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HomeMy WebLinkAboutE.D.P.ELECTRONIC DATA PROCESSING SYSTEMS - DECLARATIONS Policy No. 3XZ12057001 ~'Replacement No. 3XZ12057000 NAMED INSURED AND ADDRESS: CITY OF JEFFERSONVILLE 501 EAST COURT AVE. JEFFERSONVILLE IN 47130 PREMIUM The Premium for Electronic Data Processing Systems Coverage is $ Electronic Data Processing Systems Coverage Included No coverage is afforded for any Section unless specific Limits of Insurance are provided for that Section. SECTION I - Equipment Coverage - Form No. MA 10261b (as per schedule attached to this policy) On your property in the amount of: 1. $ 79,750 located at Per Schedule On File With Company 2. $ located at On property lease(I, rented or under your control in the amount or: : 1. $ Included located at ~ 2. $ located at Valuation 1. [] Actual Cash Value with % coinsurance. 2. [] Replacement cost with 10~o coinsurance. ~EDUCTIBLE The Deductible amount for Section I is $ See Section V SECTION II - Data, Media, Computer Programs- Form No'. MA 17746a On your property consisting of "Data", "Media" and "Computer ProgrAms" located at: LOCATION DATA MEDIA UNUSED MEDIA TOTAL 1. Per Schedule On File With Company Included Included Included While in transit and temporarily at other Premises--~'$~ : Articles which cannot be replaced must be insured for a specitic amount. $10,000 Specific Coverage on "Data", "Media", "Computer Programs" LOCATION SPECIFIC iTEMS NO. OF ITEMS i VALUE OF ITEMS 2. 3. 4. 5. D. "Data" or"Media" not to be insured: ~/~- DEDUCTIBLE ~Fhe Deductible amount for Section II is $ See Section V MA 10260a Page I of 2 TOTAL 8-97 SECTION III - Extra Expense - Form No. MA 17747a The limit of Insurance for "Extra Expense" is $ 10,000 The Measure of Recovery is: We will pay up to the following percentage(s) of the "Extra Expense" Limit of Insurance above for each month for "Extra Expense". ~ 1st month 100 % 2nd month % 3rd month % 4th month % ! -- DEDUCTIBLE The Deductible amount for Section Ill is $ See Section V. SECTION IV - Loss of Business Income - Form No. MA 10262b A. The Limit of Insurance for Business Income is $ 0 B. The Coinsurance Percentage is %. DEDUCTIBLE The Waiting Period is See Section V hours. SECTION V - Extensions of Coverage - Form No. MA 10263a If an "X" is placed in any box preceeding any of the following clauses, the Coverage is extended to provide coverage as provided in SECTION V - Extensions of Coverage. [] A. Combined Deductible The individual deductibles in each Section that are marked with an "X" in a box below are superseded: [] 1. Section I - Systems Equipment [] 2. Section II - Med a, Dat , "Computer Programs" ~ [] 3. Section III - Extra Expense" [] 4. Section IV - "Business Income" : and the following is substituted: The Deductible amount is $ 1,000 for any one loss. This Deductible amount does not apply to ti~e other coverages, provided by this combination endorsement. DC. Breakdown Coverage Premium - The Premium for Breakdown insurance $ Included Deductible - The Deductible amount for Breakdown coverage is $ Limit of Insurance - The Limit of Insurance for this coverage is $ Earthquake Premium - The Premium for Earthquake coverage is $ Deductible - The Deductible amount for Earthquake is $ , Limit of Insurance - The Limit of Insurance for Earthquake "loss" The most we will pay for Earthquake "loss" in any one year is See Section V 79,750 Flood Premium - The Premium for Flood coverage is $ Deductible - The Deductible amount for Flood is $ Limit of Insurance - The Limit of Insurance for Flood "loss," ~s $ The most we will pay for Flood "loss" in any one year is $ FORMS ATTACHED TO THIS COVERAGE AT THE TIME OF ISSUE: MA 10260a Page 2 of 2 8-97 INLAND MARINE ELECTRONIC DATA PROCESSING SYSTEMS SECTION I - EQUIPMENT 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", "your", and "yours" refer to tl~e Named Insured shown in the Declarations. The words "we", "us", "our", and "ours" refer to the company providin~ this insurance. Other words and phrases that appear in quotation marks have a special meaning. Refer to paragraph K. DEFINITIONS. SECTION I - EQUIPMENT A. COVERAGE We will pay for "loss" to Covered Property from any of the Covered Causes of "Loss". 1. COVERED PROPERTY, as used in Section I, means: "Data processing equipment", including component parts of that equipment, which are: a. owned by you; b. leased or rented to you; or c. under your control; all as shown in the schedule attached to this policy. 2.PROPERTY NOT COVERED Covered Property does not include: a. "data", "media" or"computer programs"; b. property you lease or rent to others while it is away from your premises; c. property while it is waterborne, unless on transporting vehicles aboard a regular ferry operating on inland waterways; or d. accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts, or other documents. 