COMMERCIAL PROPERTY BROADENING FORM
Various provisions in this form restrict coverage. Read the entire form carefully to determine rights, duties and what is
and is not covered. Throughout this form, the words “you” and “your” refer to the Named Insured shown in the
Declarations. The words “we, “us” and “our” refer to the Company providing this insurance. Other words and phrases
that appear in quotation marks have special meaning. Refer to SECTION VI – DEFINITIONS.
I. COVERAGE
We will pay for direct physical loss of or damage to Covered Property described in this Form caused by or resulting from
any Covered Cause of Loss, unless the loss is excluded in Section V. GENERAL EXCLUSIONS AND LIMITATIONS,
or elsewhere in this Form.
SCHEDULE
LIMIT OF INSURANCE
A. Accounts Receivable
$ 25,000
AMENDED LIMIT
OF INSURANCE
$________________
B. Valuable Papers and Records
$ 25,000 (on premises)
$________________
C. Extra Expense and Business Income
$ 25,000
$________________
D. Property of Others (CCC)
$ 25,000
$________________
E. Fine Arts
$ 15,000
$________________
F. Signs
$ 5,000
$________________
G. Glass
$ 1,000 ($250 per plate)
H. Money and Securities
$ 10,000 (on premises)
$ 10,000 (off premises)
$________________
$________________
I. Employee Dishonesty
$ 25,000
$________________
J. Food Spoilage
$ 25,000
$________________
K. Ordinance, Regulation or Laws,
ICC, Demolition
$100,000
$________________
L. Computer and Telephone Systems
$ 25,000 Hardware
$ 10,000 Media
$ 5,000 Data
$ 5,000 Extra Expense
$________________
$________________
$________________
$________________
M. Fire Department Service Charge
$ 2,500
$________________
N. Pollutant Cleanup and Removal
$ 10,000
$________________
O. Underground Irrigation System
$ 5,000
$________________
P. Debris Removal
$ 10,000
$________________
Q. Backup of Sewers and
Drains/Water Damage
$ 10,000
$________________
R. Peak Season Increase
$ 25,000
$________________
S. Newly Acquired or Constructed Property
Building
Business Personal Property
$500,000
$100,000
$________________
$________________
$ 2,500
$________________
$100,000
$________________
T. Fire Extinguisher/Fire Suppression
System Recharge
U. Covered Property Extension excluding
trees, plants or shrubs (See Section IV.,
Covered Property, U.)
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II. DEDUCTIBLE
Each loss shall be adjusted separately, and from the amount of such adjusted loss, the sum of $1,000 (unless
otherwise indicated) shall be deducted for all coverage listed under Section I. COVERAGE.
Optional Deductible $_____________.
III. CONDITIONS
A. When not in conflict with the provisions of this Form, all of the conditions of the policy to which
this Form is attached shall apply. Property Loss Conditions and Property General Conditions
contained in the policy to which this Form is attached also apply.
B. If any of the property covered by this Form is also covered either under any other provisions of the
policy of which this Form is made a part or elsewhere in this Form, you, in the event of loss or
damage, may elect to make claim under such other provisions, in which case none of the provisions
of this Form are applicable, or under provisions of this Form, in which case coverage as provided by
this Form becomes sole coverage on such property. If more than one coverage under this form
applies to property that has been damaged from one occurrence, you may choose only one of these
coverages to apply to that loss. The most we will pay is the limit applicable to the coverage chosen.
C. Valuation. Unless otherwise indicated on this Form, we shall not pay more than the actual cash
value of the property, with proper deduction for depreciation, at the time of loss or damage.
Payment shall never exceed the cost to repair or replace with similar property of like kind and
quality.
D. The total amount payable in any one occurrence shall not exceed the Limit of Insurance specified on
the Schedule of this Form, regardless of the number of locations insured.
IV. COVERED PROPERTY
A. Accounts Receivable
1. Covers all sums due from your customers, provided that you are unable to collect those sums as
the direct result of a covered loss or damage to records of Accounts Receivable. You must make
every reasonable attempt to recover accounts receivable due.
2. Covers interest charges on any loan to offset impaired collections pending repayment or payment
of such sums made uncollectible by such loss or damage. This coverage does not include any
other costs or charges connected with securing or retiring such a loan.
3. Covers collection expense in excess of normal collection costs and made necessary because of
such loss or damage to the extent it reduces the amount of loss that otherwise would have been
payable for such loss or damage.
