PROPERTY ENHANCEMENT ENDORSEMENT

CP FM 02 11 07 FREMONT INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PROPERTY ENHANCEMENT ENDORSEMENT This endors...
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CP FM 02 11 07

FREMONT INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

PROPERTY ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following. BUILDING AND PERSONAL PROPERTY COVERAGE FORM (CP 0010) CAUSES OF LOSS – SPECIAL FORM (CP 1030) I. COVERAGE We will pay for direct physical loss of or damage to Covered Property described in this endorsement caused by or resulting from a covered loss, unless the loss is excluded in Exclusions or Limitations found in the above forms, or in this endorsement. The insurance provided by this coverage form is primary as respects this coverage form and any other insurance provided by this Company. If a loss covered under this endorsement also involves a loss under any other coverage form that is made a part of this policy, only the broadest coverage will apply. SCHEDULE OF PROPERTY COVERED 1. Fire Department Service Charge

LIMIT OF INSURANCE $5,000

2.

Arson Reward

$5,000

3.

Loss Data Preparation Costs

$5,000

4.

Accounts Receivable

$25,000

5.

Ordinance or Law Coverage A-Undamaged Portion of Building B-Demolition & C – Inc Cost Construction

Included $50,000 Combined Limit

6.

Business Income from Dependent Properties

$25,000

7.

Employee Tools and Clothing

$10,000/$1,000 maximum per tool

8.

Business Income and Extra Expense

$25,000

9.

Theft, Disappearance and Destruction Coverage Form

$10,000 Inside $10,000 Outside

10. Employee Dishonesty

$10,000

11. EDP (Including Mechanical Breakdown and disturbance); Mechanical Breakdown and Disturbance Coverage subject to a minimum deductible of $500

$25,000

12. Personal Effects

$10,000

13. Valuable Papers

$25,000 On Premises $25,000 Off-Premises and in transit

14. Property Off-Premises

$35,000

15. Outdoor Property

$5,000/$500 per tree, shrub or plant

16. Fine Arts

$10,000

17. Property in Transit

$10,000

18. Outdoor Signs Attached To Building

$5,000

CP FM 02 11 07

Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

Page 1 of 14

II.

DEDUCTIBLE Each loss shall be adjusted separately, and from the amount of such adjusted loss the sum of the deductible shown in the declarations shall be deducted for all coverages listed under Section 1. COVERAGE. (The “Mechanical Breakdown” Coverage deductible shall be separately listed under the Section I. COVERAGE item 10.)

III.

BUILDING AND PERSONAL PROPERTY COVERAGE FORM, CP 00 10 A.

BUILDING 1.

The following property is added under A. COVERAGE 1. Covered Property: a.

2.

Building (6)

Exterior signs, building glass, light poles and retaining walls that are owned by you, on or within 1,000 feet of the premises. The 1,000 feet limitation does not apply to exterior signs.

(7)

Foundations of buildings, structures, machinery or boilers.

(8)

Underground pipes, flues or drains.

The following paragraph is deleted from C. LIMITS OF INSURANCE: The most we will pay for loss or damage to outdoor signs attached to buildings is $1,000 per sign in any one occurrence.

3.

The following paragraphs are deleted from A. COVERAGE 2. Property Not Covered: g.

B.

Foundations of buildings, structures, machinery or boilers if their foundations are below: (1)

The lowest basement floor; or

(2)

The surface of the ground, if there is no basement.

l.

retaining walls that are not part of the building described in the Declarations.

m.

Underground pipes, flues or drains.

PERSONAL PROPERTY OF OTHERS 1.

The following is added to Section A. COVERAGE 1. Covered Property: b.

Your Business Personal Property:

(8)

Personal Property of Others that is: (a) (b)

In your care, custody or control; and Located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises.

However, your payment for loss of or damage to personal property of others will only be for the account of the owner of the property. Personal Property of Others does not include tools of your employee. 2.

A. Coverage subsection c. Personal Property of Others is deleted in its entirety.

3.

G. OPTIONAL COVERAGES, subsection 3.b.(1) is deleted when the Replacement Cost option is

CP FM 02 11 07

Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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selected. C.

ADDITIONAL COVERAGES The following Additional Coverages are additional Limits of Insurance. 1.

