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Home My WebLink AboutOverview PolicyTravelersProperty Casualt~ COMMERCIAL INSURANCE · A Custom Insurance Policy Prepared for: CITY OF JEFFERSONVILLE 501 EAST COURT AVE. JEFFERSONVILLE IN 47130 002361 One Tower Square, Harlford, Connecticut 06183 SEWAGE ~ISPOSAL PLANTS COMMON ~DLICY DECLARATIONS ISSUE DATE: 06/i4/02 POLICY NUMBER: BAd-BMG-?91X2292-TIL-02 1. NAMED INSURED AND MAILING ADDRESS: CITY OF UEFFERSONVILLE 501 EAST COURT AVE. UEFFERSONVILLE, IN 47120 2. POLICY PERIOD: 3. LOCATIONS Premises Bldg. Loc. No. No. Occupancy ON FILE WITH COMPANY From 08/06/02 to 08/06/03 12:01 A.M. Standard Time at your mailing address. Address 4. COVERAGE PARTS FORMING PART OF THIS POLICY AND INSURING COMPANIES: BOILER AND MACHINERY COY PART DECLARATIONS BM TO 01 08 96 TIL NUMBERS OF FORMS AND ENDORSEMENTS FORMING A PART OF THIS POLICY: SEE IL'T8 01 10 93 SUPPLEMENTAL POLICIES: Each of the follqwing is a separate policy containing its complete provisions: Policy Policy No. Insuring Company PREMIUM SUMMARY: Provisional Premium $ 7,595 Due at Inception $ 7,595 Due at Each $ NAME AND ADDRESS OF AGENT OR BROKER: KENRICK & ASSOCS INC (NT669) 1700 OPDYKE COURT AUBURN HILLS, MI 48326 IL TO 02 11 89 PAGE 1 OF I OFFICE: SOUTHFIELD 002362 POLICY NUMBER: EFFECTIVE DATE ISSUE DATE: BAd-BMG-791 X2292-TI L-02 08-06-02 06-1 4-02 LISTING OF FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS THIS LISTING SHOWS THE NUMBER DF FORMS, SCHEDULES AND ENDORSEMENTS BY LINE OF BUSINESS. IL TO 02 11 89 IL T8 01 10 93 COMMON POLICY DECLARATIONS FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS m mm m m mm o~m mm m m BOILER AND MACHINERY BM Ti 10 12 94 BM AO 15 08 96 PN Ti 89 06 99 BM T1 52 Ol 94 BM TI 50 01 93 BM T8 O0 BM T8 01 BM TS 27 08 95 BM TS 52 08 96 BM T3 80 02 O0 BM TB 40 04 91 BM T6 69 08 96 COMMON POLICY CONDITIONS ENERGY MAX DEC dURISDICTIONAL INSPECTIONS NOTICE TABLE OF CONTENTS COMP EQUIPMENT COVERAGE FORM GENERAL PURPOSE ENDORSEMENT GENERAL PURPOSE ENDORSEMENT RBC EXCLUSION CLAIM REPORTING PERILS ELIMINATION ENDORSEMENT PROPERTY NOT COVERED SPECIAL LOCATION SCHEDULE INTERLINE ENDORSEMENTS IL O1 56 07 89 IL 01 86 07 96 IL 02 72 04 98 IL TS 55 08 98 IN CHANGES CONCEAL MISREPRESENT OR FRAUD INDIANA CHANGES-RIGHTS OF'RECOVERY IN CHANGES-CANCELLATION &;NONRENEWAL EXCL OF CERTAIN COMPUTER ~EL LOSSES IL T8 O1 i0 93 002363 PAGE: I OF BOILER AND MACHINERY Travele~s?rop~rt~ C~a~ 002364 (Each a Stock Insurance Company) Hartford, CT 06183 BOILER AND MACHINERY 002365 COMMON POLICY CONDITIONS AND COMPANY STATEMENT coMpANY STATEMENT In return for payment of the premium. The Travelers agrees with the Named Insured to provide the insurance indicated. That insurance will be provided bY the company indicated in the declarations. References in this policy to "The Travelers," "we," "us," or "our" means the company. The companies listed below (each a stock company) have executed this policy, but it is valid only if countersigned by our authorized representative. The Traveleres Indemnity Company (IND) The Pheonix Insurance Company (PHX) The Charter Oak Fire Insurance Company (COF) Secretary The Travelers indemnity Company of Illinois (TIL) The Travelers Indemnity Company of Connecticut (TCT) The Travelers Indemnity Company of America (TIA) The Travelers Insurance Company (INS) Executive Vice President COMMON POLICY CONDITIONS A. CANCELLATION '1. The first Named Insured shown in the Decla- rations may cancel this policy by mailing or delivering to us wdtten notice of cancellation 2. We may cancel this policy by mailing or deliv- ering to the first Named Insured written notice of cancellation at least: a. 10 days before the effective date of can- cellation if we cancel for nonpayment of premium; or b. 30 days before the effective date of can- cellation if we cancel for any other rea- son. 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. If the policy is cancelled, that date will become the end of the policy pe- dod. 5, If this policy is cancelled, we will send the first ~lamed Insured any premium refund due. If we cancel, the refund will be pre rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be suf- ficient 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 Declara- tions 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 as part of this policy. C. EXAMINATION OF YOUR BOOKS AND RECORDS We may examine and audit your books and rec- ords as they relate to this policy at any time dur- ing the policy period and up to three years after- ward. BM T1 10 '12 94 Includes copyrighted matedal of Insurance ServiceS Office, Inc., with its permission. Copyright, Insurance Services Office, inc., 1983 Page 1 of 2 BOILER AND MACHINERY D. INSPECTIONS AND SURVEYS We have the right but are not obligated to: 1. Make inspections and surveys at any time; 2. Give you reports on the conditions we find; and 3. Recommend changes. Any inspections, surveys, reports or recommen- dations relate only to insurability and the premi- ums to be charged. We do not make safety in- spections. 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: 1. Are safe or healthful; or 2. Comply with laws, regulations, codes or stan- dards. This condition applies not only to us, but also to any rating, advisory, rate service or similar or- ganization which makes insurance inspections, surveys, reports or recommendations. E. PREMIUMS 1. The first Named Insured shown in the Decla- rations: a. Is responsible for the payment of all pre- miums; and b. Will be the payee for any return premiums we pay. 2. We compute all premiums for this policy in accordance with our rules, rates, rating plans, premiums and minimum premiums. The pre- mium shown in the Declarations was com- puted based on rates and rules 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 pre- mium in accordance with our rates and rules then in effect. 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 in- sured. If you die, your dghts and duties will be transferred to your legal representative but only while acting within the scope of duties as your le- gal 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. Page 2 Of 2 BM T'I '10 '12 94 Includes copyrighted material of InSurance ServiCeS Office, InC.,with its permissiOn. Copyright, Insurance Services Office, Inc., 1983 002366 One Tower Square, Hartford. Connecticut 06183 BOILER AND MACHINERY COVERAGE PART DECLARATIONS POLICY NUMBER: BAd -BMG-791 X2292-TI L-02 ISSUE DATE: 0B-14-02 ENERGYMAX COMPREHENSIVE EQUIPMENT COVERAGE EFFECTIVE DATE: Same as policy unless otherwise specified: COVERAGES, LIMITS OF INSURANCE AND OPTIONS - insurance applies only to a coverage for which a limit or 'Included is shown. 1. THESE DECLARATIONS APPLY TO ALL LOCATIONS COVERED BY THIS POLICY EXCEPTIONS: 2. DEFINITION OF "OBJECT": TNCLUDES PRODUCTION MACHINES 3. COVERAGES AND LIMITS: COVERAGES Limit Per Accident: Expediting Expenses: Business Income: Extra Expense: Spoilage: Off Premises Service Interruption: Ammonia Contamination: Water Damage: Hazardous Substances: Ordinance or Law: 'Media": Brands and Labels: Newly Acquired Locations: Error in Description: LIMITS 40,849,110 100,000 100,000 COMBINED WITH BII 100,000 i 00,000 100,000 t O0 000 100,000 100,000 2,500 25 ,OO0 t 000,000 COI~BI NED WITH/PD 4. DEDUCTIBLES Damage to Covered Property: $ Business Income: $ Extra Expense: $ Spoilage: $ Off Premises Service Interruption: $ Ammonia Contamination: $ Other Deductibles: $ SEE BM T8 00 SEE BM T8 O0 COMBINED WITH BII IO % OF LOSS/ 2500 MIN 24 HOURS COMBINED WITH/PD SEE BM TB O0 AND BM T3 72 5. OTHER CONDITIONS Notice of Cancellation: 30 Newly Acquired Locations: Days Up to a Maximum of 90 Days 6. NUMBERS OF FORMS, SCHEDULES AND ENDORSEMENTS FORMING PART OF THIS COVERAGE PART ARE ATTACHED AS A SEPARATE LISTING. PRODUCER:KENRZCK & ASSOCS [NC BM TO 01 08 96 Order No. BM A0150896 NT669 OFFICE: SOUTHFIELD 057 NOTICE TO POLICYHOLDERS JURISDICTIONAL INSPECTIONS Dear Policyholder; Many states and some cities issue certificates permitting the continued operation of certain equipment such as boilers, water heaters, pressure vessels, etc. Periodic inspections are normally required to renew these certifi- cares. In most jurisdictions, insurance company employees who have been licensed are authorized to perform these inspections. If: · You own or operate equipment that requires a certificate from a state or city to operate legally, and · We Insure that equipment under this Policy, and · You would like us to perform the next required inspection; Then; Call this toll-free number - 1-800-425-4119 When you call this number, our representative will ask you for the following information! · Name of your business (as shown on this Policy) · Policy Number · Location where the equipment is located. Including Zip Code. · Person to contact and phone number for scheduling of inspection · Type of equipment requiring inspection · Certificate inspection date and cedificate number Or; Fill in the form on the reverse side of this notice and fax it to the toll-free number indicated on that form. Please note the following: · Your jurisdiction may charge you a fee for renewing a certificate, tt is your responsibility to pay such a fee. · All the provisions of the INSPECTIONS AND SURVEYS Condition apply to the inspections described in this notice. REMINDER If new equipment is installed or old equipment replaced that requires a jurisdictional inspection please let us know by calling our toll-free number listed above. PN T'I 89 06 99 Page 1 of 2 REQUEST FOR JURISDICTIONAL INSPECTION Name of Business: (As Shown on Policy) Policy Number: Location of Equipment: City State Zip Code Person to Contact for Scheduling Inspection: Telephone Number of Person to Contact: Equipment Type Certificate Number Certificate Expiration Date Fax Form to 1-877-764-9535 Completed by: Phone Number: Page 2 of 2 PN T1 89 06 99 ENERGYMAX COMPREHENSIVE EQUIPMENT COVERAGE FORM TABLE OF CONTENTS Declarations and Endorsements that may also be attached to ybur policy are not included in this Table of Contents. ITEM PAGE NUMBER COVERAGE ........................................................................... :..........