – Property. 38. Spoilage - Animal Semen Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay: (1) For physical damage to animal semen due to change in temperature or humidity resulting from mechanical breakdown or mechanical failure of a cryogenic storage device; (2) For physical damage to animal semen due to contamination from the release of refrigerant, including but not limited to ammonia; and (3) Any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. b. Animal semen means extracted animal semen owned by you or by others that is in your care, custody or control and which is contained in a cryogenic storage device. Coverage applies while: (1) Animal semen is contained in a cryogenic storage device and is in transit from point of extraction to insured’s premises or other premises; and (2) During the transfer from the cryogenic storage device to a refrigeration system. Coverage ends when animal semen is placed in a refrigeration system. c. Under paragraph E. Property Loss Conditions, 5. Loss Payment, sub-paragraph d. is replaced with the following for purposes of this Additional Coverage: We will determine the value of animal semen as follows: (1) For animal semen you have sold but not delivered, at the selling price less discounts and expenses you otherwise would have had; (2) For other animal semen, at actual cash value. d. The most we will pay for all covered losses to animal semen under this Additional Coverage, regardless of the number of occurrences of loss or damage, is $10,000. 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 loss occurred. e. This Additional Coverage is subject to the Deductible Amount shown in the Policy Declarations. 39. Temporary Relocation Of Property Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss of or damage to Covered Property from a Covered Cause of Loss while it is away from the described premises, if it is being stored temporarily at a location you do not own, lease or operate while the described premises is being renovated or remodeled. b. This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. c. The most we will pay under this Additional Coverage is $50,000. This Additional Coverage is not subject to Section I – Property. 40. Tenant Signs (Tenants only) Under paragraph A.5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to all tenant signs at the described premises: (1) Owned by you; or (2) Owned by others but in your care, custody or control. (a) The most we will pay for loss or damage in any one “occurrence” is $5,000 regardless of the number of locations or buildings involved. (b) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 22 of 33 (c) This Additional Coverage is not subject to the Limits of Insurance of Section I – Property. 41. Unauthorized Business Credit Card Use Under paragraph A.5. Additional Coverages, the following is added: a. We will pay for loss resulting from the “theft” or unauthorized use of Bus iness Credit Cards issued to you or registered in your name. b. We do not cover use of a Business Credit Card: (1) By a person who has been entrusted with the card; or (2) Any of your “employees”. c. All loss: (1) Caused by any one or more persons; or (2) Involving a single act or series of related acts; is considered one “occurrence” regardless of the number of individual unauthorized transactions. d. If a suit is brought against you for liability under this Additional Coverage, we will pay for reasonable legal expenses incurred in that defense. e. The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. 42. Vacancy Loss Condition Under paragraph E. Property Loss Conditions, sub-paragraph 8. Vacancy is deleted. 43. Valuation – Medical Equipment If medical equipment used in your “operations” is covered under this policy on a replacement cost basis, the following is added to paragraph C. Limits Of Insurance: We will pay the replacement cost value of your medical equipment at the time of loss, but no more than 115% of the Limit Of Insurance if: a. You replace medical equipment on the same premises with other medical equipment: (1) Of greater capacity or capability; and (2) Used for the same purpose; and b. The actual repair or replacement is completed within one year from the date of loss. 44. Virus and Hacking Coverage Under paragraph A.5. Additional Coverages, p. Electronic Data, sub-paragraph (2), is replaced with the following: The Covered Causes of Loss applicable to Business Personal Property include “computer hacking” or a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 23 of 33 a. “Computer hacking” means an unauthorized intrusion: (1) by an individual or group of individuals, whether employed by you or not, into a computer system or a network to which it is connected; and (2) that results in but is not limited to: (a) deletion, destruction, generation or modification of “electronic data”; (b) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of “electronic data”; (c) observation, scanning or copying of “electronic data”; (d) damage, destruction, inadequacy, malfunction, degradation or corruption of any “electronic data”; or (e) denial of access to or denial of services from your computer system or a network to which it is connected. b. We will not pay for: (1) Loss of access, loss of use or loss of functionality; or (2) Consequential loss caused by a computer virus or by “computer hacking”. B. BLANKET COVERAGES The following paragraphs amend coverage provided under SECTION I – PROPERTY of the Businessowners Coverage Form. Blanket Coverage Limit Of Insurance The following additional coverage is added: We will pay up to $1,000,000 as a Blanket Coverage Limit Of Insurance to apply at each scheduled premises and to apply to the sum of all covered losses under the coverages described in paragraphs 1. to 16. arising out of a single “occurrence” due to a Covered Cause of Loss. You may distribute this Coverage Limit among these coverages as you deem necessary. However, after a loss, we will not pay more than $1,000,000 at any one insured location per “occurrence”. 