4. Covers other expenses, when reasonably incurred by you in re-establishing records of accounts
receivable following such loss or damage to the extent it reduces the amount of loss that
otherwise would have been payable of such loss or damage.
5. Coverage shall apply only while records of accounts receivable are contained at the premises
described in the Declarations, it being a condition precedent to any right of recovery hereunder
that such records shall be kept in metal receptacles at all times when the premises are not open for
business, except while such records are in actual use or are being removed to a place of safety
because of imminent danger of loss or damage and while being returned from such place.
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6. Recoveries. After we pay you for your accounts receivable loss, any amounts later recovered by
you from those accounts shall belong to us until the entire indemnification has been repaid. Any
recoveries in excess of that amount shall belong to you.
7. Determination of Receivables. If you cannot accurately establish the amount of accounts
receivable outstanding as of the time of loss or damage, the following method will be used:
a. Determine the average monthly accounts receivable amount for the 12 months immediately
preceding the month in which the loss or damage occurs; and
b. Adjust the average for any normal fluctuations in the amount of accounts receivable for the
month in which the loss or damage occurred or for any demonstrated variance from the
average for that month.
The following will be deducted from the total amount of accounts receivable, however that
amount is established:
a. The amount of the accounts for which there is no loss or damage;
b. The amount of the accounts that you are able to re-establish or collect;
c. An amount to allow for probable bad debts that you are normally unable to collect; and
d. All unearned interest and service charges.
8. Section V., General Exclusions and Limitations 10.and 11.do not apply to this coverage.
B. Valuable Papers and Records
1. Covers cost of research and other expenses necessarily incurred to reproduce, replace or restore
the lost information on your lost or damage office records, including those which exist on
electronic or magnetic media. Lost or damaged office records must be reproduced, replaced or
restored in order for coverage to apply. This coverage includes only property which you own.
2. Coverage shall apply only while valuable papers and records are contained at the premises
described in the Declarations, it being a condition precedent to any right of recovery hereunder
that such records shall be kept in metal receptacles at all times when the premises are not open
for business, except while such valuable papers and records are in actual use or are being
removed to a place of safety because of imminent danger of loss or damage and while being
returned from such place.
3. Valuable Papers and Records does not mean “money” or “securities”.
4. Section V., General Exclusions and Limitations 10.and 11.do not apply to this coverage.
C. Extra Expense and Business Income
1. We will pay the actual and necessary Business Income and Extra Expense you sustain due to
direct physical loss or damage to property at the premises described in the Declarations and
including Property covered under U. Covered Property Extension, caused by or resulting from
any Covered Cause of Loss. If you are a tenant, your premises is the portion of the building
which you rent, lease or occupy, including;
a. All routes within the building to gain access to the described premises; and
b. Your personal property in the open (or in a vehicle) within 1000 feet.
2. Business Income means the:
a. Net Income (net Profit or Loss before income taxes) that would have been earned or
incurred; and
b. Continuing normal operating expenses incurred, including payroll.
3. Extra Expense means necessary expenses you incur during the “period of restoration” that you
would not have incurred if there had been no direct physical loss or damage to property;
a. To avoid or minimize the suspension of business and to continue “operations”;
(i) At the described premises; or
(ii) At replacement premises or at temporary locations, including;
(a) Relocation expenses; and
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(b) Costs to equip and operate the replacement or temporary locations;
b. To minimize the suspension of business if you cannot continue “operations”; or
(i) To repair or replace any property; or
(ii) To research, replace or restore the lost information on damaged valuable papers and
records to the extent it reduces the amount of loss that otherwise would have been payable
under this Additional Coverage.
4. Limits of Insurance
The most we will pay for loss or damage under this Additional Coverage is $25,000 or the
Amended Limit of Insurance, if shown in Section I. Coverage.
5. Insurance Under Two or More Coverages
If two or more of this policy’s coverages apply to the same loss we will not pay more than the
actual amount of “loss”.
6. The provisions of this Additional Coverage are superseded by CP0030 Business Income
Coverage Form (and Extra Expense) if attached to and made a part of this policy.
a. All expenses that exceed the normal operating expenses that would have been incurred by
“operations” during the “period of restoration” if no direct physical loss or damage had
occurred. We will deduct from the total of such expenses;
(1) The salvage value that remains of any property bought for temporary use during the
“period of restoration” once “operations” are resumed; and
(2) Any Extra Expense that is paid for by other insurance, except for insurance that is written
subject to the same plan, terms, conditions and provisions as this insurance, and
b. All necessary expenses that reduce the Business Income loss that otherwise would have been
incurred.