Fire Department Service Charge under A. COVERAGE, subsection 4. Additional Coverages c. is deleted and replaced with the following: c.

Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $5,000 for your liability for fire department service charges: (1) (2)

Assumed by contract or agreement prior to loss; or Required by local ordinance.

No deductible applies to this Additional Coverage. 2.

The following Additional Coverages are being added to A. COVERAGE, subsection 4. Additional Coverages:

f.

Arson Reward Coverage We will pay the expenses to provide a reward for information which leads to an arson conviction in connection with a covered fire. Costs incurred in advertising the reward are included. The most that we will pay for this coverage extension is $5,000.

g.

Loss Data Preparation Costs We will pay up to $5,000 for reasonable and necessary costs you incur in preparing loss data required by policy conditions after a covered property loss. This includes the cost of taking inventory, making appraisals and preparing other data to determine the extent of your loss. No deductible applies to this coverage extension. We will not pay expenses incurred under the Loss Condition – Appraisal nor for expenses you incur for your use of a public adjuster.

h.

Fire Extinguisher Recharge We will pay expenses you incur to recharge automatic fire protection equipment when such equipment is discharged to fight a fire or as the result of a Covered Cause of Loss. No deductible will apply.

i.

Accounts Receivable Accounts Receivable Coverage Form IM 1000 is endorsed to this policy. (1)

Accounts Receivable Coverage Form IM 1000: The “limit” for loss in any one occurrence is $25,000.

(2)

How much we pay 3.

j.

Ordinance or Law Coverage (1)

CP FM 02 11 07

Coinsurance is deleted.

Ordinance or Law Coverage Form CP 0405 is endorsed to this policy. Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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k.

l.

(2)

Coverage A (Coverage For Loss To The Undamaged Portion Of The Building), Coverage B (Demolition Cost) and Coverage C (Increased Cost Of Construction) apply to covered building property scheduled in the Declaration pages.

(3)

The most we will pay for loss in any one occurrence is a $50,000 Combined Limit for Coverage B (Demolition Cost) and Coverage C (Increased Cost of Construction).

Inflation Guard Protection – Building(s) (1)

This Additional Coverage applies only to your Building(s) and not to your Business Personal Property, Business Income or Extra Expense Coverages.

(2)

In the event of a Covered Cause of Loss that exceeds the Limit of Insurance for the Replacement Cost of the Building(s) if the Replacement Cost Provision under G. Optional Coverages applies or if Actual Cash Value applies, we will pay the Actual Cash Value for the building(s) up to the Limit of Insurance plus 5%.

(3)

We shall not be liable under this endorsement for any loss unless and until the damaged or destroyed property is actually repaired or replaced by the insured.

Business Income From Dependent Properties When Business Income (and Extra Expense) Coverage Form CP 0030 is attached to this policy and indicated in the Declaration: (1)

We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your “operations” during the “period of restoration”. The “suspension” must be caused by direct physical loss of or damage to “dependent property” caused by or resulting from any cause that would be a Covered Cause of Loss under this policy.

(2)

The provisions of this Coverage Extension respecting direct physical loss or damage of the “dependent property” will apply separately to each “dependent property”.

(3)

We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume “operations”, in whole or in part, by using any other available source of materials, or outlet for your products.

(4)

For purposes of this Coverage, “operations” means your business activities occurring at the described premises.

(5)

For the purposes of this coverage, “dependent property” means property operated by others whom you depend on to:

(6)

(a)

Deliver materials or services to you or to others for your account (Contributing Locations). With respect to Contributing Locations, services does not include water, communication or power supply services.

(b)

Accept your products or services (Recipient Location):

(c)

Manufacture products for delivery to your customers under contract of sale (Manufacturing Locations); or

(d)

Attract customers to your business (Leader Locations).

With respect to “dependent property”, “period of restoration” means the period of time that: (a)

CP FM 02 11 07

Begins with the date of direct physical loss or damage caused by or resulting from cause that would be a Covered Cause of Loss under this policy at the premises of the “dependent property” and Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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(b)

Ends on the date when the property at the premises of the “dependent property” should be repaired, rebuilt or replaced with reasonable speed and similar quality.

