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PROOF OF INSURANCE (2024) CLOSEDq° ACE Property YAnd Casualty Insurance Company Y Businessowners Policy Declarations This Policy is issued by the stock insurance company listed above ('Insurer"). Policy Number: D01688832 Renewal of: New Named Insured & Principal Address: Policy Period LAW OFFICE OF BRENDA L. DIEDERICHS 14132 Peral Court Chino, CA 91710 PREMIUM $485.00 Admitted Status: Admitted Auditable/Not Auditable: No Auditable Period: Annual From 04-27-2023 To 04-27-2024 12:01 AM Standard Time at your Principal address shown IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE INSURANCE AS STATED IN THIS POLICY Business Description: Services Section 1. PROPERTY Coverage Limit of Insurance .................... Deductible Revised Period Premium of Indemnity Business Income . ........__ Actual Loss Sustained 72 hours 12 Months Included and Extra Expense Limit of Insurance BOP-43591f (11/20) © 2017 Page 1 of 4 Described Premises:14132 Peral Court, Chino, CA 91710 Prem. Build Coverage(s) Limit Of Deductible Valuation Coinsurance Premium No. No. Insurance 1 1 Business $5,000 $1,000 Replacement 80% $37.00 Personal Cost Pro ert .............. Coverage Limit of Deductible Premium Insurance Equipment Breakdown Included 72 hours/$1,000 $79 Protection Coverage WIND COVERAGE Windstorm or Hail Deductible Percentage N/A Wind Deductible Dollar Amount $1,000 Wind Excluded No Wind Premium: Included OPTIONAL COVERAGE DEDUCTIBLE $500 (applies to Money and Securities, Employee Dishonesty, Outdoor Signs, Forgery or Alteration, Change in Controlled Environment — Perishable Property) ADDITIONAL COVERAGES (Optional) Total Terrorism (TRIA) Premium: $2 Total Property Premium: $114 Section 2. LIABILITY Described Premises: 14132 Peral Court, Chino, CA 91710 Prem.. Classification Class Code No. 1 La ers 63921 LIMITS Other than Products/Completed Operations Aggregate Products/Completed Operations Aggregate Liability and Medical Expenses Damage to Premises Rented to You Medical Expense Rating Basis Area $2,000,000 $2,000,000 $1, 000, 000 $100,000 $5,000 Premium Premium Basis Prem/O s PR/CO 600 _ $24 0 Per Occurrence Any One Premises Per Person BOP-43591f (11/20) © 2017 Page 2 of 4 Combined Total Aggregate $2,000,000 All Locations Combined Total Optional Coverages Premium: $0 Total Terrorism (TRIA) Premium: $0 Total Policy Premium: $485.00 Item E. COVERAGE FORMS Form Number Edition Title BOP43591f 1120 BUSINESSOWNERS POLICY DECLARATIONS CC1 K11 K 0422 SIGNATURES BP0003 0713 BUSINESSOWNERS COVERAGE FORM BOP43603 0814 GENETICALLY MODIFIED ORGANISM OR SUBSTANCE EXCLUSION BOP43830 0614 LEAD EXCLUSION POLLUTION, ORGANIC PATHOGEN, SILICA, ASBESTOS AND LEAD EXCLUSION WITH HOSTILE BOP43862 0914 FIRE.' AND HUMAN FOOD PRODUCT EXCEPTIONS BOP51381 1018 OPIOIDS GOODS OR PRODUCTS EXCLUSION -TOTAL BP0501 0702 CALCULATION OF PREMIUM BP0598 0713 AMENDMENT OF INSURED CONTRACT DEFINITION BP1407 0110 BUSINESS INCOME AND EXTRA EXPENSE - REVISED PERIOD OF INDEMNITY BP1415 0713 LIMITED EXCLUSION - PERSONAL AND ADVERTISING INJURY - LAWYERS BP1486 0713 COMMUNICABLE DISEASE EXCLUSION EXCLUSION -ACCESS OR DISCLOSURE OF CONFIDENTIAL OR PERSONAL INFORMATION BP1505 0514 AND DATA -RELATED LIABILITY - LIMITED BODILY INJURY EXCEPTION NOT INCLUDED BOP47736 0416 AMENDMENT OF BODILY INJURY DEFINITION - INCLUDING RESULTING MENTAL ANGUISH BP0523 0115 CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM BOP48573 0117 LEAD EXCLUSION BOP47643 0316 EMPLOYMENT -RELATED PRACTICES EXCLUSION BOP48528 1016 ASBESTOS, SILICA OR SIMILAR COMPOUNDS, INCLUDING MIXED DUST EXCLUSION BOP49665 0817 COMMUNICABLE OR INFECTIOUS DISEASES EXCLUSION - TOTAL U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL ("OFAC") ADVISORY ILP001 0104 NOTICE TO POLICYHOLDERS ALL21101 1106 TRADE OR ECONOMIC SANCTIONS ENDORSEMENT BOP49269 0517 PERIOD OF RESTORATION DEFINITION —WAITING PERIOD AMENDED BOP50397 0518 MARIJUANA EXCLUSION BP0515 1220 DISCLOSURE PURSUANT TO TERRORISM RISK INSURANCE ACT ALL20887b 1017 CHUBB PRODUCER COMPENSATION PRACTICES AND POLICIES BOP-43591f (11/20) © 2017 Page 3 of 4 BP0155 0720 CALIFORNIA CHANGES Item F, Notice under this Policy shall be given to: Chubb North America Claims P.O. Box 5122 Scranton, PA 18505-0554 Toll Free: 844-539-3801 claims.smallbusiness@chubb.com Item G. Producer Name and Mailing Address AFFINITY INSURANCE SERVICES INC 1100 VIRGINIA DRIVE SUITE 250 FORT WASHINGTON, PA 19034 Item H. Producer Code: Z10855 IN WITNESS WHEREOF, the Insurer has caused this Policy to be signed by its President and Secretary, and countersigned by a duly authorized representative of the Insurer. DATE: 04-27-2023 Authorized Representative BOP-43591f (11/20) © 2017 Page 4 of 4 CHUBB® SIGNATURES Named Insured Endorsement Number LAW OFFICE OF BRENDA L. DIEDER---- ....... . Policy Symbol Policy Number Policy Period Effective Date of Endorsement SER Do16888 2 o mm27-2023 to 04-27-202 Issued By (Name of Insurance Company) ACE PROPERTY AND CASUALTY INSURANCE COMPANY THE ONLY COMPANY APPLICABLE TO THIS POLICY IS THE COMPANY NAMED ON THE FIRST PAGE OF THE DECLARATIONS. By signing and delivering the policy to you, we state that it is a valid contract. INDEMNITY INSURANCE COMPANY OF NORTH AMERICA (A stock company) BANKERS STANDARD INSURANCE COMPANY (A stock company) ACE AMERICAN INSURANCE COMPANY (A stock company) ACE PROPERTY AND CASUALTY INSURANCE COMPANY (A stock company) INSURANCE COMPANY OF NORTH AMERICA (A stock company) PACIFIC EMPLOYERS INSURANCE COMPANY (A stock company) ACE FIRE UNDERWRITERS INSURANCE COMPANY (A stock company) WESTCHESTER FIRE INSURANCE COMPANY (A stock company) 436 Walnut Street, P.O. Box i000, Philadelphia, Pennsylvania igio6-3703 B A'NDON PEENE, Secretary JOHN J. LUPICA, President Authorized Representative CC-1K11k (04/22) BUSINESSOWNERS BP 00 03 07 13 BUSINESSO W NERS COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this Coverage Form, the words "you" and "your' refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the company providing this insurance. In Section II — Liability, the word "insured" means any person or organization qualifying as such under Paragraph C. Who Is An Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to Paragraph H. Property Definitions in Section I — Property and Paragraph F. Liability And Medical Expenses Definitions in Section II — Liability. SECTION I — PROPERTY A. Coverage We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss. 1. Covered Property Covered Property includes Buildings as described under Paragraph a. below, Business Personal Property as described under Paragraph b. below, or both, depending on whether a Limit Of Insurance is shown in the Declarations for that type of property. Regardless of whether coverage is shown in the Declarations for Buildings, Business Personal Property, or both, there is no coverage for property described under Paragraph 2. Property Not Covered. a. Buildings, meaning the buildings and structures at the premises described in the Declarations, including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed: (a) Machinery; and (b) Equipment; (4) Your personal property in apartments, rooms or common areas furnished by you as landlord; (5) Personal property owned by you that is used to maintain or service the buildings or structures or the premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (6) If not covered by other insurance: (a) Additions under construction, alterations and repairs to the buildings or structures; (b) Materials, equipment, supplies and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations or repairs to the buildings or structures. b. Business Personal Property located in or on the buildings or structures at the described premises or in the open (or in a vehicle) within 100 feet of the buildings or structures or within 100 feet of the premises described in the Declarations, whichever distance is greater, including: (1) Property you own that is used in your business; (2) Property of others that is in your care, custody or control, except as otherwise provided in Loss Payment Property Loss Condition Paragraph E.5.d.(3)(b); (3) Tenant's improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (a) Made a part of the building or structure you occupy but do not own; and (b) You acquired or made at your expense but cannot legally remove; (4) Leased personal property which you have a contractual responsibility to insure, unless otherwise provided for under Paragraph 1.b.(2); and BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 53 (5) Exterior building glass, if you are a tenant and no Limit Of Insurance is shown in the Declarations for Building property. The glass must be owned by you or in your care, custody or control. 2. Property Not Covered Covered Property does not include: a. Aircraft, automobiles, motortrucks and other vehicles subject to motor vehicle registration; b. "Money" or "securities" except as provided in the: (1) Money And Securities Optional Coverage; or (2) Employee Dishonesty Optional Coverage; c. Contraband, or property in the course of illegal transportation or trade; d. Land (including land on which the property is located), water, growing crops or lawns (other than lawns which are part of a vegetated roof); e. Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants (other than trees, shrubs or plants which are part of a vegetated roof), all except as provided in the: (1) Outdoor Property Coverage Extension; or (2) Outdoor Signs Optional Coverage; f. Watercraft (including motors, equipment and accessories) while afloat; g. Accounts, bills, food stamps, other evidences of debt, accounts receivable or "valuable papers and records"; except as otherwise provided in this policy; h. "Computer(s)" which are permanently installed or designed to be permanently installed in any aircraft, watercraft, motortruck or other vehicle subject to motor vehicle registration. This paragraph does not apply to "computer(s)" while held as "stock"; I. "Electronic data", except as provided under Additional Coverages — Electronic Data. This Paragraph i. does not apply to your "stock" of prepackaged software or to "electronic data" which is integrated in and operates or controls the building's elevator, lighting, heating, ventilation, air conditioning or security system; or j. Animals, unless owned by others and boarded by you, or if owned by you, only as "stock" while inside of buildings. 3. Covered Causes Of Loss Direct physical loss unless the loss is excluded or limited under Section I — Property. 4. Limitations a. We will not pay for loss of or damage to: (1) Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. (2) Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. (3) Property that is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory, or other instances where there is no physical evidence to show what happened to the property. This limitation does not apply to the Optional Coverage for Money and Securities. (4) Property that has been transferred to a person or to a place outside the described premises on the basis of unauthorized instructions. (5) The interior of any building or structure, or to personal property in the building or structure, caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: (a) The building or structure first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or Page 2 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. (6) Lawns, trees, shrubs or plants which are part of a vegetated roof, caused by or resulting from: (a) Dampness or dryness of atmosphere or of soil supporting the vegetation; (b) Changes in or extremes of temperature; (c) Disease; (d) Frost or hail; or (e) Rain, snow, ice or sleet. b. We will not pay for loss of or damage to the following types of property unless caused by the "specified causes of loss" or building glass breakage: (1) Animals, and then only if they are killed or their destruction is made necessary. (2) Fragile articles such as glassware, statuary, marble, chinaware and porcelain, if broken. This restriction does not apply to: (a) Glass that is part of the exterior or interior of a building or structure; (b) Containers of property held for sale; or (c) Photographic or scientific instrument lenses. c. For loss or damage by theft, the following types of property are covered only up to the limits shown (unless a higher Limit Of Insurance is shown in the Declarations): (1) $2,500 for furs, fur garments and garments trimmed with fur. (2) $2,500 for jewelry, watches, watch movements, jewels, pearls, precious and semiprecious stones, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. (3) $2,500 for patterns, dies, molds and forms. 5. Additional Coverages a. Debris Removal (1) Subject to Paragraphs (2), (3) and (4), we will pay your expense to remove debris of Covered Property and other debris that is on the described premises, when such debris is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage. (2) Debris Removal does not apply to costs to: (a) Remove debris of property of yours that is not insured under this policy, or property in your possession that is not Covered Property; (b) Remove debris of property owned by or leased to the landlord of the building where your described premises are located, unless you have a contractual responsibility to insure such property and it is insured under this policy; (c) Remove any property that is Property Not Covered, including property addressed under the Outdoor Properly Coverage Extension; (d) Remove property of others of a type that would not be Covered Property under this policy; (e) Remove deposits of mud or earth from the grounds of the described premises; (f) Extract "pollutants" from land or water; or (g) Remove, restore or replace polluted land or water. (3) Subject to the exceptions in Paragraph (4), the following provisions apply: (a) The most that we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to the Covered Property that has sustained loss or damage. BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 3 of 53 (b) Subject to Paragraph (3)(a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. However, if no Covered Property has sustained direct physical loss or damage, the most we will pay for removal of debris of other property (if such removal is covered under this Additional Coverage) is $5,000 at each location. (4) We will pay up to an additional $25,000 for debris removal expense, for each location, in any one occurrence of physical loss or damage to Covered Property, if one or both of the following circumstances apply: (a) The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage exceeds the Limit of Insurance on the Covered Property that has sustained loss or damage. (b) The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. Therefore, if Paragraphs (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $25,000. (5) Examples Example 1 Limit of Insurance $ 90,000 Amount of Deductible $ 500 Amount of Loss $ 50,000 Amount of Loss Payable $ 49,500 ($50,000 — $500) Debris Removal Expense $ 10,000 Debris Removal Expense Payable $ 10,000 ($10,000 is 20% of $50,000) The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance. Therefore, the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3). Example 2 Limit of Insurance $ 90,000 Amount of Deductible $ 500 Amount of Loss $ 80,000 Amount of Loss Payable $ 79,500 ($80,000 — $500) Debris Removal Expense $ 40,000 Debris Removal Expense Payable Basic Amount $ 10,500 Additional Amount $ 25,000 The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80,000 ($79,500 + $500) x .25 = $20,000; capped at $10,500. The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of Insurance ($90,000). The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4), because the debris removal expense ($40,000) exceeds 25% of the loss payable plus the deductible ($40,000 is 50% of $80,000), and because the sum of the loss payable and debris removal expense ($79,500 + $40,000 = $119,500) would exceed the Limit of Insurance ($90,000). The additional amount of covered debris removal expense is $25,000, the maximum payable under Paragraph (4). Thus, the total payable for debris removal expense in this example is $35,500; $4,500 of the debris removal expense is not covered. Page 4 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 b. Preservation Of Property (b) Insect or vermin damage that is If it is necessary to move Covered Property hidden from view, unless the from the described premises to preserve it presence of such damage is known from loss or damage by a Covered Cause to an insured prior to collapse; of Loss, we will pay for any direct physical (c) Use of defective material or methods loss of or damage to that property: in construction, remodeling or (1) While it is being moved or while renovation if the abrupt collapse temporarily stored at another location; occurs during the course of the and construction, remodeling or (2) Only if the loss or damage occurs within renovation. 30 days after the property is first moved. U (d) Use of defective material or methods c. Fire Department Service Charge construction, remodeling or in renovation if the abrupt collapse When the fire department is called to save occurs after the construction, or protect Covered Property from a remodeling or renovation is Covered Cause of Loss, we will pay up to complete, but only if the collapse is ,2,,500 for service at each premises caused in part by: described in the Declarations, unless a (i) A cause of loss listed in different limit is shown in the Declarations. Paragraph (2)(a) or (2)(b); Such limit is the most we will pay regardless of the number of responding fire One or more of the "s (ii)p ecified departments or fire units, and regardless of causes of loss"; the number or type of services performed. (iii) Breakage of building glass; This Additional Coverage applies to your (iv) Weight of people or personal liability for fire department service charges: property; or (1) Assumed by contract or agreement prior (v) Weight of rain that collects on a to loss; or roof. (2) Required by local ordinance. (3) This Additional Coverage — Collapse d. Collapse does not apply to: The coverage provided under this Additional Coverage — Collapse applies only to an abrupt collapse as described and limited in Paragraphs d.(1) through d.(7). (1) For the purpose of this Additional Coverage — Collapse, abrupt collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. (2) We will pay for direct physical loss or damage to Covered Property, caused by abrupt collapse of a building or any part of a building that is insured under this policy or that contains Covered Property insured under this policy, if such collapse is caused by one or more of the following: (a) Building decay that is hidden from view, unless the presence of such decay is known to an insured prior to collapse; (a) A building or any part of a building that is in danger of falling down or caving in; (b) A part of a building that is standing, even if it has separated from another part of the building; or (c) A building that is standing or any part of a building that is standing, even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (4) With respect to the following property: (a) Awnings; (b) Gutters and downspouts; (c) Yard fixtures; (d) Outdoor swimming pools; (e) Piers, wharves and docks; (f) Beach or diving platforms or appurtenances; (g) Retaining walls; and (h) Walks, roadways and other paved surfaces; BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 5 of 53 if an abrupt collapse is caused by a cause of loss listed in Paragraphs (2)(a) through (2)(d), we will pay for loss or damage to that property only if such loss or damage is a direct result of the abrupt collapse of a building insured under this policy and the property is Covered Property under this policy. (5) If personal property abruptly falls down or caves in and such collapse is not the result of abrupt collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of personal property only if: (a) The collapse of personal property was caused by a cause of loss listed in Paragraphs (2)(a) through (2)(d) of this Additional Coverage; (b) The personal property which collapses is inside a building; and (c) The property which collapses is not of a kind listed in Paragraph (4), regardless of whether that kind of property is considered to be personal property or real property. The coverage stated in this Paragraph (5) does not apply to personal property if marring and/or scratching is the only damage to that personal property caused by the collapse. (6) This Additional Coverage — Collapse does not apply to personal property that has not abruptly fallen down or caved in, even if the personal property shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (7) This Additional Coverage — Collapse will not increase the Limits of Insurance provided in this policy. (8) The term Covered Cause of Loss includes the Additional Coverage — Collapse as described and limited in Paragraphs d.(1) through d.(7). e. Water Damage, Other Liquids, Powder Or Molten Material Damage If loss or damage caused by or resulting from covered water or other liquid, powder or molten material occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes. We will not pay the cost to repair any defect that caused the loss or damage, but we will pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damage: (1) Results in discharge of any substance from an automatic fire protection system; or (2) Is directly caused by freezing. f. Business Income (1) Business Income (a) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period of restoration". The suspension must be caused by direct physical loss of or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 100 feet of such premises. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of a building, your premises mean: (1) The portion of the building which you rent, lease or occupy; (ii) The area within 100 feet of the building or within 100 feet of the premises described in the Declarations, whichever distance is greater (with respect to loss of or damage to personal property in the open or personal property in a vehicle); and (iii) Any area within the building or at the described premises, if that area services, or is used to gain access to, the portion of the building which you rent, lease or occupy. Page 6 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 0713 (b) We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within 12 consecutive months after the date of direct physical loss or damage. We will only pay for ordinary payroll expenses for 60 days following the date of direct physical loss or damage, unless a greater number of days is shown in the Declarations. (c) Business Income means the: (1) Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred if no physical loss or damage had occurred, but not including any Net Income that would likely have been earned as a result of an increase in the volume of business due to favorable business conditions caused by the impact of the Covered Cause of Loss on customers or on other businesses; and (ii) Continuing normal operating expenses incurred, including payroll. (d) Ordinary payroll expenses: (i) Means payroll expenses for all your employees except: i. Officers; ii. Executives; iii. Department Managers; iv. Employees under contract; and v. Additional Exemptions shown in the Declarations as: • Job Classifications; or • Employees. (ii) Include: i. Payroll; ii. Employee benefits, if directly related to payroll; iii. FICA payments you pay; iv. Union dues you pay; and v. Workers' compensation premiums. (2) Extended Business Income (a) If the necessary suspension of your "operations" produces a Business Income loss payable under this policy, we will pay for the actual loss of Business Income you incur during the period that: (1) Begins on the date property except finished stock is actually repaired, rebuilt or replaced and "operations" are resumed; and (ii) Ends on the earlier of: I. The date you could restore your "operations", with reasonable speed, to the level which would generate the Business Income amount that would have existed if no direct physical loss or damage had occurred; or ii. 60 consecutive days after the date determined in Paragraph (a)(i) above, unless a greater number of consecutive days is shown in the Declarations. However, Extended Business Income does not apply to loss of Business Income incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are located. (b) Loss of Business Income must be caused by direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss. (3) With respect to the coverage provided in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; or (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. (4) This Additional Coverage is not subject to the Limits of Insurance of Section I — Property. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 7 of 53 g. Extra Expense (1) We will pay necessary Extra Expense you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 100 feet of such premises. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of a building, your premises mean: (a) The portion of the building which you rent, lease or occupy; (b) The area within 100 feet of the building or within 100 feet of the premises described in the Declarations, whichever distance is greater (with respect to loss of or damage to personal property in the open or personal property in a vehicle); and (c) Any area within the building or at the described premises, if that area services, or is used to gain access to, the portion of the building which you rent, lease or occupy. (2) Extra Expense means expense incurred: (a) To avoid or minimize the suspension of business and to continue "operations": (1) At the described premises; or (ii) At replacement premises or at temporary locations, including relocation expenses, and costs to equip and operate the replacement or temporary locations. (b) To minimize the suspension of business if you cannot continue "operations". (c) To: (i) Repair or replace any property; or (ii) Research, replace or restore the lost information on damaged "valuable papers and records'; to the extent it reduces the amount of loss that otherwise would have been payable under this Additional Coverage or Additional Coverage f. Business Income. (3) With respect to the coverage provided in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; or (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. (4) We will only pay for Extra Expense that occurs within 12 consecutive months after the date of direct physical loss or damage. This Additional Coverage is not subject to the Limits of Insurance of Section I — Property. h. Pollutant Clean-up And Removal We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. The most we will pay for each location under this Additional Coverage is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12-month period of this policy. Page 8 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 i. Civil Authority When a Covered Cause of Loss causes damage to property other than property at the described premises, we will pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises, provided that both of the following apply: (1) Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage, and the described premises are within that area but are not more than one mile from the damaged property; and (2) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil authority to have unimpeded access to the damaged property. Civil Authority Coverage for Business Income will begin 72 hours after the time of the first action of civil authority that prohibits access to the described premises and will apply for a period of up to four consecutive weeks from the date on which such coverage began. Civil Authority Coverage for necessary Extra Expense will begin immediately after the time of the first action of civil authority that prohibits access to the described premises and will end: (1) Four consecutive weeks after the date of that action; or (2) When your Civil Authority Coverage for Business Income ends; whichever is later. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Civil Authority Additional Coverage. The Civil Authority Additional Coverage is not subject to the Limits of Insurance of Section I — Property. j. Money Orders And "Counterfeit Money" We will pay for loss resulting directly from your having accepted in good faith, in exchange for merchandise, "money" or services: (1) Money orders issued by any post office, express company or bank that are not paid upon presentation; or (2) "Counterfeit money" that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $1,000. k. Forgery Or Alteration (1) We will pay for loss resulting directly from forgery or alteration of any check, draft, promissory note, bill of exchange or similar written promise of payment in "money" that you or your agent has issued, or that was issued by someone who impersonates you or your agent. (2) If you are sued for refusing to pay the check, draft, promissory note, bill of exchange or similar written promise of payment in "money", on the basis that it has been forged or altered, and you have our written consent to defend against the suit, we will pay for any reasonable legal expenses that you incur in that defense. (3) For the purpose of this coverage, check includes a substitute check as defined in the Check Clearing for the 21 st Century Act and will be treated the same as the original it replaced. (4) The most we will pay for any loss, including legal expenses, under this Additional Coverage is $2,500, unless a higher Limit Of Insurance is shown in the Declarations. I. Increased Cost Of Construction (1) This Additional Coverage applies only to buildings insured on a replacement cost basis. (2) In the event of damage by a Covered Cause of Loss to a building that is Covered Property, we will pay the increased costs incurred to comply with the minimum standards of an ordinance or law in the course of repair, rebuilding or replacement of damaged parts of that property, subject to the limitations stated in Paragraphs (3) through (9) of this Additional Coverage. BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 9 of 53 (3) The ordinance or law referred to in Paragraph (2) of this Additional Coverage is an ordinance or law that regulates the construction or repair of buildings or establishes zoning or land use requirements at the described premises and is in force at the time of loss. (4) Under this Additional Coverage, we will not pay any costs due to an ordinance or law that: (a) You were required to comply with before the loss, even when the building was undamaged; and (b) You failed to comply with. (5) Under this Additional Coverage, we will not pay for: (a) The enforcement of or compliance with any ordinance or law which requires demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants" or due to the presence, growth, proliferation, spread or any activity of "fungi", wet rot or dry rot; or (b) Any costs associated with the enforcement of or compliance with an ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants", "fungi", wet rot or dry rot. (6) The most we will pay under this Additional Coverage, for each described building insured under Section I — Property, is $10,000. If a damaged building(s) is covered under a blanket Limit of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for each damaged building, is $10,000. The amount payable under this Additional Coverage is additional insurance. (7) With respect to this Additional Coverage: (a) We will not pay for the Increased Cost of Construction: (i) Until the property is actually repaired or replaced, at the same or another premises; and (ii) Unless the repair or replacement is made as soon as reasonably possible after the loss or damage, not to exceed two years. We may extend this period in writing during the two years. (b) If the building is repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the Increased Cost of Construction is the increased cost of construction at the same premises. (c) If the ordinance or law requires relocation to another premises, the most we will pay for the Increased Cost of Construction is the increased cost of construction at the new premises. (8) This Additional Coverage is not subject to the terms of the Ordinance Or Law Exclusion, to the extent that such exclusion would conflict with the provisions of this Additional Coverage. (9) The costs addressed in the Loss Payment Property Loss Condition in Section I — Property do not include the increased cost attributable to enforcement of or compliance with an ordinance or law. The amount payable under this Additional Coverage, as stated in Paragraph (6) of this Additional Coverage, is not subject to such limitation. m. Business Income From Dependent Properties (1) We will pay for the actual loss of Business Income you sustain due to physical loss or damage at the premises of a dependent property or secondary dependent property caused by or resulting from any Covered Cause of Loss. Page 10 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 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 is $5,000 unless a higher Limit Of Insurance is indicated in the Declarations. (2) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations", in whole or in part, by using any other available: (a) Source of materials; or (b) Outlet for your products. (3) If you do not resume 'operations", or do not resume 'operations" as quickly as possible, we will pay based on the length of time it would have taken to resume 'operations" as quickly as possible. (4) Dependent property means property owned by others whom you depend on to: (a) Deliver materials or services to you, or to others for your account. But services does not mean water supply services, wastewater removal services, communication supply services or power supply services; (b) Accept your products or services; (c) Manufacture your products for delivery to your customers under contract for sale; or (d) Attract customers to your business. The dependent property must be located in the coverage territory of this policy. (5) Secondary dependent property means an entity which is not owned or operated by a dependent property and which; (a) Delivers materials or services to a dependent property, which in turn are used by the dependent property in providing materials or services to you; or (b) Accepts materials or services from a dependent property, which in turn accepts your materials or services. A road, bridge, tunnel, waterway, airfield, pipeline or any other similar area or structure is not a secondary dependent property. Any property which delivers any of the following services is not a secondary dependent property with respect to such services: (1) Water supply services; (ii) Wastewater removal services; (iii) Communication supply services; or (iv) Power supply services. The secondary dependent property must be located in the coverage territory of this policy. (6) The coverage period for Business Income under this Additional Coverage: (a) Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the premises of the dependent property or secondary dependent property; and (b) Ends on the date when the property at the premises of the dependent property or secondary dependent property should be repaired, rebuilt or replaced with reasonable speed and similar quality. (7) The Business Income coverage period, as stated in Paragraph (6), does not include any increased period required due to the enforcement of or compliance with any ordinance or law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not reduce the Business Income coverage period. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 11 of 53 (8) The definition of Business Income contained in the Business Income Additional Coverage also applies to this Business Income From Dependent Properties Additional Coverage. n. Glass Expenses (1) We will pay for expenses incurred to put up temporary plates or board up openings if repair or replacement of damaged glass is delayed. (2) We will pay for expenses incurred to remove or replace obstructions when repairing or replacing glass that is part of a building. This does not include removing or replacing window displays. o. Fire Extinguisher Systems Recharge Expense (1) We will pay: (a) The cost of recharging or replacing, whichever is less, your fire extinguishers and fire extinguishing systems (including hydrostatic testing if needed) if they are discharged on or within 100 feet of the described premises; and (b) For loss or damage to Covered Property if such loss or damage is the result of an accidental discharge of chemicals from a fire extinguisher or a fire extinguishing system. (2) No coverage will apply if the fire extinguishing system is discharged during installation or testing. (3) The most we will pay under this Additional Coverage is $5,000 in any one occurrence. p. Electronic Data (1) Subject to the provisions of this Additional Coverage, we will pay for the cost to replace or restore "electronic data" which has been destroyed or corrupted by a Covered Cause of Loss. To the extent that "electronic data" is not replaced or restored, the loss will be valued at the cost of replacement of the media on which the "electronic data" was stored, with blank media of substantially identical type. (2) The Covered Causes of Loss applicable to Business Personal Property include a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. (3) The most we will pay under this Additional Coverage — Electronic Data for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved, is $10,000, unless a higher Limit Of Insurance is shown in the Declarations. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in, but not after, that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. (4) This Additional Coverage does not apply to your "stock" of prepackaged software, or to "electronic data" which is integrated in and operates or controls a building's elevator, lighting, heating, ventilation, air conditioning or security system. q. Interruption Of Computer Operations (1) Subject to all provisions of this Additional Coverage, you may extend the insurance that applies to Business Income and Extra Expense to apply to a suspension of "operations" caused by an interruption in computer operations due to destruction or corruption of "electronic data" due to a Covered Cause of Loss. Page 12 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (2) With respect to the coverage provided under this Additional Coverage, the Covered Causes of Loss are subject to the following: (a) Coverage under this Additional Coverage — Interruption Of Computer Operations is limited to the "specified causes of loss" and Collapse. (b) If the Businessowners Coverage Form is endorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the coverage provided under this Additional Coverage. (c) The Covered Causes of Loss include a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for an interruption related to manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. (3) The most we will pay under this Additional Coverage — Interruption Of Computer Operations for all loss sustained and expense incurred in any one policy year, regardless of the number of interruptions or the number of premises, locations or computer systems involved, is $10,000 unless a higher Limit Of Insurance is shown in the Declarations. If loss payment relating to the first interruption does not exhaust this amount, then the balance is available for loss or expense sustained or incurred as a result of subsequent interruptions in that policy year. A balance remaining at the end of a policy year does not increase the amount of insurance in the next policy year. With respect to any interruption which begins in one policy year and continues or results in additional loss or expense in a subsequent policy year(s), all loss and expense is deemed to be sustained or incurred in the policy year in which the interruption began. (4) This Additional Coverage — Interruption Of Computer Operations does not apply to loss sustained or expense incurred after the end of the "period of restoration", even if the amount of insurance stated in (3) above has not been exhausted. (5) Coverage for Business Income does not apply when a suspension of "operations" is caused by destruction or corruption of "electronic data", or any loss or damage to "electronic data", except as provided under Paragraphs (1) through (4) of this Additional Coverage. BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 13 of 53 (6) Coverage for Extra Expense does not (3) The coverage described under this apply when action is taken to avoid or Limited Coverage is limited to $15,000. minimize a suspension of "operations" Regardless of the number of claims, this caused by destruction or corruption of limit is the most we will pay for the total "electronic data", or any loss or damage of all loss or damage arising out of all to "electronic data", except as provided occurrences of "specified causes of under Paragraphs (1) through (4) of this loss" (other than fire or lightning) which Additional Coverage. take place in a 12-month period (starting (7) This Additional Coverage does not apply with the beginning of the present annual when loss or damage to "electronic policy period). With respect to a data" involves only "electronic data" particular occurrence of loss which "fungi", which is integrated in and operates or results in wet rot or dry rot, we controls a building's elevator, lighting, will not pay more than the total of "fungi", heating, ventilation, air conditioning or $15,000 even if the wet rot or security system. dry rot continues to be present or active, or recurs, in a later policy period. r. Limited Coverage For "Fungi", Wet Rot (4) The coverage provided under this Or Dry Rot Limited Coverage does not increase the (1) The coverage described in Paragraphs applicable Limit of Insurance on any r.(2) and r.(6) only applies when the Covered Property. If a particular "fungi", wet rot or dry rot is the result of occurrence results in loss or damage by a "specified cause of loss" other than "fungi", wet rot or dry rot, and other loss fire or lightning that occurs during the or damage, we will not pay more, for the policy period and only if all reasonable total of all loss or damage, than the means were used to save and preserve applicable Limit of Insurance on the the property from further damage at the affected Covered Property. time of and after that occurrence. If there is covered loss or damage to This Additional Coverage does not apply Covered Property, not caused by to lawns, trees, shrubs or plants which "fungi", wet rot or dry rot, loss payment are part of a vegetated roof. will not be limited by the terms of this (2) We will pay for loss or damage by Limited Coverage, except to the extent "fungi", wet rot or dry rot. As used in this that "fungi", wet rot or dry rot causes an Limited Coverage, the term loss or increase in the loss. Any such increase damage means: in the loss will be subject to the terms of (a) Direct physical loss or damage to this Limited Coverage. Covered Property caused by "fungi", (5) The terms of this Limited Coverage do wet rot or dry rot, including the cost not increase or reduce the coverage of removal of the "fungi", wet rot or provided under the Water Damage, dry rot; Other Liquids, Powder Or Molten (b) The cost to tear out and replace any Material Damage or Collapse Additional part of the building or other property Coverages. as needed to gain access to the "fungi", wet rot or dry rot; and (c) The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungi", wet rot or dry rot is present. Page 14 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 0713 (6) The following applies only if Business Income and/or Extra Expense Coverage applies to the described premises and only if the suspension of 'operations" satisfies all the terms and conditions of the applicable Business Income and/or Extra Expense Additional Coverage: (a) If the loss which resulted in "fungi", wet rot or dry rot does not in itself necessitate a suspension of "operations", but such suspension is necessary due to loss or damage to property caused by "fungi", wet rot or dry rot, then our payment under the Business Income and/or Extra Expense Additional Coverages is limited to the amount of loss and/or expense sustained in a period of not more than 30 days. The days need not be consecutive. (b) If a covered suspension of "operations" was caused by loss or damage other than "fungi", wet rot or dry rot, but remediation of "fungi", wet rot or dry rot prolongs the "period of restoration", we will pay for loss and/or expense sustained during the delay (regardless of when such a delay occurs during the "period of restoration"), but such coverage is limited to 30 days. The days need not be consecutive. 6. Coverage Extensions In addition to the Limits of Insurance of Section — Property, you may extend the insurance provided by this policy as provided below. Except as otherwise provided, the following extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises: a. Newly Acquired Or Constructed Property (1) Buildings If this policy covers Buildings, you may extend that insurance to apply to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at premises other than the one described, intended for: (1) Similar use as the building described in the Declarations; or (ii) Use as a warehouse. The most we will pay for loss or damage under this Extension is $250,000 at each building. (2) Business Personal Property If this policy covers Business Personal Property, you may extend that insurance to apply to: (a) Business Personal Property, including such property that you newly acquire, at any location you acquire; or (b) Business Personal Property, including such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations. This Extension does not apply to personal property that you temporarily acquire in the course of installing or performing work on such property or your wholesale activities. The most we will pay for loss or damage under this Extension is $100,000 at each building. (3) Period Of Coverage With respect to insurance provided under this Coverage Extension for Newly Acquired Or Constructed Property, coverage will end when any of the following first occurs: (a) This policy expires; (b) 30 days expire after you acquire the property or begin construction of that part of the building that would qualify as Covered Property; or (c) You report values to us. We will charge you additional premium for values reported from the date you acquire the property or begin construction of that part of the building that would qualify as Covered Property. b. Personal Property Off -premises You may extend the insurance provided by this policy to apply to your Covered Property, other than "money" and "securities", "valuable papers and records" or accounts receivable, while it is in the course of transit or at a premises you do not own, lease or operate. The most we will pay for loss or damage under this Extension is $10,000. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 15 of 53 c. Outdoor Property You may extend the insurance provided by this policy to apply to your outdoor fences, radio and television antennas (including satellite dishes), signs (other than signs attached to buildings), trees, shrubs and plants (other than trees, shrubs or plants which are part of a vegetated roof), including debris removal expense. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; or (5) Aircraft. The most we will pay for loss or damage under this Extension is $2,500, unless a higher Limit Of Insurance for Outdoor Property is shown in the Declarations, but not more than $1,000 for any one tree, shrub or plant. 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. d. Personal Effects You may extend the insurance that applies to Business Personal Property to apply to personal effects owned by you, your officers, your partners or "members", your "managers" or your employees, including temporary or leased employees. This extension does not apply to: (1) Tools or equipment used in your business; or (2) Loss or damage by theft. The most we will pay for loss or damage under this Extension is $2,500 at each described premises. e. Valuable Papers And Records (1) You may extend the insurance that applies to Business Personal Property to apply to direct physical loss or damage to "valuable papers and records" that you own, or that are in your care, custody or control, caused by or resulting from a Covered Cause of Loss. This Coverage Extension includes the cost to research, replace or restore the lost information on "valuable papers and records" for which duplicates do not exist. (2) This Coverage Extension does not apply to: (a) Property held as samples or for delivery after sale; and (b) Property in storage away from the premises shown in the Declarations. (3) The most we will pay under this Coverage Extension for loss or damage to "valuable papers and records" in any one occurrence at the described premises is $10,000, unless a higher Limit Of Insurance for "valuable papers and records" is shown in the Declarations. For "valuable papers and records" not at the described premises, the most we will pay is $5,000. (4) Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement of the lost or damaged information. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. (5) Paragraph B. Exclusions in Section I — Property does not apply to this Coverage Extension except for: (a) Paragraph B.1.c., Governmental Action; (b) Paragraph B.1.d., Nuclear Hazard; (c) Paragraph B.1.f., War And Military Action; Page 16 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 0713 (d) Paragraph B.2.f., Dishonesty; (e) Paragraph B.2.g., False Pretense; (f) Paragraph 13.2.m.(2), Errors Or Omissions; and (g) Paragraph 113.3. f. Accounts Receivable (1) You may extend the insurance that applies to Business Personal Property to apply to accounts receivable. We will pay: (a) All amounts due from your customers that you are unable to collect; (b) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts; (c) Collection expenses in excess of your normal collection expenses that are made necessary by loss or damage; and (d) Other reasonable expenses that you incur to reestablish your records of accounts receivable; that result from direct physical loss or damage by any Covered Cause of Loss to your records of accounts receivable. (2) The most we will pay under this Coverage Extension for loss or damage in any one occurrence at the described premises is $10,000, unless a higher Limit of Insurance for accounts receivable is shown in the Declarations. For accounts receivable not at the described premises, the most we will pay is $5,000. (3) Paragraph B. Exclusions in Section I — Property does not apply to this Coverage Extension except for: (a) Paragraph B.1.c., Governmental Action; (b) Paragraph B.1.d., Nuclear Hazard; (c) Paragraph 6.11, War And Military Action; (d) Paragraph 13.2.f., Dishonesty; (e) Paragraph 6.2.g., False Pretense; (f) Paragraph 13.3.; and (g) Paragraph B.6., Accounts Receivable Exclusion. g. Business Personal Property Temporarily In Portable Storage Units (1) You may extend the insurance that applies to Business Personal Property to apply to such property while temporarily stored in a portable storage unit (including a detached trailer) located within 100 feet of the buildings or structures described in the Declarations or within 100 feet of the described premises, whichever distance is greater. (2) The limitation under Paragraph A.4.a.(5) also applies to property in a portable storage unit. (3) Coverage under this Extension: (a) Will end 90 days after the Business Personal Property has been placed in the storage unit; (b) Does not apply if the storage unit itself has been in use at the described premises for more than 90 consecutive days, even if the Business Personal Property has been stored there for 90 or fewer days as of the time of loss or damage. (4) Under this Extension, the most we will pay for the total of all loss or damage to Business Personal Property is $10,000 (unless a higher limit is indicated in the Declarations for such Extension) regardless of the number of storage units. (5) This Extension does not apply to loss or damage otherwise covered under this Coverage Form or any endorsement to this Coverage Form, and does not apply to loss or damage to the storage unit itself. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area. a. Ordinance Or Law (1) The enforcement of or compliance with any ordinance or law: (a) Regulating the construction, use or repair of any property; or BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 17 of 53 (b) Requiring the tearing down of any property, including the cost of removing its debris. (2) This exclusion, Ordinance Or Law, applies whether the loss results from: (a) An ordinance or law that is enforced even if the property has not been damaged; or (b) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property or removal of its debris, following a physical loss to that property. b. Earth Movement (1) Earthquake, including tremors and aftershocks and any earth sinking, rising or shifting related to such event; (2) Landslide, including any earth sinking, rising or shifting related to such event; (3) Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. But if Earth Movement, as described in Paragraphs (1) through (4) above, results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. (5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, building glass breakage or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage or volcanic action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; With respect to coverage for volcanic action as set forth in 5(a), (5)(b) and 5(c), all volcanic eruptions that occur within any 168-hour period will constitute a single occurrence. Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss of or damage to Covered Property. This exclusion applies regardless of whether any of the above, in Paragraphs (1) through (5), is caused by an act of nature or is otherwise caused. c. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this policy. d. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if nuclear reaction or radiation, or radioactive contamination, results in fire, we will pay for the loss or damage caused by that fire. e. Utility Services The failure of power, communication, water or other utility service supplied to the described premises, however caused, if the failure: (1) Originates away from the described premises; or (2) Originates at the described premises, but only if such failure involves equipment used to supply the utility service to the described premises from a source away from the described premises. Failure of any utility service includes lack of sufficient capacity and reduction in supply. Loss or damage caused by a surge of power is also excluded, if the surge would not have occurred but for an event causing a failure of power. (b) Ash, dust or particulate matter; or (c) Lava flow. Page 18 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 But if the failure or surge of power, or the failure of communication, water or other utility service, results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. Communication services include but are not limited to service relating to Internet access or access to any electronic, cellular or satellite network. This exclusion does not apply to loss or damage to "computer(s)" and "electronic data". f. War And Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. g. Water (1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; (4) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings; or (5) Waterborne material carried or otherwise moved by any of the water referred to in Paragraph (1), (3) or (4), or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs (1) through (5), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, seawall or other boundary or containment system fails in whole or in part, for any reason, to contain the water. But if any of the above, in Paragraphs (1) through (5), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. h. Certain Computer -related Losses (1) The failure, malfunction or inadequacy of: (a) Any of the following, whether belonging to any insured or to others: (i) "Computer' hardware, including microprocessors or other electronic data processing equipment as may be described elsewhere in this policy; (ii) "Computer" application software or other "electronic data" as may be described elsewhere in this policy; (III) "Computer" operating systems and related software; (iv) "Computer" networks; (v) Microprocessors ("computer" chips) not part of any "computer' system; or (vi) Any other computerized or electronic equipment or components; or (b) Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph (a) above; due to the inability to correctly recognize, distinguish, interpret or accept one or more dates or times. An example is the inability of computer software to recognize the year 2000. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 19 of 53 (2) Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in Paragraph (1) above. However, if excluded loss or damage, as described in Paragraph (1) above, results in a "specified cause of loss" under Section I — Property, we will pay only for the loss or damage caused by such "specified cause of loss". We will not pay for repair, replacement or modification of any items in Paragraph (1)(a) or (1)(b) to correct any deficiencies or change any features. i. "Fungi", Wet Rot Or Dry Rot Presence, growth, proliferation, spread or any activity of "fungi", wet rot or dry rot. But if "fungi", wet rot or dry rot results in a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". This exclusion does not apply: (1) When "fungi", wet rot or dry rot results from fire or lightning; or (2) To the extent that coverage is provided in the Limited Coverage For "Fungi", Wet Rot Or Dry Rot Additional Coverage, with respect to loss or damage by a cause of loss other than fire or lightning. Virus Or Bacteria 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Electrical Apparatus Artificially generated electrical, magnetic or electromagnetic energy that damages, disturbs, disrupts or otherwise interferes with any: (1) Electrical or electronic wire, device, appliance, system or network; or (2) Device, appliance, system or network utilizing cellular or satellite technology. For the purpose of this exclusion, electrical, magnetic or electromagnetic energy includes but is not limited to: (1) Electrical current, including arcing; (2) Electrical charge produced or conducted by a magnetic or electromagnetic field; (3) Pulse of electromagnetic energy; or (4) Electromagnetic waves or microwaves. But if fire results, we will pay for the loss or damage caused by fire. We will pay for loss or damage to "computer(s)" due to artificially generated electrical, magnetic or electromagnetic energy if such loss or damage is caused by or results from: (1) An occurrence that took place within 100 feet of the described premises; or (2) Interruption of electric power supply, power surge, blackout or brownout if the cause of such occurrence took place within 100 feet of the described premises. (1) Any virus, bacterium or other b. Consequential Losses microorganism that induces or is capable of inducing physical distress, Delay, loss of use or loss of market. illness or disease. c. Smoke, Vapor, Gas (2) However, the exclusion in Paragraph (1) Smoke, vapor or gas from agricultural does not apply to loss or damage smudging or industrial operations. caused by or resulting from "fungi", wet rot or dry rot. Such loss or damage is addressed in Exclusion I. (3) With respect to any loss or damage subject to the exclusion in Paragraph (1), such exclusion supersedes any exclusion relating to "pollutants". Page 20 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 d. Steam Apparatus Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control. But if explosion of steam boilers, steam pipes, steam engines or steam turbines results in fire or combustion explosion, we will pay for the loss or damage caused by that fire or combustion explosion. We will also pay for loss or damage caused by or resulting from the explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. e. Frozen Plumbing Water, other liquids, powder or molten material that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. f. Dishonesty Dishonest or criminal acts (including theft) by you, anyone else with an interest in the property, or any of your or their partners, "members", officers, "managers", employees (including temporary or leased employees), directors, trustees or authorized representatives, whether acting alone or in collusion with each other or with any other party; or theft by any person to whom you entrust the property for any purpose, whether acting alone or in collusion with any other party. This exclusion: (1) Applies whether or not an act occurs during your normal hours of operation; (2) Does not apply to acts of destruction by your employees (including temporary or leased employees) or authorized representatives; but theft by your employees (including temporary or leased employees) or authorized representatives is not covered. With respect to accounts receivable and "valuable papers and records", this exclusion does not apply to carriers for hire. This exclusion does not apply to coverage that is provided under the Employee Dishonesty Optional Coverage. g. False Pretense Voluntary parting with any properly by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. h. Exposed Property Rain, snow, ice or sleet to personal property in the open. Collapse (1) Collapse, including any of the following conditions of property or any part of the property: (a) An abrupt falling down or caving in; (b) Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or (c) Any cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion as such condition relates to Paragraph L(1)(a) or L(1)(b). But if collapse results in a Covered Cause of Loss at the described premises, we will pay for the loss or damage caused by that Covered Cause of Loss. (2) This Exclusion i. does not apply: (a) To the extent that coverage is provided under the Additional Coverage — Collapse; or (b) To collapse caused by one or more of the following: (i) The "specified causes of loss'; (ii) Breakage of building glass; (III) Weight of rain that collects on a roof; or (iv) Weight of people or personal property. j. Pollution We will not pay for loss or damage caused by or resulting from the discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the "specified causes of loss". But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 21 of 53 k. Neglect Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. I. Other Types Of Loss (1) Wear and tear; (2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; (3) Smog; (4) Settling, cracking, shrinking or expansion; (5) Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other animals; (6) Mechanical breakdown, including rupture or bursting caused by centrifugal force. This exclusion does not apply with respect to the breakdown of "computer(s)'; (7) The following causes of loss to personal property: (a) Dampness or dryness of atmosphere; (b) Changes in or extremes of temperature; or (c) Marring or scratching. But if an excluded cause of loss that is listed in Paragraphs (1) through (7) above results in a "specified cause of loss" or building glass breakage, we will pay for the loss or damage caused by that "specified cause of loss" or building glass breakage. m. Errors Or Omissions Errors or omissions in: (1) Programming, processing or storing data, as described under "electronic data" or in any "computer" operations; or (2) Processing or copying "valuable papers and records". However, we will pay for direct physical loss or damage caused by resulting fire or explosion if these causes of loss would be covered by this Coverage Form. n. Installation, Testing, Repair Errors or deficiency in design, installation, testing, maintenance, modification or repair of your "computer" system including "electronic data". However, we will pay for direct physical loss or damage caused by resulting fire or explosion if these causes of loss would be covered by this Coverage Form. o. Electrical Disturbance Electrical or magnetic injury, disturbance or erasure of "electronic data", except as provided for under the Additional Coverages of Section I — Property. However, we will pay for direct loss or damage caused by lightning. p. Continuous Or Repeated Seepage Or Leakage Of Water Continuous or repeated seepage or leakage of water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more. 3. We will not pay for loss or damage caused by or resulting from any of the following Paragraphs a. through c. But if an excluded cause of loss that is listed in Paragraphs a. through c. results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Weather Conditions Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph B.I. above to produce the loss or damage. b. Acts Or Decisions Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. c. Negligent Work Faulty, inadequate or defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. Page 22 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 4. Additional Exclusion The following applies only to the property specified in this Additional Exclusion: Loss Or Damage To Products We will not pay for loss or damage to any merchandise, goods or other product caused by or resulting from error or omission by any person or entity (including those having possession under an arrangement where work or a portion of the work is outsourced) in any stage of the development, production or use of the product, including planning, testing, processing, packaging, installation, maintenance or repair. This exclusion applies to any effect that compromises the form, substance or quality of the product. But if such error or omission results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. 