1. Accounts Receivables Under paragraph A. 6. Coverage Extensions, f. Accounts Receivables, sub-paragraph (2) is replaced with the following: The most we will pay under this Coverage Extension for loss or damage in any one “occurrence” at or away from the insured premises is subject to the Blanket Coverage Limit Of Insurance. 2. Business Income From Dependent Properties Under paragraph A. 5. Additional Coverages, m. Business Income From Dependent Properties, sub- paragraph (1) is replaced with the following: We will pay for the actual loss of Business Income (not including Extended Business Income), you sustain due to direct physical loss or damage at the premises of a dependent property caused by or resulting from a Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a dependent property or secondary dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the dependent property or secondary dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The Deductible does not apply to this Additional Coverage. The dependent property must be located in the coverage territory. 3. Extra Expense From Dependent Properties Under paragraph A. 5. Additional Coverages, the following is added: a. We will pay the necessary Extra Expense you incur, that you would not have incurred had there been no direct physical loss of or damage at the premises of a dependent property caused by or resulting from any Covered Cause of Loss. The incurred expense must be related to your business activities as provided in Paragraph b. below and deal with your actions to assist your own business activities. We will not pay for any expenses INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 24 of 33 incurred that directly or indirectly serve to speed, or otherwise assist, recovery of an affected dependent property. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance, regardless of the number of dependent properties affected. The dependent property must be located in the coverage territory. b. Extra Expense means expense incurred by you to: (1) Avoid or minimize the “suspension” of business and to continue operations; or (2) Minimize the “suspension” of business if you cannot continue operations, due to covered loss of or damage to a dependent property or properties. c. For purposes of this Additional Coverage, “suspension” means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un- tenantable, if coverage for Business Income applies. d. We will only pay for Extra Expense that occurs within 12 consecutive months immediately following the date of direct physical loss or damage to the dependent property. e. The Extra Expense coverage period, as stated in paragraph d., does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of “pollutants”. f. The following also apply to this Additional Coverage: (1) Paragraph B. Exclusions, 5. Business Income and Extra Expense Exclusions; and (2) Paragraph E. Property Loss Conditions 7. Resumption of Operations, sub-paragraph b. The expiration date of this policy will not reduce the Extra Expense coverage period. 4. Business Income And Extra Expense – Mobile Veterinary Clinic Under paragraph A.5 Additional Coverages, the following is added: a. We will pay for the actual loss of Business Income and Extra Expense you sustain due to the necessary “suspension” of your operations during the “period of restoration”. The “suspension” must be caused by a covered direct physical loss of or damage to “mobile veterinary clinic” caused by or resulting from a Covered Cause of Loss including collision. The “mobile veterinary clinic” must be owned, leased or operated by you. b. For purposes of this Additional Coverage, the following definitions are added: (1) “Mobile veterinary clinic” means a motor vehicle which is specially designed as a transportable veterinary office and from which you conduct your usual veterinary operations. (2) “Suspension means the partial slowdown or complete cessation of your business activities; and that a part or all of the described premises is rendered un-tenantable, if coverage for Business Income applies. c. The most we will pay under this Additional Coverage per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 5. Computer Equipment Under paragraph A. 5. Additional Coverages, the following is added: a. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to the following Covered Property which is your property or the property of others in your care, custody or control: (1) "Computer equipment" or “computer(s)”; (2) Climate control equipment and fire protective equipment used exclusively with your "computer equipment"; (3) Programming documentation and instruction manuals; and (4) The necessary loss of Business Income and Extra Expense as provided in the Additional Coverages for Business Income and Extra Expense you incur to avoid or minimize the suspension of business and to continue “operations” because of direct physical loss or damage to covered property. b. We will not pay for any loss or damage to the following property: (1) Property you rent, loan or lease to others while it is away from the described premises ; (2) Property you hold for sale, distribute or manufacture except as provided under paragraph A. 1. Covered Property, sub-paragraph b.; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 25 of 33 (3) “Software” that cannot be duplicated or replaced with similar property of equal quality and/or substantially similar functionality. c. If we provide Building coverage only, we will only pay for loss to computers that service building operations at the insured’s described premises and are located at the insured’s described premises. d. Regardless of the number of insured locations involved, the most we will pay for loss or damage under this Additional Coverage to property listed in a.(1) to a.(4) in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance under Paragraph B. Blanket Coverage. Regardless of the Blanket Limit Of Insurance, the most we will pay for Extra Expense is $5,000. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. e. This insurance is excess to any other insurance also covering “computer equipment” or “computer(s)”. f. Exclusions B. 1. b. and B. 1. g. do not apply to this Additional Coverage. g. We will not pay for loss or damage: (1) To any property not sustaining direct physical loss or damage even if covered loss or damage to other covered property renders such associated or related items unusable or otherwise unfit. (2) This exclusion applies to “software” or “hardware”. (3) Such loss to associated or related items is not considered to have suffered direct physical loss or damage for purposes of this insurance. h. For purposes of this Additional Coverage, the following definitions are added: (1) “Computer” means: (a) Programmable electronic equipment that is used to store, retrieve and process data; and (b) Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. (2) “Computer equipment “ means: (a) computer “hardware” and related component parts. Component parts include but are not limited to modems, printers, keyboards and scanners; (b) computer control systems including uninterruptable power supply systems, line conditioner and voltage regulator; and (c) “software”; and (d) “electronic data”. (3) “Hardware” means an assemblage of electronic machine components capable of accepting instructions and information according to the instructions, and producing desired results. (4) “Software” means processing, recording, or storage media used for computer processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells. 6. Expediting Expense Under paragraph A.5. Additional Coverages, the following is added: a. When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (1) Make temporary repairs; (2) Expedite permanent repair or replacement of damaged property; or (3) Provide training on replacement machines or equipment. b. The most we will pay for loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. 7. Fire Department Service Charge Under paragraph A.5. Additional Coverages, paragraph c. Fire Department Service Charge is replaced with the following: When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay for your liability for fire department service charges unless a higher Limit Of Insurance is shown in the Declarations if: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. The most we will pay for loss under this Additional Coverage in any one “occurrence” at insured locations is subject to the Blanket Coverage Limit Of Insurance. 8. Inventory And Loss Appraisal INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 26 of 33 Under paragraph A. 6. Coverage Extensions, the following is added: a. We will pay for all reasonable expenses you incur at our request to assist us in: (1) The investigation of a claim; (2) The determination of the amount of loss, such as taking inventory; or (3) The cost of preparing specific loss documents and other supporting exhibits. b. The most we will pay under this Coverage Extension per “occurrence” is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to these expenses. c. We will not pay for: (1) Expenses incurred to perform your duties in the event of a loss under Section I – E. Property Loss Conditions; (2) Expenses to prove that loss or damage is covered; (3) Expenses billed by and payable to independent or public adjusters; attorneys; or any of their affiliated or associated entities; (4) Expenses to prepare claims not covered by this Coverage Form; or (5) Expenses incurred under any appraisal provisions within the policy. 