3. COVERED CAUSES OF LOSS Covered causes of "loss" means Risks of Direct Physical "loss" to Covered Property except those causes of "loss" listed in the exclusions. EXTENSIONS OF COVERAGE These extensions of coverage shall not increase the Limits of Insurance. The Coinsurance clause applies to these extensions unless otherwise specifically stated. a. Removal If the Covered Property becomes in imminent danger of "loss" at a covered location we will pay for "loss" while the property covered is: (I) being removed; (2) while at a place of safety; and (3) while being returned from the places of safety; provided you give us written notice of removal and return within ten (10) days of removal. 6. Debris Removal (1) we will pay for the cost of removal of debris of the Covered Property if caused by a Covered Cause of "Loss"; but (2) we will not pay more than your actual cost of debris removal, or 10% of the applicable Limit of Insurance, or $100,000, whichever is least; (3) in no event will we pay any cost resulting from enforcement of any law or ordinance. MA 10261b (11/99) Page 1 of 5 Additionally Acquired Property You agree: (1) To report in writing: additional property of the kind insured by this policy, acquired after the effective date of this policy; within thirty (30) days from the date acquired; and (2) to pay full premium for that property from the date acquired at pro rata of the policy rate for such property. We agree: (1) to cover such additional property when acquired, pending notice to us: (a) for no more than the actual cash value of the acquired property; or (b) for no more than 25% of the highest limit of insurance at any location shown in the Declarations, or $250,000, whichever is least; (2) to cease to cover this property if it is not reported to us in writing within the thirty (30) day period. This coverage applies only to a class of property covered by this policy at the time of acquisition. The coinsurance clause in this policy does not apply to this extension of coverage. New Location Coverage You agree: to report in writing property covered by this policy, which is transferred to a new location, within thirty (30) days from the date transferred. The new location must have been acquired by you after the effective date of this coverage. We agree: (1) to cover this property, pending written notice to us: (a) beginning with the date the property is physically transferred to your new location; and (b) until such location is scheduled on this coverage; (c) for no more than 25% of the highest Limit of Insurance at any location shown in the declarations, or $250,000, whichever is least; (2) to cease to cover this property if the new location is not reported to us in writing within the thirty (30) day period. This coverage applies only to property covered by this policy at time of transfer. Transfer Between Locations Coverage You agree: to report in writing property covered by this policy, which is transferred between existing Iocafions specified in this policy, within thirty (30) days from the date of transfer. We agree: (1) to cover this property, pending notice to us, for no more than 25% of the highest Limit of Insurance at any location shown in the declarations, or $250,000, whichever is least; (2) to cease to cover this property if the changes in location are not reported to us in writing within the thirty (30) day period. Fire Protection Devices We will pay the cost to recharge or refill: (1) any fire protection device which is designed specifically to protect Data Processing equipment; and (2) other fire protection devices in the same room where covered Data Processing equipment is located; when these devices have been discharged as a result of a fire or explosion. This coverage shall apply in addition to the coverage otherwise provided by this policy. We shall not pay more than $25,000 for the expenses to refill or recharge fire protection devices. MA 10261 b (11/99) Page 2 of 5 The coinsurance clause in this policy does not apply to this extension of coverage. We will not cover any property after the end of the policy term, or after cancellation or termination of this coverage. EXCLUSIONS 1. We will not pay for a "loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss": a. GOVERNMENTAL ACTION Seizure or destruction of property by order of governmental authority. We will pay for acts of destruction ordered by the governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this coverage form. b. NUCLEAR HAZARD (1) Any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioactive contamination from any other cause. We will pay for direct "loss" caused by resulting fire if the fire would be covered under this coverage form. c. WAR AND MILITARY ACTION (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action taken 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. d. EARTH MOVEMENT Earthquake, volcanic eruption or effusion, earth sinking, earth rising or shifting, landslide or other earth movement. 