5. Business Income And Extra Expense Exclusions a. We will not pay for: (1) Any Extra Expense, or increase of Business Income loss, caused by or resulting from: (a) Delay in rebuilding, repairing or replacing the property or resuming "operations", due to interference at the location of the rebuilding, repair or replacement by strikers or other persons; or (b) Suspension, lapse or cancellation of any license, lease or contract. But if the suspension, lapse or cancellation is directly caused by the suspension of "operations", we will cover such loss that affects your Business Income during the "period of restoration" and any extension of the "period of restoration" in accordance with the terms of the Extended Business Income Additional Coverage. (2) Any other consequential loss. b. With respect to this exclusion, suspension means: (2) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. 6. Accounts Receivable Exclusion The following additional exclusion applies to the Accounts Receivable Coverage Extension: We will not pay for: a. Loss or damage caused by or resulting from alteration, falsification, concealment or destruction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of "money", "securities" or other property. This exclusion applies only to the extent of the wrongful giving, taking or withholding. b. Loss or damage caused by or resulting from bookkeeping, accounting or billing errors or omissions. c. Any loss or damage that requires any audit of records or any inventory computation to prove its factual existence. C. Limits Of Insurance 1. The most we will pay for loss or damage in any one occurrence is the applicable Limits Of Insurance of Section I — Property shown in the Declarations. 2. The most we will pay for loss of or damage to outdoor signs attached to buildings is $1,000 per sign in any one occurrence. 3. The amounts of insurance applicable to the Coverage Extensions and the following Additional Coverages apply in accordance with the terms of such coverages and are in addition to the Limits of Insurance of Section — Property: a. Fire Department Service Charge; b. Pollutant Clean-up And Removal; c. Increased Cost Of Construction; d. Business Income From Dependent Properties; e. Electronic Data; and f. Interruption Of Computer Operations. 4. Building Limit — Automatic Increase (1) The partial slowdown or complete a. In accordance with Paragraph C.4.b., the cessation of your business activities; Limit of Insurance for Buildings will and automatically increase by 8%, unless a different percentage of annual increase is shown in the Declarations. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 23 of 53 b. The amount of increase is calculated as follows: (1) Multiply the Building limit that applied on the most recent of the policy inception date, the policy anniversary date or any other policy change amending the Building limit by: (a) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 7% is .07); or (b) .08, if no percentage of annual increase is shown in the Declarations; and (2) Multiply the number calculated in accordance with b.(1) by the number of days since the beginning of the current policy year, or the effective date of the most recent policy change amending the Building limit, divided by 365. Example If: The applicable Building limit is $100,000. The annual percentage increase is 8%. The number of days since the beginning of the policy year (or last policy change) is 146. The amount of increase is $100,000 x .08 x 146 = 365 = $3,200. 5. Business Personal Property Limit — Seasonal Increase a. Subject to Paragraph 5.b., the Limit of Insurance for Business Personal Property is automatically increased by: (1) The Business Personal Property — Seasonal Increase percentage shown in the Declarations; or (2) 25% if no Business Personal Property — Seasonal Increase percentage is shown in the Declarations; to provide for seasonal variances. b. The increase described in Paragraph 5.a. will apply only if the Limit Of Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values during the lesser of: (1) The 12 months immediately preceding the date the loss or damage occurs; or (2) The period of time you have been in business as of the date the loss or damage occurs. D. Deductibles 1. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance of Section I — Property. 2. Regardless of the amount of the Deductible, the most we will deduct from any loss or damage under all of the following Optional Coverages in any one occurrence is the Optional Coverage Deductible shown in the Declarations: a. Money and Securities; b. Employee Dishonesty; c. Outdoor Signs; and d. Forgery or Alteration. But this Optional Coverage Deductible will not increase the Deductible shown in the Declarations. This Deductible will be used to satisfy the requirements of the Deductible in the Declarations. 3. No deductible applies to the following Additional Coverages: a. Fire Department Service Charge; b. Business Income; c. Extra Expense; d. Civil Authority; and e. Fire Extinguisher Systems Recharge Expense. E. Property Loss Conditions 1. Abandonment There can be no abandonment of any property to us. 2. Appraisal If we and you disagree on the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. Page 24 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 0713 If there is an appraisal, we will still retain our right to deny the claim. 3. Duties In The Event Of Loss Or Damage a. You must see that the following are done in the event of loss or damage to Covered Property: (1) Notify the police if a law may have been broken. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. (3) As soon as possible, give us a description of how, when and where the loss or damage occurred. (4) Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limits of Insurance of Section I — Property. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. (5) At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed. (6) As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. (7) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. (8) Cooperate with us in the investigation or settlement of the claim. (9) Resume all or part of your "operations" as quickly as possible. b. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 4. Legal Action Against Us No one may bring a legal action against us under this insurance unless: a. There has been full compliance with all of the terms of this insurance; and b. The action is brought within two years after the date on which the direct physical loss or damage occurred. 5. Loss Payment In the event of loss or damage covered by this policy: a. At our option, we will either: (1) Pay the value of lost or damaged property; (2) Pay the cost of repairing or replacing the lost or damaged property; (3) Take all or any part of the property at an agreed or appraised value; or (4) Repair, rebuild or replace the property with other property of like kind and quality, subject to Paragraph d.(1)(e) below. b. We will give notice of our intentions within 30 days after we receive the sworn proof of loss. c. We will not pay you more than your financial interest in the Covered Property. d. Except as provided in Paragraphs (2) through (7) below, we will determine the value of Covered Property as follows: (1) At replacement cost without deduction for depreciation, subject to the following: (a) If, at the time of loss, the Limit of Insurance on the lost or damaged property is 80% or more of the full replacement cost of the property immediately before the loss, we will pay the cost to repair or replace, after application of the deductible and without deduction for depreciation, but not more than the least of the following amounts: (1) The Limit of Insurance under Section I — Property that applies to the lost or damaged property; BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 25 of 53 (ii) The cost to replace, on the same premises, the lost or damaged property with other property: I. Of comparable material and quality; and ii. Used for the same purpose; or (iii) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new premises, the cost is limited to the cost which would have been incurred had the building been built at the original premises. (b) If, at the time of loss, the Limit of Insurance applicable to the lost or damaged property is less than 80% of the full replacement cost of the property immediately before the loss, we will pay the greater of the following amounts, but not more than the Limit of Insurance that applies to the property: (i) The actual cash value of the lost or damaged property; or (c) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (d) We will not pay on a replacement cost basis for any loss or damage: (i) Until the lost or damaged property is actually repaired or replaced; and (ii) Unless the repair or replacement is made as soon as reasonably possible after the loss or damage. However, if the cost to repair or replace the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs d.(1)(a) and d.(1)(b) above whether or not the actual repair or replacement is complete. (ii) A proportion of the cost to repair (e) The cost to repair, rebuild or replace or replace the lost or damaged does not include the increased cost property, after application of the attributable to enforcement of or deductible and without deduction compliance with any ordinance or for depreciation. This proportion law regulating the construction, use will equal the ratio of the or repair of any property. applicable Limit of Insurance to (2) If the Actual Cash Value —Buildings 80% of the full replacement cost option applies, as shown in the of the property. Declarations, Paragraph (1) above does Example not apply to Buildings. Instead, we will The full replacement cost of determine the value of Buildings at property which suffers a total loss actual cash value. is $100,000. The property is (3) The following property at actual cash insured for $70,000. 80% of the value: full replacement cost of the property immediately before the (a) Used or secondhand merchandise loss is $80,000 ($100,000 x .80 = held in storage or for sale; $80,000). A partial loss of (b) Property of others. However, if an $25,000 is sustained. The item(s) of personal property of others amount of recovery is determined is subject to a written contract which as follows: governs your liability for loss or Amount of recovery damage to that item(s), then valuation of that item(s) will be based $70,000 - $80,000 = .875 on the amount for which you are .875 x $25,000 = $21,875 liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; Page 26 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (c) Household contents, except personal property in apartments or rooms furnished by you as landlord; (d) Manuscripts; and (e) Works of art, antiques or rare articles, including etchings, pictures, statuary, marble, bronzes, porcelain and bric-a-brac. (4) Glass at the cost of replacement with safety glazing material if required by law. (5) Tenants' improvements and betterments at: (a) Replacement cost if you make repairs promptly. (b) A proportion of your original cost if you do not make repairs promptly. We will determine the proportionate value as follows: (1) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (i) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. (6) Applicable only to the Optional Coverages: (a) "Money" at its face value; and (b) "Securities" at their value at the close of business on the day the loss is discovered. (7) Applicable only to accounts receivable: (a) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (i) We will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (ii) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (b) The following will be deducted from the total amount of accounts receivable, however that amount is established: (i) The amount of the accounts for which there is no loss or damage; (ii) The amount of the accounts that you are able to reestablish or collect; (iii) An amount to allow for probable bad debts that you are normally unable to collect; and (iv) All unearned interest and service charges. e. Our payment for loss of or damage to personal property of others will only be for the account of the owners of the property. We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Property. f. We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. g. We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss, provided you have complied with all of the terms of this policy, and: (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 27 of 53 h. A party wall is a wall that separates and is common to adjoining buildings that are owned by different parties. In settling covered losses involving a party wall, we will pay a proportion of the loss to the party wall based on your interest in the wall in proportion to the interest of the owner of the adjoining building. However, if you elect to repair or replace your building and the owner of the adjoining building elects not to repair or replace that building, we will pay you the full value of the loss to the party wall, subject to all applicable policy provisions including Limits of Insurance and all other provisions of this Loss Payment Condition. Our payment under the provisions of this paragraph does not alter any right of subrogation we may have against any entity, including the owner or insurer of the adjoining building, and does not alter the terms of the Transfer Of Rights Of Recovery Against Others To Us Condition in this policy. 6. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, you may retain the property. But then you must return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limits of Insurance of Section I — Property. 7. Resumption Of Operations We will reduce the amount of your: a. Business Income loss, other than Extra Expense, to the extent you can resume your "operations", in whole or in part, by using damaged or undamaged property (including merchandise or stock) at the described premises or elsewhere. b. Extra Expense loss to the extent you can return "operations" to normal and discontinue such Extra Expense. 8. Vacancy a. Description Of Terms (1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in Paragraphs (a) and (b) below: (a) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations. (b) When this policy is issued to the owner or general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (1) Rented to a lessee or sublessee and used by the lessee or sublessee to conduct its customary operations; and/or (ii) Used by the building owner to conduct customary operations. (2) Buildings under construction or renovation are not considered vacant. b. Vacancy Provisions If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs: (1) We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss: (a) Vandalism; (b) Sprinkler leakage, unless you have protected the system against freezing; Page 28 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (c) Building glass breakage; (d) Water damage; (e) Theft; or (f) Attempted theft. (2) With respect to Covered Causes of Loss other than those listed in Paragraphs (1)(a) through (1)(f) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%. F. Property General Conditions 1. Control Of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Form at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. 2. Mortgageholders a. The term "mortgageholder" includes trustee. b. We will pay for covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear. c. The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your acts or because you have failed to comply with the terms of this policy, the mortgageholder will still have the right to receive loss payment if the mortgageholder: (1) Pays any premium due under this policy at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the mortgageholder. All of the terms of this policy will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this policy: (1) The mortgageholder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (2) The mortgageholder's right to recover the full amount of the mortgageholder's claim will not be impaired. At our option, we may pay to the mortgageholder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. f. If we cancel this policy, we will give written notice to the mortgageholder at least: (1) 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. g. If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this policy. 3. No Benefit To Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 4. Policy Period, Coverage Territory Under Section I — Property: a. We cover loss or damage commencing: (1) During the policy period shown in the Declarations; and (2) Within the coverage territory or, with respect to property in transit, while it is between points in the coverage territory. b. The coverage territory is: (1) The United States of America (including its territories and possessions); (2) Puerto Rico; and (3) Canada. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 29 of 53 G. Optional Coverages b. In addition to the Limitations and Exclusions If shown as applicable in the Declarations, the applicable to Section I — Property, we will following Optional Coverages also apply. These not pay for loss: coverages are subject to the terms and conditions (1) Resulting from accounting or applicable to property coverage in this policy, arithmetical errors or omissions; except as provided below: (2) Due to the giving or surrendering of 1. Outdoor Signs property in any exchange or purchase; a. We will pay for direct physical loss of or or damage to all outdoor signs at the (3) Of property contained in any "money" - described premises: operated device unless the amount of (1) Owned by you; or "money" deposited in it is recorded by a continuous recording instrument in the (2) Owned by others but in your care, device. custody or control. c. The most we will pay for loss in any one b. Paragraph A.3., Covered Causes Of Loss occurrence is: and Paragraph B., Exclusions in Section I — (1) The limit shown in the Declarations for Property do not apply to this Optional Coverage, except for: Inside the Premises for "money" and "securities" while: (1) Paragraph B.1.c., Governmental Action; (a) In or on the described premises; or (2) Paragraph B.1.d., Nuclear Hazard; and (b) Within a bank or savings institution; (3) Paragraph 13.1.f., War And Military and Action. (2) The limit shown in the Declarations for c. We will not pay for loss or damage caused Outside the Premises for "money" and by or resulting from: "securities" while anywhere else. (1) Wear and tear; d. All loss: (2) Hidden or latent defect; (1) Caused by one or more persons; or (3) Rust; (2) Involving a single act or series of related (4) Corrosion; or acts; (5) Mechanical breakdown. is considered one occurrence. d. The most we will pay for loss or damage in e. You must keep records of all "money" and any one occurrence is the Limit Of "securities" so we can verify the amount of Insurance for Outdoor Signs shown in the any loss or damage. Declarations. 3. Employee Dishonesty e. The provisions of this Optional Coverage a. We will pay for direct loss of or damage to supersede all other references to outdoor Business Personal Property and "money" signs in this policy. and "securities" resulting from dishonest 2. Money And Securities acts committed by any of your employees a. We will pay for loss of "money" and acting alone or in collusion with other "securities" used in your business while at a uor your partner) with bank or savings institution, within your living thesons manifest intent to: quarters or the living quarters of your (1) Cause you to sustain loss or damage; partners or any employee (including a and also temporary or leased employee) having use (2) Obtain financial benefit (other than and custody of the property, at the salaries, commissions, fees, bonuses, described premises, or in transit between promotions, awards, profit sharing, any of these places, resulting directly from: pensions or other employee benefits (1) Theft, meaning any act of stealing; earned in the normal course of (2) Disappearance; or employment) for: (3) Destruction. (a) Any employee; or (b) Any other person or organization. Page 30 of 53 C Insurance Services Office, Inc., 2012 BP 00 03 07 13 b. We will not pay for loss or damage: (1) Resulting from any dishonest or criminal act that you or any of your partners or "members" commit whether acting alone or in collusion with other persons. (2) Resulting from any dishonest act committed by any of your employees (except as provided in Paragraph a.), "managers" or directors: (a) Whether acting alone or in collusion with other persons; or (b) While performing services for you or otherwise. (3) The only proof of which as to its existence or amount is: (a) An inventory computation; or (b) A profit and loss computation. (4) Caused by an employee if the employee had also committed theft or any other dishonest act prior to the effective date of this policy and you or any of your partners, "members", "managers", officers, directors or trustees, not in collusion with the employee, learned of that theft or dishonest act prior to the policy period shown in the Declarations. c. The most we will pay for loss or damage in any one occurrence is the Limit Of Insurance for Employee Dishonesty shown in the Declarations. d. All loss or damage: (1) Caused by one or more persons; or (2) Involving a single act or series of acts; is considered one occurrence. e. If any loss is covered: (1) Partly by this insurance; and (2) Partly by any prior cancelled or terminated insurance that we or any affiliate had issued to you or any predecessor in interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. We will pay only for loss or damage you sustain through acts committed or events occurring during the policy period. Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. f. This Optional Coverage is cancelled as to any employee immediately upon discovery by: (1) You; or (2) Any of your partners, "members", "managers", officers or directors not in collusion with the employee; of any dishonest act committed by that employee before or after being hired by you. g. We will pay only for covered loss or damage sustained during the policy period and discovered no later than one year from the end of the policy period. h. If you (or any predecessor in interest) sustained loss or damage during the policy period of any prior insurance that you could have recovered under that insurance except that the time within which to discover loss or damage had expired, we will pay for it under this Optional Coverage, provided: (1) This Optional Coverage became effective at the time of cancellation or termination of the prior insurance; and (2) The loss or damage would have been covered by this Optional Coverage had it been in effect when the acts or events causing the loss or damage were committed or occurred. i. The insurance under Paragraph h. above is part of, not in addition to, the Limit of Insurance applying to this Optional Coverage and is limited to the lesser of the amount recoverable under: (1) This Optional Coverage as of its effective date; or (2) The prior insurance had it remained in effect. j. With respect to the Employee Dishonesty Optional Coverage in Paragraph G.3., employee means: (1) Any natural person: (a) While in your service or for 30 days after termination of service; (b) Who you compensate directly by salary, wages or commissions; and (c) Who you have the right to direct and control while performing services for you; BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 31 of 53 (2) Any natural person who is furnished temporarily to you: (a) To substitute for a permanent employee, as defined in Paragraph (1) above, who is on leave; or (b) To meet seasonal or short-term workload conditions; (3) Any natural person who is leased to you under a written agreement between you and a labor leasing firm, to perform duties related to the conduct of your business, but does not mean a temporary employee as defined in Paragraph (2) above; (4) Any natural person who is a former employee, director, partner, member, manager, representative or trustee retained as a consultant while performing services for you; or (5) Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such person while having care and custody of property outside any building you occupy in conducting your business. But employee does not mean: (1) Any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character; or (2) Any "manager', director or trustee except while performing acts coming within the usual duties of an employee. 4. Equipment Breakdown Protection Coverage a. We will pay for direct loss of or damage to Covered Property caused by or resulting from a mechanical breakdown or electrical failure to pressure, mechanical or electrical machinery and equipment. Mechanical breakdown or electrical failure to pressure, mechanical or electrical machinery and equipment does not mean any: (1) Malfunction including but not limited to adjustment, alignment, calibration, cleaning or modification; b. Paragraphs A.4.a.(1) and AA.a.(2), Limitations, do not apply to this Optional Coverage. c. With respect to the coverage provided by this Optional Coverage, the following exclusions in Paragraph B. Exclusions do not apply: (1) Paragraph B.2.a., Electrical Apparatus; (2) Paragraph B.2.d., Steam Apparatus; and (3) Paragraph B.2.1.(6), Mechanical Breakdown. d. With respect to the coverage provided by this Optional Coverage, Paragraph GA.c.(5) of the Outdoor Signs Optional Coverage does not apply. e. If a dollar deductible is shown in the Declarations for this Optional Coverage, we will first subtract the applicable deductible amount from any loss we would otherwise pay. We will then pay the amount of loss in excess of the applicable deductible up to the applicable limit for this coverage. If no optional deductible is chosen for this Optional Coverage, the Property Deductible shown in the Declarations applies. f. With respect to Additional Coverages 5.f. Business Income and 5.g. Extra Expense, if the 72-hour time period in the definition of "period of restoration" (hereinafter referred to as time deductible) is amended for this Optional Coverage as shown in the Declarations, we will not pay for any Business Income loss that occurs during the consecutive number of hours shown as the time deductible in the Declarations immediately following a mechanical breakdown or electrical failure. If a time deductible is shown in days, each day shall mean 24 consecutive hours. With respect to the coverage provided by this Optional Coverage, any time deductible shown in the Declarations for Equipment Breakdown Protection Coverage supersedes any time deductible otherwise applicable to the Business Income coverage provided by this policy. (2) Leakage at any valve, fitting, shaft seal, g. With respect to the coverage provided by gland packing, joint or connection; this Optional Coverage, Paragraph H. (3) Damage to any vacuum tube, gas tube, Property Definitions is amended as or brush; or follows: (4) The functioning of any safety or 1. "Computer" means: protective device. a. Programmable electronic equipment that is used to store, retrieve and process data; and Page 32 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 b. Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" includes those used to operate production -type machinery or equipment. Whenever any covered pressure, mechanical or electrical machinery and equipment is found to be in, or exposed to, a dangerous condition, any of our representatives may suspend coverage provided by this Optional Coverage for loss from a mechanical breakdown or electrical failure to that pressure, mechanical or electrical machinery and equipment. However, coverage provided by this Optional Coverage may be reinstated for loss from a mechanical breakdown or electrical failure to that pressure, mechanical or electrical machinery and equipment if the reasons for the suspension are found by any of our representatives to no longer exist. We may suspend or reinstate this Optional coverage by mailing or delivering a written notification regarding the suspension or reinstatement to: (1) Your last known address; or (2) The address where the pressure, mechanical or electrical machinery and equipment is located. This notification will indicate the effective date of the suspension or reinstatement. If the coverage provided by this Optional Coverage is not reinstated, you will get a pro rata refund of premium. But the suspension will be effective even if we have not yet made or offered a refund. H. Property Definitions 1. "Computer" means: a. Programmable electronic equipment that is used to store, retrieve and process data; and b. Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production -type machinery or equipment. 2. "Counterfeit money" means an imitation of "money" that is intended to deceive and to be taken as genuine. 3. "Electronic data" means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a "computer" or device connected to it, which enable the "computer" or device to receive, process, store, retrieve or send data. 4. "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. 5. "Manager" means a person serving in a directorial capacity for a limited liability company. 6. "Member" means an owner of a limited liability company represented by its membership interest, who also may serve as a "manager". 7. "Money" means: a. Currency, coins and bank notes in current use and having a face value; and b. Traveler's checks, register checks and money orders held for sale to the public. 8. "Operations" means your business activities occurring at the described premises. 9. "Period of restoration": a. Means the period of time that: (1) Begins: (a) 72 hours after the time of direct physical loss or damage for Business Income Coverage; or (b) Immediately after the time of direct physical loss or damage for Extra Expense Coverage; caused by or resulting from any Covered Cause of Loss at the described premises; and BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 33 of 53 (2) Ends on the earlier of: (a) The date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or (b) The date when business is resumed at a new permanent location. b. Does not include any increased period required due to the enforcement of or compliance with any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". 10. 'Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 11. "Securities" means negotiable and nonnegotiable instruments or contracts representing either "money" or other property and includes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include "money". 12. "Specified causes of loss" means the following: Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice or sleet; water damage. a. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or dolomite. This cause of loss does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into man- made underground cavities. b. Falling objects does not include loss of or damage to: (1) Personal property in the open; or (2) The interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a falling object. c. Water damage means: (1) Accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of any part of a system or appliance (other than a sump system including its related equipment and parts) containing water or steam; and (2) Accidental discharge or leakage of water or waterborne material as the direct result of the breaking apart or cracking of a water or sewer pipe that is located off the described premises and is part of a municipal potable water supply system or municipal sanitary sewer system, if the breakage or cracking is caused by wear and tear. But water damage does not include loss or damage otherwise excluded under the terms of the Water Exclusion. Therefore, for example, there is no coverage in the situation in which discharge or leakage of water results from the breaking apart or cracking of a pipe which was caused by or related to weather -induced flooding, even if wear and tear contributed to the breakage or cracking. As another example, and also in accordance with the terms of the Water Exclusion, there is no coverage for loss or damage caused by or related to weather - induced flooding which follows or is exacerbated by pipe breakage or cracking attributable to wear and tear. To the extent that accidental discharge or leakage of water falls within the criteria set forth in c.(1) or c.(2) of this definition of "specified causes of loss", such water is not subject to the provisions of the Water Exclusion which preclude coverage for surface water or water under the ground surface. 13. "Stock" means merchandise held in storage or for sale, raw materials and in -process or finished goods, including supplies used in their packing or shipping. Page 34 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 14. "Valuable papers and records" means inscribed, printed or written: a. Documents; b. Manuscripts; and c. Records; including abstracts, books, deeds, drawings, films, maps or mortgages. But "valuable papers and records" does not mean "money" or "securities". SECTION II — LIABILITY A. Coverages 1. Business Liability a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury", "property damage" or "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury", "property damage" or "personal and advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or any offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in Paragraph D. Liability And Medical Expenses Limits Of Insurance in Section II — Liability; and (2) Our right and duty to defend end when we have used up the applicable Limit of Insurance in the payment of judgments or settlements or medical expenses. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Paragraph f. Coverage Extension — Supplementary Payments. b. This insurance applies: (1) To "bodily injury" and "property damage" only if: (a) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory'; (b) The "bodily injury" or "property damage" occurs during the policy period; and (c) Prior to the policy period, no insured listed under Paragraph C.1. Who Is An Insured and no "employee" authorized by you to give or receive notice of an "occurrence" or claim, knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed insured or authorized "employee" knew, prior to the policy period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" during or after the policy period will be deemed to have been known before the policy period. (2) To "personal and advertising injury" caused by an offense arising out of your business, but only if the offense was committed in the "coverage territory" during the policy period. c. "Bodily injury" or "property damage" which occurs during the policy period and was not, prior to the policy period, known to have occurred by any insured listed under Paragraph C.1. Who Is An Insured or any "employee" authorized by you to give or receive notice of an "occurrence" or claim, includes any continuation, change or resumption of "bodily injury" or "property damage" after the end of the policy period. d. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any insured listed under Paragraph C.1. Who Is An Insured or any "employee" authorized by you to give or receive notice of an "occurrence" or claim: (1) Reports all, or any part, of the "bodily injury" or "property damage" to us or any other insurer; (2) Receives a written or verbal demand or claim for damages because of the "bodily injury" or "property damage"; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. e. Damages because of "bodily injury" include damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury". BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 35 of 53 f. Coverage Extension — Supplementary Payments (1) We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: (a) All expenses we incur. (b) Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability Coverage for "bodily injury" applies. We do not have to furnish these bonds. (c) The cost of bonds to release attachments, but only for bond amounts within our Limit of Insurance. We do not have to furnish these bonds. (d) All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work. (e) All court costs taxed against the insured in the "suit". However, these payments do not include attorneys' fees or attorneys' expenses taxed against the insured. (f) Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the Limit of Insurance, we will not pay any prejudgment interest based on that period of time after the offer. (g) All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within our Limit of Insurance. These payments will not reduce the limit of liability. (2) If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the following conditions are met: (a) The "suit" against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an "insured contract"; (b) This insurance applies to such liability assumed by the insured; (c) The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract'; (d) The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee; (e) The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and (f) The indemnitee: (i) Agrees in writing to: i. Cooperate with us in the investigation, settlement or defense of the "suit'; ii. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suit'; ill. Notify any other insurer whose coverage is available to the indemnitee; and Page 36 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 iv. Cooperate with us with respect to coordinating other applicable insurance available to the indemnitee; and (ii) Provides us with written authorization to: I. Obtain records and other information related to the "suit"; and H. Conduct and control the defense of the indemnitee in such "suit". (3) So long as the conditions in Paragraph (2) are met, attorneys' fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of Paragraph B.1.b.(2) Exclusions in Section II — Liability, such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the Limits of Insurance. Our obligation to defend an insured's indemnitee and to pay for attorneys' fees and necessary litigation expenses as Supplementary Payments ends when: (a) We have used up the applicable Limit of Insurance in the payment of judgments or settlements; or (b) The conditions set forth above, or the terms of the agreement described in Paragraph (2)(f) above, are no longer met. 2. Medical Expenses a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (a) The accident takes place in the "coverage territory" and during the policy period; (b) The expenses are incurred and reported to us within one year of the date of the accident; and (c) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the Limits of Insurance of Section II — Liability. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, X-ray and dental services, including prosthetic devices; and (3) Necessary ambulance, hospital, professional nursing and funeral services. B. Exclusions 1. Applicable To Business Liability Coverage This insurance does not apply to: a. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract", provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an "insured contract", reasonable attorneys' fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that parry's defense has also been assumed in the same "insured contract'; and BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 37 of 53 (b) Such attorney fees and litigation (b) Performing duties related to the expenses are for defense of that conduct of the insured's business; or party against a civil or alternative (2) The spouse, child, parent, brother or dispute resolution proceeding in sister of that "employee" as a which damages to which this consequence of Paragraph (1) above. insurance applies are alleged. This exclusion applies whether the insured Liquor Liability c. Li q ty may be liable as an employer or in any "Bodily injury" or "property damage" for other capacity and to any obligation to which any insured may be held liable by share damages with or repay someone else reason of: who must pay damages because of the (1) Causing or contributing to the injury. intoxication of any person; This exclusion does not apply to liability (2) The furnishing of alcoholic beverages to assumed by the insured under an "insured a person under the legal drinking age or contract". under the influence of alcohol; or f. Pollution (3) Any statute, ordinance or regulation (1) "Bodily injury" or "property damage" relating to the sale, gift, distribution or arising out of the actual, alleged or use of alcoholic beverages. threatened discharge, dispersal, This exclusion applies even if the claims seepage, migration, release or escape "pollutants": allege negligence or other wrongdoing in: of (a) The supervision, hiring, employment, (a) At or from any premises, site or training or monitoring of others by an location which is or was at any time insured; or owned or occupied by, or rented or loaned to, any insured. However, this (b) Providing or failing to provide subparagraph does not apply to: transportation with respect to any that be under the (i) Bodily injuryif sustained within person may influence of alcohol; a building and caused by smoke, fumes, vapor or soot produced by if the "occurrence" which caused the "bodily or originating from equipment that injury" or "property damage", involved that is used to heat, cool or which is described in Paragraph (1), (2) or dehumidify the building, or (3) above. equipment that is used to heat However, this exclusion applies only if you water for personal use, by the are in the business of manufacturing, building's occupants or their distributing, selling, serving or furnishing guests; alcoholic beverages. For the purposes of (ii) "Bodily injury" or "property this exclusion, permitting a person to bring damage" for which you may be alcoholic beverages on your premises, for held liable, if you are a contractor consumption on your premises, whether or and the owner or lessee of such not a fee is charged or a license is required premises, site or location has for such activity, is not by itself considered been added to your policy as an the business of selling, serving or furnishing additional insured with respect to alcoholic beverages. your ongoing operations d. Workers' Compensation And Similar performed for that additional Laws insured at that premises, site or Any obligation of the insured under a location and such premises, site workers' compensation, disability benefits or location is not and never was owned or occupied by, or rented or unemployment compensation law or any or loaned to, any insured, other similar law. than that additional insured; or e. Employer's Liability (111) "Bodily injury" or "property "Bodily injury" to: damage" arising out of heat, (1) An "employee" of the insured arising out smoke or fumes from a "hostile of and in the course of: fire"; (a) Employment by the insured; or Page 38 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (b) At or from any premises, site or (II) "Bodily injury" or "property location which is or was at any time damage" sustained within a used by or for any insured or others building and caused by the for the handling, storage, disposal, release of gases, fumes or processing or treatment of waste; vapors from materials brought (c) Which are or were at any time into that building in connection transported, handled, stored, treated, with operations being performed disposed of, or processed as waste by you or on your behalf by a by or for: contractor or subcontractor; or (1) Any insured; or (Ili) "Bodily injury" or "property (ii) Any person or organization for damage" arising out of heat, smoke or fumes from a "hostile whom you may be legally fire'; or responsible; (d) At or from any premises, site or (e) At or from any premises, site or location on which any insured or any location on which any insured or any contractors or subcontractors contractors or subcontractors working directly or indirectly on any working directly or indirectly on any insured's behalf are performing insured's behalf are performing operations if the operations are to operations if the "pollutants" are test for, monitor, clean up, remove, brought on or to the premises, site or contain, treat, detoxify or neutralize, location in connection with such or in any way respond to, or assess operations by such insured, the effects of, "pollutants". contractor or subcontractor. However, this subparagraph does (2) Any loss, cost or expense arising out of not apply to: any: (i) "Bodily injury" or "property (a) Request, demand, order or statutory damage" arising out of the or regulatory requirement that any escape of fuels, lubricants or insured or others test for, monitor, other operating fluids which are clean up, remove, contain, treat, needed to perform the normal detoxify or neutralize, or in any way electrical, hydraulic or respond to, or assess the effects of, mechanical functions necessary "pollutants'; or for the operation of "mobile (b) Claim or "suit" by or on behalf of a equipment" or its parts, if such governmental authority for damages fuels, lubricants or other because of testing for, monitoring, operating fluids escape from a cleaning up, removing, containing, vehicle part designed to hold, treating, detoxifying or neutralizing, store or receive them. This or in any way responding to, or exception does not apply if the assessing the effects of, "pollutants". "bodily injury" or "property damage" arises out of the However, this paragraph does not apply intentional discharge, dispersal or to liability for damages because of "property release of the fuels, lubricants or damage" that the insured other operating fluids, or if such would have in the absence of such fuels, lubricants or other request, demand, order or statutory or operating fluids are brought on or regulatory requirement or such claim or "suit" to the premises, site or location by or on behalf of a governmental with the intent that they be authority. discharged, dispersed or g. Aircraft, Auto Or Watercraft released as part of the operations "Bodily injury" or "property damage" arising being performed by such insured, out of the ownership, maintenance, use or contractor or subcontractor; entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 39 of 53 This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft that is owned or operated by or rented or loaned to any insured. This exclusion does not apply to: (1) A watercraft while ashore on premises you own or rent; (2) A watercraft you do not own that is: (a) Less than 51 feet long; and (b) Not being used to carry persons or property for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; or (5) "Bodily injury" or "property damage" arising out of: (a) The operation of machinery or equipment that is attached to, or part of, a land vehicle that would qualify under the definition of "mobile equipment" if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration law where it is licensed or principally garaged; or (b) The operation of any of the following machinery or equipment: (1) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (ii) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition or stunting activity. i. War "Bodily injury", "property damage" or "personal and advertising injury", however caused, arising, directly or indirectly, out of: (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by government authority in hindering or defending against any of these. j. Professional Services "Bodily injury", "property damage" or "personal and advertising injury" caused by the rendering or failure to render any professional service. This includes but is not limited to: (1) Legal, accounting or advertising services; (2) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; (3) Supervisory, inspection or engineering services; (4) Medical, surgical, dental, X-ray or nursing services treatment, advice or instruction; (5) Any health or therapeutic service treatment, advice or instruction; (6) Any service, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming; Page 40 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (7) Optometry or optical or hearing aid services including the prescribing, preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; (8) Body piercing services; and (9) Services in the practice of pharmacy. This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insureds if the "occurrence" which caused the "bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering or failure to render of any professional service. k. Damage To Property "Property damage" to: (1) Property you own, rent or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of seven or fewer consecutive days. A separate Limit of Insurance applies to Damage To Premises Rented To You as described in Paragraph D. Liability And Medical Expenses Limits Of Insurance in Section II — Liability. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products -completed operations hazard". I. Damage To Your Product "Property damage" to "your product" arising out of it or any part of it. m. Damage To Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products -completed operations hazard". This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. n. Damage To Impaired Property Or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your product" or "your work"; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. o. Recall Of Products, Work Or Impaired Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) "Your product'; (2) "Your work'; or (3) "Impaired property' BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 41 of 53 if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. p. Personal And Advertising Injury "Personal and advertising injury": (1) Caused by or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict "personal and advertising injury'; (2) Arising out of oral or written publication, in any manner, of material, if done by or at the direction of the insured with knowledge of its falsity; (3) Arising out of oral or written publication, in any manner, of material whose first publication took place before the beginning of the policy period; (4) For which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (5) Arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement'; (6) Arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your "advertisement'; (7) Arising out of the wrong description of the price of goods, products or services stated in your "advertisement"; (8) Committed by an insured whose business is: (a) Advertising, broadcasting, publishing or telecasting; (b) Designing or determining content of web sites for others; or (c) An Internet search, access, content or service provider. However, this exclusion does not apply to Paragraphs 14.a., b. and c. of "personal and advertising injury" under Paragraph F. Liability And Medical Expenses Definitions. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, by itself, is not considered the business of advertising, broadcasting, publishing or telecasting; (9) Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" at any time; (10) With respect to any loss, cost or expense arising out of any: (a) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants'; or (b) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants'; (11) Arising out of an electronic chatroom or bulletin board the insured hosts, owns or over which the insured exercises control; (12) Arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights. Under this exclusion, such other intellectual property rights do not include the use of another's advertising idea in your "advertisement". However, this exclusion does not apply to infringement, in your "advertisement", of copyright, trade dress or slogan; (13) Arising out of the unauthorized use of another's name or product in your e-mail address, domain name or metatags, or any other similar tactics to mislead another's potential customers. q. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. However, this exclusion does not apply to liability for damages because of "bodily injury". Page 42 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 As used in this exclusion, electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. r. Criminal Acts "Personal and advertising injury" arising out of a criminal act committed by or at the direction of the insured. s. Recording And Distribution Of Material Or Information In Violation Of Law "Bodily injury", "property damage" or "personal and advertising injury" arising directly or indirectly out of any action or omission that violates or is alleged to violate: (1) The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; (2) The CAN-SPAM Act of 2003, including any amendment of or addition to such law; (3) The Fair Credit Reporting Act (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transaction Act (FACTA); or (4) Any federal, state or local statute, ordinance or regulation, other than the TCPA, CAN-SPAM Act of 2003 or FCRA and their amendments and additions, that addresses, prohibits, or limits the printing, dissemination, disposal, collecting, recording, sending, transmitting, communicating or distribution of material or information. Exclusions c., d., e., f., g., h., i., k., I., m., n. and o. in Section II — Liability do not apply to damage by fire to premises while rented to you, or temporarily occupied by you with permission of the owner. A separate Damage To Premises Rented To You Limit of Insurance applies to this coverage as described in Paragraph D. Liability And Medical Expenses Limits of Insurance in Section II — Liability. 2. Applicable To Medical Expenses Coverage We will not pay expenses for "bodily injury": a. To any insured, except "volunteer workers". b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. To a person injured on that part of premises you own or rent that the person normally occupies. d. To a person, whether or not an "employee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. f. Included within the "products -completed operations hazard". g. Excluded under Business Liability Coverage. 3. Applicable To Both Business Liability Coverage And Medical Expenses Coverage — Nuclear Energy Liability Exclusion This insurance does not apply: a. Under Business Liability Coverage, to "bodily injury" or "property damage": (1) With respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 43 of 53 (2) Resulting from the "hazardous properties" of "nuclear material" and with respect to which: (a) Any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or (b) The insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. b. Under Medical Expenses Coverage, to expenses incurred with respect to "bodily injury" resulting from the "hazardous properties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person or organization. c. Under Business Liability Coverage, to "bodily injury" or "property damage" resulting from the "hazardous properties" of the "nuclear material'; if: (1) The "nuclear material": (a) Is at any "nuclear facility" owned by, or operated by or on behalf of, an insured; or (b) Has been discharged or dispersed therefrom; (2) The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or (3) The "bodily injury" or "property damage" arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any "nuclear facility'; but if such facility is located within the United States of America, its territories or possessions or Canada, this Exclusion (3) applies only to "property damage" to such "nuclear facility" and any property thereat. d. As used in this exclusion: (2) "Hazardous properties" include radioactive, toxic or explosive properties; (3) "Nuclear facility" means: (a) Any "nuclear reactor'; (b) Any equipment or device designed or used for: (i) Separating the isotopes of uranium or plutonium; (ii) Processing or utilizing "spent fuel"; or (iii) Handling, processing or packaging "waste'; (c) Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of .,waste"; and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; (4) "Nuclear material" means "source material", "special nuclear material" or "by-product material"; (5) "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; (6) "Property damage" includes all forms of radioactive contamination of property; (7) "Source material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (8) "Special nuclear material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (1) "By-product material" has the meaning (9) "Spent fuel" means any fuel element or given it in the Atomic Energy Act of fuel component, solid or liquid, which 1954 or in any law amendatory thereof; has been used or exposed to radiation in a "nuclear reactor'; Page 44 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (10) "Waste" means any waste material: 2. Each of the following is also an insured: (a) Containing "by-product material' a. Your "volunteer workers" only while other than the tailings or wastes performing duties related to the conduct of produced by the extraction or your business, or your "employees", other concentration of uranium or thorium than either your "executive officers" (if you from any ore processed primarily for are an organization other than a its "source material' content; and partnership, joint venture or limited liability (b) Resulting from the operation by any company) or your managers (if you are a person or organization of any limited liability company), but only for acts "nuclear facility" included under within the scope of their employment by you Paragraphs (a) and (b) of the or while performing duties related to the definition of "nuclear facility". conduct of your business. However, none of C. Who Is An Insured these "employees" or "volunteer workers" are insureds for: 1. If you are designated in the Declarations as: (1) 'Bodily injury" or "personal and a. An individual, you and your spouse are advertising injury": insureds, but only with respect to the (a) To you, to your partners or members conduct of a business of which you are the (if you are a partnership or joint sole owner. venture), to your members (if you are b. A partnership or joint venture, you are an a limited liability company), or to a insured. Your members, your partners and co -"employee" while in the course of their spouses are also insureds, but only his or her employment or performing with respect to the conduct of your duties related to the conduct of your business. business, or to your other "volunteer c. A limited liability company, you are an workers" while performing duties insured. Your members are also insureds, related to the conduct of your but only with respect to the conduct of your business; business. Your managers are insureds, but (b) To the spouse, child, parent, brother only with respect to their duties as your or sister of that co -"employee" as a managers. consequence of Paragraph (a) d. An organization other than a partnership, above; joint venture or limited liability company, (c) For which there is any obligation to you are an insured. Your "executive share damages with or repay officers" and directors are insureds, but only someone else who must pay with respect to their duties as your officers damages because of the injury or directors. Your stockholders are also described in Paragraph (a) or (b); or insureds, but only with respect to their (d) Arising out of his or her providing or liability as stockholders. failing to provide professional health e. A trust, you are an insured. Your trustees care services. are also insureds, but only with respect to (2) "Property damage" to property: their duties as trustees. (a) Owned, occupied or used by; BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 45 of 53 (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by; you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee" or "volunteer worker"), or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this policy. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. D. Liability And Medical Expenses Limits Of Insurance 1. The Limits of Insurance of Section II — Liability shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. The most we will pay for the sum of all damages because of all: a. "Bodily injury", "property damage" and medical expenses arising out of any one "occurrence"; and b. "Personal and advertising injury" sustained by any one person or organization; is the Liability and Medical Expenses limit shown in the Declarations. But the most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses limit shown in the Declarations. 3. The most we will pay under Business Liability Coverage for damages because of "property damage" to a premises while rented to you or in the case of fire while rented to you or temporarily occupied by you with permission of the owner is the applicable Damage To Premises Rented To You limit shown for that premises in the Declarations. For a premises temporarily occupied by you, the applicable limit will be the highest Damage To Premises Rented To You limit shown in the Declarations. 4. Aggregate Limits The most we will pay for: a. All "bodily injury" and "property damage" that is included in the "products -completed operations hazard" is twice the Liability and Medical Expenses limit. b. All: (1) "Bodily injury" and "property damage" except damages because of "bodily injury" or "property damage" included in the "products -completed operations hazard'; (2) Plus medical expenses; (3) Plus all "personal and advertising injury" caused by offenses committed; is twice the Liability and Medical Expenses limit. Subject to Paragraph a. or b. above, whichever applies, the Damage To Premises Rented To You limit is the most we will pay for damages because of "property damage" to any one premises, while rented to you, or in the case of fire, while rented to you or temporarily occupied by you with permission of the owner. The Limits of Insurance of Section II — Liability apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. Liability And Medical Expenses General Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this policy. Page 46 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or "suit" as soon as practicable. c. You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit'; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit'; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us No person or organization has a right under this policy: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this policy unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable Limit of Insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 4. Separation Of Insureds Except with respect to the Limits of Insurance of Section II — Liability, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. F. Liability And Medical Expenses Definitions 1. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication; and b. Regarding web sites, only that part of a web site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement. 2. "Auto" means: a. A land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment; or b. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration law where it is licensed or principally garaged. However, "auto" does not include "mobile equipment". 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 4. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 47 of 53 b. International waters or airspace, but only if b. A sidetrack agreement; the injury or damage occurs in the course of c. Any easement or license agreement, travel or transportation between any places except in connection with construction or included in Paragraph a. above; or demolition operations on or within 50 feet of c. All other parts of the world if the injury or a railroad; damage arises out of: d. An obligation, as required by ordinance, to (1) Goods or products made or sold by you indemnify a municipality, except in in the territory described in Paragraph a. connection with work for a municipality; above; e. An elevator maintenance agreement; (2) The activities of a person whose home If. That part of any other contract or is in the territory described in Paragraph agreement pertaining to your business a. above, but is away for a short time on (including an indemnification of a your business; or municipality in connection with work (3) "Personal and advertising injury" performed for a municipality) under which offenses that take place through the you assume the tort liability of another party Internet or similar electronic means of to pay for "bodily injury" or "property communication; damage" to a third person or organization. provided the insured's responsibility to pay Tort liability means a liability that would be damages is determined in a "suit" on the merits imposed by law in the absence of any in the territory described in Paragraph a. above contract or agreement. or in a settlement we agree to. Paragraph f. does not include that part of 5. "Employee" includes a "leased worker". any contract or agreement: "Employee" does not include a "temporary (1) That indemnifies a railroad for "bodily worker'. injury" or "property damage" arising out 6. "Executive officer' means a person holding any of construction or demolition operations, of the officer positions created by your charter, within 50 feet of any railroad property constitution, bylaws or any other similar and affecting any railroad bridge or governing document. trestle, tracks, roadbeds, tunnel, underpass or crossing; 7. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was (2) That indemnifies an architect, engineer intended to be. or surveyor for injury or damage arising out of: 8. "Impaired property" means tangible property, other than "your product" or "your work", that (a) Preparing, approving or failing to cannot be used or is less useful because: prepare or approve maps, drawings, opinions, reports, surveys, change a. It incorporates "your product" or "your work" orders, designs or specifications; or that is known or thought to be defective, deficient, inadequate or dangerous; or (b) Giving directions or instructions, or failing to give them, if that is the b. You have failed to fulfill the terms of a primary cause of the injury or contract or agreement; damage; or if such property can be restored to use by: (3) Under which the insured, if an architect, (1) The repair, replacement, adjustment or engineer or surveyor, assumes liability removal of "your product" or "your work''; for an injury or damage arising out of the or insured's rendering or failure to render (2) Your fulfilling the terms of the contract or professional services, including those agreement. listed in Paragraph (2) above and supervisory, inspection or engineering 9. "Insured contract" means: services. a. A contract for a lease of premises. 10. "Leased worker" means a person leased to you However, that portion of the contract for a by a labor leasing firm under an agreement lease of premises that indemnifies any between you and the labor leasing firm, to person or organization for damage by fire to perform duties related to the conduct of your premises while rented to you or temporarily business. "Leased worker' does not include a occupied by you with permission of the "temporary worker". owner is not an "insured contract'; Page 48 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 11. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto"; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto". 12. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, on which are permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e. Vehicles not described in Paragraph a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in Paragraph a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. However, "mobile equipment" does not include land vehicles that are subject to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration law where they are licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law or motor vehicle registration law are considered "autos". 13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 14. "Personal and advertising injury" means injury, including consequential "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication, in any manner, of material that violates a person's right of privacy; BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 49 of 53 f. The use of another's advertising idea in your "advertisement"; or g. Infringing upon another's copyright, trade dress or slogan in your "advertisement". 15. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 16. "Products -completed operations hazard": a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: 17. "Property damage" means: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: 18. (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at the job site has been put to its intended use by any other person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it. For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD- ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", or "personal and advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 19. "Temporary worker' means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions. The "bodily injury" or "property damage" 20. must occur away from premises you own or rent, unless your business includes the selling, handling or distribution of "your product" for consumption on premises you own or rent. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; or "Volunteer worker" means a person who is not your "employee", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 21. "Your product": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (a) You; (2) The existence of tools, uninstalled (b) Others trading under your name; or equipment or abandoned or unused materials. Page 50 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 07 13 (c) A person or organization whose business or assets you have acquired; and (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product'; and (2) The providing of or failure to provide warnings or instructions. c. Does not include vending machines or other property rented to or located for the use of others but not sold. 22. "Your work": a. Means: (1) Work or operations performed by you or on your behalf; and (2) Materials, parts or equipment furnished in connection with such work or operations. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work"; and (2) The providing of or failure to provide warnings or instructions. SECTION III — COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I — PROPERTY AND SECTION II — LIABILITY) A. Cancellation 1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a. Five days before the effective date of cancellation if any one of the following conditions exists at any building that is Covered Property in this policy: (1) The building has been vacant or unoccupied 60 or more consecutive days. This does not apply to: (a) Seasonal unoccupancy; or (b) Buildings in the course of construction, renovation or addition. Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision. (2) After damage by a Covered Cause of Loss, permanent repairs to the building: (a) Have not started; and (b) Have not been contracted for; within 30 days of initial payment of loss. (3) The building has: (a) An outstanding order to vacate; (b) An outstanding demolition order; or (c) Been declared unsafe by governmental authority. (4) Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to such removal that is necessary or incidental to any renovation or remodeling. (5) Failure to: (a) Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccupancy; or (b) Pay property taxes that are owing and have been outstanding for more than one year following the date due, except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes. b. 10 days before the effective date of cancellation if we cancel for nonpayment of premium. c. 30 days before the effective date of cancellation if we cancel for any other reason. 3. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 51 of 53 6. If notice is mailed, proof of mailing will be sufficient proof of notice. B. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. C. Concealment, Misrepresentation Or Fraud This policy is void in any case of fraud by you as it relates to this policy at any time. It is also void if you or any other insured, at any time, intentionally conceals or misrepresents a material fact concerning: 1. This policy; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this policy. D. Examination Of Your Books And Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. E. Inspections And Surveys 1. We have the right to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: a. Are safe and healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. F. Insurance Under Two Or More Coverages If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. G. Liberalization If we adopt any revision that would broaden the coverage under this policy without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this policy. H. Other Insurance 1. If there is other insurance covering the same loss or damage, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of Insurance of Section I — Property. 2. Business Liability Coverage is excess over: a. Any other insurance that insures for direct physical loss or damage; or b. Any other primary insurance available to you covering liability for damages arising out of the premises or operations for which you have been added as an additional insured. 3. When this insurance is excess, we will have no duty under Business Liability Coverage to defend any claim or "suit" that any other insurer has a duty to defend. If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. I. Premiums 1. The first Named Insured shown in the Declarations: a. Is responsible for the payment of all premiums; and b. Will be the payee for any return premiums we pay. 2. The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. Page 52 of 53 © Insurance Services Office, Inc., 2012 BP 00 03 0713 3. With our consent, you may continue this policy in force by paying a continuation premium for each successive one-year period. The premium must be: a. Paid to us prior to the anniversary date; and b. Determined in accordance with Paragraph 2. above. Our forms then in effect will apply. If you do not pay the continuation premium, this policy will expire on the first anniversary date that we have not received the premium. 4. Undeclared exposures or change in your business operation, acquisition or use of locations may occur during the policy period that are not shown in the Declarations. If so, we may require an additional premium. That premium will be determined in accordance with our rates and rules then in effect. J. Premium Audit 1. This policy is subject to audit if a premium designated as an advance premium is shown in the Declarations. We will compute the final premium due when we determine your actual L. exposures. 2. Premium shown in this policy as advance premium is a deposit premium only. At the close of each audit period, we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. 3. The first Named Insured must keep records of the information we need for premium computation and send us copies at such times as we may request. K. Transfer Of Rights Of Recovery Against Others To Us 1. Applicable to Businessowners Property Coverage: If any person or organization to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: a. Prior to a loss to your Covered Property. b. After a loss to your Covered Property only if, at time of loss, that party is one of the following: (1) Someone insured by this insurance; (2) A business firm: (a) Owned or controlled by you; or (b) That owns or controls you; or (3) Your tenant. You may also accept the usual bills of lading or shipping receipts limiting the liability of carriers. This will not restrict your insurance. 2. Applicable to Businessowners Liability Coverage: If the insured has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. This condition does not apply to Medical Expenses Coverage. Transfer Of Your Rights And Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual Named Insured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. BP 00 03 0713 © Insurance Services Office, Inc., 2012 Page 53 of 53 GENETICALLY MODIFIED ORGANISM OR SUBSTANCE EXCLUSION THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The policy is amended as follows: 1. The following exclusion is added to SECTION II — LIABILITY: This insurance does not apply to: Genetic Modifications (1) "Property damage" arising out of, in connection with, caused directly or indirectly by, or in any way related to any "genetically modified organism or substance", however caused, including but not limited to "property damage" arising out of or in connection with, caused directly or indirectly by, or in any way related to, the actual, alleged or threatened use, development, testing, discharge, disposal, dispersal, mishandling, migration, pollination, inhalation, ingestion, existence, breeding, presence, spread, release, or escape of, exposure to, or mixing, co -mingling or contact with, any "genetically modified organism or substance", regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to such injury or damage. (2) Any loss, cost or expense arising out of any: (a) Request, demand, claim, "suit' or order that any insured or others abate, test for, monitor, clean up, remove, contain, treat, neutralize, detoxify, remediate, dispose of, or in any way respond to or assess the effects of any "genetically modified organism or substance"; or (b) Request, demand, claim, "suit' or order by or on behalf of a governmental authority for damages because of testing for, abating, cleaning up, removing, containing, treating, neutralizing, detoxifying, remediating, disposing or in any way responding to, or assessing the effect of any "genetically modified organism or substance". We will have no duty to investigate any claim or defend any "suit' arising out of or in any way related to any "genetically modified organism or substance" excluded by this endorsement. 2. The following definitions are added to SECTION II — LIABILITY, Section F. Liability and Medical Expenses Definitions: "Genetically modified" means a process through science, engineering, biotechnology, technology or any other means or method that changes, alters, mutates or manipulates the genome, the chromosomes, the sequence of DNA, or the DNA of a gene or otherwise modifies a gene, changes the genetic makeup of cells, silences, depresses, represses or lessens the expression of a gene, removes a gene, or moves one or more genes across species boundaries. The term "genetically modified" includes, but is not limited to, any novel combination of genetic material obtained through the use of modern biotechnology, genetic engineering, gene therapy, cloning, recombinant DNA technology, transgenic technology and nuclear BOP-43603 (08/14) Page 1 of 2 transfer technology. However "genetically modified" does not mean the traditional horticultural practices of crossbreeding, plant limb grafting, or radiation breeding by random mutagenesis. "Genetically modified organism or substance" means any "genetically modified" food, feed, bean, seed, plant, grain, crop, shrub, tree, organism, virus, microbe, animal or any other material, organism, life form, or substance, living or dead. 3. The addition of this endorsement does not imply that other policy provisions, including but not limited to any "products -completed operations hazard" exclusion or pollution or contamination exclusion, do not also exclude coverage for any "genetically modified organism or substance". All other terms and conditions of this policy remain unchanged. BOP-43603 (08/14) Page 2 of 2 LEAD EXCLUSION THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: Businessowners Coverage Form The following supersedes and replaces any provisions of this policy to the contrary. This policy does not insure against loss or expense, including but not limited to the cost of defense for: 1. direct physical loss of or damage to Covered Property; 2. expense to remove debris of Covered Property; 3. any actual loss of Business Income you sustain due to the "suspension" of your "operations" during any "period of restoration"; 4. any extra expense you incur during any "period of restoration"; 5. damages for the devaluation of property or for the taking, use or acquisition or interference with the rights of others in property or air space; 6. any loss, cost or expense, including but not limited to fines or penalties, arising out of any governmental direction or request, or any private party or citizen action requiring, that an insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize lead; or 7. any litigation or administrative procedure in which an insured may be involved as a party; arising directly, indirectly, or in concurrence, or in any sequence with another cause of loss, out of actual, alleged or threatened existence, discharge, dispersal, release or escape of lead, whether or not such actual, alleged or threatened existence, discharge, release or escape is sudden, accidental or gradual in nature or expected or intended from the standpoint of any insured. This exclusion applies even if lead has a function in, or is used by you in your business, "operations", premises, site or location. This exclusion only applies if the insured structure(s) was built prior to 1980 and has a significant potential for lead loss exposure and has not undergone lead abatement. This exclusion does not apply to loss or expense arising out of heat, smoke or fumes from a "hostile fire" unless that "hostile fire" occurred or originated: 1. At the premises, site or location which is or was at any time used by or for any insured or others for the handling, storage disposal, processing or treatment of "waste", or 2. At any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations to test for, monitor, cleanup, remove, contain, treat, detoxify, neutralize or in any way respond to, or assess the effects of lead. "Hostile fire" means a fire, which becomes uncontrollable or breaks out from where it was intended to be. "Waste" means any property intended to be disposed, recycled, reused or reclaimed by the owner or user thereof. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. Authorized Representative BOP-43830 (06/14) Page 1 of 1 CHUBBe POLLUTION, ORGANIC PATHOGEN, SILICA, ASBESTOS AND LEAD EXCLUSION WITH HOSTILE FIRE AND HUMAN FOOD PRODUCT EXCEPTIONS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SECTION II — LIABILITY of the policy is amended as follows: Exclusion f. Pollution is deleted and replaced by the following: Pollution, Organic Pathogen, Silica, Asbestos and Lead (1) "Bodily injury" or "property damage"; or (2) Diminishing or lessening in value of property or for damages from the taking, use or acquisition or interference with the rights of others in property or air space; or (3) Loss, cost or expense, including but not limited to payment for investigation or defense, fines and penalties, arising out of any governmental or any private party action, that an insured or any other party test for, monitor, clean up, remove, contain, mitigate, treat, detoxify or neutralize or in any way respond to or assess the actual or alleged effects of "pollutants", "organic pathogens", "silica", asbestos, or lead; arising directly, indirectly, in concurrence with or in any sequence out of the actual, alleged or threatened presence of or exposure to, ingestion, inhalation, absorption, contact with discharge, dispersal, seepage, release or escape of "pollutants", "organic pathogens", "silica", asbestos, or lead, whether or not any of the foregoing are (1) sudden, accidental or gradual in nature; (2) intentional; or (3) expected or intended from the standpoint of the insured. This exclusion applies even if the "pollutant", "organic pathogen", "silica", asbestos, or lead has a function in, or is used by you in your business, operations, premises, site or location. This exclusion does not apply to "bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire" unless that "hostile fire" occurred or originated: (1) At any premises, site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; or (2) At any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize or in any way respond to, or assess the effects of, "pollutants". This exclusion does not apply to "bodily injury" or "property damage" arising from the consumption of food products intended for human consumption. "Pollutants" mean[s] any solid, liquid, gaseous, bacterial, fungal, electromagnetic, thermal or other substance that can be toxic or hazardous, cause irritation to animals or persons and/or cause contamination to property and the environment including smoke, vapor, soot, fumes, acids, alkalis, chemicals, toxic materials, "volatile organic compound" and gases therefrom, radon, combustion byproducts and waste. Specific examples identified as pollutants include, but are not limited to, diesel, kerosene, and other fuel oils; carbon monoxide and other exhaust gases; mineral spirits and other solvents; tetrachloroethylene, perchloroethylene (PERC), trichloroethylene (TCE), methylene chloroform, and other dry cleaning chemicals; chlorofluorocarbons, chlorinated hydrocarbons, adhesives, pesticides, insecticides, and all substances specifically listed, identified, or described by one or more of the following references: Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Priority List Hazardous Substances (1997 and all subsequent editions), Agency for Toxic Substances And Disease Registry ToxFAQSTM, and/or U.S. Environmental Protection Agency EMCI Chemical References Complete Index. "Pollutants" includes the substances separately defined in this endorsement. BOP-43862 (09/14) Page 1 of 2 "Silica" means silica in any form and any of its derivatives, including but not limited to silica dust, silicon dioxide, crystalline silica, quartz, or non -crystalline (amorphous) silica. "Volatile organic compound" means any compound which discharges organic gases as it decomposes or evaporates, examples of which include but are not limited to formaldehyde, pesticides, adhesives, construction materials made with organic chemicals, solvents, paint, varnish and cleaning products. "Waste" means any property intended to be disposed, recycled, reused or reclaimed by the owner or user thereof. "Organic pathogen" means any organic irritant or contaminant, including but not limited to mold, fungus, bacteria or virus, including but not limited to their byproduct such as mycotoxin, mildew, or biogenic aerosol. All other terms and conditions of this policy remain unchanged. BOP-43862 (09/14) Page 2 of 2 CHUBBE OPIOIDS GOODS OR PRODUCTS EXCLUSION —TOTAL THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM Section II — Liability is amended as follows: A. The following exclusions are added to Paragraph B.i. Exclusions — Applicable To Business Liability Coverage in Section II — Liability: This insurance does not apply to: i. Opioid Goods Or Products "Bodily injury", "property damage" or "personal and advertising injury" arising out of any "opioid good or product". 2. Governmental Authority, Union Or Investment Fund Opioid Related Claims Any damages, loss, cost or expense arising out of any claim made or "suit" brought by or on behalf of any: a. Governmental authority; b. Labor organization or union; or c. Investment fund, including a pension fund; for injury or damage arising out of any "opioid good or product". 3. Insurer Opioid Related Claims Any damages, loss, cost or expense arising out of any claim made or "suit" brought by or on behalf of any insurer, which has: a. Paid or incurred costs for any "opioid good or product"; or b. Which incurred costs for treatment related to any: (1) Abuse, misuse, illicit use of, (2) Overdose caused by; or (3) Addiction to; any "opioid good or product". B. The following definition is added to Paragraph F. Liability And Medical Expenses Definitions: "Opioid good or product" means any good or product, including "your product", that contains opioids or opiates in any form, including: 1. Its presence or use in any alloy, by-product or other material or waste. Waste includes any material to be recycled, reconditioned or reclaimed; or 2. Any good, product or material that is a derivative of any such opioid or opiate good or product, by whatever name known. All Other Terms And Conditions Remain Unchanged. BOP-51381(io/18) Page 1 of 1 (265886.1) BUSINESSOWNERS BP 05 01 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ` 0 This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added: The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation, or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. BP 06 01 07 02 © ISO Properties, Inc., 2001 Page 1 of 1 ❑ BUSINESSOWNERS BP 05 98 0713 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF INSURED CONTRACT DEFINITION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM Paragraph 9. under F. Liability And Medical Expenses Definitions is replaced by the following: 9. "Insured contract" means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract"; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization, provided the "bodily injury" or "property damage" is caused, in whole or in part, by you or by those acting on your behalf. However, such part of a contract or agreement shall only be considered an "insured contract" to the extent your assumption of the tort liability is permitted by law. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (2) above and supervisory, inspection, architectural or engineering activities. BP 05 98 0713 © Insurance Services Office, Inc., 2012 Page 1 of 1 POLICY NUMBER: D01688832 BUSINESSOWNERS BP 1407 01 10 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS INCOME AND EXTRA EXPENSE - REVISED PERIOD OF INDEMNITY This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE Premises Number Building Number Number Of Consecutive Days 1 1 365 Information required to complete this Schedule, if not shown above, will be shown in the Declarations. With respect to the premises shown in the Schedule: A. Paragraph A.5.f.(1)(b) of Section I — Property is replaced by the following: (b) We will only pay for loss of Business Income that you sustain during the "period of restoration" and that oc- curs within the "applicable number of consecutive days" after the date of direct physical loss or damage. We will only pay for ordinary payroll ex- penses for 60 days following the date of direct physical loss or dam- age, unless a greater number of days is shown in the Declarations. B. Paragraph A.5.g.(4) of Section I — Property is replaced by the following: (4) We will only pay for Extra Expense that occurs within the "applicable number of consecutive days" after the date of di- rect physical loss or damage. This Addi- tional Coverage is not subject to the Limits of Insurance of Section I — Prop- erty. C. The following is added to Section H. — Property Definitions: "Applicable number of consecutive days" means the number of consecutive days indicated in the Schedule for the premises. BP 14 07 01 10 © Insurance Services Office, Inc., 2009 Page 1 of 1 0 BUSINESSOWNERS BP 1415 0713 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LIMITED EXCLUSION - PERSONAL AND ADVERTISING INJURY - LAWYERS This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added to Section II — Liability and supersedes any provision to the contrary: The insurance provided under Paragraph A. Coverages does not apply to "personal and advertising injury" arising out of the rendering of or failure to render professional services as a lawyer. This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the offense which caused the "personal and advertising injury", involved the rendering of or failure to render professional services as a lawyer. BP 1415 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 BUSINESSOWNERS BP 14 86 0713 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMUNICABLE DISEASE EXCLUSION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following exclusion is added to Paragraph B. This exclusion applies even if the claims against Exclusions in Section II — Liability: any insured allege negligence or other wrongdoing Communicable Disease in the: This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" arising out of the actual or alleged transmission of a communicable disease. a. Supervising, hiring, employing, training or monitoring of others that may be infected with and spread a communicable disease; b. Testing for a communicable disease; c. Failure to prevent the spread of the disease; or d. Failure to report the disease to authorities. BP 14 86 0713 © Insurance Services Office, Inc., 2012 Page 1 of 1 BUSINESSOWNERS BP 15 05 0514 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. (EXCLUSION - ACCESS OLD DISCLOSURE OF CONFIDENTIAL OR PERSONAL INFORMATION AND DATA -RELATED LIABILITY - LIMITED BODILY INJURY EXCEPTION NOT INCLUDE This endorsement modifies insurance provided under the following:. BUSINESSOWNERS COVERAGE FORM A. Exclusion 13.1.q. of Section II — Liability is As used in this exclusion, electronic data replaced by the following: means information, facts or computer This insurance does not apply to: programs stored as or on, created or used q. Access Or Disclosure Of Confidential Or on, or transmitted to or from computer software (including systems and Personal Information And Data -related applications software), on hard or floppy Liability disks, CD-ROMs, tapes, drives, cells, data (1) Damages, other than damages because processing devices or any other of "personal and advertising injury", repositories of computer software which are arising out of any access to or used with electronically controlled disclosure of any person's or equipment. The term computer programs, organization's confidential or personal referred to in the foregoing description of information, including patents, trade electronic data, means a set of related secrets, processing methods, customer electronic instructions which direct the lists, financial information, credit card operations and functions of a computer or information, health information or any device connected to it, which enable the other type of nonpublic information; or computer or device to receive, process, (2) Damages arising out of the loss of, loss store, retrieve or send data. of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses or any other loss, cost or expense incurred by you or others arising out of that which is described in Paragraph (1) or (2) above. BP 15 05 0514 0 Insurance Services Office, Inc., 2013 Page 1 of 2 B. The following is added to Paragraph B.1.p. This exclusion applies even if damages are Personal And Advertising Injury Exclusion of claimed for notification costs, credit Section II — Liability: monitoring expenses, forensic expenses, This insurance does not apply to: public relations expenses or any other loss, cost or expense incurred by you or others p. Personal And Advertising Injury arising out of any access to or disclosure of "Personal and advertising injury": any person's or organization's confidential Arising out of any access to or disclosure of or personal information. any person's or organization's confidential or personal information, including patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information or any other type of nonpublic information. Page 2 of 2 © Insurance Services Office, Inc., 2013 BP 15 05 0514 AMENDMENT OF BODILY INJURY DEFINITION — INCLUDING RESULTING MENTAL ANGUISH THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM In Section II — Liability, Paragraph F. Liability and Medical Expenses Definitions, paragraph 3. is deleted and replaced by the following: 3. "Bodily injury" means physical: a. Injury; b. Sickness; or c. Disease; sustained by a person, including resulting death, humiliation, mental anguish, mental injury or shock at any time. All such loss shall be deemed to occur at the time of the physical injury, sickness or disease. BOP-47736 (04/16) Includes copyrighted material of Insurance Services Office, Inc., with its permission, 2016 Page 1 of 1 BUSINESSOWNERS BP 05 23 01 15 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CAP ON LOSSES FROM CERTIFIED ,ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following provisions are added to the Businessowners Policy and apply to Property and Liability Coverages: A. CAP ON CERTIFIED TERRORISM LOSSES "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such Act. The criteria contained in the Terrorism Risk Insurance Act for a "certified act of terrorism" include the following: 1. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance Act; and 2. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed $100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury. B. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for loss or injury or damage that is otherwise excluded under this Policy. BP 06 23 01 15 ©insurance Services Office, Inc., 2015 Page 1 of 1 LEAD EXCLUSION THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. The following exclusion is added to Paragraph B.1. Exclusions — Applicable To Business Liability Coverage in Section II — Liability: This insurance does not apply to any "bodily injury", "property damage" or "personal and advertising injury" arising out of any actual, alleged or threatened: 1. Contaminative, pathogenic, toxic or other hazardous properties of "lead"; 2. Defect, deficiency, inadequacy or dangerous condition in "lead"; or 3. a. Request, demand, order or regulatory or statutory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "lead"; or b. Claim or proceeding by or on behalf of a governmental authority or others for any damages, loss, cost or expense because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of "lead". B. The following definition is added to Paragraph F. Liability And Medical Expenses Definitions: "Lead" means lead in any form, including its presence or use in any alloy, by-product, compound or other material or waste. Waste includes materials to be recycled, reconditioned or reclaimed. All other terms and conditions of this policy remain unchanged. BOP-48573 (01/17) Includes copyrighted material of Insurance Services Office, Inc., Page 1 of 1 with its permission, 2017 EMPLOYMENT- RELATED PRACTICES EXCLUSION THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following exclusion is added to Paragraph B.1. Exclusions — Applicable To Business Liability Coverage in Section II — Liability: 1. This insurance does not apply to any damages, loss, cost or expense sustained at any time by any person, whether or not sustained in the course of employment by any insured, arising out of any employment -related act, omission, policy, practice or representation directed at such person, occurring in whole or in part at any time, including any: a. Arrest, detention or imprisonment; b. Breach of any express or implied covenant; c. Coercion, criticism, humiliation, prosecution or retaliation; d. Defamation or disparagement; e. Demotion, discipline, evaluation or reassignment; f. Discrimination, harassment or segregation; g. (1) Eviction; or (2) Invasion or other violation of any right of occupancy; h. Failure or refusal to advance, compensate, employ or promote; i. Invasion or other violation of any right of privacy or publicity; j. Termination of employment; or k. Other employment -related act, omission policy, practice, representation or relationship in connection with any insured at any time. 2. This insurance does not apply to any damages, loss, cost or expense sustained at any time by any spouse, child, parent, brother or sister of such person at whom any employment -related act, omission, policy, practice or representation is directed, as described in Paragraph 1. above, as a consequence thereof. 3. Paragraphs 1. and 2. above: a. Apply regardless of the capacity in which the insured may be liable; and b. Also apply to any obligation to share any damages with or repay any person or organization that must pay any damages, loss, cost or expense because of any of the foregoing. BOP-47643 (03/16) Includes copyrighted material of Insurance Services Office, Inc., Page 1 of 1 with its permission, 2016. ASBESTOS, SILICA OR SIMILAR COMPOUNDS, INCLUDING MIXED DUST EXCLUSION THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. The following exclusion is added to Paragraph B.1. Exclusions — Applicable To Business Liability Coverage in Section II — Liability: This insurance does not apply to any "bodily injury", "property damage" or "personal and advertising injury" arising out of any actual, alleged or threatened: 1. Contaminative, pathogenic, toxic or other hazardous properties of: a. "Asbestos"; b. "Silica"; or c. "Mixed dust"; or 2. a. Request, demand, order or regulatory or statutory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "asbestos", "silica" or "mixed dust"; or b. Claim or proceeding by or on behalf of a governmental authority or others for any damages, loss, cost or expense because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of "asbestos", "silica", or "mixed dust". B. The following definitions are added to Paragraph F. Liability And Medical Expenses Definitions: "Asbestos" means asbestos in any form, including its presence or use in any alloy, by-product, compound or other material or "waste". "Mixed dust" means any combination or mixture of "asbestos" or "silica" and any other dust, fibers or particles, in any form, including any presence or use in any alloy, by-product, compound or other material or "waste". "Silica" means silica in any form (including silicates or other similar silicon compounds), including its presence or use in any alloy, by-product, compound or other material or "waste". "Waste" includes materials to be recycled, reconditioned or reclaimed. BOP-48528 (io/i6) Includes copyrighted material of Insurance Services Office, Inc., Page i of i with its permission, 2oi6. CHUBS,, COMMUNICABLE OR INFECTIOUS DISEASES EXCLUSION - TOTAL THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following exclusion is added to Paragraph B.1. Exclusions — Applicable To Business Liability Coverage in Section II — Liability: This insurance does not apply to any "bodily injury", "property damage" or "personal and advertising injury" arising out of any: 1. Communicable or infectious condition, disease, injury or sickness; 2. Causative agent of any communicable or infectious condition, disease, injury or sickness, regardless of whether such agent gives rise to any such condition, disease, injury or sickness; or g. Actual or attempted counseling or testing for, or containing, detoxifying, mitigating, monitoring or neutralizing of, or responding to, or assessing the effects of any: a. Condition, disease, injury, sickness; or b. Causative agent; described in Paragraph 1. or 2. above, including any: (1) Actual or attempted cure, diagnosis, prevention or treatment of any such condition, disease, injury or sickness; (2) Actual or attempted cleaning up, disposing, handling or removing of any such causative agent; or (g) Failure to perform any of the foregoing. All other terms and conditions of the Policy remain unchanged. BOP-49665 (o8/17) Includes copyrighted material of Insurance Services Office, Inc., Page 1 of 1 with its permission, 2o16. IL P 001 01 04 U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL ("'OFAC") ADVISORY Y NOTICE TO POLICYHOLDERS No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your pol- icy. You should read your policy and review your Declarations page for complete information on the coverages you are provided. This Notice provides information concerning possible impact on your insurance coverage due to directives issued by OFAC. Please read this Notice carefully. The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of "national emergency". OFAC has identified and listed numerous: • Foreign agents; • Front organizations; • Terrorists; • Terrorist organizations; and • Narcotics traffickers; as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treasury's web site — http//www.treas.gov/ofac. In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply. IL P 001 01 04 © ISO Properties, Inc., 2004 Page 1 of 1 TRADE OR ECONOMIC SANCTIONS ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit us from providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of the policy remain unchanged. AL1-21101(i1/o6) Page i of i PERIOD OF RESTORATION DEFINITION — WAITING PERIOD AMENDED THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE Number Of Consecutive Hours: 72 Information required to complete this Schedule, if not shown above will be shown in the Declarations. In Section 1 — Property, Paragraph H. Property Definitions, the definition of Period of Restoration is deleted and replaced with the following: "Period of restoration": a. Means the period of time that: (i) Begins: (a) the applicable number of consecutive hours shown in the Schedule above after the time of direct physical loss or damage for Business Income Coverage; or (b) Immediately after the time of direct physical loss or damage for Extra Expense Coverage; caused by or resulting from any Covered Cause of Loss at the described premises; and (2) Ends on the earlier of: (a) The date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or (b) The date when business is resumed at a new permanent location. b. Does not include any increased period required due to the enforcement of or compliance with any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". BOP-49269 (05/17) Copyright 2015 Federal Insurance Company. All Rights Reserved. Includes Page 1 of 1 copyrighted material of Insurance Services Office, Inc., with its permission CHUBBO MARIJUANA EXCLUSION THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. Section I — Property is amended as follows: i. The following is added to Paragraph A.2. Property Not Covered: a. "Marijuana". 2. Coverage under this Policy does not apply to that part of Business Income loss or Extra Expense incurred due to a suspension of your "operations" which involve the design, manufacture, distribution, sale, serving, furnishing, use or possession of "marijuana". 3. Paragraphs A.i. and A.2. above do not apply to any "marijuana"' that is not designed, manufactured, distributed, sold, served or furnished for bodily: a. Ingestion; b. Inhalation; c. Absorption; or d. Consumption. B. The following exclusion is added to Section II — Liability: This insurance does not apply to: i. `Bodily injury", "property damage" or "personal and advertising injury" arising out of, caused by, or attributable to, whether in whole or in part, the following: a. The design, manufacture, distribution, sale, serving, furnishing, use or possession of "marijuana"; b. The actual, alleged, threatened or suspected inhalation, ingestion, absorption or consumption of, contact with, exposure to, existence of, or presence of "marijuana"; or 2. "Property damage" to "marijuana". This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or `property damage', or the offense which caused the "personal and advertising injury', involved that which is described in Paragraph B.I. or B .2. above. However, this exclusion does not apply to any "marijuana" that is not designed, manufactured, distributed, sold, served or furnished for bodily: a. Ingestion; b. Inhalation; c. Absorption; or d. Consumption. C. The following changes apply only to Electronic Data Liability — Broad Coverage Endorsement BP 05 96 if it is attached to this Policy: The following exclusion is added to Section II — Liability: This insurance does not apply to: "Loss of Electronic Data": BOP-50397 (05/18) Includes copyrighted material of Insurance Services Office, Page i of 2 Inc., with its permission, 2016 i. Arising out of, caused by, or attributable to, whether in whole or in part, the following: a. The design, manufacture, distribution, sale, serving, furnishing, use or possession of "marijuana"; b. The actual, alleged, threatened or suspected inhalation, ingestion, absorption or consumption of, contact with, exposure to, existence of, or presence of "marijuana"; or 2. With respect to any "electronic data" that is used in the design, manufacture, distribution, sale, serving, furnishing, use or possession of "marijuana". This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "electronic data incident" which caused the "loss of electronic data" involved that which is described in Paragraph C.i. or C.2. above. However, this exclusion does not apply to any "marijuana" that is not designed, manufactured, distributed, sold, served or furnished for bodily: a. Ingestion; b. Inhalation; c. Absorption; or d. Consumption. D. For purposes of this endorsement, the following definition applies: "Marijuana": 1. Means: Any good or product that consists of or contains any amount of Tetrahydrocannabinol (THC) or any other cannabinoid, regardless of whether any such THC or cannabinoid is natural or synthetic. 2. Paragraph D .i. above includes, but is not limited to, any of the following containing such THC or cannabinoid: a. Any plant of the genus Cannabis L., or any part thereof, such as seeds, stems, flowers, stalks and roots; or b. Any compound, byproduct, extract, derivative, mixture or combination, such as, but not limited to: (i) Resin, oil or wax; (2) Hash or hemp; or (3) Infused liquid or edible marijuana; whether derived from any plant or part of any plant set forth in Paragraph D.2. a. above or not. All other terms and conditions remain unchanged. BOP-50397 (05/18) Includes copyrighted material of Insurance Services Office, Page 2 of 2 Inc., with its permission, 2oi6 POLICY NUMBER001688832 BUSINESSOWNERS BP 05 15 12 20 THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY. DISCLOSURE PURSUANT TO TERRORISM RISC INSURANCE ACT SCHEDULE SCHEDULE — PART I Terrorism Premium (Certified Acts) $ 2 Additional information, if any, concerning the terrorism premium: SCHEDULE — PART II Federal share of terrorism losses 80 % Refer to Para ra h B. in this endorsement. Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Disclosure Of Premium In accordance with the federal Terrorism Risk Insurance Act, we are required to provide you with a notice disclosing the portion of your premium, if any, attributable to coverage for terrorist acts certified under the Terrorism Risk Insurance Act. The portion of your premium attributable to such coverage is shown in the Schedule of this endorsement or in the policy Declarations. B. Disclosure Of Federal Participation In Payment Of Terrorism Losses The United States Government, Department of the Treasury, will pay a share of terrorism losses insured under the federal program. The federal share equals a percentage (as shown in Part II of the Schedule of this endorsement or in the policy Declarations) of that portion of the amount of such insured losses that exceeds the applicable insurer retention. However, if aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed $100 billion in a calendar year, the Treasury shall not make any payment for any portion of the amount of such losses that exceeds $100 billion. BP 06 15 12 20 ©Insurance Services Office, Inc., 2020 Page 1 of 2 C. Cap On Insurer Participation In Payment Of Terrorism Losses If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed $100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rate allocation in accordance with procedures established by the Secretary of the Treasury. Page 2 of 2 © Insurance Services Office, Inc., 2020 BP 05 15 12 20 CH us so Chubb Producer Compensation Practices & Policies Chubb believes that policyholders should have access to information about Chubb's practices and policies related to the payment of compensation to brokers and independent agents. You can obtain that information by accessing our website at 17tt ._w: sIT wv t mmatb a.a orra us -es as er7t;s-Y r« lcerslLax lr ca ..: epsatiora.as x or by calling the following toll -free telephone number: 1-866-512-2862. ALL-20887b (1o/17) BUSINESSOWNERS BP 01 55 07 20 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA CHANGES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM INFORMATION SECURITY PROTECTION ENDORSEMENT A. Section I — Property is amended as follows: 1. With respect to an 'open policy", the following is added to any provision which uses the term actual cash value: a. In the event of a partial or total loss to a building or structure, actual cash value is calculated as a.(1) or a.(2), whichever is less: (1) The amount it would cost to repair, rebuild or replace the property less a fair and reasonable deduction for physical depreciation of the components of the building or structure that are normally subject to repair or replacement during its useful life. Physical depreciation is based upon the condition of the property at the time of loss; or (2) The Limit of Insurance applicable to the property. b. In the event of a partial or total loss to Covered Property other than a building or structure, actual cash value is calculated as b.(1) or b.(2), whichever is less: (1) The amount it would cost to repair or replace the property less a fair and reasonable deduction for physical depreciation, based on the condition of the property at the time of loss; or (2) The Limit of Insurance applicable to the property. c. An 'open policy" is a policy under which the value of Covered Property is not fixed at policy inception, but is determined at the time of loss in accordance with policy provisions on valuation. 2. Paragraph E.2. Appraisal Property Loss Conditions is replaced by the following: 2. Appraisal If we and you disagree on the value of the property or the actual cash value or the amount of loss, either may make written request for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. However, in the event of a government -declared disaster, as defined in the Government Code, appraisal may be requested by either you or us but shall not be compelled. Each party shall notify the other of the appraiser selected within 20 days of the request. The two appraisers will select an umpire. If they cannot agree within 15 days, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and actual cash value and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of actual cash value and loss and will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Paragraph E.5.d.(1)(c) of the Loss Payment Property Loss Conditions is deleted. BP 01 55 07 20 © Insurance Services Office, Inc., 2020 Page 1 of 6 4. Paragraphs E.5.d.(1)(d) and E.5.d.(5) of the Loss Payment Property Loss Conditions are replaced as follows: (d) We will not pay on a replacement cost basis for any loss or damage until the lost or damaged property is actually repaired or replaced. Prior to such repair or replacement, we will pay the actual cash value of the lost or damaged property as described in Paragraph A.I. of this Endorsement. If the actual cash value does not exhaust the applicable Limit of Insurance, we will then pay the difference between the actual cash value and the replacement cost, provided that the repair or replacement is completed: (i) Within 12 months after we pay the actual cash value; or (ii) Within 36 months after we pay the actual cash value if the loss or damage relates to a state of emergency under California Law. The following provision applies to real property which is used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household personal property in a residential unit: If you, acting in good faith and with reasonable diligence, encounter a delay or delays in approval for, or reconstruction of, the residence that are beyond your control, we shall provide one or more additional extensions of six months for good cause. Circumstances beyond your control include, but are not limited to: (1) Unavoidable construction permit delays; (ii) The lack of necessary construction materials; or (iii) The unavailability of contractors to perform the necessary work. Nothing in this Paragraph (d) constitutes a waiver of our right to deny the claim for any valid reason or to restrict payment in cases of suspected fraud. (5) Tenants' improvements and betterments at: (a) Replacement cost in accordance with the terms set forth in Paragraph (d) above. (b) A proportion of your original cost if the property is not repaired or replaced. We will determine the proportionate value as follows: (1) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (1) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. B. Section III — Common Policy Conditions is amended as follows: 1. Paragraphs A.2. and A.3. Cancellation are replaced by the following: 2. All Policies In Effect For 60 Days Or Less If this Policy has been in effect for 60 days or less, and is not a renewal of a policy we have previously issued, we may cancel this Policy by mailing or delivering to the first Named Insured at the mailing address shown in the Policy and to the producer of record, advance written notice of cancellation, stating the reason for cancellation, at least: a. 10 days before the effective date of cancellation if we cancel for: (1) Nonpayment of premium; or (2) Discovery of fraud by: (a) Any insured or his or her representative in obtaining this insurance; or (b) You or your representative in pursuing a claim under this Policy. Page 2 of 6 ©insurance Services Office, Inc., 2020 BP 01 55 07 20 30 days before the effective date of cancellation if we cancel for any other reason. 3. All Policies In Effect For More Than 60 Days a. If this Policy has been in effect for more than 60 days, or is a renewal of a policy we issued, we may cancel this Policy only upon the occurrence, after the effective date of the Policy, of one or more of the following: (1) Nonpayment of premium, including payment due on a prior policy we issued and due during the current policy term covering the same risks. (2) Discovery of fraud or material misrepresentation by: (a) Any insured or his or her representative in obtaining this insurance; or (b) You or your representative in pursuing a claim under this Policy. (3) A judgment by a court or an administrative tribunal that you have violated a California or federal law, having as one of its necessary elements an act which materially increases any of the risks insured against. (4) Discovery of willful or grossly negligent acts or omissions, or of any violations of state laws or regulations establishing safety standards, by you or your representative, which materially increase any of the risks insured against. (5) Failure by you or your representative to implement reasonable loss control requirements, agreed to by you as a condition of policy issuance, or which were conditions precedent to our use of a particular rate or rating plan, if that failure materially increases any of the risks insured against. (6) A determination by the Commissioner of Insurance that the: (a) Loss of, or changes in, our reinsurance covering all or part of the risk would threaten our financial integrity or solvency; or (b) Continuation of the policy coverage would: (i) Place us in violation of California Law or the laws of the state where we are domiciled; or (ii) Threaten our solvency. (7) A change by you or your representative in the activities or property of the commercial or industrial enterprise, which results in a materially added, increased or changed risk, unless the added, increased or changed risk is included in the Policy. b. We will mail or deliver advance written notice of cancellation, stating the reason for cancellation, to the first Named Insured, at the mailing address shown in the Policy, and to the producer of record, at least: (1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium or discovery of fraud; or (2) 30 days before the effective date of cancellation if we cancel for any other reason listed in Paragraph 3.a. 2. The following provision is added to Paragraph A. Cancellation: 7. Residential Property This provision applies to coverage on real property which is used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household personal property in a residential unit. If such coverage has been in effect for 60 days or less and is not a renewal of coverage we previously issued, we may cancel this coverage for any reason, except that we may not cancel this Policy solely because: a. Corrosive soil conditions exist on the premises; or b. The first Named Insured has: (1) Accepted an offer of earthquake coverage; or (2) Cancelled or did not renew a policy issued by the California Earthquake Authority (CEA) that included an earthquake policy premium surcharge. BP 01 55 07 20 ©Insurance Services Office, Inc., 2020 Page 3 of 6 However, we shall cancel this Policy if 4. Paragraph C. Concealment, the first Named Insured has accepted a Misrepresentation Or Fraud is replaced by new or renewal policy issued by the the following with respect to loss or damage CEA that includes an earthquake policy caused by a Covered Cause of Loss other than premium surcharge but fails to pay the fire: earthquake policy premium surcharge This Policy is void if any insured, whether authorized by the CEA. before or after a loss, has committed fraud or If a state of emergency under California intentionally concealed or misrepresented any Law is declared and the residential property material fact or circumstance concerning: is located in any ZIP Code within or a. This Policy; adjacent to the fire perimeter, as determined by California Law, we may not b. The Covered Property; cancel this Policy for one year, beginning c. An insured's interest in the Covered from the date the state of emergency is Property; or declared, solely because the dwelling or d. A claim under this Policy. other structure is located in an area in which a wildfire has occurred. However, we 5. Paragraph H.I. Other Insurance is replaced may cancel: by the following (with respect to coverage a. When you have not paid the premium, provided under Section I — Property): at any time by letting you know at least If there is other insurance covering the same 10 days before the date cancellation loss or damage, we will pay our share of the takes effect; covered loss or damage. Our share is the b. If willful or grossly negligent acts or proportion that the applicable Limit of Insurance bears to the Limits of Insurance of omissions by the named insured, or his all insurance covering on the same basis. or her representatives, are discovered that materially increase any of the risks We will not pay more than the applicable Limit insured against; or of Insurance of Section I — Property. c. If there are physical changes in the 6. The following paragraph is added and property insured against, beyond the supersedes any provisions to the contrary: catastrophe -damaged condition of the M. Nonrenewal structures and surface landscape, which 1. Subject to the provisions of Paragraphs result in the property becoming 2. and 3. below, if we elect not to renew uninsurable. this Policy, we will mail or deliver written 3. Paragraph C. Concealment, notice stating the reason for nonrenewal Misrepresentation Or Fraud is replaced by to the first Named Insured shown in the the following with respect to loss or damage Declarations and to the producer of caused by fire: record, at least 60 days, but not more We do not provide coverage to the insured than 120 days, before the expiration or who, whether before or after a loss, has anniversary date. committed fraud or intentionally concealed or We will mail or deliver our notice to the misrepresented any material fact or first Named Insured, and to the producer circumstance concerning: of record, at the mailing address shown a. This Policy; in the Policy. b. The Covered Property; 2. Residential Property c. That insured's interest in the Covered This provision applies to coverage on Property; or real property used predominantly for d. A claim under this Policy. residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household property contained in a residential unit. Page 4 of 6 ©Insurance Services Office, Inc., 2020 BP 01 55 07 20 If this Policy provides coverage as described in the preceding paragraph, and we elect not to renew this Policy, we will mail or deliver written notice, stating the reason for nonrenewal, to the first Named Insured shown in the Declarations, and to the producer of record, at the mailing address shown in the Policy, at least 75 days, but not more than 120 days, before the expiration or anniversary date. If we fail to give the first Named Insured shown in the Declarations notice of nonrenewal at least 75 days prior to the policy expiration, as required in the paragraph above, this Policy, with no change in its terms and conditions, shall remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by us to the first Named Insured with the notice of nonrenewal. We may elect not to renew such coverage for any reason, except that we will not refuse to renew such coverage solely because: a. The first Named Insured has accepted an offer of earthquake coverage. However, the following applies only to insurers who are associate participating insurers as established by Cal. Ins. Code Section 10089.16. We may elect not to renew such coverage after the first Named Insured has accepted an offer of earthquake coverage, if one or more of the following reasons applies: (1) The nonrenewal is based on sound underwriting principles that relate to the coverages provided by this Policy and that are consistent with the approved rating plan and related documents filed with the Department of Insurance as required by existing law; (2) The Commissioner of Insurance finds that the exposure to potential losses will threaten our solvency or place us in a hazardous condition. A hazardous condition includes, but is not limited to, a condition in which we make claims payments for losses resulting from an earthquake that occurred within the preceding two years and that required a reduction in policyholder surplus of at least 25% for payment of those claims; or (3) We have: (a) Lost or experienced a substantial reduction in the availability or scope of reinsurance coverage; or (b) Experienced a substantial increase in the premium charged for reinsurance coverage of our residential property insurance policies; and the Commissioner has approved a plan for the nonrenewals that is fair and equitable, and that is responsive to the changes in our reinsurance position. b. The first Named Insured has cancelled or did not renew a policy, issued by the California Earthquake Authority that included an earthquake policy premium surcharge. c. Corrosive soil conditions exist on the premises. BP 01 65 07 20 © Insurance Services Office, Inc., 2020 Page 5 of 6 If a state of emergency under California Law is declared and the residential property is located in any ZIP Code within or adjacent to the fire perimeter, as determined by California Law, we may not nonrenew this Policy for one year, beginning from the date the state of emergency is declared, solely because the dwelling or other structure is located in an area in which a wildfire has occurred. However, we may nonrenew: a. If willful or grossly negligent acts or omissions by the named insured, or his or her representatives, are discovered that materially increase any of the risks insured against; b. If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal; or c. If there are physical changes in the property insured against, beyond the catastrophe -damaged condition of the structures and surface landscape, which result in the property becoming uninsurable. 