~..........¢ .......................................................... 1 Oovered Property ............................................................................. : .... 1 Oovered Cause of Loss ....................................... 1 Defense and Supplementary Payments ............................................................................................................................................. 1 COVERAGE EXTENSIONS ............................... 1 Expediting Expenses ............................................................................................................................................................................. i .......... 1 Business Income 1 Extended Business income ......... .............................. 2 Extra Expense ............................................ 2 Spoilage .................................................................................................................................. ................................................................................. 2 Off Premises Service interruption ........................................................................................................................................................... 2 Ammonia Contamination .............................................................................................................................................................................. 3 Water Damage .................................................................................................................................................. 3 Hazardous Substances .......... , ....................... 3 Ordinance or Law (Including Demolition and Increase Cost of Construction) ....................................................................................................................................................... 3 "Med a" ~ ~ 3 Brands and Labels ...................................... , ............... 3 New y Acquired Locations .................................................................. 3 Error n Description .............................................................. 4 EXCLUSIONS . .......................... 4 Ordinance or Law . 4 Nuclear Hazard 4 War and Military Action ............................................................................................... -~ ..................................................... ,.?..., ..................... 4 Earth Movement 4 Other Exclusions 4 LIMITS OF NSURANOE .................................................................... 5 Limit Per Accident 6 Coverage Extension Limits ....................................................................... 6 DEDUCTIBLE. ............................................................................................................................................................................................................... 6 Damage to Covered Property ................................................................................. : .......................................................... : ................ , ...... 6 Business Income ............................................................................................................. .............................................................................. ..... 6 Extra Expense .................................................................................................................... i ...................................... ' ............................... :'": ....... 6 Spoilage ................................................................................................................................................................................................................... 7 Off Premises Service interruption ..................................................................................................................................................... ,-..- 7 Ammonia Contamination ......................................................................................... .'. ........................................................ , ......................... 7 BM T1 52 01 94 Page 1 of 2 002368 ENERGYMAX COMPREHENSIVE EQUIPMENT COVERAGE FORM TABLE OF CONTENTS (Continued) ITEM PAGE NUMBER LOSS COND TIONS .............................................................................................................................................................................................. 7 Abandonment ..................................................................................................................................................................................................... 7 Appraisal ............................................................................................................. 7 Duties in the Event of Loss or Damage ............................................................................................................................................ 7 Reducing Your Loss ...................................................................................................................................................................................... 8 Loss Payment ..................................................................................................................................................................................................... 8 Valuation 8 Spoilage Coverage Valuation 9 "Media" Valuation 9 Business Income Report of Values 9 Business Income Coinsurance 9 Conditional Suspension of Coinsurance 10 Joint Loss .............................................................................................................................................................................................................. 10 ADDITIONAL CONDITIONS 11 Cancellation 11 Concealment, Misrepresentation and Fraud ................................................................................................................................ 11 Legal Action Against Us .............................................................................................................................................................................. 11 Adjustment of Premium .............................................................................................................................................................................. 11 Liberalization 11 Other Insurance ................................................................................................................................................................................................ 11 Policy Period, Coverage Territory ........................................................................................................................................................ 12 Transfer of Rights of Recovery Against Others to Us 12 Additional Insured 12 Bankruptcy ........................................................................................................................................................................................................... 12 Suspension. .......................................................................................................................................................................................................... 12 Mortgage Holders ............................................................................................................................................................................................ 12 DEFINITIONS 13 Page 2 of 2 BM T1 52 01 94 BOILER AND MACHINERY COMPREHENSIVE EQUIPMENT COVERAGE E ORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we," "us" and "our" refer to the Company identified on the Declarations which is providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section G-DEFINI- TIONS. A. COVERAGE We will pay for direct damage to Covered (5) Property caused by a Covered Cause of Loss. 1. CoVered Property Covered Property, as used in this Coverage Part, means any property that: a. You own; or b. Is in your care, custody or control and (6) for whiCh you are liable while at a location described in the Declara- tions. 2. Covered Cause of Loss A Covered Cause of Loss is an "accident" to 4. an "object." f"~"~' 3. DefenSe and Supplementary Payments a. If a claim or "suit" is brought against you alleging that you are liable for damage to ~'~" property of another in your care, custody ~ or control, that was directly caused by nE an "accident" to an "object," we will ~'~ either: (1) Settle the claim or "suit," or oX (2) Defend you against the claim or "suit" but keep for ourselves the right to settle it at any point. o~ b. We will pay, with respect to any claim or o...,, any "suit" we defend: ~ (1) All expenses we incur; ~ (2) The cost of bonds to release attach- ~.