'C. 3. We '.or We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. e. "FLOOD" We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. ,VVe will not pay for "loss" or damage caused by or resulting from any of the following: If another "loss" that we cover results we will pay for that resulting "loss". a. Acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body, and including enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s); b. Faulty, inadequate or defective: (1) planning, zoning, development; surveying or siting; (2) design, specification, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) materials used in repair, construction, renovation or remodeling; or (4) maintenance. Collapse of all or part of any building or structure. will not pay for a "loss" caused directly indirectly by any of the following: collapse, subsidence, settling, cracking, shrinkage or expansion of walls, pavement, foundations, floors, roofs or ceilings; b. wear and tear, mold, rot; .c. hidden or latent defect, or any quality in property that causes it to damage or destroy itself; ,d. insects, vermin, rodents; e. dryness or dampness of atmosphere, extremes of temperature, corrosion or rust, unless resulting from physical damage to the data processing system's air conditioning facilities by a cause of "loss" not excluded by this policy; MA 10261b (11/99) Page 3 of 5 i. employees; delay, loss of market, loss of use, interruption of business, consequential loss of any nature; any change in electric power supply (such as interruption, brown out, or power surge) if the change originates more than 100 feet away from the premises containing the property; actual work upon, installation or testing of property covered; or dishonest or criminal acts: (1) by you, or by any of your (2) by anyone authorized to act for you; (3) by anyone to whom the property is entrusted; or (4) all whether alone or in collusion with others and during the hours of employment or not. This exclusion does not apply to a carrier for hire. This exclusion does not apply to intentional acts of destruction by your employees, but under no circumstances is theft by an employee covered. LIMITS OF INSURANCE The most we will pay for a "loss" are the amounts stated in Section I of the Declarations. D. DEDUCTIBLE We will not pay for "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section I of the Declarations. We will then pay the amount of "loss" in excess of the Deductible up to the applicable Limit of Insurance. E. VALUATION 1. If Actual Cash Value is indicated in Section I.C. of the Declarations then clause F.1. below shall apply. 2. If Replacement Cost is indicated in Section I.C. of the Declarations then clause F.2. shall apply, and the amount we will pay shall not exceed the smallest of the following: a. the Limit of Insurance which applies to the property involved in the "loss"; b. the amount you actually spend to repair or replace the property, or any part of it. You may substitute property of a different kind or qualify, but we won't pay more than what it would cost to replace the damaged or destroyed property with substantially identical property. We will not make any payment under this form until the property involved in the "loss" is actually repaired or replaced by you with d~ue diligence or dispatch. COINSURANCE 1. the following shall apply if indicated in Section I.C.1. of the Declarations: All property that is covered by this policy must be covered for its total actual cash value at the time of "loss" or you will incur a penalty; The penalfy is that we will pay only the proportion of any "loss" that the Limit of Insurance bears to the total actual cash ~/alue of the property at the time of"loss"; 2. The following shall apply if indicated in Section I.C.2. of the Declarations: All property that is covered by this policy must be insured for its total Replacement Cost at the time of "loss" or you will incur a penalty; ~he penalty is that we will pay only the ~roportion of any "loss" that the Limit of Insurance bears to the total Replacement Cost of the property at the time of "loss". RENTED OR LEASED PROPERTY 1. You must provide us with a copy of any iease or rental agreement that applies to any property covered by this policy: We will cover only those Causes of "Loss" which the lessor has not assumed by the terms of lease or rental and which are not excluded by this policy. 