3. We are not required to send notice of nonrenewal in the following situations: a. If the transfer or renewal of a policy, without any changes in terms, conditions or rates, is between us and a member of our insurance group. b. If the Policy has been extended for 90 days or less, provided that notice has been given in accordance with Paragraph 1. c. If you have obtained replacement coverage, or if the first Named Insured has agreed, in writing, within 60 days of the termination of the Policy, to obtain that coverage. d. If the Policy is for a period of no more than 60 days and you are notified at the time of issuance that it will not be renewed. e. If the first Named Insured requests a change in the terms or conditions or risks covered by the Policy within 60 days of the end of the policy period. If we have made a written offer to the first Named Insured, in accordance with the timeframes shown in Paragraph 1., to renew the Policy under changed terms or conditions or at an increased premium rate, when the increase exceeds 25%. C. The following changes apply only to Information Security Protection Endorsement BP 15 07 if it is attached to this Policy: 1. Paragraph (2) of Insuring Agreement d. Security Breach Liability is replaced by the following: (2) We will pay for "defense expenses" as a result of a "claim" in the form of a "regulatory proceeding" first made against the insured during the "policy period" or during the applicable Extended Reporting Period, in response to a "wrongful act' or a series of "interrelated wrongful acts" covered under Paragraph d.(1). 2. Paragraph d. of the definition of 'loss" in Paragraph V. is replaced by the following: d. With respect to Insuring Agreements d. Security Breach Liability and g. Web Site Publishing Liability: Compensatory damages, settlement amounts and costs awarded pursuant to judgments or settlements. "Loss" does not include: (1) Civil or criminal fines or penalties imposed by law; (2) Punitive or exemplary damages; (3) The multiplied portion of multiplied damages; (4) Taxes; (5) Royalties; (6) The amount of any disgorged profits; or (7) Matters that are uninsurable pursuant to law. Page 6 of 6 © Insurance Services Office, Inc., 2020 BP 01 55 07 20 24iom Powered by coverwallet 1100 Virginia Drive, Suite 250, Fort Washington, PA 19034 customer service@aonattorneys com (267) 459 3225 Professional Liability for Law Office of Brenda L. Diederichs Hello Brenda Diederichs I'm happy to present to you your insurance policy. The terms and coverage details are specified in the following pages, so please review them and maintain a copy for your records. If you have any questions about the language, your coverage or anything else, please let me know. Type of policy Start Date Expiry Date Type of Payment Invoiced Amount Professional Liability 2023-01-04 2024-01-04 Down Payment Prerl $275 80 Tees $0 00 Service Fee S150 00 initial Pcvinent'i Fo l.- essirig i'ees S0 00 Total Amount $425.80 customer.service@aonattorneys.com 1 (267) 459 3225 1100 Virginia Drive, Suite 250, Fort Washington, PA 19034 Aon Affinity is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc , a licensed producer in all states (TX 13695); (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc (CA 0795465); in OK, AIS Affinity Insurance Services, Inc.; in CA, Aon Affinity Insurance Services, Inc (CA OG94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency AXIS PRO® LAWYERS PROFESSIONAL LIABILITY INSURANCE POLICY DECLARATIONS THIS IS A CLAIMS MADE POLICY. IT APPLIES ONLY TO THOSE CLAIMS THAT ARE FIRST MADE DURING THE POLICY PERIOD AND ANY APPLICABLE EXTENDED REPORTING PERIOD, AS THOSE TERMS ARE DESCRIBED IN THIS POLICY. PLEASE REVIEW THIS POLICY CAREFULLY AND DISCUSS THIS COVERAGE WITH YOUR INSURANCE AGENT OR BROKER. EXCEPT AS OTHERWISE SET FORTH IN THIS POLICY, CLAIM EXPENSES REDUCE THIS POLICY'S LIMITS OF LIABILITY AND ARE SUBJECT TO THE POLICY'S DEDUCTIBLE. MATURITY: DURING THE FIRST SEVERAL YEARS OF THE CLAIMS MADE RELATIONSHIP, CLAIMS MADE RATES ARE COMPARATIVELY LOWER THAN OCCURRENCE RATES, AND INSUREDS CAN EXPECT SUBSTANTIAL ANNUAL PREMIUM INCREASES, INDEPENDENT OF OVERALL RATE LEVEL INCREASES, UNTIL THE CLAIMS MADE RELATIONSHIP REACHES MATURITY. COMPANY AXIS Insurance Company POLICY NUMBER: 023292 0123 Item 1. Named Insured. ....n ..n..� � Item 2. Policy Period:� Brenda L. Diederichs Inception Date: 1/04/2023 Law Office of Expiration Date: 1/04/2024 14132 Peral Court Both dates at 12:01 a.m. Standard Time Chino, CA 91710 at the address listed in Item 1. Item 3. Limits of Liability: Item 4. Deductible: $1.000,000 each Claim $5,000 each Claim $1,000,000 Aggregate - ................. Item 5. Retroactive Date: 1/04/2023 .... Item 6. Premium, $1,379.00 . Item 7. Notices to Company:.��_ ...._.._�..... .. ..... ... ._...��...�......... Notice of Claim To Be Sent To: All Other Notices To Be Sent To: AXIS Professional Insurance Aon Affinity Insurance Services, Inc. 300 Connell Drive, Suite 8000 1100 Virginia Drive, Suite 250 Berkeley Heights, NJ 07922-0357 Fort Washington, PA 19034-3278 Email:AttysAdvClaimNoticeBH@axiscapital.com Fax:312,381.0875 Email: AffinityLawyersAdmin@aon.com Item 8. Endorsements Effective at Inception: ALPL-101 (09-14) ALPL-323 (09-14) ALPL-324 (09-14) ALPL-401 CA (09-14) ALPL-504 (09-14) ALPL-506 (09-14) ALPL-509 (09-14) ALPL 201 (06-15) Page 1 of 2 IN WITNESS WHEREOF, the Insurer has caused this policy to be issued by affixing hereto the facsimile signatures of its President and Secretary. Secretary Andrew Weissert, Secretary President Carlton W. Maner, President January 03, 2023 Date ALPL 201 (06-15) Page 2 of 2 ....... ____ ......... ........... ----------------------- -------- -,-------- ___------ ............_ .... ..., ....__.,, This endorsement is effective on the ❑ Additional Endorsement No. effective date of the Policy unless a Policy Number ❑ Return different date is set forth below. Premium �1/0402 ...�...� �.. �__ 12:01AM on /23. _mm m... 023�_w� .,,...., �.,,,m.......� ... 1 0 ��02 292-0123 N/A NON-PROFIT ENTITY DIRECTOR LIABILITY ENDORSEMENT It is agreed that: 1. We will pay on your behalf all damages, in excess of the deductible amount and up to the limits of liability stated in the Declarations, that you become legally obligated to pay as a result of any claim first made against you during the policy period or any applicable extended reporting period alleging you committed a wrongful act in the performance of non-profit services, except and to the extent the non-profit entity has actually indemnified you for such damages, and provided that: a. such wrongful act was first committed by you on or after the Retroactive Date set forth in the Declarations, if any, but before the end of the policy period; b. you did not give notice to a prior insurer of the claim or a related claim, or of the wrongful act giving rise to the claim or any related wrongful act; c. you had no reasonable basis to believe you had committed a wrongful act; d. with respect to non-profit services only, any insurance available under this policy to you while acting as a non-profit entity director shall be specifically excess of any insurance available from the non-profit entity; and e. such claim is reported to us in writing in accordance with the Notice of Claim provision of this policy. We will also pay claim expenses as set forth in the section entitled Limits of Liability & Deductible, except and to the extent the non-profit entity has actually indemnified you for such claim expenses. 2. The section entitled Definitions is amended to add the following definitions: Non-profit entity means any non-profit corporation, community chest, fund, foundation, or any other similar entity or institution that is exempt from federal income tax as an organization described in Section 501(C)(3) of the Internal Revenue Code of 1986 and any amendments thereto. Non-profit entity director means any of you who is a lawyer who is or who was serving as a director, officer or committee member of a non-profit entity with the express consent or at the request of the named insured at the time the wrongful act occurred. ALPL-323 (09-14) Page 1 of 2 Non-profit services mean those services and activities performed by a non-profit entity director in his or her capacity as such. 3. Solely with respect to non-profit services, the definition of wrongful act is deleted in its entirety and replaced by the following: Wrongful act shall mean an act, error or omission in the performance of non-profit services. 4. The section entitled Limits of Liability & Deductible is amended to add the following at the end thereof: Limits of Liabilitv -- Non -Profit (Entity Director Liabilit Notwithstanding any provision to the contrary contained in this policy, and solely as respects claim alleging a wrongful act in the performance of non-profit services: Regardless of the number of you who are non-profit entity directors, the most we will pay for any one claim arising from wrongful acts in the performance of non-profit services shall be the lesser of either: (a) the actual amount of the each claim limit of liability under the non-profit entity's Directors and Officers Liability Insurance, or (b) fifty thousand dollars ($50,000) each claim. The amount paid pursuant to (a) or (b) above is included within and erodes the limits of liability set forth on the Declarations. 5. It is a condition precedent to the coverage afforded pursuant to this policy that: a. the non-profit entity for which you are providing non-profit services will have, in full force and effect during the policy period or any extended reporting period, insurance coverage for Directors and Officers Liability; and b. no more than ten percent (10%) of the named insured's annual gross revenues are derived directly or indirectly from professional legal services performed by any of you for the non- profit entity. All other provisions of the Policy remain unchanged. ALPL-323 (09-14) Page 2 of 2 This endorsement is effective on the ❑ Additional iement No, effective date of the Policy unless a Policy Number ❑ Return different date is set forth below. Premium ......... , __m. � ..... .� .... ..... „.,..... 02 12:01 AM on 1 /04/2023 023292-0123 N/A PRIVACY BREACH AND REGULATORY INVESTIGATIONS ENDORSEMENT It is agreed that: 1. The section entitled B ecial Benefits is amended to add the following at the end thereof. Privacy Breach Response Expenses We will reimburse the named insured up to twenty thousand dollars ($20,000) for privacy breach response expenses incurred in connection with a privacy breach provided that such privacy breach first occurred during the policy period and is reported to us in accordance with the section entitled Notice of Claims. The maximum amount we will pay for such privacy breach response expenses is twenty thousand dollars ($20,000) per privacy breach and twenty thousand dollars ($20,000) for all privacy breaches in the aggregate regardless of the number of privacy breaches. For the purposes of the coverage provided by this endorsement, any reference in the Notice of Claims provision to claims shall be deemed to include privacy breaches. 2. The section entitled Special Benefits, sub -section 2. DisciplinaryDisciplinaLy Proceeding,Defense Cost Reimbursement. is amended to include the following after each use of the words "disciplinary proceeding": (including any regulatory investigation) 3. The definition of disciplinary proceeding is amended to add the following: A disciplinary proceeding includes a regulatory investigation. 4. The section entitled Definitions is amended to add the following new definitions: Computer systems computers and associated input and output devices, data storage devices, networking equipment, and back-up facilities operated by and either owned by or leased to the named insured; or operated for the benefit of the named insured by a third party service provider and used for the purpose of providing hosted application services to the named insured; or for processing, maintaining, or storing electronic data, pursuant to written contract with the named insured. ALPL-324 (09-14) Page 1 of 3 Confidential business information means, with respect to a third -party entity, any information that comes into the named insured's care, custody or control in the course of performing professional legal services: a, that is subject to any form of confidentiality agreement or confidentiality provision in a contract or agreement between the organization and the named insured; or b. which the named insured is legally required to maintain in confidence. However, confidential business information does not include any publicly available information that is lawfully in the public domain or information available to the general public from government records, nor does it include protected personal information. Privacy breach means the actual or alleged unauthorized release of, or disclosure, theft or other misappropriation of confidential business information or protected personal information in the named insured's computer systems which release, disclosure, theft or other misappropriation occurs in the course of rendering professional legal services. All privacy breaches that are logically or causally connected by any common fact, circumstance, situation, transaction, event, advice or decision will be deemed to be a single privacy breach first occurring on the date the earliest of such privacy breaches occurred. Privacy breach response expenses are those reasonable and necessary expenses incurred by you to: a. hire cyber forensic analysts to determine the extent of an actual security breach that has occurred; or b. provide notifications or credit monitoring services to individuals in compliance with state or local privacy laws when the security, confidentiality or integrity of their personal information has been compromised. Privacy Regulation means any state or federal identity theft and privacy protection legislation that requires commercial entities that collect, process, or store personal information to post privacy policies, adopt specific privacy controls, or notify natural persons and/or organizations in the event that such personal information has been compromised or potentially compromised including, but not limited to: a. Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191); b. Health Information Technology for Economic and Clinical Health Act of 2009, and its related regulations; c. Gramm -Leach -Bliley Act of 1999; d. California Database Breach Act (SB1386); or e. Minnesota Plastic Card Security Act; Protected personal information means personal information about an individual that is not available to the general public and from which such individual can be uniquely identified, which information comes into your care, custody or control in the course of performing professional legal services and which information is the subject of any privacy regulation. ALPL-324 (09-14) Page 2 of 3 Regulatory Investigation means an investigation of you by a state licensing board, self -regulatory body, public oversight board or a governmental agency with the authority to regulate your professional legal services provided such investigation arises from an actual or alleged privacy breach that occurred in the rendering of professional legal services. All other provisions of the Policy remain unchanged. ALPL-324 (09-14) Page 3 of 3 Endorsement No. effective date of theeffective a on the Policy�� . dit This endorsement is effective on the ❑Additional Policy olicy Number ❑ Return different date is set forth below. Premium D3 ._,..,. w.� 12:01 AM .... ... .... , . _ _ .. __.. .._A ,.._.. . m._.... ..._ ............. on 1 /04/2023 023292-0123 N/A CALIFORNIA CANCELLATION AND NONRENEWAL ENDORSEMENT It is agreed that the Nonrenewal provision in the section entitled Conditions, sub -section 9. Cancellation and Nonrenewal. is deleted in its entirety and replaced with the following: If we decide not to renew this policy or to condition renewal upon a rate increase of twenty-five percent (25%) or more, increase in deductible, reduction of limits or elimination of coverage, we shall provide written notice of nonrenewal or such condition(s) to the named insured at least sixty (60) days but not more than one hundred twenty (120) days prior to the expiration of the policy. Such notice shall be mailed to the named insured at the address in the Declarations and shall state the reasons for nonrenewal or conditional renewal. A copy of such notice shall be sent to your broker, if known. We shall maintain proof of mailing of such notice on a recognized U.S. Postal Service form or a form acceptable to the U.S. Postal Service. All other provisions of the Policy remain unchanged. ALPL-401 CA (09-14) Page 1 of 1 This endorsement is effective on the ❑ Additional Endorsement No. effective date of the Policy unless a Policy Number ❑ Return different date is set forth below. Premium ..................... ---------- ... 04 12:01 AM on 1 /04/2023 023292-0123 N/A OFFICE OR EXPENSE SHARING EXCLUSION It is agreed that: 1. The definition of you is amended to add the following at the end thereof: You does not include those persons or entities who have no oral or written partnership, shareholder, employment or retainer agreement with the named insured, and: a. who share expenses or office space with the named insured; and b. are deemed to be the partners, officers, directors, employees, associates, managers or members of the named insured solely by operation of law. 2. The section entitled Exclusions is amended to add the following at the end thereof: Without in any way limiting the forgoing paragraph of this endorsement, this policy does not apply to any claim based on, or arising out of any actual or alleged act, error or omission committed by the following persons or entities: Any lawyer, officer, director or employee of any law firm or other business entity that is not the named insured but that shares expenses or office space with the named insured. All other provisions of the Policy remain unchanged. ALPL-504 (09-14) Page 1 of 1 . ... . .......... I � This endorsement is effective on the [:1 Additional Endorsement No. effective date of the Policy unless a Policy Number Ej Return different date is set forth below. Premium . .. ............ ....... ......m.05. 12 :01 AM on 1/04 2 023 0 2 3 29 2-0123 N/A SPECIFIC CLAIMS EXCLUSION It is agreed this policy does not apply to any claim based upon or arising out of: 1. Any of you., in the 3erformance, of professional legal services for or on behalf of an v law - 2tU2fMApRg_ firm other than the named insured at which vou verfonn professional leaal services in the capacity as an of counsel... indep gndent contractor or per them afforneyand 2. Any claim while acting, as licensed real estate agent or broker.- either djEggfly-or arising out of or related to any referrals to any other real estate agents or brokers. 3. An actual or alleged act, error or omission in the performance of services as a licensed life or healttjp�a�ranre afper�tn or 4. Any actual or alleged act, error or omission of an insured based upon or arising, out of directNy or indirectly resulting from,, in conseguence of or in an way involving, "investment advice" bv the insured. "Investment advice" means: a. Predictions of future oerformance, warranties or ouarantees reqardinci-P ecific and s- identifiable investment b. Recommendirm or -inducing others to purchase, sell or make a l2articular investment in any identifiable investment: c. Performing an economic, analysis of any investment: or d. Actively bu)Ln!9 sellin or mama in any investment for another, (except for the execution of trades or transactions oursuant to a client's express written direction o Met (,)j sucti, client's authorized aggol. who is other than an insured. All other provisions of the Policy remain unchanged. ALPL-506 (09-14) Page 1 of 1 This endorsement is effective on the ❑ Additional Endorsement No. effective date of the Policy unless a Policy Number ❑ Return different date is set forth below. Premium .06 .....�......... � �12:01 AM on...-1/0412023� . �� 023292-012_. �... m ._.�,_......n.n- — . ..... .... we,,,....� 3 N/A PART-TIME ATTORNEY ENDORSEMENT Solely with respect to policies issued to a named insured who qualifies as a sole practitioner, it is agreed that the definition of you is deleted in its entirety and is replaced by the following: You means: a. the named insured; b. any non -lawyer employee who was, is, or becomes an employee of the named insured, but only while acting within the scope of employment on behalf of the named insured at the time of such employment. All other provisions of the Policy remain unchanged. ALPL-509 (09-14) Page 1 of 1 AXIS PRO® LAWYERS PROFESSIONAL LIABILITY 4110.X�lp INSURANCE POLICY THIS IS A CLAIMS MADE POLICY. IT APPLIES ONLY TO THOSE CLAIMS THAT ARE FIRST MADE DURING THE POLICY PERIOD AND ANY APPLICABLE EXTENDED REPORTING PERIOD, AS THOSE TERMS ARE DESCRIBED IN THIS POLICY. PLEASE REVIEW THIS POLICY CAREFULLY AND DISCUSS THIS COVERAGE WITH YOUR INSURANCE AGENT OR BROKER. EXCEPT AS OTHERWISE SET FORTH IN THIS POLICY, CLAIM EXPENSES REDUCE THIS POLICY'S LIMITS OF LIABILITY AND ARE SUBJECT TO THE POLICY'S DEDUCTIBLE. Preface The terms we, us, and our refer to the company issuing this policy as stated in the Declarations, and the terms you and your refer to those persons or entities insured as further defined in this policy. The named insured, incorporated within the terms you and your, has special duties and responsibilities, which are described in the policy. Various terms used in this policy have special definitions. Words in bold are defined in the Definitions section of this policy. Titles are provided for informational purposes only and do not have special meanings. This policy is organized into the following sections: Preface Coverage Definitions Special Benefits Territory Exclusions Limits of Liability & Deductible Defense of Claims Claims Extended Reporting Periods Conditions There are exclusions and conditions that apply to the coverage provided by this policy. Please read the entire policy carefully. Coverage In consideration of the premium paid, your payment of the deductible, and in reliance upon the statements made by the named insured in the application and supplementary information provided by the named insured, and subject to the limits of liability and all other terms, conditions, and exclusions of this policy: We agree to pay on your behalf all damages, in excess of the deductible and up to the limits of liability stated in the Declarations, that you become legally obligated to pay as a result of any claim first made against you during the policy period or any applicable extended reporting period alleging you or a person for whom you are legally liable committed a wrongful act, provided that: 1. such wrongful act was first committed on or after the retroactive date set forth in the Declarations, if any, but before the end of the policy period; ALPL-101 (09-14) Page 1 of 15 2. prior to the effective date of the first Lawyers Professional Liability Insurance Policy issued by us to the named insured and continuously renewed and maintained in effect to the inception of this policy period: a. you did not give notice to a prior insurer of a related claim; b. you did not give notice to a prior insurer of the wrongful act giving rise to the claim or any related wrongful act; and c. you had no reasonable basis to believe you had committed a wrongful act; and 3. such claim is reported to us in writing in accordance with the Notice of Claim provision of this policy. We will also pay claim expenses as set forth in the section entitled Limits of Liability Deductible. Definitions Whether expressed in the singular or plural, whenever appearing in bold in this policy, the following terms shall have the meanings set forth below. Bodily injury means physical injury, sickness, disease or death of any person. Bodily injury shall also mean mental anguish, including emotional distress, shock or fright, whether or not resulting from physical injury, sickness, disease or death of any person. Claim means a written demand received by you for monetary or non -monetary relief, including the service of suit or institution of arbitration proceedings against you. A claim is deemed made when such demand or service is first received by any of you. Claim expenses means: a. reasonable and necessary fees charged by any lawyer designated by us; b. reasonable and necessary fees and expenses charged by any lawyer selected by you as independent counsel, if a conflict of interest exists and applicable law permits you to select such independent counsel and requires us to pay for such independent counsel; c. all other fees, costs and expenses resulting from the investigation, adjustment, defense and appeal of a claim, if incurred by us; d. all costs allocated to you in suits or proceedings and all interest on the entire amount of any judgment therein which accrues after entry of the judgment and before we have paid or tendered or deposited the amount of such judgment, whether in court or otherwise, but only as respects that part of the judgment which does not exceed the limit of our liability thereof; and e. premiums on appeal bonds and premiums on bonds to release attachments in such suits, but not for bond amounts in excess of the applicable limit of liability of this policy. We shall have no obligation to pay for or furnish any bond. However, claim expenses does not include salary charges of our regular employees or officials. Claim expenses does not include your fees, costs or expenses. Damages means a monetary judgment or settlement. Damages does not include: a. fines or statutory penalties, sanctions whether imposed by law or otherwise, or any amount awarded or assessed against you in any claim; ALPL-101 (09-14) Page 2 of 15 b. the return of or restitution of legal fees, costs and expenses; c. punitive or exemplary damages, or the multiplied portion of multiplied damages; d. amounts for which you are not financially liable or which are without legal recourse to you; the cost of re -performing or completing any professional legal services, or the cost of compliance with an injunction or any other non -monetary relief; or f. any amounts which may be deemed uninsurable under applicable law.. Disciplinary proceeding means a formal investigation or proceeding regarding your adherence to professional standards of conduct in the performance of professional legal services before a court, state licensing board, peer review committee, bar association, or other regulatory body. Extended reporting period means the designated period of time after the cancellation or non -renewal of the policy period for reporting claims to us that are made against you during such period of time, provided that such claims arise out of wrongful acts that first take place on or after the retroactive date and before the end of the policy period. Named insured means any person or entity designated in the Declarations, including the predecessors of any such person or entity. Organization means a corporation, partnership, association, trust or fund (including a pension, welfare, profit sharing, mutual or investment fund or trust), or any other business enterprise or charitable organization of any kind or nature. Personal injury means a. false arrest, humiliation, detention or imprisonment, wrongful entry, eviction or other invasion of private occupancy, abusive litigation (criminal or civil), abuse of process, or malicious prosecution; b. a publication or utterance of a libel or slander or other defamatory or disparaging material; or c. a publication or utterance in violation of an individual's right of privacy. Policy period means the period from the effective date of this policy to the policy expiration date as set forth in the Declarations or its earlier termination date, if any. Predecessor means an entity that, prior to the effective date of this policy, is dissolved or inactive and is no longer performing professional legal services, and: a. more than fifty percent (50%) of such entity's assets have been assigned or transferred to the named insured; or b. at least fifty percent (50%) of the principals, owners, officers, or partners of such entity have joined the named insured. Professional legal services means legal services performed for others as: a. a lawyer; b. a notary public; ALPL-101 (09-14) Page 3 of 15 c. an arbitrator; d. a mediator; e. a title insurance agent; f. a designated issuing lawyer to a title insurance company; g. a court -appointed fiduciary; h. a member of a bar association, ethics, peer review, formal accreditation or licensing, or similar professional board or committee; i. an author, strictly in the publication or presentation of legal research papers or similar legal materials and only if the fees generated from such work are not greater than ten thousand dollars ($10,000); or j. an administrator, conservator, receiver, executor, trustee, guardian, or any similar fiduciary capacity. Services performed by you in a lawyer -client relationship on behalf of one or more clients shall be deemed for the purpose of this section to be professional legal services in your capacity as a lawyer, although such services could be performed wholly or in part by nonlawyers. Property damage means injury to or destruction of any tangible property or loss of use therefrom. Tangible property does not include currency and negotiable instruments. Related claims means all claims arising out of a single wrongful act or arising out of related wrongful acts. Related wrongful acts means all wrongful acts that are logically or causally connected by any common fact, circumstance, situation, transaction, event, advice or decision. Totally and permanently disabled means that you have become so disabled as to be wholly prevented from performing professional legal services, provided that such disability: a. has existed continuously for more than six (6) months; and b. is expected to be continuous and permanent; as determined and documented by your licensed treating physician. However, totally and permanently disabled shall not mean any condition which occurred: a. as a result of war or acts of war, whether or not declared; or b. during active service in the armed forces of any country. We, us, our and ours refer to the company issuing this insurance, as stated in the Declarations. Wrongful act means any act, error, omission or personal injury committed in the performance of professional legal services. ALPL-101 (09-14) Page 4 of 15 You means the named insured and the persons or entities described below: a. any lawyer, partnership, limited liability partnership, professional corporation or professional association, limited liability company or limited liability partnership who, as of the inception date of the policy, is a partner, officer, director, stockholder -employee, associate, manager, member or employee of the named insured; any lawyer, partnership, limited liability partnership, professional corporation or professional association, limited liability company or limited liability partnership who: i. after the inception date of the policy and prior to its termination, becomes a partner, officer, director, stockholder -employee, associate, manager, member or employee of the named insured; ii. was previously affiliated with the named insured as a partner, officer, director, stockholder - employee, associate, manager, member or employee of the named insured; iii. is acting as "of counsel' to the named insured; or iv. is acting as an independent contractor or on a per diem basis to the named insured; but only for professional legal services performed on behalf of the named insured during the time of such affiliation. Those of you who qualify for and elect a non -practicing extended reporting period shall be considered within the definition of you as set for the in paragraph a. above; and c. each nonlawyer employee who was, is, or becomes an employee of the named insured, but only while acting within the scope of employment on behalf of the named insured at the time of such employment. Your means belonging to you. ecial Benefits I. Claim Expenses. a. The first two thousand five hundred dollars ($2,500) of claim expenses incurred by us for each claim shall not be subject to the deductible and shall erode the limits of liability. b. If the "each claim" limit of liability stated in the Declarations is less than five hundred thousand dollars ($500,000), one hundred thousand dollars ($100,000) of claim expenses paid in excess of the amount set forth in a. above for each such claim is subject to the deductible and is in addition to, and shall not erode, the limits of liability. c. If the "each claim" limit of liability stated in the Declarations is at least five hundred thousand dollars ($500,000) but is less than two million dollars ($2,000,000), two hundred fifty thousand dollars ($250,000) of claim expenses paid in excess of the amount set forth in a. above for each such claim is subject to the deductible and is in addition to, and shall not erode, the limits of liability. d. If the "each claim" limit of liability stated in the Declarations is two million dollars ($2,000,000) or more five hundred thousand dollars ($500,000) of claim expenses paid in excess of the amount set forth in a. above for each such claim is subject to the deductible and is in addition to, and shall not erode, the limits of liability. ALPL-101 (09-14) Page 5 of 15 2. Disci lina Proceeding Defense Cost. Reimbursement. If a disciplinary proceeding is brought against you during the policy period, we will reimburse reasonable attorneys fees and expenses you pay a third party for legal advice and representation to you in such matters, as well as reasonable costs, expenses and fees you incur to respond to or prepare your defense. Our determination as to the reasonableness of such fees, costs and expenses will be conclusive. We will not pay fines, penalties, sanctions, or any other amounts awarded against you in any disciplinary proceeding. You must provide written notice to us as soon as practicable after receipt of the notice of disciplinary proceeding at the address stated in the Declarations, but no later than sixty (60) days after the expiration of the policy period. No extended reporting period shall be available as respects coverage for disciplinary proceedings. The most we will reimburse you for any one disciplinary proceeding is twenty-five thousand dollars ($25,000). The most we will reimburse during the policy period, if applicable, for all disciplinary proceedings is one hundred thousand dollars ($100,000) in the aggregate. Any reimbursement made pursuant to this provision will be in addition to the limits of liability set forth in the Declarations. Notwithstanding the foregoing, this provision shall not apply to any disciplinary proceeding arising out of a wrongful act occurring prior to the policy period if, prior to the inception date of the first Lawyers Professional Liability Insurance Policy issued by us to the named insured and continuously renewed and maintained in effect to the inception of this policy period, you: a. gave notice to any prior insurer of the wrongful act; or b. if you had a reasonable basis: i. to believe that you had committed a wrongful act, breached a professional duty, violated a disciplinary rule or engaged in professional misconduct; or ii. to foresee that a disciplinary proceeding would be made against you. Loss of arnings. If we request in writing that you attend a trial, hearing, or arbitration proceeding L course of defending, investigating or settling a claim, we will pay you up to one thousand dollars ($1,000) per day for your loss of earnings for each such day or part thereof you attend. The most we will pay under this provision is ten thousand dollars ($10,000) for each claim, regardless of how many days of attendance are requested or how many of you attend such proceedings, and fifty thousand dollars ($50,000) in the aggregate for all claims made during the policy period or extended reporting period, if applicable. Any payment made pursuant to this provision will be in addition to the limits of liability set forth in the Declarations. Reduced Deductible for Arbitrated or Mediated Claims. We have the right to submit a claim to binding arbitration or mediation; however, no claim shall be submitted to arbitration without your prior written consent. If you consent to submit a claim made against you to binding arbitration or mediation upon our request, and agree with the terms and conditions we specify as respects such arbitration or mediation, we will reduce the deductible stated in the Declarations by fifty percent (50%). However, in the case of mediation, the maximum dollar amount by which the deductible will be reduced under this special benefit is two thousand five hundred dollars ($2,500). 