7. Resumption of Operations. We will reduce the amount of your Extra Expense loss to the extent
you can return “operations” to normal and discontinue such Extra Expense.
D. Property of Others Including (CCC)
You may extend the insurance that applies to your Business Personal Property which is in your
care, custody and control to apply to:
1. Personal effects owned by you, your officers or your partners.
2. Golfing equipment owned by other persons while they are in your care, custody or control.
3. Motorized 4 wheeled golf carts which are owned by other persons while in your care,
custody or control and only while on the insured premises.
4. Any equipment, golf carts or temporary structures you have rented, leased or borrowed for a
period of seven (7) days or less while such equipment is in your care, custody and control.
The most we will pay for loss or damage under this Extension is $25,000 or the amount shown in
the Amended Limit of Insurance, if shown in Section 1. Coverage, during each policy year.
Our payment for loss of or damage to personal property of others will only be for the account of the
owner of the property. We will only pay for the amount of covered loss or damage in excess of the
amount due from other collectible insurance. The deductible shown on Section II applies to all
claims for damages on property covered by this section.
E. Fine Arts
1. We cover antiques and object d’art of every nature and description which are your property or
the property of others for which you are legally liable at the time of loss, while on the premises
described in the Declarations.
2. Valuation. The value of the property insured is not agreed upon but will be ascertained at the
time of loss or damage. We will not pay more than the least of the following amounts:
a. The actual cash value of the property at the time of loss or damage;
b. The amount for which you could reasonably be expected to have the property repaired to its
condition immediately prior to the loss;
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3. Exhibition. Coverage is not provided for any art exhibition or auction.
4. Exclusions. In addition to Section V. General Exclusions and Limitations, the following
exclusion applies: We will not pay for loss or damage caused by or resulting from any
repairing, restoration or retouching process.
F. Signs
Covers signs while on the premises described in the Declarations, which are your property or the
property of others for which you are legally liable at the time of loss. This coverage does not
include signs which are your stock.
G. Glass
1. Covers direct physical loss of or damage to glass that is part of the exterior of a covered
building or structure at the described premises, which you own or for which you are legally
liable for at the time of loss. Coverage includes damage to lettering and ornamentation, by
breakage of the glass or by chemicals accidentally or maliciously applied.
2. We will also pay for necessary:
a. Expenses incurred to put up temporary plates or board up openings;
b. Repair or replacement of encasing frames; and
c. Expenses incurred to remove or replace obstructions.
H. Money and Securities
1. Covers loss of “money” and “securities” used in your business while at a bank or savings
institution, within your living quarters or the living quarters of your partners or any employee
having use and custody of the property, at the described premises, or while in transit between
any of these places, resulting directly from:
a. Theft, meaning any act of stealing;
b. Disappearance; or
c. Destruction
2. You must keep records of all “money” and “securities” so we can verify the amount of any
loss or damage claimed.
3. The most we will pay for loss or damage in any one occurrence is the Limit of Insurance
shown on this Form or the Amended Limit of Insurance, if shown in Section I. coverage, but
not more than;
a. What it would cost, at the time of loss, to replace the property with other of like kind and
quality; or
b. The actual cash value at the time of loss, provided, however, that the payment of the cost of
replacing “securities” will be only up to and including their value at the close of business
on the day the loss was discovered.
4. Exclusions in addition to Section V. General Exclusions and Limitations, the following
exclusions apply. We will not pay for loss or damage caused by or resulting from any of the
following:
a. Resulting from accounting or arithmetical errors or omissions; or
b. Due to the giving or surrendering of property in any exchange or purchase; or
c. Of property contained in any money operated device unless the amount of money
deposited in it is recorded by a continuous recording instrument in the device, or
d. Dishonest or criminal act by you, any of your partners, employees, directors, trustees,
authorized representatives or anyone to whom you entrust the property for any purpose;
(1) Acting alone or in collusion with others; or
(2) Whether or not occurring during the hours of employment.
This exclusion does not apply to acts of destruction by your employees; but theft by
employees is not covered.