~, mentS. We do not have to furnish o5 these bonds; ~ (3) All reasonable expenses incurred by you 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; (4) All costs taxed against you in any ~ (3) "suit" we defend; Pre-judgment interest awarded a- gainst you on that part of the judg- ment we pay. If we make an offer to pay the applicable limits, we will not pay any pre-judgment interest based on that period of time after the offer; and 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 the applicable limits. Coverage Extensions YOU may extend the insurance provided by this Coverage Part as follows: a. Expediting Expenses With respect to your damaged Covered Property, we will pay the reasonable extra cost to: (1) Make temporary repairs; and (2) Expedite permanent repairs or re- placement. b'. Business Income (1) We will pay your actual loss of "busi- ness income" from a total or partial interruption of business caused sole- ly by an "accident" to an "object" as described in (3) below. (2) We will also pay any necessary ex- penses you incur to reduce the amount of loss under this Coverage Extension. We will pay for such ex- penses to the extent that they do not exceed the amount of loss that other- wise would have been payable under this Coverage Extension. The "object'~ must either be Covered Property or be property of others BM T1 50 01 93 Page 1 of 15 002369 BOILER AND MACHINERY that is: (a) located on or within 500 feet of a location insured under this Cov- erage Part; and (b) Used to supply electrical power, communications services, air con- ditioning, heating, gas, water or steam to the described premises. (4) The "accident" must occur during the Policy Period, but expiration of the policy does not limit our liability under this coverage. Extended Business Income We will pay your actual loss of "business income'~ from a total or partial interrup- tion of business caused solely by an "ac- cident'' to an "object" and incurred during the period that: (1) Begins on the date property is ac- tually repaired, rebuilt or replaced and operations are resumed; and (2) Ends on the earlier of: (a) The date you could restore your operations with reasonable speed, to the condition that would have existed if no direct physical loss or damage had occurred; or (b) Unless otherwise stated in the Declarations, 30 consecutive days after the date determined in (1) above. Extra Expense (1) We will pay the reasonable "extra ex- pense'' to operate your business during a total or partial interruption of business caused solely by an "ac- cident'~ to an "object" as described in (2) below. (2) The "object" must either be Covered Property or be property of others that is: (a) located on or within 500 feet of a location insured under this Cov- erage Part; and (b) Used to supply electrical power, communications services, air con- ditioningl heating, gas, water or steam to the described premises. (3) The "accident" must occur during the Policy Period, but expiration of the policy does not limit our liability under this coverage. e. Spoilage (1) We will pay for your loss of perish~ able goods due to spoilage resulting from lack of power, light, heat, steam or refrigeration caused solely by an "accident" to an "object" as described in (3) below. (2) We will also pay any necessary ex- penses you incur to reduce the amount of loss under this Coverage Extension. We will pay for such ex- penses to the extent that they do not exceed the amount of loss that other- wise would have been payable under this Coverage Extension. (3) The "object" must either be Covered Property or be property of others that is: (a) located on or within 500 feet of a location insured under this Cov- erage Part; and (b) Used to supply electrical power, communications services, air con- ditioning, heating, gas, water or steam to the described premises. (4) The "accident" must occur during the Policy Period, but expiration of the policy does not limit our liability under this coverage. f. Off Premises Service Interruption (1) You may extend the insurance provided by the Coverage Exten- sions-Business Income, Extra Ex- pense and Spoilage to loss caused solely by an "accident" to an "object'' as described in (2) below. (2) The "object" must be: (a) Located more than 500 feet from a location insured under this Coverage Part; and (b) Used to supply electrical power, communications services, air con- ditioning, heating, gas, water or steam to the described premises. (3) The "accident" must occur during the Page 2 of 15 BM T1 50 01 93 ~,"-~.~ Policy Period, but expiration of the policy does not limit our liability under this coverage. g. Ammonia Contamination We will pay for direct damage to Covered Property contaminated by ammonia as a result of an "accident" to an "object." h. Water Damage We will pay for direct damage to Covered Property by water as a result of an "acci- dent'' to an "object" that is part of an air conditioning system. i. Hazardous Substances We will pay for direct damage to build- ings and personal property that are Covered Property and are contaminated by a Hazardous Substance as a result of an "accident" to an "object/' If applicable, we will also pay for loss under the Coverage Extensions-Busi- ness Income and Extra Expense caused by such contamination. As used above, Hazardous Substance ~ shall mean any substance other than ' ammonia that has been declared to be hazardous to health by a governmental *---- agency. °~--'~ j. Ordinance or Law (Including Demoli- "'Z tion and Increased Cost of Construc- t-__. tion) ~'-- The following applies despite the opera- °~ tion of the Ordinance or Law Exclusion. If an "accident" to an "object" damages a __ building that is Covered Property, we will -- pay: o~ (1) For loss or damage caused by enfor- o5 cement of any ordinance or law that: -- (a) Requires the demolition of parts of ~'---- the same property not damaged ~------ by the "accident"; o~---- (b) Regulates the construction or o~ repair of buildings, or establishes .~ zoning or land use requirements -- at the described premises; and '--- (c) Is in force at the time of the "acci- dent.'' r~' (2) The increased cost to repair, rebuild . or construct the property caused by BOILER AND MACHINERY enforcement of building, zoning or land use ordinance or law. If the property is repaired or rebuilt, it must be intended for similar use or occupancy as the current property, unless otherwise required by zoning or land use ordinance or law. (3) The cost to demolish and clear the site of undamaged parts of the prop- erty caused by enforcement of the building, zoning, or land use ordi- nance or law. This extension of coverage does not apply to any increase in loss due to a substance declared to be hazardous to health by a governmental agency. We will not pay for increased construc- tion costs until the property is actually repaired or replaced. "Media" We will pay for "media" directly damaged by an "accident" to an "object." Brands and Labels If branded or labeled merchandise that is Covered Property is damaged by an "ac- cident'' to an "object," but retains a sal- vage value, you may, at your expense: (1) Stamp the word SALVAGE on the merchandise or its containers if the stamp will not physically damage the merchandise; or {2) Remove the brands or labels, if doing so will not physically damage the merchandise. You must m-label the merchandise or its containers to comply with the law. We will pay for any reduction in value of the salvage merchandise resulting from either of these two actions. Newly Acquired Locations You may extend the insurance provided by this Coverage Part to a newly ac- quired location that you have purchased or leased. This automatic coverage begins at the time you acquire the property and is subject to the following conditions: (1) You agree to pay an additional premium as determined by us. Such BMT1 5001 93 Page 3 of 15 002370 BOILER AND MACHINERY additional premium will be computed from the date of acquisition. (2) Insurance under this Coverage Ex- tension for each newly acquired location will end when any of the fol- lowing first occurs: (a) This Policy expires; (b) The number of days specified in the Declarations for this coverage expire after you acquire the loca- tion; (c) You report the location to us; or (d)The location is more specifically insured. (3) Insurance under this Coverage Part for such locations will be subject to the same conditions, exclusions and limitations as other insured locations. If deductibles vary by location, the highest deductibles will apply. n. Error in Description We will pay your loss covered by this Coverage Part if such loss is otherwise not payable solely because of any unin- tentional error or omission in the descrip- tion of a location as insured under this Coverage Part. You agree to give us prompt notice of any correction or addition to the descrip- tion of a location insured under this Coverage Part. B. EXCLUSIONS 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law Any increase in loss caused by or result- ing from enforcement of any ordinance, law, regulation, rule or ruling regulating or restricting repair, replacement, altera- tion, use, operation, construction or in- stallation, except as provided under the Coverage Extensions-Ordinance or Law (Including Demolition and Increased Cost of Construction) and Hazardous Substances. b. Nuclear Hazard Loss caused by or resulting from nuclear reaction or radiation, or radioactive con- tamination, however caused. c. War and Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, in- cluding action in hindering or defending against an actual or ex- pected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, u- surped power or action taken by governmental authority in hindering or defending against any of these. d. Earth Movement Earth movement, including but not limited to earthquake, mine subsidence, landslide, mudslide or volcanic eruption. We will not pay for loss or damage caused