'You agree to give us advance notice of any cancellation, alteration, or termination of any such lease or rental agreement. .If you fail to notify us as agreed we shall be responsible for no broader coverage than what we would have been responsible under the last lease or rental agreement reported 'to us during the term of this coverage. If no lease or rental agreements have been reported to us we will not cover leased or 'rented property. MA 10261b (11/99) Page 4 of 5 H. RELEASE OF CARRIER'S LIABILITY You are permitted to accept released value bills of lading from common carriers. "'~-" I. RECORDS AND INVENTORY You will keep accurate records of your business and retain them for three years after the policy ends. J. PROTECTIVE SAFEGUARDS You must maintain the protective safeguards stated by you to be in effect at a location when this coverage began. If you fail to maintain the protective safeguards: 1. in working condition; and 2. in operation; coverage for which the protective safeguards apply is automatically suspended. This suspension will last until the equipment or services are back in operation. K. DEFINITIONS 1. "Computer programs" means "data" used to direct computer equipment including diagrams or other records which can be used to reproduce programs. 2. "Data" means facts, concepts or instructions, including computer programs, which are ? converted to a form usable in your data processing operations. 3. "Data processing equipment" means a r~etwork of machine components capable of a, ccepting information, processing it according to plan, and producing a desirable r~sult. This includes all of your hardware, including ~ir conditioning equipment used exclusively in your data processing operation, but does not include software or the cost of Ceproducing software. 4. "Flood" means a temporary condition of partial or complete inundation of normally d~ry land areas as a result of: a. the overflow of inland or tidal waters; or b. the unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean: a. waterwhich backs up through sewers or drains; 5. water below the surface of the ground; or c. release of water impounded by a dam. 5. "Loss" means accidental loss or damage. 6. ¢'Media' means materials on which "data" are ~ecorded. MA 10261b (11/99) Page 5 of 5 ELECTRONIC DATA PROCESSING SYSTEMS SECTION V - EXTENSIONS OF COVERAGES If shown in Section V of the Data Processing Systems Declarations, coverage is extended as provided below. COMBINED DEDUCTIBLE The individual deductible amounts in any of the following coverages are deleted: Section I-- Data Processing Systems Equipment Section II- Media, Data, Computer Programs Section III -- Extra Expense Coverage Sect[on IV-- Loss of Business Income Coverage And the following is substituted: We wilt not pay for "loss" in any one occurrence until the amount of "loss" for all sections exceeds the Deductible Amount shown in Section V.A. of the Declarations. We will then pay the amount of "loss" in excess of the deductible, up to the applicable Limit of Insurance. BREAKDOWN COVERAGE If an X is placed in the appropriate box in Section V.B. of the Declarations we will pay for direct physical "loss" to covered property caused by: 1. mechanical failure, faulty construction or error in design of the equipment insured; 2. short circuit, blowout of other electrical disturbance, other than lightning, within electrical apparatus; 3. data processing media failure or breakdown or malfunction of the data processing system equipment and component parts when the media is being run through the system. Premium The premium for Breakdown Coverage is as stated in Section V.B. of the Declarations. Limits Of Insurance 1. The Limit of Insurance shown in Section V.B. of the Declarations ts the most we will pay for a Breakdown "loss". 2. The following is added to the LIMITS OF INSURANCE provision contained in the applicable Coverage Form: Payments under the Breakdown Coverage Extension will not increase the applicable Limit of Insurance. MA 10263a (11/99) DedUctible We will not pay for "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section V.B. of the Declarations. We will then pay the amount of "loss" in excess of the deddctible, up to the Limit of Insurance for Breakdown coverage. EARTHQUAKE CQVERAGE If an X is placed in the appropriate box in Section V.C. of the Declarations we will pay for direct physical "loss" to covered property caused by: 1. earthquake; 2. yolcanic eruption, explosion or effusion; 3. earth sinking earth rising or shifting; 4. landslide or other earth movement. When the word "earthquake" appears in this extehsion of coverage it shall include all of the abo~e. This' extension of coverage does not extend this poli~y to cover any other Cause of "Loss" which contributes concurrently or in any sequence to the "earthquake" "loss". Premium The! premium for Earthquake Coverage is as stated in S~ction V.C. of the Declarations. Limfts Of Insurance 1. The Limit of insurance shown in Section V.C.1. of the Declarations as Any One Earthquake is the most we will pay for "loss" in any one "' earthquake". 