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I. Employee Dishonesty
Covers loss of “money”, “securities” and other business personal property due to dishonest or
fraudulent acts committed by an “employee”, subject to the following conditions:
1. The most we will pay for loss in any one “occurrence” is the applicable Limit of Insurance
shown on this Form, but not more than the replacement cost thereof at the time of loss,
provided, however, that the payment of the cost of replacing “securities” will be only up to
and including their value at the close of business on the day the loss was discovered.
2. Coverage does not apply to any “employee” from the time of discovery by you or any of your
partners or officers of any dishonest or fraudulent act committed by that “employee”;
3. Dishonest or fraudulent acts or a series of similar or related acts of any “employee” acting
alone or in collusion with others during the policy period shall be deemed to be one
“occurrence” for the purpose of applying the deductible and the Limit of Insurance.
4. Loss is covered only if discovered not later than one year from the end of the policy period,
and then this insurance shall apply only to loss sustained during the policy period;
5. If more than one insured is covered under this Policy, the most we will pay shall not exceed
the amount for which we would pay if there was only one insured; and
6. Regardless of the number of years this Policy shall continue in force, the Limit of Insurance
shown in the Form shall not be cumulative from year to year.
Loss under Prior Bond or Policy. We agree that this coverage applies to loss which would have
been recoverable by you or by any predecessor in your interest under a prior bond or policy,
except for the fact that the time within which to discover loss there under has expired, provided:
1. Coverage is substituted for the prior bond or insurance policy at the time the policy is
terminated, canceled or allowed to expire;
2. The insurance under this condition shall not increase the Limit of Insurance under Employee
Dishonesty coverage;
3. Such loss would have been covered under this coverage had this coverage, subject to all its
conditions and limitations at the time of such substitution, been in force when the acts or
events causing such loss occurred, and
4. Recovery under this coverage shall not exceed the smaller of the following:
a. The amount which would have been recoverable under such prior bond or insurance policy,
had such prior bond or policy continued in force until the discovery of such loss, or
b. The amount which would have been recoverable under this optional coverage had this
coverage been in force when such acts or events were committed.
J. Food Spoilage
1. Covers direct physical loss of or damage to “perishable stock” owned by you caused by a
direct physical loss or damage to the utility service away from a covered location:
a. Breakdown or contamination, meaning:
(1) A Change in temperature or humidity resulting from mechanical breakdown or
mechanical failure of refrigerating, cooling or humidity control apparatus or
equipment, only while such apparatus or equipment is at the described premises, or
(2) Contamination by a refrigerant, only while the refrigerating apparatus or equipment
is at the described premises.
Mechanical breakdown and mechanical failure do not mean power interruption, regardless
of how or where the interruption is caused and whether or not the interruption is complete
or partial.
b. Power outage, meaning change in temperature or humidity resulting from complete or partial
interruption of electrical power on the described premises, due to conditions beyond your
control.
2. Exclusions. In addition to Section V. General Exclusions and Limitations, the following
exclusions apply. We will not pay for loss or damage caused by or resulting from any of the
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following:
a. The disconnection of any refrigerating, cooling or humidity control system, from the source
of power;
b. The deactivation of electrical power caused by the manipulation of any switch or other
device used to control the flow of electrical power or current, whether or not intended;
c. The inability of a power source to provide sufficient power to meet demand, however
caused; or
d. Breaking of any glass that is a permanent part of any refrigerating, cooling or humidity
control unit.
K. Ordinance, Regulation or Laws, ICC, Demolition
Subject to the limit shown on the schedule, we provide coverage as follows. The limit shown is
the total limit of insurance available for all coverage provided hereunder.
1. Coverage for Loss to the Undamaged Portion of the Building.
If a Covered Cause of Loss occurs to covered building property, we will pay for loss to the
undamaged portion of the building caused by enforcement of any ordinance, regulation or
law that:
a. Requires the demolition of the undamaged part of the same building that has been
damaged by a Covered Cause of Loss when the entire building suffering a Covered
Cause of Loss must be demolished;
b. Regulates construction and repair of that specific portion of the building property that
has been damaged or establishes zoning or land use requirements at the described
premises; and
c. Is in force at the time of loss.