by or resulting from any of the following: a. An explosion. However, we will pay for loss Caused by or resulting from an ex- plosion of an "object" of a kind described below: Explosion of any: (1) Steam boiler; (2) Electric steam generator; (3) Steam piping; (4) Steam turbine; (5) Steam engine; (6) Gas turbine; or (7) Moving or rotating machinery when such explosion is caused by centri- fugal force or mechanical break- down; b. Fire or explosion that occurs at the same time as an "accident" or that ensues from an "accident.'r With respect to any electri- cai equipment forming a part of an "ob- ject,'~ this exclusion is changed to read: Fire or explosion outside the "object" that occurs at the same time as an "accident" or ensues from an "accident." c. Explosion of gas or unconsumed fuel Page 4 of 15 BM T1 50 01 93 within the furnace of any boiler or fired vessel or within the gas passages from that furnace to the atmosphere; d. An "accident" that is the direct or indirect result of an explosion or fire; e. An "accident" that is the direct or indirect result of the following, if such loss is covered by another policy of insurance in force at the time of the loss: (1) Lightning; (2) Wind, Hail, Weight of Snow, ice or Sleet, Riot, Civil Commotion, Van- dalism, Vehicles, Falling Objects, Air- craft, Smoke, Collapse, Water Damage, Rising Water or Flood; (3) Freeze arising from weather condi- tions; f. Water or other means used to extinguish a fire, even when such an attempt is un- successful; g. Lack of power, light, heat, steam or refrigeration, except as provided in the Coverage Extensions-Business Income, Extra Expense, Off Premises Service In- terruption and Spoilage; h. Damage to property contaminated by Ammonia, except as provided in the Coverage Extension-Ammonia Contam- ination; i. Damage to property by water as a result of an "accident" to an an "object" that is part of an air conditioning system, ex- cept as provided in the Coverage Exten- sion-Water Damage; j. Loss to "media,'~ however caused, except as provided in the Coverage Extension- ''Media''; k. Any of the following tests: (1) A hydrostatic, pneumatic or gas pressure test of any boiler, fired yes- scl or electrical steam generator; or (2) An insulation breakdown test of any type of electrical or electronic "ob- ject." 3. With respect to the Coverage Extensions- Business Income, Extra Expense and Off Premises Service Interruption, we will not pay for: BOILER AND MACHINERY a. The interruption of business that would not or could not have been carried on if the "accident" had not occurred; b. Your failure to use due diligence and dis- patch and all reasonable means to resume business at the described premises; c. That part of any loss or expense that is due solely to the suspension, lapse or . cancellation of a contract following an "accident" extending beyond the time business could have resumed if the con- tract had not lapsed, been suspended or cancelled; d. Delay in rebuilding, repairing or replac- ing the property or resuming operations due to interference at the location of the rebuilding, repair or replacement by strikers or other persons; e. Delay in resuming operations due to the need to reconstruct or reinput data or programs on "media"; or f. Any continuing loss extending beyond the date the damaged property is repaired or replaced, except as provided in the Coverage Extension-Extended Business Income. 4. With respect to the Coverage Extension- Spoilage, we will not pay for loss or damage as a result of your failure to use all reasonable means to protect the perishable goods from damage following an "accident." 5. With respect to the Coverage Extension-Off P~'emises Service Interruption, we will not pay for loss caused by or resulting from: a. An "accident" caused by Lightning, Wind, Hail, Weight of Snow, Ice or Sleet, Riot, Civil Commotion, Vandalism, Vehicles, Falling Objects, Aircraft, Smoke, Col- lapse, Water Damage, Rising Water or Flood; b. Any interruption of service lasting less than 8 hours; or c. A deliberate act or acts by a supplying utility to shed Icad to maintain system integrity. C. LIMITS OF INSURANCE Any payment made under this Coverage Part will not be increased if more than (~ne insured is BM T1 50 01 93 Page 5 of 15 002371 BOILER AND MACHINERY shown in the Declarations. 1. Limit Per Accident The most we will pay for loss and expense arising from any "one accident" is the amount shown as the Limit Per Accident in the Declarations. This limit applies to all coverages under this Coverage Part, includ- ing Coverage Extensions. However, costs we incur under the Defense and Supplemental Payments coverage shall not reduce the available Limit Per Accident. 2. Coverage Extension Limits The limit of your insurance under each of the Coverage Extensions from loss or expense arising from any "one accident" is the amount shown in the Declarations for that Coverage Extension. If an amount of time is shown, coverage under that Coverage Exten- sion will continue for that amount of time im- mediately following the "accident." If two or more limits apply to the same por- tion of a loss, we will only pay the smaller limit. D. DEDUCTIBLE Unless otherwise indicated in the Declarations, these deductibles apply separately for each ap- plicable coverage. 1. Damage to Covered Property We will not pay for loss or damage resulting from any "one accident" until the amount of loss or damage exceeds the Damage to Covered Property Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Damage to Covered Property Deductible, up to the ap- plicable Limit of Insurance shown in the Dec- larations. This Deductible applies to all coverages, in- cluding Coverage Extensions, except as otherwise specified in the Deductible provi- sions for Business Income, Extra Expense, Spoilage and Off Premises Service Interrup- tion. 2. Business Income The Business Income Deductible applies to any loss of "business income," except as provided in the Coverage Extension-Off Premises Service Interruption. If a Business Income hour deductible is shown in the Declarations, we will not be li- able for any loss of "business income" occur- ring during the specified number of hours immediately following the "accident." If a Business Income dollar deductible is shown in the Declarations, we will first sub- tract that amount from the amount of "busi- ness income" we would otherwise pay arising from any "one accident." We will then pay the amount of loss or expense in excess of the Deductib[e, up to the applicable Limit of In- surance shown in the Declarations. If the Business Income dollar deductible is expressed as a number times ADV, that amount will be calculated as follows: The ADV will be the "business income" for the entire location that would have been earned had no "accident" occurred during the period of interruption of busi- ness divided by the number of working days in that period. No reduction shall be made for the "business income" not being earned, or in the number of work- ing days, because of the "accident" or any other scheduled or unscheduled shutdowns during the period of interrup- tion. The number indicated in the Declarations will be multiplied by the ADV as deter- mined above. The result will be used as a Business Income dollar deductible EXAMPLE Business is interrupted for 10 days. If there had been no "accident," the total "business income" for those 10 days would have been $5,000. The Business Income Deductible is 3 X ADV. $5,000 / 10 = $500 ADV 3 X $500 = $1,500 Business Income Deduct- ible Extra Expense If an Extra Expense dollar deductible is shown in the Declarations, we will first sub- tract that amount from the amount of loss or expense we would otherwise pay with regard to insurance under the Coverage Exten- sion- Extra Expense arising from any "one accident.'r We will then pay the amount of loss or expense in excess of the Extra Ex- pense Deductible, up to the applicable Limit Page 6 of 15 BM T1 50 01 93 of Insurance shown in the Declarations. If an Extra ExpenSe dOlla~ dedUCtible is ex- pressed as a number times ADV, that amount will be calculated as described in D.2. above. If an Extra Expense hour deductible is shown in the Declarations, we will not be liable for any loss or expense with regard to insurance under the Coverage Extension-Extra Ex- pense occurring during the specified number of hours immediately following the "acci- dent." 4. Spoilage With regard to insurance under the Coverage Extension-Spoilage, we will not pay for loss or damage resulting from any "one accident" until the amount of loss or damage exceeds the Spoilage Deductible shown in the Decla- rations. We will then pay the amount of loss or damage in excess of the Spoilage Deduct- ible, up to the applicable Limit of Insurance shown in the Declarations. 