2. The Limit of Insurance shown in Section V.C.2. ',of the Declarations as Annual Aggregate is the most we will pay for all claims for "earthquake" "loss" which occur during the policy period. If ithe policy period shown in the Declarations is for a term of more than one year, we will apply the :Annual Aggregate Limit separately to each consecutive year of the policy period, 3. 'The following ts added to the LIMITS OF INSURANCE provision contained in the ,applicable Coverage Form: Payments under the Earthquake Coverage Extension will not increase the applicable Limit of insurance. Page 1 of 2 Deductible We will not pay for an "Earthquake" "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section V.C. of the Declarations. We will then pay the amount of the "loss" in excess of the deductible, up to the Limit of Insurance for "earthquake". FLOOD COVERAGE If an X is placed in the appropriate box in Section V.D. of the Declarations we will pay for direct physical "loss" to Covered Property caused by: 1. the overflow of inland or tidal waters; 2. the unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean: 1. water which backs up through sewers or drains; 2. water below the surface of the ground; or 3, release of water impounded by a dam. This extension of coverage does not extend this policy to cover any other Cause of "Loss" which contributes concurrently or in any sequence to the "flood" "loss". Premium The premium for Flood Coverage is as stated in Section V.D. of the Declarations. Limits Of Insurance 1, The Limit of Insurance shown in Section V.D.1. of the Declarations as Any One Flood is the hnost we will pay for "loss" in any one "flood". 2. The Limit of Insurance shown in Section V.D.2. of the Declarations as Annual Aggregate is the most we will pay for all claims for "flood" "loss" Which occur during the policy period. If the policy period shown in the Declarations is for a term of more than one year, we will apply the Annual Aggregate Limit separately to each bonsecutive year of the policy period. 3. The following is added to the LIMITS OF iNSURANCE provision contained in the applicable Coverage Form: Payments under the Flood Coverage Extension will not increase the applicable Limit of ilnsurance. Deductible We will not pay for a "flood" "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section WD. of the Declarations. We will then pay the amount of the "loss" in excess of the deductible, up to the Limit of Insurance for "flood". MA 10263a (11199) Page 2 of 2 ELECTRONIC DATA PROCESSING SYSTEMS SECTION II - DATA, MEDIA, PROGRAMS INLAND MARINE COVERAGE We will pay for "loss" to covered property from any of the covered causes of "loss." 1. COVERED PROPERTY, as used in Section Il, means: a. "data," "media," (including unused media) or "computer programs," as defined in paragraph F. DEFINITIONS, which is: (1) owned by you; (2) leased or rented to you; or (3) under your control; all as described in Section II of the Declarations. 2. PROPERTY NOT COVERED Covered Property does not include: a. Any "data" or "media" which cannot be replaced with others of like kind or quality. This does not apply to any items that are insured for a stated amount per article. b. Accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form, and then only in that form. c. Property while waterborne, unless on transporting vehicles aboard any regular ferry operating in inland waterways. 3. COVERED CAUSES OF LOSS Covered causes of "loss" means risks of direct physical "loss" to Covered Property except those causes of "loss" listed in the exclusions. 4. EXTENSIONS OF COVERAGE These extensions of coverage shall not increase the Limit of Insurance. a. Removal If the Covered Property becomes in imminent danger of "loss" at a covered location we will pay for "loss" while the property covered is: (1) being removed; (2) while at a place of safety; and (3) while being returned from such place; provided you give us written notice within (10) days of removal and return. b. Debris Removal We will pay for the cost of removal of debris of the Covered Property as a result of "loss" caused by or resulting from a Covered Cause of "Loss." (1) We shall pay for no more than your actual cost of debris removal, or 10% of the applicable Limit of Insurance, or $100,000, whichever is least. (2) In no event will we pay any cost resulting from enforcement of any law or ordinance. ~c. Storage of Duplicate Data Elsewhere We will pay for your "loss" to duplicate or backup data which you store at a separate location. A separate location is defined as a building located at least 100 feet away from your primary location. We shall pay no more for "loss" to duplicate or backup data than 10% of the combined "data" and "media" limits at your primary location, or $100,000, whichever is least. d. New Location Coverage You