5. Subpoena Assistance. In the event you receive a subpoena during the policy period for the production of documents or to compel testimony, we will, upon your request, have the right and obligation to select counsel to provide legal advice and representation to you with respect to the subpoena. We shall pay such counsel's reasonable attorneys fees and expenses, excluding any disbursements; provided that the subpoena: ALPL-101 (09-14) Page 6 of 15 a. is not received in connection with a claim otherwise covered under this policy; and b. is not in connection with a lawsuit for which you have been engaged to provide advice or testimony. No extended reporting period shall be available as respects coverage for subpoena assistance. The maximum aggregate amount payable for all such legal fees covered under this additional coverage, regardless of the number of subpoenas or how many of you receive subpoenas, shall be twenty-five thousand dollars ($25,000) in the aggregate. Such fees incurred under this additional coverage provision shall be in addition to the aggregate limits of liability set forth in the Declarations. Any notice you give to us of such subpoena shall be deemed notification of a potential claim under the.Discovery Clause of this policy. Territory The insurance afforded applies to Wrongful Acts occurring worldwide, to the extent permissible by law. Exclusions 1. Bodily Iniury and PropertyPropedy Damage. This policy does not apply to any claim based upon or arising out of bodily injury or property damage unless such bodily injury or property damage would not have otherwise occurred directly or indirectly but for your performance of professional legal services, and no other cause or circumstance contributed to the loss, including but not limited to the negligence of a third party, and if: a. such bodily injury or property damage takes place on premises occupied by the named insured; b. such bodily injury does not happen to you and such property damage does not occur to any property owned by you; c. the liability for such claim does not arise directly or indirectly out of any obligation under any workers' compensation, disability benefits or unemployment compensation law or any similar law; d. such bodily injury or property damage does not arise out of actual, alleged or threatened pollution; and e. the liability for such claim does not arise directly or indirectly out of the use, ownership, and/or maintenance of owned, nonowned, hired, rented, or loaned automobiles, trucks, aircraft or watercraft by you. However, this exclusion does not apply to mental anguish, including emotional distress, shock or fright caused by personal injury. 2. Certain Services and Capacities. This policy does not apply to any claim against you in your capacity as: a. an officer, director, partner, manager, operator, or employee of an organization other than of the named insured; b. a public official, or an employee of a governmental body, subdivision, or agency; ALPL-101 (09-14) Page 7 of 15 c. a fiduciary under the Employee Retirement Income Security Act of 1974 and its amendments thereto, or similar federal, state, local or common law, or any regulation or order issued pursuant thereto, except if you are deemed to be a fiduciary solely by reason of legal advice rendered with respect to an employee benefit plan. 3. Equity Interests. If a person insured under this policy owns alone or together with his or her spouse or Domestic Partner, ten percent (10%) or more of the issued and outstanding shares, units or other portions of the capital of an organization, and that person simultaneously provides professional legal services with respect to such an organization, this policy will provide no coverage to that person for any claims based upon or arising out of such professional legal services. If the collective equity interest of: a. all persons and entities insured under this policy; b. spouses of persons insured under this policy; and c. the named insured is thirty-five percent (35%) or more of the issued and outstanding shares, units or other portions of the capital of an organization, and any person insured simultaneously provides professional legal services with respect to such an organization, this policy will provide no coverage to any person insured or to the named insured for any claims that result therefrom. 4. FraudulentCriminal Malicious, Deliberately Wrongful Acts orOmissions'. This policy does not apply to any claim based upon or arising out of any dishonest, fraudulent, criminal, malicious or deliberately wrongful acts or omissions committed by you. This exclusion shall not apply to a claim until and unless such conduct is evidenced by any judgment, final adjudication, alternate dispute resolution proceeding or written admission by you. This exclusion does not apply to those of you who did not personally commit, personally participate in committing, or remain passive after learning about one or more of the acts or omissions described in this exclusion. However, our obligation to provide coverage in any such case shall be excess of the deductible and excess of the full extent of any assets in the named insured, or monetary value attributed to such assets, of anyone to whom this exclusion applies. This exclusion shall not apply to claims alleging personal injury. 5. Insured versus Insured. For the purpose of this exclusion, the term "insured" shall mean "you." This policy does not apply to any claim made by one or more insured against another insured unless an attorney/client relationship exists between such insureds. 6. Status as BeneficiaLy or Distributee. This policy does not apply to any claim made against you in your capacity as a beneficiary or distributee of any trust or estate. Limits of Liability & Deductible 1. Claim Expenses. Claim expenses paid under this policy shall reduce this policy's limits of liability and are subject to the policy's deductible. However, subject to specific conditions and limitations, some claim expenses shall not be subject to the limits of liability nor to the deductible as fully described in the Special Benefits section of the policy. ALPL-101 (09-14) Page 8 of 15 2. Limits of Liability — Each Claim,. The most we will pay for damages and claim expenses for each claim, in excess of the deductible, is specified as "each claim" in the limits of liability section of the Declarations and is subject to the amount specified as "aggregate" in the limits of liability section of the Declarations. 3. Limits of Liability — Aggregate. The most we will pay for damages and claim expenses for all claims is specified as "aggregate" in the limits of liability section of the Declarations. 4. Deductible. The deductible stated in the Declarations is the total amount of your liability for each claim and applies to the payment of damages and claim expenses, except as otherwise permitted in the Special Benefits section of this policy. The limits of liability are in addition to and in excess of the deductible. The deductible shall be paid by the named insured, or upon the named insured's failure to pay, jointly and severally by all of you. 5. Multiple Policles Issued by Us Covering the Same Claim. If two (2) or more policies of Lawyers Professional Liability Insurance issued by us covering you apply to the same claim or claims for which you are jointly and severally liable, we shall not be liable under this policy for a greater proportion of such damages than our liability under this policy bears to our total liability under all applicable valid and collectible insurance issued by us, provided that we shall not pay on your behalf any sum that exceeds the limit of liability of that policy issued by us that has the highest applicable limits of liability. In such circumstances, you will not be responsible under this policy for a greater proportion of the deductible than your responsibility under this policy bears to your total responsibility for all applicable deductibles, provided that you will not be responsible for any amount that exceeds the deductible of that policy issued by us that has the highest applicable deductible. 6. Multiple Insureds Claimants and Related Claims. a. Multi le Insureds Claimants. Neither the making of a claim against more than one of you nor the making of claims by more than one person or entity shall operate to increase our limits of liability. b. Related Claims. All related claims, whenever made, shall be considered first made during the policy period or any applicable extended reporting period in which the earliest claim arising out of such wrongful acts was first made and reported to us. Further, all related claims shall be treated as a single claim and shall be subject to a single "each claim" limit of liability. Defense of Claims We have the right and duty to defend any claim against you including the appeal thereof seeking damages to which this insurance applies even if any of the allegations are groundless, false, or fraudulent. We have the right to appoint counsel on your behalf to defend, investigate, and, with your written consent, settle such claim covered by the terms of this policy. If we recommend a settlement of a claim which is acceptable to the claimant, and you refuse to consent to such settlement, then our obligation to pay damages and claim expenses on account of such claim, shall not exceed the sum of: 1. the amount for which we could have settled such claim, plus claim expenses incurred up to the date of your refusal to consent to such settlement; and 2. fifty percent (50%) of damages and claim expenses incurred in connection with such claim in excess of the amount referenced in paragraph 1. above. All remaining damages and claim expenses shall be borne by you uninsured and at your own risk. However, in no event shall our liability exceed the applicable limits of liability. ALPL-101 (09-14) Page 9 of 15 We are not obligated to investigate, defend, pay or settle, or continue to investigate, defend, pay or settle a claim after the applicable limit of liability has been exhausted by payment of damages and/or claim expenses, or after we have deposited the remaining available limits of liability into a court of competent jurisdiction. In such case, we shall have the right to withdraw from the further investigation, defense, payment or settlement of such claim by tendering control of such investigation or defense to you. Claims 1. Notice of Claims. You must give us written notice of any claims made against you as soon as practicable but not later than sixty (60) days after expiration of the policy period or any applicable extended reporting period. In the event suit is brought against you, you must immediately forward to us every demand, notice, summons, complaint or other process received directly or by your representatives. Written notice of any claim against you, as well as of each demand on or action against us, must be delivered to us at the address stated on the Declarations. All notices to us must be in writing. Notice given by or on behalf of you to our agent shall be considered notice to us. 2. Discovery Clause. Should you first become aware during the policy period of a wrongful act for which coverage is otherwise provided hereunder, and should you give written notice to us of: a. the specific wrongful act; b. the injury or damage which has resulted or may result from such wrongful act; and c. the circumstances by which you first became aware of such wrongful act, then any claim that may subsequently be made against you arising out of such wrongful act shall be deemed for the purposes of this insurance to have been made during the policy period in which such notice was given to us. 3. Assistance and Coo eration. You must cooperate with us in the investigation, defense and settlement of claims or related matters, including: a. submitting to examination and interrogation by our representative at our request, under oath if required; b. attending hearings, depositions and trials, securing and giving evidence, obtaining the attendance of witnesses, and effecting settlement; and c. giving of written statements to our representatives, including investigating and coverage counsel, and meeting with such representatives for the purpose of investigation, including the investigation of coverage issues or defense; all without charge to us unless otherwise permitted in the section entitled Special Benefits. You must further cooperate with us and do whatever is necessary to secure and effect any rights of indemnity, contribution or apportionment that you may have. You must not, except at your own cost, make any payment, admit any liability, settle any claims, assume any obligation or incur any expense without our prior written consent. 4. False or Fraudulent Claims. If you commit fraud in submitting any claim under this policy as regards amount or otherwise, the insurance provided under this policy shall become void as to you from the date such fraudulent claim is submitted. ALPL-101 (09-14) Page 10 of 15 This section of the policy sets forth the extended reporting periods that may be available to you under this policy. No extended reporting period shall be construed to be a new policy and any claim submitted during an extended reporting period shall be subject to the policy's terms and conditions except as specifically set forth below. All claims made during an extended reporting period must be reported In accordance with the provision entitled Notice of Claims. 1'. Automatic Extended Reporting Period. If the named insured or we do not renew this policy, or we cancel this policy for reasons other than for non-payment of premium, we will provide the named insured with an automatic, non -cancelable sixty (60) day extended reporting period. This automatic extended reporting period terminates sixty (60) day after the end of the policy period. The limits of liability applicable to claims made during the automatic extended reporting period shall be part of and not in addition to the limits of liability set forth on the Declarations. No automatic extended reporting period shall be available if the named insured obtains another lawyers professional liability insurance policy that applies to such claim within sixty (60) days immediately following the end of the policy period. Eligibility. If the named insured or we do not renew this policy, or we cancel this policy for reasons other than for non-payment of premium, then the named insured shall have the option to purchase an extended reporting period for the time periods set forth below, provided the named insured notifies us, within sixty (60) days following such termination, of its desire for an optional extended reporting period and provided further that the named insured promptly pays when due any amounts owed to us. Such extended reporting period will incept after the termination of the automatic extended reporting period. If the required notice is not timely given to us, the right to elect an optional extended reporting period is waived. The optional extended reporting period, if purchased, shall be endorsed hereto. b. Available Options. Extended reporting period options are listed below with an additional premium set forth opposite each option. The additional premiums stated are a percentage of the full annual premium of this policy. The additional premium will be adjusted for any return premium owed because of cancellation or any premium owed us for this policy. Option Additional Premium 1 year 100% 2 years 135% 3 years 150% 5 years 185% Unlimited 225% The optional extended reporting period begins at the end of the automatic extended reporting period, if available, or upon expiration of the policy period whichever is earlier. At the commencement of the optional extended reporting period, the entire premium therefor shall be deemed earned. The optional extended reporting period shall not be cancelable. c. tional Extended Reporting Period Limits of Liability. If the named insured purchases an optional extended reporting period, then our limit of liability for claims made during the optional extended reporting period shall be reinstated to an amount equal to the limit of liability set forth in the Declarations for this policy. For claims made during the extended reporting period, the applicable deductible set forth on the Declarations continues to apply. ALPL-101 (09-14) Page 11 of 15 "« „ . .. «. a. Limitation. For those of you who do not qualify for an unlimited non -practicing extended reporting period at no additional charge, the non -practicing extended reporting period as set forth herein shall not begin until after expiration of this policy period, any renewal of this policy in a series of successive renewals, or any optional extended reporting period. i. Death and Disability Those of you who are affiliated with the named insured as a lawyer (other than "of counsel" or independent contractor lawyers) who during the policy period, die or become totally and permanently disabled will be automatically provided with an extended reporting period for an unlimited period of time at no additional premium. ii. Retirement Those of you (other than independent contractor lawyers) who, during the policy period, retire, or otherwise cease the private practice of law, have the option to purchase an extended reporting period as set forth below. The additional premiums, set forth below, are stated are a percentage of the full annual premium of this policy. Each of you electing this extended reporting period must pay the full indicated percentage. Option Additional Premium 1 year 100% 2 years 135% 3 years 150% 5 years 185% Unlimited 225% However, if you: (a) retire or otherwise cease the private practice of law during the policy period and have been insured under a Lawyers Professional Liability Policy in the Aon Attorney's Advantage program continuously for the last three, full years; or (b) retire or otherwise cease the private practice of law during the policy period and have been insured under a Lawyers Professional Liability Policy in the Aon Attorney's Advantage program continuously for one full year plus the previous three full years under a Lawyers Professional Liability Policy with a single prior insurance company. then you will be provided with an extended reporting period for an unlimited period of time at no additional charge. Upon election of a non -practicing extended reporting period, the entire premium therefor shall be deemed fully earned. The non -practicing extended reporting period shall not be cancelable. iii. Your right to a non -practicing extended reporting period must be exercised by notice in writing not later than sixty (60) days after the date you die, become totally and permanently disabled, retire or otherwise cease the private practice of law. Such notice must indicate the total extension period desired, if applicable, and must include payment of any amounts due us, if any, for such non -practicing extended reporting period. The non -practicing extended reporting period shall be endorsed hereto. ALPL-101 (09-14) Page 12 of 15 If such notice is not timely given to us, you will be deemed to have waived the right to a non - practicing extended reporting period. c. Non - practicing extended Reporting Period Limits of Liability. For those attorneys who are eligible for an unlimited non -practicing extended reporting period at no additional charge, the limits of liability available for each claim and all claims in the aggregate are part of and not in addition to the limits of liability on the Declarations for the policy in effect when they became eligible, regardless of the number of you who are eligible for such extended reporting period or who are insured under this policy. With respect to those attorneys who retire or otherwise leave the private practice of law and who elect a non -practicing extended reporting period, for which payment is required, our limits of liability for claims made during any non -practicing extended reporting period shall be equal to the limits of liability set forth in the Declarations for this policy and shall apply separately to each of you who make such election. The deductible and deductible provisions of this policy will be waived with respect to claims first made against you during the non -practicing extended reporting period. Conditions Firm Chan. The named insured must give us written notice if the total number of attorneys of the named insured increases by more than fifty percent (50%) during the policy period. If the total number of attorneys is below six (6) lawyers as of the effective date of this policy, the named insured must give us written notice if the total number of attorneys of the named insured increases by more than one hundred percent (100%) during the policy period. In the event of a merger, dissolution or acquisition, the named insured must use best efforts to notify us at least thirty (30) days prior to the projected date of such change, but in no case shall the named insured provide us with less than five (5) days' notice. In each case, we will have the right to accept, alter or decline coverage for the new lawyers and to charge an additional premium. 2. 5ubro ationi. In the event of any payment under this policy, we shall be subrogated to all your rights of recovery therefor against any person or entity, provided, however, we shall not exercise any rights of subrogation against any of you who did not commit the wrongdoing. You must execute and deliver instruments and papers and do whatever else is necessary to secure such rights and you must do nothing to prejudice such rights. Any amount recovered upon the exercise of such rights of subrogation shall be applied as follows: first, to the repayment of expenses incurred toward subrogation; second, to damages or claim expenses paid by you in excess of the limits of liability; third, to damages or claim expenses paid by us; fourth, to damages or claim expenses paid by you in excess of the deductible; and last, to repayment of the deductible. Action Against Us. No action shall lie against us unless, as a condition precedent thereto, you shall have fully complied with all the terms of this policy, nor until the amount of our obligation to pay shall have been fully and finally determined either by judgment against you either after judgment against you or by written agreement of you, the claimant and us. In the event any person or entity or the legal representative thereof has spcured a judgment against you and such judgment remains unsatisfied after the expiration of thirty (30) days from the service of notice of entry of the judgment upon your attorney, or upon you, and upon us, then an action may, except during a stay or limited stay of execution against you on such judgment, be maintained against us under this policy for the amount of such judgment to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or entity the right to join us as a co-defendant in any action against you to determine your liability. . ALPL-101 (09-14) Page 13 of 15 4. 6glic�n. By acceptance of this policy, you agree that the statements in the application are personal representations to us for the purpose of securing this insurance policy, that they shall be deemed material, and that this policy is issued by us in reliance upon such representations. You further agree that this policy embodies all agreements existing between you and us, or any of our agents, relating to this insurance. 5. Other Insurance. This insurance shall apply in excess of any other valid and collectible insurance available to any of you, unless such other insurance is written only as specific excess insurance over the limits of liability of this policy. 6. Changes. Notice to any agent or knowledge possessed by any agent or other person acting on behalf of us shall not effect a waiver or a change in any part of this policy or estop us from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed, except by written endorsement issued to form a part of this policy. 7. Assignment. Assignment of interest under this policy shall not bind us unless our consent is endorsed in writing hereon. 8. Legal Representatives, Souses and Domestic Partners. The legal representatives, estate, heirs, spouse and any domestic partner of any of you who are natural persons shall be considered to be within the definition of you under this policy, provided, however, that coverage is afforded to such legal representatives, estate, heirs, spouse and domestic partner only for a claim arising solely out of their status as such and, with respect to a spouse or domestic partner, where such claim seeks amounts from marital community, jointly held property or property transferred from such insured to such spouse or domestic partner. No coverage is provided for any act, error or omission committed by any legal representative, estate, heir, spouse or domestic partner. 9. Cancellation and Nonrenewal. The following cancellation and nonrenewal procedures apply to this policy: Cancellation a. This policy may be cancelled by the named insured by surrender thereof to us or by mailing to us written notice stating when thereafter such cancellation shall be effective. b. We may only cancel this policy in the event of nonpayment of premium. If we cancel the policy, we will give the named insured written notice of cancellation at least twenty (20) days before the effective time of cancellation. Notice of cancellation shall state the effective time of cancellation. The Policy Period shall end at that time. If any controlling law requires a longer period of notice by the Company, the Company shall give such longer notice. c. All notices of cancellation by us shall be mailed to the named insured at the last mailing address known by us and shall state that the reason for the cancellation is non-payment of premium. A copy of all such notices shall be sent to your broker, if known. We shall maintain proof of mailing of such notice on a recognized U.S. Post Office form or a form acceptable to the U.S. Post Office. The mailing of notice as aforesaid shall be sufficient proof of notice. d. The named insured is authorized to act on behalf of all of you with respect to the giving and receiving of notice of cancellation and to the receiving of any return premium that may become payable under this policy. ALPL-101 (09-14) Page 14 of 15 e. If the named insured cancels, earned premium shall be computed in accordance with the short rate table and procedure in use for this policy. If we cancel, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. Nonrenewal If we decide not to renew this policy, we shall mail written notice to the named insured of our intention not to renew at least sixty (60) days, but not more than one hundred twenty (120) days, prior to the expiration date of the policy. All notices of nonrenewal shall be mailed to the named insured at the last mailing address known by us and shall state that the reasons for the nonrenewal. A copy of all such notices shall be sent to your broker, if known. We shall maintain proof of mailing of such notice on a recognized U.S. Post Office form or a form acceptable to the U.S. Post Office. The mailing of notice as aforesaid shall be sufficient proof of notice. 10. Named Insured Sole Ag,ent. The named insured shall be your sole agent for the purpose of exercising or waiving any right under this policy; effecting or accepting any notices hereunder; accepting or requesting any amendments to or cancellation of this policy; consenting to settlement of claims; for completing applications and making statements, representations and warranties to us; and for the payment of any premium or receipt of any return premium that may become due under this policy. 11. Liberalization Clause. If, during the policy period, we adopt any standard revision to this policy form that would broaden the coverage applicable to you under this policy without additional premium, the broadened coverage will immediately apply to your policy, except, however, the broadened coverage shall not apply to claims first made prior to the effective date of such adoption. 12. Bankruptcy. Your bankruptcy or insolvency will not relieve us of our obligation under this insurance. However, this insurance will not apply to liability directly or indirectly due to such bankruptcy, insolvency, receivership or subsequent liquidation. IN WITNESS WHEREOF, we have caused this policy to be executed and attested, but this policy shall not be valid unless countersigned on the Declarations by our duly authorized representative. ALPL-101 (09-14) Page 15 of 15