2. Coverage for Demolition Cost – Undamaged Portion of the Building.
If a Covered Cause of Loss occurs to covered building property, we will pay the cost to
demolish and clear the site of the undamaged part of the same building when such
demolition and site clearing is caused by enforcement of any ordinance, regulation or law
that:
a. Requires the demolition of the undamaged part of the same building that has been
damaged by a Covered Cause of Loss when the entire building suffering a Covered
Cause of Loss must be demolished;
b. Regulates construction and repair of that specific portion of the building property that
has been damaged or establishes zoning or land use requirements at the described
premises; and
c. Is in force at the time of loss.
3. Increased Cost of construction Coverage.
If a Covered Cause of Loss occurs to covered building property, we will pay for
increased costs:
a. To repair, rebuild or reconstruct that specific portion of covered building property
damaged by a Covered Cause of Loss and due to the enforcement of any building,
zoning or land use ordinance, regulation or law; and
b. To rebuild demolished parts of the building when such demolition was required by
enforcement of any ordinance, regulation or law that:
(1.) Requires the demolition of the undamaged part of the same building that has been
damaged by a Covered Cause of Loss when the entire building suffering a
Covered Cause of Loss must be demolished;
(2.) Regulates construction and repair of that specific portion of the building property
that has been damaged or establishes zoning or land use requirements at the
described premises; and
(3.) Is in force at the time of loss.
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However, we will not pay for the increased cost of construction if the building is not
repaired or replaced.
4. Exclusions. In addition to Section V. General Exclusions and Limitations, the
following exclusions apply.
a. We will not pay for the costs associated with the enforcement of any ordinance,
regulation or law which requires any insured or others to test for, monitor, clean up,
remove, contain, treat detoxify or neutralize or in any way respond to , or assess the
effects of “pollutants”.
b. We will not pay for increased construction costs:
(1.) Until the property is actually repaired or replaced at the same premises or
elsewhere; and
(2.) Unless the repairs or replacement are made as soon as reasonably possible after
the loss or damage, not to exceed 2 years.
c. If the property is repaired or replaced on the same premises, we will not pay more
than the amount you actually spend to:
(1.) Demolish and clear the site; and
(2.) Repair, rebuild or construct the property, but not for more than property of the
same height, floor area and style on the same premises.
d. If the property is not repaired or replaced on the same premises, we will not pay
more than:
(1.) The amount you actually spend to demolish and clear the site of the described
premises; and
(2.) The costs to replace the damaged or destroyed property on the same premises
with other property, of comparable material and quality; of the same height, floor area
and used for the same purpose.
5. The terms listed above apply separately to each covered building to which this
coverage applies.
L. Computer and Telephone Systems
1. Covers computer and telephone system hardware and computer media you own, lease or rent
from others. It also covers Extra Expense
2. a. Hardware is defined as automatic electronic machinery and related equipment.
b. Media is defined as stored data, software, computer or data processing programs or
instructions that operate the equipment.
c. Extra Expense covers the necessary expense you incur to continue as nearly as practicable
the normal operation of your business because of covered direct physical loss or damage to
hardware or media covered under this Form.
d. “Data” means information, instructions or programs material that is recorded on your
media, including original source material used to enter data.
3. Valuation
a. Hardware. We will determine your loss based on the actual cash value of the equipment at
the time of loss or damage. Actual cash value means the replacement cost value less
deduction for depreciation. However, we will not pay for more than the cost of repairing or
replacing the equipment with available material or equipment of similar function, capacity,
age, kind and quality. Nor will we pay for more than the Limit of Insurance for that
equipment under this coverage.
b. Media. For data and computer programs, we will determine your loss to be the actual cost of
reproducing the data or computer program, provided you actually reproduce or replace it.
By data and computer programs we mean all forms of facts, concepts and instructions
converted to data or computer programs used in computer and data processing equipment
that you have insured under this Form. For media, we will figure your loss to be the actual
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cost of repairing or replacing the media with material on which data or computer programs
are recorded or stored, such as disk packs, magnetic or paper tapes and cards. In no event
will we pay more than the Limit of Insurance specified for this coverage.
c. Extra Expense. We will determine your loss to be the total necessary cost of continuing your
business during the period of recovery over and above your normal total cost during this
same period if no loss had occurred. The period of recovery is limited to such time as would
be required to rebuild, repair or replace property insured under this coverage that was
damaged as soon as possible beginning with the date the property was damaged. We will
also take into consideration the salvage value of property obtained for temporary use during
this period. In no event will we pay more than the Limit of Insurance specified for this
coverage.