9. Key Replacement And Lock Repair Under paragraph A.6. Coverage Extensions, the following is added: You may extend the insurance provided under this Coverage Form to apply to consequential loss or damage, caused by or resulting from a covered Cause of Loss, for the cost incurred for: a. The actual cost to replace keys; b. Consequential loss to keys and locks if a master key is lost or damaged resulting from a Covered Cause of Loss; or c. Rekeying or replacing lock sets, including new locks and installation costs. The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 10. Lessor’s Lease Cancellation Under paragraph A.5. Additional Coverages, the following is added: a. We will pay the actual loss of business income you sustain due to the cancellation of a lease by your tenants in a Covered Building due to untenantability that is caused by direct physical loss or damage to that building from a Covered Cause of Loss. This Additional Coverage only applies if at the time of loss the building was occupied and business was being conducted by the tenant cancelling the lease or their sublessee. b. We will pay for loss of business income that you sustain after tenantability is restored and until the earlier of: (1) The date you lease the premises to another tenant; or (2) 12 months immediately following the “period of restoration”. c. Regardless of the number of tenants cancelling a lease at the described premises, the most we will pay under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. d. We will not pay for: (1) Lease cancelled after the “period of restoration”; (2) Lease cancelled, suspended or allowed to lapse by you; (3) Return of prepaid rent or security and other deposits made by tenants; or (4) Lease cancelled at the normal expiration date. 11. Outdoor Property a. Under paragraph A.6. Coverage Extensions, sub-paragraph c. Outdoor Property is replaced with the following: When the Declarations indicate Buildings are covered property, you may extend the insurance provided by this policy to apply to your outdoor walls, trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. For the purpose of this Coverage Extension, walls do not mean retaining walls. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; (5) Aircraft; or (6) Vehicles that you do not own, operate or lease. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 27 of 33 The most we will pay under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance, but not more than $5,000 for any one, tree, shrub or plant. 12. Personal Property Off-Premises Under paragraph A.6. Coverage Extensions, sub-paragraph b. Personal Property Off-Premises, is replaced with the following: (1) You may extend the insurance that applies to Business Personal Property, including Covered Property as described in paragraph 13. Commercial Tools and Small Equipment Additional Coverage in Section A. of this coverage form, but other than “money” and “securities, “valuable papers and records” or accounts receivable, while: (a) Temporarily at a location you do not own, lease or operate; or (b) At any fair, trade show or exhibition. (2) The most we will pay for loss or damage under this Coverage Extension is subject to the Blanket Coverage Limit Of Insurance. The Deductible does not apply to this Extension. 13. Special Event Cancellation – Rental Expenses Under paragraph A.5. Additional Coverages, the following is added: If you have scheduled a special event directly related to your business as a Veterinarian and that event is cancelled due to loss or damage to Covered Property from a Covered Cause of Loss, we will reimburse you for expenses you paid to rent equipment for that event including rental of tent, or other such enclosures, tables, chairs and sound systems. The most we will pay for loss under this Additional Coverage in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 14. Tenant Relocation Expense Under paragraph A.5. Additional Coverages, the following is added: a. In the event that your tenants must temporarily vacate the covered Building at the described premises due to untenantability caused by direct physical loss or damage by a Covered Cause of Loss, we will pay the following expenses you actually incur to move those tenants out of and back into your covered Building. b. We will only pay for the following expenses: (1) Packing, and transporting tenant’s Business Personal Property including the cost of insuring the move out and back and any necessary disassembly and reassembly or setup of fixtures and equipment; and (2) The net cost to discontinue and re-establish the tenants’ utility and telephone services, after any refunds due the tenants. (3) Costs to unpack and reshelf stock and supplies. Covered Relocation Costs do not include: (a) Loss caused by the termination of a lease or other agreement; or (b) Security deposits or other payments, forfeiture or penalties to the landlord or lessor of other premises. c. We will only pay for these expenses that you actually incur within 30 days of the date that the damaged buildings has been repaired or rebuilt. Regardless of the number of tenants’ involved, the most we will pay in any one “occurrence” is subject to the Blanket Coverage Limit Of Insurance. 15. Utility Services a. Under paragraph A.5. Additional Coverages, the following is added: (1) We will pay for loss of or damage to Covered Property caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown below in paragraph (3) below. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. (2) We will pay for loss of Business Income (not including Extended Business Income) or Extra Expense caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for any loss under this Additional Coverage is subject to the Blanket Coverage Limit Of Insurance. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 28 of 33 (3) Services: (a) Water Supply Services, meaning the following types of property supplying water to the described premises: i. Pumping stations; and ii. Water mains. (b) Communication Supply Services, meaning property supplying communication services, including telephone, radio, microwave or television services to the described premises, such as: i. Communication transmission lines, including optic fiber transmission lines; ii. Coaxial cables; and iii. Microwave radio relays except satellites. It does not include overhead transmission lines or overhead distribution lines. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: i. Utility generating plants; ii. Switching stations; iii. Substations; iv. Transformers; and v. Transmission lines, But does not include overhead transmission lines, overhead distribution lines, overhead transformers or any other overhead service equipment or similar (however mounted and whatever mounted upon) equipment. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. b. Under paragraph B. Exclusions, e. Utility Services, the last paragraph is replaced with the following: This exclusion does not apply to loss or damage to “computer(s)” and “electronic data” or to the Utility Services Additional Coverage. 16. Valuable Papers And Records Under paragraph A. 6. Coverage Extensions, e. Valuable Papers And Records, paragraph (3) is replaced with the following: Regardless of the number of locations involved, the most we will pay under this Coverage Extension for loss or damage in any one “occurrence” for “valuable papers” at the described premises or “valuable papers” not at the described premises, is subject to the Blanket Coverage Limit Of Insurance. C. SECTION II- LIABILITY The following paragraphs amend coverage provided under SECTION II – LIABILITY of the Businessowners Coverage Form. 1. Additional Insured By Contract, Agreement or Permit- Primary and Non-Contributory Paragraph C. Who Is An Insured is amended to include as an insured any person or organization for whom you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy. The insurance provided to the additional insured is limited as follows: a. That person or organization is only an additional insured with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused in whole or in part by: (1) Premises you own, rent, lease, or occupy; or (2) Your ongoing operations performed for that insured. (3) In connection with “your work” and included within the “products-completed operations hazard”, but only if: (a) The written contract or written agreement requires you to provide such coverage to the additional insured; and (b) This policy provides coverage for “bodily injury” or “property damage” included within the “products-completed operations hazard”. b. With respect to the insurance afforded to these additional insureds, the following is added to paragraph D. Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: (1) Required by the contract or agreement; or INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 29 of 33 (2) Available under the applicable Limits Of Insurance shown in the Declarations; whichever is less. c. If specifically required by a contract, agreement or permit, coverage provided by this insurance shall be primary and any other insurance available to the additional insured shall be excess and non- contributing. 2. Alienated Premises Paragraph B.1. Exclusions, sub-paragraph k.(2) is replaced with the following: Premises you sell, give away or abandon, if the “property damage” arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 3. Bodily Injury Redefined Paragraph F. Liability and Medical Expenses Definitions, sub-paragraph 3. “Bodily Injury” is replaced with the following: “Bodily injury” means bodily injury, disability, sickness or disease sustained by a person, including death resulting from any of these at any time. “Bodily Injury” includes mental anguish, mental injury, shock, fright or death resulting from “bodily injury”, sickness or disease. 4. Broad Form Property Damage – Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to paragraph B. 1. Exclusions, sub-paragraph k.: Sub-paragraph (4) does not apply to “property damage” to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to “property damage” to “customers goods” while on your premises nor to the use of elevators. b. The following definition is added to paragraph F. Liability and Medical Expenses Definitions: “Customers goods” means property of your customer on your premises for the purpose of being: (1) Worked on; or (2) Used in your manufacturing process. (3) The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Broadened Named Insured For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 3. is added as follows: All of your subsidiaries, companies, corporations, firms, or organizations, as now or hereafter constituted, qualify as insureds under this policy if: a. You have the responsibility of placing insurance for each such entity; and b. Coverage for the entity is not otherwise more specifically provided; and c. The entity is incorporated or organized under the laws of the United States of America. But each entity is insured only while you own, during the policy period, a controlling interest in such entity of greater than 50% of the stock or assets. However coverage: (1) Under this provision is afforded only until the end of the policy period, or the 12 month anniversary of the policy inception date, whichever is earlier; (2) Does not apply to “bodily injury” or “property damage” that occurred before you acquired or formed the organization; and (3) Does not apply to “personal and advertising injury” arising out of an of fense committed before you acquired or formed the organization. 