5. Off Premises Service Interruption If an Off Premises Service Interruption dollar deductible is shown in the Declarations, we will first subtract that amount from the amount of loss or expense we would other- wise pay with regard to insurance under the Coverage Extension-Off Premises Service Interruption arising from any "one accident." We will then pay the amount of loss or ex- pense in excess of the Off Premises Service Interruption Deductible, up to the applicable Limit of Insurance shown in the Declarations. If an Off Premises Service Interruption dollar deductible is expressed as a number times ADV, that amount will be calculated as described in D.2. above. If an Off Premises Service Interruption hour deductible is shown in the Declarations, we will not be liable for any loss or expense with regard to insurance under the Coverage Ex- tension-Off Premises Service Interruption occurring during the specified number of hours immediately following the "accident." Exclusion B.5.b. applies without regard to the Off Premises Service Interruption Deduct- ible. 6. Ammonia Contamination With regard to insurance unde~ the Coverage BOILER AND MACHINERY Extension-Ammonia Contamination, we will not pay for loss or damage resulting from any "one accident" until the amount of loss or damage exceeds the Ammonia Contamina- tion Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Ammonia Con- tamination Deductible, up to the applicable Limit of Insurance shown in the Declarations. If an Ammonia Contamination Deductible is expressed as a percentage of Loss, we will not be liable for the indicated percentage of the loss or damage insured under the Coverage Extension-Ammonia Contamina- tion. If the dollar amount of such percentage is less than the indicated Minimum Deduct- ible, the Minimum Deductible will be the Am- monia Contamination Deductible. E. LOSS CONDITIONS The following conditions apply in addition to the Common Policy Conditions: 1. Abandonment There can be no abandonment of any property to us. 2. Appraisal If we and you disagree on the value of the property, the amount of "business income" or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire, If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The ap- praisers will state separately the value of the property, the amount of "business income" or amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two wiii be bind- ing. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Duties In the Event of Loss or Damage You must see that the following are done in the event of loss or damage: a. Give Us prompt notice of the loss or BM T1 50 01 93 Page 7 of 15 002372 BOILER AND MACHINERY damage. Include a description of the property involved; b. As soon as possible, give us a descrip- tion of how, when and where the loss or damage occurred; c. Allow us a reasonable time and oppor- tunity to examine the property and prem- ises before repairs are undertaken or physical evidence of the "accident" is re- moved. But you must take whatever measures are necessary for protection from further damage; d. Permit us to inspect the property and records. Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis. e. If requested, permit us to question you under oath, at such times as may be reasonably required about any matter relating to this insurance or your claim including your books and records, tn such event, your answers must be signed; f. Send us a signed, sworn statement of loss containing the information we re- quest to settle the claim. You must do this within 60 days after our request; g. Cooperate with us in the investigation and settlement of the claim; h. Promptly send us any legal papers or notices received concerning the loss or damage; and i. Make no statement that will assume any obligation or admit any liability, for any loss or damage for which we may be liable, without our consent. We may examine any insured under oath, while not in the presence of any other in- sured and at such times as may be reasonably required, about any matter relat- ing 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. Reducing Your Loss With respect to Coverage Extensions-Busi- ness Income, Extra Expense, Off Premises Service Interruption and Spoilage, you must reduce your loss, if possible, by: a. Resuming business, partially or com- pletely; b. Using merchandise or other property available to you; or c. Using the property or services of others. 5. Loss Payment a. In the event of loss or damage covered by this Coverage Form, at our option, we will either: (1) Pay the value of lost or damaged property; (2) Pay the cost of repairing or replacing the lost or damaged property; (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. b. We will give notice of our intentions within 30 days after we receive the proof of loss. c. We will not pay you more than your financial interest in the Covered Proper- ty. d, We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such pay- ments will satisfy your claims against us for the owner's property. We will not pay the owners more than their financial in- terest in the Covered Property. e. We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss, if: (1) You have complied with all of the terms of this Coverage Part; and (2) We have reached agreement with you on the amount of loss or an ap- praisal award has been made and we have not denied the claim. 6. Valuation a. We will pay you the amount you spend to repair or replace Covered Property directly damaged by an 'raccident~' to an '~object." Our payment will be the smallest of: (1) The cost to repair the damaged property; Page 8 of 15 BM T1 50 01 93 (2) The cost to replace the damaged ,/'""" property; or (3) The amount you actually spend that is necessary to repair or replace the damaged property. b. If the cost of repairing or replacing a part of an "object" is greater than: (1) The cost of repairing the entire "ob- ject''; or (2) The cost of replacing the entire "ob- ject''; We will pay only the smallest amount. c. If an "object" cannot be repaired or the cost of repairing is more than the cost to replace, and the damage to the "object" equals or exceeds 100% of the actual cash value of the "object," you may choose to apply the following provision. New Generation Coverage-If you want to replace a damaged "object" with a newer generation "object" of the same capacity, we will pay up to 25% more than an "object" of like kind, quality and capacity would have cost at the time of ~ the "accident." d. Except for New Generation Coverage, · "'-- you must pay the extra cost of replacing ~ damaged property with property of a ~-~ better kind or quality or of a larger ~_... capacity. ....-- e. We will not pay you if the loss or damage o~ is to property that is obsolete or useless o~ to you. °~ f. If you do not repair or replace the dam- ®~ aged property within 18 months after the ~ date of the "accident," then we will pay o~ only the smaller of the: o~ (1) Cost it would have taken to repair; or °~ (2) Actual cash value; ~ at the time of the "accident." o--..... 7. Spoilage CoVerage Valuation o5 With regard to insurance under the Coverage ~ Extension-Spoilage, We will pay for perish- , ,~ able goods on the basis of: · ~ a. The selling price at the time of the '~acci- dent" as if no loss or damage had oc- ~ curred; and ~' b. Less any discounts and expenses you BOILER AND MACHINERY otherwise would have had. 8. "Media" Valuation With regard to insurance under the Coverage Extension-"Media," we will pay for "media" on the following basis: a. For "media" that are mass-produced and commercially available, at the replace- ment cost. b. For all other"media," at the cost of: (1) Blank material for reproducing the records; and (2) Labor to transcribe or copy the records when there is a duplicate. 9. Business Income Report of Values You must report to us each year the "busi- ness income annual value" for all locations to which the Coverage Extension-Business in- come applies. 10, Business Income Coinsurance We will not pay the full amount of any "busi- ness income" loss if the "business income actual annual value" is greater than the "busi- ness income estimated annual value" shown in your latest report, instead,' We Will deter- mine the most we will pay using the following steps: a. Divide the "business income estimated annual value" last reported to us by the "business income actual annual value" at the time of the "accident"; b. Multiply the total amount of the covered loss of "business income" by the figure determined in paragraph a. above; c; Subtract the applicable Deductible from the amount determined in paragraph b. above; The resUlting amount, or the the Business Income Limit, whichever is less, is the most we will pay. We will not pay for the remainder of the loss. This provision apPlies separately to each in- sured location, EXAMPLE 1 (Underinsurance) When: The "business income actual annual value" at the location of loss at the time of the "acci- dent'' is $400,000. BM T1 50 01 93 Page 9 of 15 002373 BOILER AND MACHINERY The "business income estimated annual value" in your latest report for the location of loss is $200,000. The actual loss of "business income" result- ing from the "accident'~ is $80,000. The Business Income Limit is $1,000,000. The Business Income Deductible is $5,000. Step 1:$200,000 / $400,000 = .5 Step 2:$80,000 x .5 = $40,000 Step 3:$40,000 - $5,000 = $35,000 The total "business income" loss recovery, after deductible, would be $35,000. For the remainder, you will either have to rely on other insurance or absorb the loss yourself. EXAMPLE 2 (Adequate insurance) When: The "business income actual annual value" at the location of loss at the time of the "acci- dent'' is $400,000. The "business income estimated annual value" in your latest report for the location of loss is $400,000. The actual loss of "business income'r result- ing from the ~'accident" is $80,000. The Business Income Limit is $1,000,000. The Business Income Deductible is $5,000. Step 1:$400,000 / $400,000 = 1 Step 2:$80,000 x 1 = $80,000 Step 3:$80,000 - $5,000 = $75,000 The total "business income" loss recovery, after deductible, would be $75,000, 11. Conditional Suspension of Coinsurance The Business Income Coinsurance provision is suspended if we have received from you a Business Income Report of Values as follows: a. The report must provide a "business in- come estimated annual value" for the location or locations affected by the "ac- cident"; and b. The "business income estimated annual value" must apply to an annual period ending no later than 90 days before the date of the "accident." 