“Period of restoration” does not include any increased period required due to the enforcement of any ordinance or law that:

(7) m.

(a)

Regulates the construction, use or repair, or requires the tearing down or any property; or

(b)

Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of “pollutants”.

The most we will pay for loss under this Additional Coverage is $25,000.

Employees’ Tools and Clothing We will cover tools and work clothing of employees for which you may be liable while such tools and work clothing are located at the described premises, job sites or while in transit to or from job sites in your vehicles. The most we will pay for loss or damage due to a Covered Cause of Loss under this Additional Coverage is $10,000, but not more than $1,000 for any one tool. The Coinsurance Clause does not apply to this Additional Coverage.

n.

Business Income and Extra Expense Business Income (1) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your “operations” during the “period of restoration”. The suspension must be caused by direct physical loss of or damage to property, including personal property in the open (or in a vehicle) within 100 feet, at premises which are described in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss. If you are a tenant, your premises is the portion of the building which you rent, lease or occupy, including:

(2)

(3)

(a)

All routes within the building to gain access to the described premises; and

(b)

Your personal property in the open (or in a vehicle) within 100 feet.

Business income means the: (a)

Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and

(b)

Continuing normal operating expenses incurred, including payroll.

For Covered Causes of Loss, see the applicable Causes of Loss Form shown in the Declarations.

Extra Expense (1) Extra Expense means necessary expenses you incur during the “period of restoration” that you would not have incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered Cause of Loss. (2)

CP FM 02 11 07

We will also pay any Extra Expense to avoid or minimize the suspension of business and to continue “operation”: (a)

At the described premises; or

(b)

At replacement premises or at temporary locations, including: Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

Page 5 of 14

(i)

Relocation expenses; and

(ii)

Costs to equip and operate the replacement or temporary locations.

(3)

We will pay any Extra Expense to minimize the suspension of business if you cannot continue “operations”.

(4)

We will pay any Extra Expense to: (a)

Repair or replace any property; or

(b)

Research, replace or restore the lost information on damaged valuable papers and records;

To the extent it reduces the amount of loss that otherwise would have been payable under this Coverage Form. Limits of Insurance The most we will pay for loss in any one occurrence is $25,000. Payments under Extra Expense will not increase the applicable Limit of Insurance. Limitation – Electronic Media and Records We will not pay for any loss of Business Income caused by direct physical loss of or damage to Electronic Media and Records after the longer of: (1)

60 consecutive days from the date of direct physical loss or damage; or

(2)

The period, beginning with the date of direct physical loss or damage, necessary to repair, rebuild or replace, with reasonable speed and similar quality, other property at the described premises due to loss or damage caused by the same occurrence. Electronic Media and Records are: (a)

Electronic data processing, recording or storage media such as films, tapes, discs, drums or cells;

(b)

Data stored on such media; or

(c)

Programming records used for electronic data processing or electronically controlled equipment.

This limitation does not apply to Extra Expense. Loss Determination The amount of Business Income loss will be determined based on:

CP FM 02 11 07

(1)

The Net Income of the business before the direct physical loss or damage occurred;

(2)

The likely Net Income of the business if no physical loss or damage had occurred, but not including any Net Income that would likely have been earned as a result of an increase in the volume of business due to favorable business conditions caused by the impact of the Covered Cause of Loss on customers or on other businesses;

(3)

The operating expenses, including payroll expenses, necessary to resume “operations” with the same quality of service that existed just before the direct physical loss or damage; and Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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(4)

Other relevant sources of information, including: (a)

Your financial records and accounting procedures;

(b)

Bills, invoices and other vouchers; and

(c)

Deeds, liens or contracts.

The amount of Extra Expense will be determined based on: (1)

(2)

All expenses that exceed the normal operating expenses that would have been incurred by “operations” during the “period of restoration” if no direct physical loss or damage had occurred. We will deduct from the total of such expenses: (a)

The salvage value that remains of any property bought for temporary use during the “period of restoration”, once “operations” are resumed; and

(b)

Any Extra Expense that is paid for by other insurance, except for insurance that is written subject to the same plan, terms, conditions and provisions as this insurance; and

All necessary expenses that reduce the Business Income loss that otherwise would have been incurred.