4. Property not Covered. We will not pay for loss or damage to:
a. Property you rent or lease to others while it is away from any premises scheduled in the
Declarations;
b. Raw data, input information, program support documentation, flow charts, written
description or record formats, unless converted to data form for equipment we cover, and
then only in that form; or
c. Data, media or computer programming that cannot be replaced with others of the same kind
or quality.
5. Exclusions. In addition to Section V. General Exclusions and Limitations, the following
exclusions apply we will not pay for loss or damage caused by or resulting from any of the
following:
a. Mechanical failure or breakdown; deficiency in design, specifications, materials or
workmanship; changes in arrangement of machine parts; errors or omissions; electrical
disturbance other than lightning, and electrical or magnetic erasures unless a fire or
explosion results, and then we will pay for the damage caused by the fire or explosion;
b. Changes in humidity or temperature, corrosion or rust unless as a direct result from
physical damage to the computer and data processing equipment’s air condition facilities
caused by a peril not otherwise excluded; or
c. Programming errors or incorrectly instructing the machine.
d. Any loss of income you may experience because of any loss to your computer or
telephone systems.
6. Section V., General Exclusions and Limitations 10.and 11.do not apply to this coverage.
M. Fire Department Service Charge
When the fire department is called to save or protect Covered Property from a Covered Cause of
Loss, we will pay up to $2,500 for your liability for fire department service charges:
1. Assumed by contract or agreement prior to loss; or
2. Required by local ordinance.
No deductible applies to this Additional Coverage.
N. Pollutant Cleanup and Removal
We will pay your expense to extract "pollutants" from land or water at the described premises if
the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or
results from a Covered Cause of Loss that occurs during the policy period. The expenses will be
paid only if they are reported to us in writing within 180 days of the date on which the Covered
Cause of Loss occurs.
This Additional Coverage does not apply to costs to test for, monitor or assess the existence,
concentration or effects of "pollutants". But we will pay for testing which is performed in the
course of extracting the "pollutants" from the land or water.
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The most we will pay under this Additional Coverage for each described premises is $10,000 for
the sum of all covered expenses arising out of Covered Causes of Loss occurring during each
separate 12 month period of this policy.
O. Underground Irrigation System
1. Covers underground irrigation sprinkler systems which are used to irrigate greens, fairways,
tee boxes or any other portions of the playing surface of the golf course caused by or resulting
from any one of the following causes of loss:
a. Fire
b. Lightning
c. Explosion
d. Vandalism and Malicious Mischief
e. Vehicles (except golf carts or maintenance equipment owned or operated by you or your
employees.
f. Aircraft
g. Theft
h. Windstorm or Hail
i. Riot or Civil Commotion
The Irrigation System includes pipes, conduits, electrical wiring, electric or computerized control
panels, satellite dishes and sprinkler heads utilized in systems operation.
2. Damage to grass, shrubs, trees or any other portion of the playing surface and any
consequential loss of income as a result of any loss or damage to the irrigation system, whether
or not covered by a Covered Cause of Loss, is excluded.
P. Debris Removal
We will pay your expense to remove debris of Covered Property caused by or resulting from a
Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if
they are reported to us in writing within 180 days of the date of direct physical loss or damage.
The most we will pay under this Additional Coverage is $10,000 or the Amended Limit of
Insurance, if shown in Section I, Coverage.
This Additional Coverage does not apply to costs to:
1. Extract “pollutants” from land or water; or
2. Remove, restore or replace polluted land or water.
Q. Back-up of Sewers and Drains Water Damage
We will pay up to $10,000 at each described premises for direct physical loss or damage to
covered property caused by or resulting from water that backs up or overflows from a sewer or
drain.
R. Peak Season/Automatic Increase of Business Personal Property
Seasonal Increase – The Limit of Insurance for business Personal Property will automatically
increase by $25,000 or the Amended Limit of Insurance, if shown in Section I. Coverage to
provide for seasonal variations. This increase will apply only if the Limit of Insurance shown for
Your Business Personal Property in the Declarations is at least 100% of your average monthly
values during the lesser of:
1. The twelve months immediately preceding the date the loss or damage occurs, or
2. The period of time you have been in business as of the date the loss or damage occurs.
S. Newly Acquired or Constructed Property
1. You may extend the insurance that applies to Building to apply to:
a. Your new buildings while being built on the described premises; and
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b.
Buildings you acquire at locations, other than the described premises, intended for
similar use as the building described in the Declarations.