12. Joint Loss a. In the event of loss or damage insured under this Coverage Part and also under a Commercial Property Policy(les) or Coverage Part(s) that is not part of this Policy, and there is a disagreement be- tween the insurers with respect to: (1) Whether such damage or destruction was caused by an "accident" insured against bythis Coverage Part or by a peril insured against by such Com- mercial Property Policy(les) or Coverage Part(s); or (2) The extent of participation of this Coverage Part and of such Commer- cial Property Policy(les) or Coverage Part(s) in a loss which is insured against, partially or wholly, by any or all of said Policies or Coverage Parts. shall, upon written request from you, pay to you one-half of the amount of the loss which is in disagreement, but in no event more than we would have paid if there had been no Commercial Property Policy(les) or Coverage Part(s) in effect, subject to the following conditions: (1) The amount of the loss which is in disagreement, after making provi- sions for any undisputed claims pay- able under the Policies or Coverage Parts and after the amount of the loss is agreed upon by you, us, and the provider of Commercial Property insurance, is limited to the minimum amount remaining payable under either this Coverage Part or the Com- mercial Property Policy(les) or Coverage Part(s); (2) The Commercial Property insurer(s) shall simultaneously pay to you one- half of the amount which is in dis- agreement; (3) The payments by us and the Com- mercial Property insurer(s) here- under and acceptance of those sums by you signify the agreement of us and the agreement of us and the commercial property with arbitration within 90 days of such payment; The arbitrators shall be three in num- ber, one of whom shall be appointed by us and one of whom shall be ap- pointed by the commercial property insurer(s) and the third appointed by consent of the other two, and the decision by the arbitrators shall be b. We Page 10 of 15 BM T1 50 01 93 BOILER AND MACHINERY binding on us and the Commercial Property insurer(s) and that judg- ment upon such award may be entered in any court of competent jurisdiction; (4) You agree to cooperate in connec- tion with sUch arbitration but not to intervene therein; (5) The provisions of this condition shall not apply unless such other Pol- icy(les) or Coverage Part(s) issued by the Commercial Property in- surer(s) is similarly endorsed; and (6) Acceptance by you of any payment pursuant to the provisions of this condition, including any arbitration award, shall not operate to alter, waive or surrender or in any way af- fect the rights you have against us or the commercial property insurer(s). F. ADDITIONAL CONDITIONS The following conditions apply in addition to the Common Policy Conditions: 1. Cancellation ~'~' As respects this Coverage Part, part 2 of the "Cancellation" Condition of this Policy is re- ~'-"- placed by the following: · ~ We may cancel this Coverage Part by mail- ~ lng or delivering to the first Named Insured ~ written notice of cancellation at least: ~'~ a. 10 days before the effective date of can- o~ celiation if we cancel for nonpayment of o~ premium; or °~__ b. The number of days indicated in the ~ Declarations for Notice of Cancellation ~ before the effective date of cancellation o~ for any other reason. °~ 2. Concealment, Misrepresentation or Fraud ~'---- This Coverage Part is void in any case of ~ fraud by you relating to it. It is also void if ~ you or any other Named Insured at any time o~--- intentionally conceal or misrepresent a o~ material fact concerning: '~ (1) This Coverage Part; %--- (2) The Covered Property; (3) Your interest in the Covered Property; or t,~-~, (4) A claim under this Coverage Part. 3. Legal Action Against Us No one may bring a legal action against us under this Policy unless: a. There has been full compliance with all the terms of this Policy; and b. The action is brought within two years and one day next after the date of the "accident"; or c. We agree in writing that you have an obligation to pay for damag~ to Covered Property of others or until the amount of that obligation has been determined by final judgment or arbitration award. No one has the right under this Policy to bring us into an action to determine your liability. 4. Adjustment of Premium a, The premium charged at the inception of each policy year is an advance premium. We will determine an adjusted premium for this insurance based on your reports of value. b~ If the adjusted premium is less than the advance premium, we will return the ex- cass premium to you. Such excess premium will not exceed 75% of the ad- vance premium. c. If the adjusted premium is greater than the advance premium, we will charge the additional premium. 5. Liberalization If we adopt any revision that would broaden the coverage under this Coverage Part without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply tO this Coverage Part. 6. Other Insurance (a) You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Part. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the ap- plicable limits under this Coverage Part bear to the Limits of Insurance of all in- surance covering on the same basis. (b) If there is other insurance covering the same loss or damage, other than that BM T1 50 01 93 Page 11 of 15 002374 BOILER AND MACHINERY described in (a) above, we will pay only the amount of covered loss or damaged in excess of the amount due from that other insurance, whether you can collect on it or not. In no case will we pay more than the ap- plicable limits. 7. Policy Period, Coverage Territory Under this Coverage Part: a. The"accident" must occur: (1) During the Policy Period shown in the Declarations; and (2) Within the Coverage Territory. b. The Coverage Territory is: (1) The United States of America (includ- ing its territories and possessions); (2) Puerto Rico; and (3) Canada. 8. Transfer of Rights of Recovery Against Others to Us If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the ex- tent of our payment. That person or organi- zation 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 bythis insurance; (2) A business firm: (a) Owned or controlled by you; or (b) That owns or controls you; or (3) Your tenant. This will not restrict your insurance. 9. Additional Insured If a person or organization is designated in this Coverage Part as an additional insured, we will consider them to be an insured under this Coverage Part only to the extent of their interest: 10. 11. 12. Bankruptcy The bankruptcy or insolvency of you or your estate will not relieve us of any obligation under this Coverage Part. Suspension Whenever an "object" is found to be in, or exposed to, a dangerous condition, any of our representatives may immediately sus- pend the insurance against loss from an "ac- cident' to that "object.'r This can be done by delivering or mailing a written notice of suspension to: a. Your last known address; or b. The address where the "object" is lo- cated. Once suspended in this way, your insurance can be reinstated only by an endorsement for that "object." Mortgage Holders a. The term mortgage holder includes trus- tee. b. We will pay for direct damage to Covered Property due to an "accident" to an "ob- ject'' to each mortgage holder shown in the Declarations in their order of prece- dence, as interests may appear. c. The mortgage holder has the right to re- ceive loss payment even if the mortgage holder has started foreclosure or similar action on the Covered Property. d. If we deny your claim because of your acts or because you have failed to comp- iy with the terms of this Coverage Part, the mortgage holder will still have the right to receive loss payment if the mortgage holder: (1) Pays any premium due under this Coverage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership or occupancy or substan- tial change in risk known to the mortgage hotder. All of the terms of this Coverage Part will Page 12 of 15 BM T1 5001 93 then apply directly to the mortgage holder. e. If we pay the mortgage holder for any loss and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The mortgage holder's right under the mortgage will be transferred to us to the extent of the amount we pay; and (2) The mortgage holder's right to recover the full amount of the mort- gage holder's claim will not be im- paired. At our option, we may pay to the mort- gage holder 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 writ- ten notice to the mortgage holder 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 o~______ will give written notice to the mortgage o~. holder at least 10 days before the expira- tion date of this policy. ~ G. DEFINITIONS ~ 1. "Accident" means a sudden and accidental o~ breakdown of the "object" or part of the '~ob- ~ ject." At the time the breakdown occurs, it ~ must become apparent by physical damage that requires repair or replacement of the ~~ "object" or part of the "object." o~------. None of the following is an "accident": o~-----' a. Depletion, deterioration, corrosion, ero- ~ sion, or wear and tear, unless a sudden ~ and accidental breakdown ensues; · ~ b. The breakdown of any structure or foun- dation; or c. The functioning of any Safety or protec- tive device. BOILER AND MACHINERY 2. "Business Income" means the sum of: a;! The Net Income (net profit or loss before income taxes) that would have been earned or incurred; and b. Continuing normal operating expenses incurred, including payroll. 