Resumption of Operations We will reduce the amount of your: (1)

Business Income loss, other than Extra Expense, to the extent you can resume your “operations”, in whole or in part, by using damaged or undamaged property (including merchandise or stock) at the described premises or elsewhere.

(2)

Extra Expense loss to the extent you can return “operations” to normal and discontinue such Extra Expense.

If you do not resume “operations”, or do not resume “operations” as quickly as possible, we will pay based on the length of time it would have taken to resume “operations” as quickly as possible. Additional Definitions (1)

“Finished Stock” means stock you have manufactured. “Finished stock” also includes whiskey and alcoholic products being aged. “Finished stock” does not include stock you have manufactured that is held for sale on the premises of any retail outlet insured under this Coverage Part.

(2)

(3)

CP FM 02 11 07

“Operations” means: (a)

Your business activities occurring at the described premises; and

(b)

The tenantability of the described premises, if coverage for Business Income applies.

“Period of Restoration” means the period of time that: (a)

Begins with the date of the direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the described premises; and

(b)

Ends on the earlier of:

Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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(i)

The date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or

(ii)

The date when business is resumed at a new permanent location.

“Period of restoration” does not include any increased period required due to the enforcement of any ordinance or law that: (i)

Regulates the construction, use or repair, or requires the tearing down of any property; or

(ii) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of “pollutants”. The expiration date of this policy will not cut short the “period of restoration”. o.

Crime (1)

p.

The following coverages are included, subject to all provisions of the Crime General Provisions Form CR 1000: (a)

Theft, Disappearance and Destruction Coverage Form CR-0004 is endorsed to this policy. B. LIMIT OF INSURANCE is deleted and replaced by the following:

(b)

The most that we will pay for loss in any one “occurrence” is $10,000 for Section I. – Inside The Premises, and $10,000 for Section 2. – Outside The Premises.

Electronic Data Processing (1)

We will cover direct physical loss or damage caused by a Covered Cause of Loss to property while at a premises described on the declarations. Covered Property consists of: (a)

Your “hardware”, “protection and control systems” and “software”; and

(b)

Similar property of others that is in your care, custody, or control. The most we will pay for loss or damage due to a Covered Cause of Loss under this Additional Coverage is $25,000 per any one occurrence.

(2)

CP FM 02 11 07

The following definitions are added: (i)

“Hardware” means an assembly of electronic machine components capable of accepting instructions and information, processing the information according to the instructions, and producing desired results, including communication equipment.

(ii)

“Mechanical breakdown” means mechanical breakdown or malfunction, component failure, faulty installation, or blow out.

(iii)

“Protection and control systems” means air conditioning equipment used exclusively in the operation of the “hardware”, fire protection equipment used for the protection of the “hardware”, including automatic and manual fire suppression equipment, and smoke and heat detectors, and uninterruptible power supply system, line conditions, and voltage regulator.

(iv)

“Software” means processing, recording, or storage media used for electronic data processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells; and data, information, and instructions stored on processing, recording, or storage media used for electronic data processing operations. Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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(3)

(v)

“Electrical disturbance” means electrical or magnetic damage, disturbance of electronic recordings, or erasure of electronic recordings.

(vi)

“Power supply disturbance” means interruption of power supply, power surge, blackout or brownout.

“Mechanical Breakdown” and Disturbance We will pay for loss to covered property caused by “mechanical breakdown” and “power supply disturbance”. We also will pay for loss to covered property caused by “electrical disturbance”. The most that we will pay for a loss or damage due to a Covered Cause of Loss under this Additional Coverage is $25,000 per any one occurrence. “Mechanical Breakdown” and Disturbance Coverage is subject to a minimum deductible of $500 per occurrence. If a higher deductible is selected for the Property Enhancement Endorsement, the higher deductible also applies to the “Mechanical Breakdown” and Disturbance Coverage.

q.

Employee Dishonesty (1)

We will pay for direct loss of or damage to Business Personal Property and “money” and “securities” resulting from dishonest acts committed by any of your employees acting alone or in collusion with other persons (except you or your partner) with the manifest intent to: (a)

Cause you to sustain loss or damage; and also

(b)

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: (i) Any employee; or (ii) Any other person or organization.