agree: To report in writing property covered by this policy, which is transferred to a new location, within thirty (30) days from the date of transfer. The new location must have been acquired by you after the effective date of this policy. MA 17746a (11/99) Page 1 of 4 We agree: (1) To cover this transferred property, pending written notice to us, for no more than 25% of the Limit of Insurance shown in the Declarations at the location from which the transfer is made, or $250,000, whichever is least. (2) To cease to cover this property if the new location is not reported to us in writing within the thirty (30) day period. This coverage applies only to property already covered by this policy at the time of transfer. e. Transfer between Existing Locations Coverage You agree: To report in writing property covered by this policy, which is transferred between existing locations specified in this policy, within thirty (30) days from the date of transfer. We agree: (1) To cover this property, pending notice to us, for no more than 25% of the Limit of Insurance shown in the Declarations for the location from which the transfer is made, or $250,000, whichever is least. (2) To cease to cover this property if the change in location is not reported to us in writing within the thirty (30) day period. This coverage applies only to property already covered by this policy at the time of transfer. B. EXCLUSIONS 1. We will not pay for a "loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss": a. GOVERNMENTAL ACTION Seizure or destruction of property by order of governmental authority. We will pay for acts of destruction ordered by the governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this coverage form. ~. NUCLEAR HAZARD Any weapon employing atomic fission or fusion. Nuclear reaction or radiation, or radioactive contamination from any other cause. We will pay for direct "loss" caused by resulting fire if the fire would be covered under this coverage form. c. WAR AND MILITARY ACTION War, including undeclared or civil war. Warlike action by a military force, including action taken in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents. Insurrection, rebellion, revolution, usurped power or action taken by a governmental authority in hindering or defending against any of these. ~1. EARTH MOVEMENT Earthquake, volcanic eruption or effusion, earth sinking, earth rising or shifting, landslide or other earth movement. We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. e. "FLOOD" We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. We will not pay for "loss" caused directly or indirectly by any of the following: a. collapse, subsidence, settling, cracking, shrinkage or expansion of walls, pavement, foundations, floors, roofs or ceilings; 'b. wear and tear, mold, rot; lc. hidden or latent defect, or any quality in property that causes it to damage or destroy itself; MA 17746a (11/99) Rage 2 of 4 insects, vermin, rodents; dryness or dampness of atmosphere, extremes of temperature, corrosion or rust, unless resulting from physical damage to the data processing system's air conditioning facilities by a cause of "loss" not excluded by this policy; delay, loss of market, loss of use, interruption of business, consequential loss of any nature; any change in electric power supply (such as interruption, brown out, or power surge) if the change originates more than 100 feet away from the premises containing the property; data processing media failure or breakdown, malfunction of the data processing system; electrical or magnetic injury, disturbance or erasure of electronic recordings, except by lightning; dishonest or criminal acts: (1) by you, or by any of your employees; (2) by anyone authorized to act for you; or (3) by anyone to whom the property is entrusted; all whether alone or in collusion with others and whether during regular work hours or not. This exclusion does not apply to carriers for hire. This exclusion does not apply to acts of destruction by your employees. Theft by employees is not covered. k. error in machine programming or instructions to machine. We will not pay for a "loss" caused by or resulting from any of the following. If "loss" by a covered cause results, we will pay for that resulting "loss": a. Weather conditions. This exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph B.1. above to produce the "loss." b. Acts or decisions, including the failure to act or decide, if any person, group, organization, or governmental body. c.: Faulty, inadequate or defective: (1) planning, zoning, development surveying or siting; (2) design, specification, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) materials used in repair, construction, renovation or remodeling; or (4) maintenance. d. Collapse of part or all of any building or i structure. LIMITS OF