The most we will pay for loss or damage under this Extension is $500,000 at each building.
2. You may extend the insurance that applies to Your Business Personal Property to apply to
that property at any location you acquire other than at fairs or exhibitions.
The most we will pay for loss or damage under this Extension is $100,000 at each building.
Insurance under this Extension for each newly acquired or constructed property will end when
any of the following first occurs:
a. This policy expires;
b. 90 days expire after you acquire or begin to construct the property; or
c. You report values to us.
We will charge you additional premiums for values reported from the date construction begins or
you acquire the property.
T. Fire Extinguisher/Fire Suppression System Recharge
Fire Extinguisher Recharge – We will pay up to this amount for your expense of recharging
portable fire extinguishers used to fight a fire at the premises described in the Declarations or at
immediately adjacent premises which expose your property to loss. No deductible applies to this
Additional Coverage.
Fire Suppression System recharge – We will pay up to this amount for your expense of
recharging the automatic fire suppression system installed to protect the cooking surfaces and
exhaust ductwork on your premises, when it has discharged to extinguish a fire. No deductible
applies to this Additional Coverage.
U. Covered Property Extension
Covered Property is extended to include; fixtures and outdoor fixtures, including glass, fences,
awnings, outdoor signs (whether freestanding or attached to the buildings), exterior lighting
fixtures or poles, foot bridges, cart bridges, roadways, walks, patios, tennis courts, swimming
pools, golf greens, tee boxes, tee markers, flags, benches, ball washers, trees, plants and shrubs
(which have been planted and maintained), practice ranges, fairways, rough and sand traps
maintained by the insured and which are a part of the playing surface of a hole and within the
boundary area of the fairway, radio and television antennas (including satellite dishes) and their
lead-in wiring, masts or towers caused by or resulting from any one of the following causes of
loss if they are a Covered Cause of Loss:
1. Fire
2. Lightening
3. Explosion
4. Vandalism and Malicious Mischief
5. Vehicles (except Vehicles or golf carts owned or operated by you or your employees)
6. Aircraft
7. Theft
8. Windstorm and Hail
9. Riot or Civil Commotion
The most we will pay for loss or damage to trees, plants or shrubs under this Extension is
$25,000 during each policy year and not more than $500 for any one tree, plant or shrub.
In the event the policy to which this form is attached has a windstorm and/or hail exclusion, there
will be no coverage for trees, plants and shrubs the perils of windstorm and hail under this
section.
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V. General Exclusions and Limitations
In addition to any exclusions found elsewhere in this Form, we will not pay for loss or damage
caused by or resulting from any of the following:
1. Delay, loss of market, or loss of use;
2. Loss due to:
a. Gradual deterioration;
b. Wear and Tear;
c. Rust, corrosion, fungus, mold, decay, hidden or latent defect of any quality in property that
causes it to damage or destroy itself;
d. Smog;
e. Settling, cracking, shrinking or expansion; or
f. Nesting or infestation by insects, birds, rodents or other animals.
But if loss or damage by the “specified causes of loss” or building glass breakage results, we
will pay for that resulting loss or damage.
3. Strikes, lockouts, labor disturbances, or the acts of any person or persons taking part in any
such occurrence or disorder (This exclusion does not apply to resulting loss by fire or
explosion);
4. Unexplained loss, mysterious disappearance or shortage disclosed on taking inventory;
5. Property in transit while outside of the continental United States and Canada;
6. Bookkeeping, accounting or billing errors or omissions, or loss directly resulting from errors
or omissions in processing or copying;
7. Any fraudulent, dishonest or criminal act by you, any partner, or officer, director or trustee
thereof while working or otherwise and whether acting alone or in collusion with others;
8. Voluntary parting with any property by you or anyone else to whom you have entrusted the
property if induced to do so by any fraudulent scheme, trick, device or false pretense;
9. Illegal transportation or trade of property. In addition, we will not pay for loss or damage to
contraband, however caused;
10. Any earth movement (other than sinkhole collapse), including but not limited to earthquake,
volcanic eruption, landslide, mine subsidence, mudflow, mudslide, earth sinking, earth
rising or shifting;
11. Flood, surface water, waves, tides, tidal water, or tidal wave, overflow of streams or other
bodies of water, or spray from any of the foregoing, all whether driven by wind or not;
12. Water below the surface of the ground, including that which exerts pressure on or flows,
seeps or leaks through sidewalks, driveways, foundations, walls, doors, windows or
openings, basement or other floors; or
13. Explosion of steam boilers, steam pipes, steam turbines or steam engines, unless fire or
explosion as insured against ensues, and then we shall be liable only for loss caused by the
ensuing fire or explosion.