(2)

We will not pay for loss or damage: (a)

Resulting from any dishonest or criminal act that you or any of your partners commit whether acting alone or in collusion with other persons.

(b)

The only proof of which as to its existence or amount is: (i) An inventory computation; or (ii) A profit and loss computation.

(3)

The most we will pay for loss or damage in any one occurrence is the Limit of Insurance for Employee Dishonesty shown in the Declarations.

(4)

All loss or damage: (a)

Caused by one or more persons; or

(b)

Involving a single act or series of related acts;

is considered one occurrence. (5)

CP FM 02 11 07

We will pay only for loss or damage you sustain through acts committed or events occurring during the Policy Period. Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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(6)

This Additional Coverage does not apply to any employee immediately upon discovery by: (a)

You; or

(b)

Any of your partners, officers or directors not in collusion with the employee;

of any dishonest act committed by that employee before or after being hired by you. (7)

We will pay only for covered loss or damage discovered no later than one year from the end of the Policy Period.

(8)

If you (or any predecessor in interest) sustained loss or damage during the period of any prior insurance that you could have recovered under that insurance except that the time within which to discover loss or damage had expired, we will pay for it under this Additional Coverage, provided:

(9)

(a)

This Additional Coverage became effective at the time of cancellation or termination of the prior insurance; and

(b)

The loss or damage would have been covered by this Additional Coverage had it been in effect when the acts or events causing the loss or damage were committed or occurred.

The insurance under Paragraph 8. above is part of, not in addition to, the Limit of Insurance applying to this Additional Coverage and is limited to the lesser of the amount recoverable under: (a)

This Additional Coverage as of its effective date; or

(b)

The prior insurance had it remained in effect.

(10) The following definitions are added: (a)

“Money” means: (i) Currency, coins and bank notes in current use and have a face value; and (ii) Travelers checks, register checks and money orders held for sale to the public.

(b)

“Securities” means negotiable and non-negotiable instruments or contracts representing either “money” or other property and includes: (i) Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and (ii) Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include “money”.

r.

Outdoor Signs Attached to Building Under C. Limits Of Insurance, the second paragraph is amended to read $5,000 per sign in lieu of $1,000 per sign.

D.

COVERAGE EXTENSION 1.

Coverage Extensions under Part A. Coverage part 5. Coverage Extensions b. Personal Effects And Property Of Others; c. Valuable Papers And Records (Other Than Electronic Data); d. Property Off-Premises; and e. Outdoor Property are modified by the following: b.

CP FM 02 11 07

Personal Effects And Property Of Others Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

Page 10 of 14

The most we will pay for loss or damage under this Extension is $10,000 at each described premises. c.

(2)

Valuable Papers and Records (Other Than Electronic Data) The most we will pay under this Extension is $25,000 at each described premises or $25,000 while off-premises, including coverage in transit.

The following is added to H. DEFINITIONS: 3.

“Valuable Papers and Records” means inscribed, printed or written documents, manuscripts or records including abstracts, books, deeds, drawings, films, maps or mortgages.

d.

Property Off-Premises (3)

e.

The most we will pay for loss or damage under this Extension is $35,000.

Outdoor Property The most we will pay for loss or damage under this Extension is $5,000, but not more than $500 for any one tree, shrub or plant.

g.

“Fine Arts” (1)

You may extend the insurance provided by this Coverage Form to “Fine Arts”. The most we will pay for loss or damage under this Extension is $10,000 at each described premises.

(2)

The following is added to E. Loss Conditions, Section 7. Valuation: “Fine Arts” at market value at the time of loss or damage.

(3)

The following is added to H. Definitions: 4.

“Fine Arts” means paintings, etchings, pictures, tapestries, art glass windows, valuable rugs, statuary, marbles, bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass, and similar property of rarity, historical value or artistic merit.

Each of these Extensions is additional insurance. The Additional Condition. Coinsurance does not apply to these Extensions. IV.

CAUSE OF LOSS A,

Causes of Loss – Special Form CP 10 30 is modified as follows, subject to all terms and conditions of CP 10 30. 1.

a.

Valuable Papers and Records C. Limitations, subsection 2.a. is deleted.

b.