3. "Business Income Actual Annual Value" means the "business income" for the current fiscal year that would have been earned had no "accident" occurred. In calculating the "business income actual annual value," we will take into account the actual experience of your business before the "accident" and the probable experience you would have had without the "accident." 4. "Business Income Estimated Annual Value" means the "business income" as es- timated by you in the most recent Business Income Report of Values we have on file. 5. "Extra Expense" means: The additional cost you incur to operate your business during the interruption over and above the cost that normally would have been incurred to operate the business during the same period had no "accident'' occurred. 6. "Media" means all forms of electronic and magnetic tapes and discs, converted data, program or instruction for use in any elec- tronic computer or electronic data process- ing equipment. 7. "Object" means: a. Any of the following, unless otherwise ex- cluded: (1) Boiler, fired vessel, unfired vessel normally subject to vacuum or inter- nal pressure other than weight of its contents, refrigerating and air con- ditioning vessels, and any metal piping and its accessory equipment; (2) Mechanical or electrical machine or apparatus used for the generation, transmission or utilization of mech- anical or electrical power. (3) Any of the following vessels listed below are included within the pro- visions of this section when used with an "object": (a) Condensate return tank; BM T1 50 01 93 Page 13 of 15 BOILER AND MACHINERY (b) Cushion or expansion tank used with a hot water heating boiler, (4) Fiber optic cable. b. "Object" does not mean any: (1) Part of a boiler, fired vessel or elec- tric steam generator that does not contain steam or water; (2) Insulating or refractory material; (3) Non-metallic vessel, unless it is con- structed and used in accordance with the American Society of Mech- anical Engineers Code; (A.S,M.E.) (4) Catalyst; (5) Buried vessel or piping; (6) Sewer piping, piping forming a part of a fire protection system or water piping other than: (a) Feed water piping between any boiler and its feed pump or injec- tor; or (b) Boiler condensate return piping; or (c) Water piping forming a part of refrigerating and air conditioning vessels and piping used for cool- ing, humidifying or space heating purposes; (7) Part of a vessel that is not under; (a) Pressure of the contents of the vessel; or (b) Internal vacuum; (8) Oven, stove, furnace, incinerator, pot or kiln; (9) Structure, foundation, cabinet or compartment containing the object; (10) Power shovel, dragline, excavator, vehicle, aircraft, floating vessel or structure, penstock, draft tube or well-casing; (11) Conveyor, crane, elevator, escalator or hoist, but not excluding any electrical machine or electrical ap- paratus mounted on or used with this equipment; (12) "Media" used with any electronic computer or electronic data process- ing equipment; (13) Machine or apparatus that is used for research, medical, diagnostic, surgical, dental or pathological pur- poses; (14) Felt, wire, screen, die, extrusion plate, swing hammer, grinding disc, cutting blade, cable, chain, belt, rope, clutch plate, brake pad, non- metallic part or any part or tool sub- ject to frequent, periodic replace- ment; (15) "Object" manufactured by you for sale. c. For any boiler or fired vessel, the furnace of the "object" and the gas passages from there to the atmosphere will be considered as outside the "object." d. When a vesset uses a heat transfer medium other than water or steam, we will consider the medium or its vapor as substitutes for the words-water or steam. e. For any gas turbine, "accident" does not include the cracking of any part of the object exposed to the products of com- bustion. f. If Production Machines are shown as Ex- cluded in the Declarations, "object" does not mean any production or process machine or apparatus that processes, forms, cuts, shapes, grinds, or conveys raw materials, materials in process or finished products. But '~object" does mean any: (1) Pressure vessel or vacuum vessel, described in Paragraph a. above, other than any cylinder containing a movable plunger or piston; (2) Pump, compressor, fan, or blower that conveys raw materials, materials in process or finished products; (3) Separate enclosed gear set con- nected by a coupling, clutch or belt; or (4) Separate driving electrical or mech- anical machine connected by a cou- pling clutch or belt. "One Accident" means: If an initial "accident" causes other "acci- dents,r' all will be considered "one accident." Page 14 of 15 BM T1 50 01 93 All "accidents" at any one location that manifest themselves at the same time and are the result of the same cause will be con- sidered "one accident." "Suit" means a civil proceeding to which this insurance applies and includes: a. An arbitration proceeding in which dam- BOILER AND MACHINERY ages are claimed and to which you must submit or do submit with our consent; or Any other alternative dispute resolution proceeding in which damages are claimed and to which you submit with our consent. BM T1 50 01 93 Page 15 of 15 002376 POLICY NUMBER: BAd-BMG-791X2292-TI L-02 BOILER AND MACHINERY GENERAL PURPOSE ENDORSEMENT PROPERTY DAMAGE AND BUSINESS INTERRUPTION DEDUCTIBLES IT IS AGREED THE DEDUCTIBLES FOR THE POLICY WILL BE AS FOLLOWS: PROPERTY DAMAGE: $2,500 ALL COVERED OBdECTS EXCEPT: $25,000 APPLIES TO SEWAGE/WATER TREATMENT PLANTS WITH VALUES OF $500,000 AND OVER SEE BM TS 72 FOR AIR CONDITIONING AND REFRIGERATION DEDUCTIBLES BUSINESS INTERRUPTION: 48 HOURS ALL COVERED DBdECTS EXCEPT: 72 HOURS APPLIES TO SEWAGE/WATER TREATMENT PLANTS WITH VALUES OF $500,000 AND OVER IF MORE THAN ONE "OBdECT" IS INVOLVED IN "ONE ACCIDENT", THEN ONLY ONE DEDUCTIBLE, THE HIGHEST, SHALL APPLY FOR EACH OF THE APPLICABLE COVERAGES. BM T8 O0 Page 1 POLICY NUMBER: BAd-BMG-791X2292-TIL-02 BOILER AND MACHINERY GENERAL PURPOSE ENDORSEMENT POWER GENERATING EQUIPMENT EXCLUSION IT IS AGREED THAT THE FOLLOWING IS ADDED TO PARAGRAPH G. DEFINITIONS 7,b "OBdECT" DOES NOT MEAN: (16) ANY PRESSURE, MECHANICAL OR ELECTRIC EQUIPMENT, MACHINERY OR APPARATUS USED IN, OR ASSOCIATED WITH, THE GENERATION OF ELECTRIC POWER; BUT NOT EXCLUDING EMERGENCY POWER GENERATION EQUIPMENT LESS THAN OR EQUAL TO 1000 KW. BM T8 01 Page I 002377 BOILER AND MACHINERY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. RBC Exclusion The definition of "object~ is amended to exclude any Rotating Biological Contactor (RBC), including any shaft, cylinder, disk or support forming a part of an RBC. However, "object" will include any motor or gear set used to drive an RBC. BM T3 27 08 95 Page 1 of 1 BOILER AND MACHINERY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CLAIM REPORTING This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE FORM To report a Boiler and Machinery loss, contact your agent directly or phone our Home Office Claim Department at 800-835-1291 during business hours EST, or 800-243-3840 after hours. BM T3 52 08 96 Page 1 of 1 002378 BOILER AND MACHINERY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY PERILS ELIMINATION ENDORSEMENT (Lightning, Extended Coverage Property Perils, Freeze and FloOd) This endorsement modifies insurance provided under the following BOILER AND MACHINERY COVERAGE PART We will not pay under any coverage provided by this policy for loss caused by or resulting from an "acd- dent" that is the direct or indirect result of: a. Lightning; b. Windstorm or Hail (not including rain, snow, sand or dust within a building or structure, unless the building or structure first sustains wind or hail damage to its roof or walls through which the rain, snow, sand or dust enters); c. Smoke (not including smoke from agricultural smudging or industrial operations); d. Aircraft or Vehicles, meaning physical contact of an aircraft, a spacecraft, a self-propelled missile, a vehicle or an object thrown up by a vehicle or objects falling from aircraft or spacecraft; e. Riot or Civil Commotion, including: (1) Acts of striking employees; and (2) Looting occurring at the time and place of a riot or civil commotion; f. Vandalism, meaning willful and malicious dam- age to, or destruction of, the described property; g. Sprinkler Leakage, meaning leakage or dis- charge of any substance from an Automatic Sprinkler System, including collapse of a tank that is part of the system. Automatic Sprinkler System Means: ('1) Any automatic fire protective or extinguishing system, including connected: jo (a) Sprinklers and discharge nozzles; (b) Ducts, pipes, valves and fittings; (c) Tanks, their component parts and sup- ports; and (d) Pumps and private fire protection mains. (2) When supplied from an automatic fire protec- tive system: (a) Non-automatic fire protective systems; and (b) Hydrants, standpipes and outlets. Collapse of a building or any part of a building; Falling Objects (not including objects that fall within a building or structure unless the roof or an outside wall of the building or structure is first damaged by the falling object); Discharge of Molten Material; Weight of Snow, Ice or Sleet; Freeze arising out of weather conditions; Flood, meaning: (1) Surface water, underground water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not: (2) Mudslide or mudflow; (3) Release of water impounded by a dam; or (4) Water which backs up through sewers, drains or sumps. BM T3 80 02 00 Page 1 of 1 POLICY NUMBER:BAd-BMG-791 x2292-T'r L-02 BOILER AND MACHINERY ISSUE DATE:06-14-02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PROPERTY NOT COVERED The following property is not insured by this policy. If the stated property is an "object," damage to other property resulting from an "accident" to that "object" is also excluded. Property Description ALL GEAR SETS AND ELECTRIC MOTORS. 