INSURANCE The 'most we will pay for a "loss" is the amount specified in Section II of the Declarations. DEDiUCTIBLE We ~ill not pay for "loss" in any one occurrence until 'the amount of "loss" exceeds the Deductible amount shown in Section II of the Declarations. We ~ill then pay the amount of "loss" in excess of the Deductible, up to the applicable Limit of Insurance. VALUATION The property covered by this section shall be valu'ed as follows: 1. "Data," "media," or "computer programs" for which there is no agreed value specified in 'the Declarations shall be valued at the 'actual cost of reproduction provided that the "data" or computer programs are replaced 'or reproduced. If the property is not replaced or reproduced 'we shall pay the blank value of "media" on 'which the "data" or "computer program(s)" ~were recorded. .On "media," we shall pay the actual cost of repairing or replacing with material of the i same kind and quality. 2. The amounts specified in Section 2.D. of the ' Declarations for each item of "data," "media" or "computer programs" shall be the agreed value for the purposes of this insurance. MA 17746a (11/99) Page 3 of 4 3. Unused "media" shall be valued at the actual cost of repairin9 or replacing the property with material of the same kind or quality. DEFINITIONS 1. "Computer programs" means "data" used to direct computer equipment including diagrams or other records which can be used to reproduce programs. 2. "Data" means facts, concepts or instructions, including computer programs, which are converted to a form usable in your data processing operations. 3. '"Flood" means a temporary condition of I~artial or complete inundation of normally dry [and areas as a result of: a. the overflow of inland or tidal waters; or 4. the unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean a. waterwhich backs up through sewers or drains; b. water below the surface of the ground; or ,c. release of water impounded by a dam. 4. '~Loss" means accidental loss or damage. 5. "Media" means materials on which "data" are ~ecorded. MA 17746a (11199) Page 4 of 4 INLAND MARINE ELECTRONIC DATA PROCESSING SYSTEMS SECTION III -- EXTRA EXPENSE E. DEI~UCTIBLE We Will not pay for "loss" in any one occurrence until the amount of "Loss" exceeds the Deductible amount shown in Section Itl of the Declarations. We will then pay the amount of "loss" in excess of the Dedbctible, up to any applicable Limit of Insurance. F. DEFINITIONS 1. "Loss" means accidental loss or damage. 2. i.'Extra expense" means the excess (if any) of the total cost incurred during the "period of ~'estoration" chargeable to the operations of your ,business over and above the total cost that ~vould normally have been incurred to conduct ~he business during the same period had no damage occurred. The cost in each case includes the expense of using other property or facilities of other ,concerns or other necessary emergency ,'expenses. In no event shall we pay for loss of profits or learnings resulting from a reduced volume of ';business. In no event shall we pay for direct or indirect '"loss" to property covered under Sections I or II. We shall not pay for the purchase, construction, irepair or replacement of any physical property 'unless incurred for the purpose of reducing a covered "loss" under this Section III, and then any payment shall not exceed the amount by which the "loss" is reduced. Any salvage value of property obtained for itemporary use during the "period of restoration" which remains after the resumption of normal ioperations shall be taken into consideration in ithe adjustment of any "loss" hereunder. 3. '"Normal" means the condition that would have existed had no "loss" occurred. 4. '"Period of restoration" means the length of time: a. starting with the date of"loss"; and not limited by the date of expiration of this coverage; ',required with due diligence and dispatch to ,repair, rebuild or replace the part of the property covered by this policy that has been damaged or destroyed. A. COVERAGE 1. We will pay the necessary "extra expense" you incur in order to continue as nearly as practicable the "normal" operation of your business following damage to the property covered under Sections I and II of this policy. 