The following exclusions are added to the Causes of Loss Special Form B. Exclusions 2.n. and are applicable only to the Valuable Papers and Records – Cost of Research. n.

2.

(1)

Bookkeeping, accounting or billing errors or omissions

(2)

Errors or omissions in processing or copying valuable papers and records.

Theft Limitation C. Limitations, subsection 3. is deleted and replaced with the following: 3.

CP FM 02 11 07

Valuable Papers and Records

For loss or damage by theft, the following types of property are covered only up to the limits shown: Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

Page 11 of 14

3.

6.

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

b.

$25,000 for jewelry, watches, watch movements, jewels, pearls, precious and semiprecious stones, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item.

c.

$25,000 for patterns, dies, molds and forms.

d.

$250 for stamps, tickets, including lottery tickets held for sale, and letters of credit.

Limitation – Building and Structures Foundations C. Limitations. 5. is added as follows: a.

4.

a.

We will not pay more than $250,000 or 10% of the building value per any one occurrence, whichever is less, for loss of or damage to: (1)

The foundations of buildings and structures if their foundations are below the lowest basement floor or the surface of the ground, if there is no basement;

(2)

Underground pipes, flues or drains;

(3)

Retaining walls that are not part of a building.

Property in Transit F. Additional Coverage Extensions, subsection 1.a. and 1.c are deleted and replaced with the following: a.

You may extend the insurance provided by this Coverage Part to apply to your personal property (other than property in the care, custody or control of your sales representatives) in transit, more than 100 feet from the described premises. Property must be in or on a motor vehicle or trailer you own, lease or operate, or on a vessel, while between points in the coverage territory.

c.

The most we will pay for loss or damage under this Extension is $10,000 per any one occurrence.

Electronic Data Processing Coverage 1.

The following B. Exclusions do not apply to the Electronic Data Processing Coverage: B.

EXCLUSIONS 1b.

Earth Movement

1c.

Utility Services

1g.

Water

2a.

Artificially generated currents

2c.

Smoke, vapor or gas from agricultural smudging or industrial operations

2d3. Smog 2d4. Settling, cracking, shrinking or expansion 2d5. Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other animals 2d6. “Mechanical breakdown” 2d7a. Dampness or dryness of atmosphere

CP FM 02 11 07

Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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2d7b. Changes in or extremes of temperature 2d7c. Marring or scratching

2.

Explosion of steam boilers, steam pipes, steam engines or steam turbines owned by you, or operated under your control

2f.

Continuous or repeated seepage or leakage of water that occurs over a period of 14 days or more

2g.

Water, other liquids, powder or molten material that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing

2i.

Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense

2k.

Collapse

The following exclusions are added to the Causes of Loss – Special Form Part B. Exclusions, Section 1. and are applicable only to the Electronic Data Processing Coverage: o.

V.

2e.

Electronic Data Processing Coverage (1)

Programming errors. Losses due to errors in programming or instructing Electronic Data Processing Equipment are not covered under this coverage form.

(2)

Deterioration, Fault or Weakness – We will not pay for deterioration; decay; or any quality, fault, or weakness in the covered property that causes it to damage or destroy itself. This exclusion does not apply to loss caused by “mechanical breakdown”.

(3)

Temperature, Humidity, Corrosion, or Rust – We will not pay for loss caused by corrosion, rust, humidity, dampness, dryness or changes in or extremes of temperature. But we will pay for loss to covered property that results from a direct physical loss, caused by a Covered Cause of Loss, to the air conditioning system that services covered “hardware”.

(4)

Wear and Tear, or Obsolescence – We will not pay for loss caused by wear and tear, depreciation, or obsolescence.

ADDITIONAL CONDITIONS The following conditions apply in addition to the Common Policy and the Commercial Property Conditions. A.

The Common Policy Conditions apply to these Coverage Extensions: 1.

B.

Accounts Receivable

The common Policy Conditions and CR 1000 General Crime Provisions apply to: 1.

CP FM 02 11 07

Theft, Disappearance and Destruction Coverage, CR 0004

Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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CP FM 02 11 07

Includes Copyrighted Material of ISO Properties, Inc. with its permission. © ISO Properties, Inc. 1994, 2002

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