002379 BM T8 40 0491 Page 1 of 1 BOILER AND MACHINERY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIAL LOCATION SCHEDULE This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE FORM The following is being used on this policy instead of a specific schedule of "locations" attached to the policy. All "locations" owned, operated or under the care, custody or control of the Named Insured, that are located in the United States of America (including its territories and possessions), Puerto Rico and Canada and are on file with us, are considered as individually inserted in any "location" entry area of any Declarations or Endorsement, unless specifically changed by endorsement. At each anniversary of the policy: 1. You must submit an updated list of all "locations'~ to be covered under the policy for the upcoming policy year; and 2. The "Automatic Coverage~' extension ceases to apply at any "location'~ acquired prior to that an- niversary date and not on the most current list filed with us. BM T8 69 08 96 Page 1 of 1 INTERLINE ENDORSEMENTS INTERLINE ENDORSEMENTS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INDIANA CHANGES - CONCEALMENT, MISREPRESENTATION OR FRAUD This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART The CONCEALMENT, MISREPRESENTATION OR FRAUD condition is replaced by the following: We will not pay for any loss or damage in any case of: 1. Concealment or misrepresentation of a material fact or 2. Fraud committed by an insured at any time and relating to a claim under this policy. Page 1 of 1 IL 01 56 07 89 Copyright, Insurance Services Office, Inc., 1989 00238~ Copyright, ISO Commercial Risk Services, Inc., 1989 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INDIANA CHANGES - RIGHTS OF RECOVERY This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition is replaced by the following: TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US If any person or organization to or for whom we make payment under this Coverage Part has rights to cover damages from another, those rights are trans- fen'ed to us to the extent of our payment. Our right to recover damages from another may be enforced even if the person or organization to or for whom we make payment has not been fully compensated for dam- ages. The person or organization to or for whom we make payment must do everything necessary to secure our rights and must do nothing after loss to impair them. IL 01 86 07 96 Copyright, Insurance Services Office, Inc~, 1996 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INDIANA CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL CRIME COVERAGE PART* COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART * This endorsement does not apply to coverage provided for employee dishonesty (Coverage Form A), forgery or alteration (Coverage Form B), or public employee dishonesty (Coverage Forms O and P). A. Paragraph 2. of the CANCELLATION Common Policy Condition is replaced by the following: 2. a. Cancellation of Policies in Effect for 90 ¢/'-'" Days or Less If this policy has been in effect for 90 days ~ or less, we may cancel this policy by mail- ~,~ lng or delivering to the first Named In- ~ sured written notice of cancellation at ~ least: ~ (1) 10 days before the effective date of ~ cancellation if we cancel for nonpay- ment of premium; o~ (2) 20 days before the effective date of -- cancellation if you have perpetrated a ~----- fraud or material misrepresentation o~ (3) 30 days before the effective date of cancellation if we cancel for any other ~,- reason. ~ b. Cancellation of Policies in Effect for More Than 90 Days If this policy has been in effect for more than 90 days, or is a renewal of a policy '---- we issued, we may cancel this policy, only "'__. for one or more of the reasons listed be- *~ Iow, by mailing or delivering to the first Named Insured wdtten notice of cancella- tion at least: (f) 10 days before the effective date of cancellation if we cancel for nonpay- merit of premium; (2) 20 days before the effective date of cancellation if you have perpetrated a fraud or material misrepresentation on us; or {3) 45 days before the effective date of cancellation if: (a) There has been a substantial change in the scale of dsk cov- ered by this policy; or {b) Reinsurance of the dsk associ- ated with this policy has been cancelled. B. The following is added to the Common Policy Conditions and supersedes any prevision to the contrary. NONRENEWAL 1. If we elect not to renew this policy, we will mail or deliver to the first Named Insured writ- ten notice of nonrenewal at least 45 days be- fore: a. The expiration date of this policy, if the policy is wdtten for a term of one year or less; or Page 1 of 2 IL 02 72 04 98 Copyright, Insurance Services Office, Inc., 1997 The anniversary date of this policy, if the policy is wdtten for a term of more than one year. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. If notice is mailed, proof of mailing will be sufficient proof of notice. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 02 72 04 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES DUE TO DATES OR TIMES This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART DELUXE PROPERTY COVERAGE PART We will not pay for loss ("loss") or damage caused directly or indirectly by any of the follow- ing. Such loss ("loss") or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss ("loss") or damage. 1. The failure, malfunction or inadequacy of: a. Any of the following, whether belonging to any insured or to others: (1) Computer hardware, including mi- croprooessors; (2) Computer application software; (3) Computer operating systems and related software; (4) Computer networks; (5) Microprocessors (computer chips) not part of any computer system; or (6} Any other computerized or elec- tronic equipment or components; or b. Any other products, and any services, data or functions that directly or indi- rectly use or rely upon, in any manner, any of the items listed in Paragraph A.l.a. of this endorsement; due to the inability to correctly recognize, process, distinguish, interpret or accept one or more dates or times. An example is the inability of computer software to recognize the year 2000. 2. Any advice, consultation, design, evalua- lion, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for. any potential or actual problems described in Paragraph A.I. of this endorsement. B. If an excluded Cause of Loss as described in Paragraph A. of this endorsement results: 1. In a Covered Cause of Loss under the Boiler and Machinery Coverage Part, the Commercial Crime Coverage Part or the Commercial Inland Marine Coverage Part; or 2. Under the Commercial Property Coverage Part: a. In a "Specified Cause of Loss", in eleva- tor collision resulting from mechanical breakdown, or from theft (if insured) un- der the Causes of Loss - Special Form; or b. in a Covered Cause of Loss under the Causes of Loss - Basic Form or the Causes of Loss - Broad Form; or 3. In a "Specified Cause of Loss", in e~evator collision resulting from mechanical break- down, or from theft under the Deluxe Prop- erty Coverage Part; we will pay only for the loss ("loss") or damage caused by such "Specified Cause of Loss", ele- valor collision, theft, or a Covered Cause of Loss. C. We will not pay for repair, replacement or modification of any items in Paragraphs A.l.a. and A.l.b. of this endomement to correct any deficiencies or change any features. IL T3 55 08 98 Incl ~des Material Copyrighted by Insurance Services Office Page 1 of 1 002383 Specialty National Insurance Company A ~'PlIIP~R. COMPANY ENDORSEMENT NO. I ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. 3XZ12057001 08 06 2002 X CITY OF JEFFERSONVILLE 430034 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. In consideration for the premium charged it is hereby understood and agreed the following change (s) are made to the INLAND MARINE section (s) of this policy. AMEND: Aquatic Center and State Park value to $130,000 in Lieu of $100,000. NO PREMIUM ADJUSTMENT DUE: ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE Agent: Clark General Insurance 9~03~02 sp ZC 25166 (8/99) Specialty National Insurance Company A ~.~EPER, COMPANY ENDORSEMENT NO. 4 A~rTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO, DAY YR. 12:01 NOON A.M. ; 3XZ12057001 08 06 2002 X CITY OF JEFFERSONVILLE 430034 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. In consideration for the premium charged it is hereby understood.and agreed the following change (s) are made to the ADDITIONAL INSURED/LOSS PAYEE section (s) of this policy. ADD: ADDITIONAL INSURED/LOSS PAYEE AS THEIR INTEREST MA~Y APPEAR IN COMPUTER HARDWARE FOR CITY OF JEFFERSONVILLE. Fifth Third Bank Indiana ~ 251 N Illinois St., Suite 1000 Mail Drop 8490A2 ~ Indpls, IN 46204 ADDITIONAL INSURED/LOSS PAYEE AS THEIR INTEREST MAY APPEAR IN A COMPUTER NET SYSTEM. Indiana Bond Bank :...,~,,. ,.: ....... 10W market St. Suite 2980 Indpls, IN 46204 ADDITIONAL INSURED/LOSS PAYEE AS THEIR INTEREST MAY APPEAR IN TWO 1997 PIERCE FIRE TRUCKS. Maxus Leasing Group 31300 Bainbridge Rd. Cleveland. OH 44139 ADDITIONAL INSURED AS THEIR INTEREST MAY APPEAR IN BUILDING OWNER LOCATION #12. U.S. Army & INAAP Reuse Authori~ 6200 Highway 62. Suite 650 Jeffersonville. IN 47130 NO PREMIUM ADJUSTMENT DUE: ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHA,NGED AUTHORIZED REPRESENTATIVE f-~, Agent: Clark General Insurance ,' · 9/06/02 sp ZC 25166 (8~99)'' : ': ~'''::~"" ' DAT/E