6. Broadened “Personal And Advertising Injury” a. For purposes of the coverage provided by this endorsement, definition, F. Liability And Medical Expenses Definitions, paragraph 14. “Personal And Advertising Injury” is replaced with the following: “Personal and advertising injury” means injury, including consequential “bodily injury”, arising out of one or more of the following offenses: (1) False arrest, detention or imprisonment; (2) Malicious prosecution; (3) The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 30 of 33 (4) Oral or written, televised or videotaped publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; (5) Oral or written, televised or videotaped publication, in any manner, of material that violates a person's right of privacy; (6) The use of another's advertising idea in your "advertisement"; (7) Infringing upon another's copyright, trade dress or slogan in your "advertisement"; (8) Infringement of trademark, copyright, title, trade secret or slogan; (9) Misappropriation of advertising ideas or style of doing business. b. For purposes of the coverage provided by this endorsement, definition, B.1. Exclusions Applicable to Business Liability Coverage, paragraph p. Personal and Advertising Injury, sub-paragraph (12) is replaced with the following: Arising out of the infringement of patent. 7. Damage to Premises Rented To You – Revised Limit For purposes of the coverage provided by this endorsement, D. Liability And Medical Expenses Limits Of Insurance, paragraph 3. is replaced with the following: The most we will pay under Business Liability Coverage for damages because of “property damage” to any one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit Of Insurance for Damage to Premises Rented To You shown in the Declarations. 8. Fellow Employee Coverage For purposes of the coverage provided by this endorsement, C. Who Is An Insured, paragraph 2.a. is replaced with the following: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 9. Newly Acquired Organizations For purposes of the coverage provided by this endorsement, C. Who Is An Insured, the following is added: Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Business Liability Coverage does not apply to: (1) “Bodily injury” or “property damage that occurred before you acquired or formed the organization; and INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 31 of 33 (2) “Personal and advertising injury” arising out of an offense committed before you acquired or formed the organization. (3) “Bodily injury” or “property damage” do not apply to “product recall expense” arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 10. Product Recall Expense a. The following is added to paragraph B. 1. Exclusions, sub-paragraph o. Recall of Products, Work or Impaired Property This exclusion does not apply to “product recall expenses” that you incur for the “covered recall” of “your product”. However, this exception does not apply to “product recall expenses” resulting from: (1) Failure of any products to accomplish their intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of “your product” which has been recalled by like products or substitutes; (5) Caprice or whim of the insured; (6) A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (7) Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (8) Recall of “your products” that have no known or suspected defect solely because a known or suspected defect in another of “your products” has been found. b. The following is added to paragraph E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated “covered recall” that may result in “product recall expense”: (1) Give us prompt notice of any discovery or notification that “your product” must be withdrawn or recalled. Include a description of “your product” and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. c. The following definitions are added to paragraph F. Liability and Medical Expenses Definitions: (1) “Covered recall” means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in “your product” has resulted or will result in “bodily injury” or “property damage”. (2) “Product recall expense(s)” means: (a) Necessary and reasonable expenses for: i. Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; ii. Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; iii. Remuneration paid to your regular “employees” for necessary overtime; iv. Hiring additional persons, other than your regular “employees”; v. Expenses incurred by “employees” including transportation and accommodations; vi. Expenses to rent additional warehouse or storage space; vii. Disposal of “your product”, but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid “bodily injury” or “property damage” as a result of such disposal, you incur exclusively for the purpose of recalling “your product”; and (b) Your lost profit resulting from such “covered recall”. d. The following are added to paragraph D. Liability and Medical Expenses Limits of Insurance: The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) An Aggregate Limit of $50,000 is the most that we will reimburse you for the sum of all “product recall expenses” incurred for all “product recall expenses” initiated during the policy period. (2) An Occurrence Limit of $25,000 is the most we will pay in connection with any one defect or deficiency. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 32 of 33 (a) All “product recall expenses” in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one “occurrence”. (b) Any amount reimbursed for “product recall expenses” in connection with any one “occurrence” will reduce the amount of the Aggregate Limit available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (c) If the Aggregate Limit has been reduced by reimbursement of “product recall expenses” to an amount that is less than the Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. (3) This coverage is not subject to the Limits of Insurance of SECTION II – LIABILITY. (4) A deductible of $500 applies per each “occurrence”. 11. Supplementary Payments – Cost of Bail Bonds Broadened For purposes of the coverage provided by this endorsement, A.1. Business Liability, paragraph f. Coverage Extension – Supplementary Payments, sub-paragraph (1)(b) is replaced with the following: The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability for “bodily injury” applies. We do not have to furnish these bonds. 12. Unintentional Failure to Disclose Hazards The following is added to paragraph E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional and you provide immediate notification of the failure or omission to the company. 13. Unintentional Failure to Notify The following is added to paragraph E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: Your rights afforded under this Coverage Form shall not be prejudiced if you fail to give us notice of an “occurrence”, offense, claim or “suit”, solely due to your reasonable and documented belief that the “bodily injury” or “property damage” is not covered under this Policy. The following paragraphs amend coverage provided under the Veterinarians Professional Liability form and apply only if Veterinarians Professional Liability coverage is provided under this policy. 14. Veterinarians Professional Liability - Broadened Definition Of “Employee” The definition of “employee” in Paragraph F. Liability and Medical Expenses Definitions is replaced with the following: “Employee” includes a “leased worker”, a “volunteer worker”, an intern and an extern, unlicensed “employee” while acting at the direction of a licensed professional or “temporary worker”. “Employee” also includes a pet groomer, a pet trainer or an animal behaviorist who is employed by you or performing services on your behalf. However, “employee” does not include a pet trainer or animal behaviorist while training any animal for attack or guard purposes. 15. Veterinarians Professional Liability - Consent To Settle The following is added: We will not settle any claim or “suit” without the insured’s consent. 16. Veterinarians Professional Liability - Legal Defense Expense – Veterinary Medical Board Extension Coverage The following is added: Coverage Extension – Supplementary Payments: a. We will pay the costs to defend legal actions resulting from inquiries, lawsuits, and challenges from the state licensing Veterinary Medical Board or their representative. We will provide payment for consultations and expert witnesses hired to aid in the defense of allegations, whether groundless or not. b. Coverage is provided for the following costs: (1) Legal defense expenses; (2) Consultant fees; (3) Expert witness fees; and (4) Other reasonable expenses to defend Veterinarian’s Medical Board Actions. INSURED BUSINESSOWNERS ABP01380215 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 33 of 33 However, we will not pay for the following: (5) Fees to reimburse the veterinarian’s time or expenses; or (6) Fines and penalties assessed as a result of an inquiry, lawsuit or challenge from the state licensing Veterinary Medical Board. The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph D. Liability And Medical Expenses Limits Of Insurance: Subject to paragraph 4. Aggregate Limits, coverage provided under the Legal Defense Expense – Veterinary Medical Board Coverage Extension is limited to sub-limits of $100,000 per claim and $100,000 in the aggregate applicable separately to each veterinarian who is an insured under the Veterinarians Professional Liability. Our duty to defend ends when we have exhausted such sub-limit. 17. Veterinarians Professional Liability - Veterinary Technicians The following is added to SECTION II – LIABILITY of the Businessowners Coverage Form, paragraph B.3. Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage- Nuclear Energy Liability Exclusion: However, this exclusion does not apply to registered veterinary technicians. All other terms and conditions of the policy remain unchanged. INSURED