2. We also insure under this section the actual "loss" sustained by you during the "period of restoration," when, as a direct result of a Covered Cause of "Loss": a. the premises in which the property is located is so damaged as to prevent access to it; or b. the air conditioning system or electrical system necessary for the operation of your data processing equipment is so damaged as to reduce or suspend your ability to perform the operations normally performed by the data processing equipment. c. access to your premises where the insured property is located is specifically prohibited by order of civil authority. This coverage shall not exceed two consecutive weeks. EXCLUSIONS We will not pay for any "extra expense" unless "loss" was caused by or resulted from a Covered Cause of "Loss" under Section I or Section II of this policy. We will not pay for any "loss" unless it occurs during the policy term. C. MEASURE OF RECOVERY 1. We shall pay up to the amount specified in Section III.A. or Section III.B. of the Declarations for the necessary "extra expense" that is incurred for the "period of restoration." The "period of restoration" starts with the date of "loss" and is not limited by the expiration of this policy. 2. The most we will pay for a "loss" is the amount stated in Section III.A or Section III.B of the Declarations. D. RESUMPTION OF OPERATIONS You must resume "normal" operations of your business as soon as practicable after "loss." Coverage under this section shall then cease. MA 17747a (11/99) ENDORSEMENTNO. ATFACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON Ao THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF WAR, MILITARY ACTION AND TERRORISM This endorsement modifies insurance provide~d under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- EDUCATIONAL INSTITUTION BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- PUBLIC ENTITY COMMERCIAL PROPERTY COVERAGE INLAND MARINE COVERAGE The War And Military Action Exclusion is replaced by the following Exclusion. With respect to any Coverage Form to which the War And Military Action Exclusion does not apply, that Exclusion is hereby added as follows. WAR AND MILITARY ACTION EXCLUSION We will not pay for loss or damage caused directly or indirectly by 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. 1. War, including undeclared or civil war; or 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. With respect to any action that comes within the terms of this exclusion and involves nuclear reaction or radiation, or radioactive contamination, this War And Military Action Exclusion supersedes the Nuclear Hazard Exclusion. B. Regardless of the amount of damage and 'losses, the Terrorism Exclusion applies to any 'incident of terrorism: That involves the use, release or escape of nuclear materials, or that directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or 2. That is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or '3. In which pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. Except as provided in B.I., B.2., or B.3. above, the Terrorism Exclusion will only apply to an incident of terrorism in which the total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds '$25,000,000. In determining whether the 1525,000,000 threshold is exceeded, we will include all insured damage sustained by 'property of a persons and entities affected by the terrorism and business interruption ZC 26350 (12/01) Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions. Multiple incidents of terrorism which occur within a 72-hour period and appear to be carried out in concert or to have a related purpose or common leadership will be deemed to be one incident. The preceding paragraph describes the threshold used to measure the magnitude of an incident of terrorism and the circumstances in which the threshold will apply, for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of terrorism, there is no coverage under the insurance identified in this endorsement. In the event of any incident of terrorism that is not subject to the Terrorism Exclusion, coverage does not apply to any element of loss or damage that is otherwise excluded under the insurance identified in this endorsement. TERRORISM EXCLUSION We will not pay for loss or damage caused directly or indirectly by terrorism, including action in hindering or defending against an actual or expected incident of terrorism. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. Terrorism means activities against persons, Organizations or property of any nature: I. That involve the following or preparation for the following: a. Use or threat of force or violence; or b. Commission or threat of a dangerous act; or c. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and '2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or b. It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express i opposition to) a philosophy or i ideology. But with respect to any such activity that also icomes within the terms of the War And .Military Action Exclusion, that exclusion 'supersedes this Terrorism Exclusion. 'In the event of an incident of terrorism that ~involves nuclear reaction or radiation, or radioactive contamination, this Terrorism Exclusion supersedes the Nuclear Hazard 'Exclusion. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED ZC 26350 (12/01) AUTHORIZED REPRESENTATIVE Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 DATE