14. Damage caused by rain, snow, ice or sleet to personal property in the open;
15. Frozen Plumbing: Water, other liquids, powder, or molten material that leaks or flows from
plumbing, heating, air conditioning, or other equipment (except fire protective systems)
caused by or resulting from freezing unless:
a. You do your best to maintain heat in the building or structure; or
b. You drain the equipment and shut off the supply if the heat is not maintained.
16. War and military action:
a. War, including undeclared or civil war;
b. 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
c, Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority
in hindering or defending against any of these.
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17. Nuclear Hazard
Nuclear reaction or radiation, or radioactive contamination, however caused. But if loss or
damage by fire results, we will pay for that resulting loss or damage.
18. Government Action
Seizure or destruction of property by order of governmental authority. But we will pay for
acts of destruction ordered by governmental authority and taken at the time of a fire to
prevent its spread, if the fire would be covered under this Form.
19. Pollution
We will not pay for loss or damage caused by or resulting from the discharge, dispersal,
seepage, migration, release or escape of “pollutants” unless the discharge, dispersal, seepage,
migration, release or escape is itself caused by any one of the “specified causes of loss”. But
if loss or damage by the “specified causes of loss” results, we will pay for the resulting
damage caused by the “specified causes of loss”.
VI. Definitions
A. “Employee” means:
1. Any natural person:
a. While in your service (and for 30 days after termination of service); and
b. Whom you compensate directly by salary, wages or commissions; and
c. Whom you have the right to direct and control while performing services for you; or
2. Any natural person employed by an employment contractor while that person is subject to
your direction and control and performing services for you excluding, however, any such
person while having care and custody of property outside the premises described in the
Declarations.
B. “Money” means currency, coins and bank notes whether or not in current use; travelers
checks, register checks and money orders held for sale to the public.
C. “Occurrence” means all loss caused by, or involving, one or more “employees” whether the
result of a single act or series of acts.
D. “Operations” means:
1. Your business activities occurring at the described premises; and
2. The tenant ability of the described premises, for “rental value”.
E. “Period of Restoration” means the period of time, up to twelve (12) consecutive months, that:
1. Begins with the date of direct physical loss or damage caused by or resulting from any
Covered Cause of Loss at the described premises; and
2. Ends on the date when the property at the described premises should have been
substantially repaired, rebuilt or replaced with reasonable speed and similar quality.
Substantially repaired, rebuilt or replaced means that the premises are useable, whether all
repairs are complete, or not.
F. “Perishable Stock” means property:
1. Maintained under controlled temperature or humidity conditions for preservation; and
2. Susceptible to loss or damage if the controlled temperature and humidity conditions
change.
G. “Pollutants” means any solid, liquid, gaseous or thermal irritant or contaminant, including but
not limited to smoke, vapor, soot, fumes, acids, alkalis, lead products, fuel oil, chemicals and
waste. Waste includes materials to be recycled, reconditioned or reclaimed.
H. “Rental Value” means:
1. Total anticipated rental income from tenant occupancy of the premises described in the
Declarations as furnished and equipped by you; and
2. Amount of all charges which are the legal obligation of the tenant(s) and which would
otherwise be your obligations; and
3. Fair rental value of any portion of the described premises which is occupied by you.
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I. “Securities” means negotiable and non-negotiable instruments or contracts representing either
“money” or other property and includes:
1. Tokens, tickets, revenue and other stamps whether or not in current use; and
2. Evidences of debt issued in connection with credit or charge cards, which cards are not
of your own issue;
but does not include “money”.
J. “Specified Causes of Loss” means the following:
Fire; lightning; explosion; windstorm or hail; smoke, aircraft or vehicles; riot or civil
commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse;
volcanic action; falling object; weight of snow, ice or sleet; water damage.
1. Sinkhole collapse means the sudden sinking or collapse of land into underground empty
spaces created by the action of water on limestone or dolomite. This cause of loss does
not include:
a. The cost of filling sinkholes; or
b. Sinking or collapse of land into man-made underground cavities.
2. Falling objects does not include loss of or damage to:
a. Personal property in the open; or
b. The interior of a building or structure, or property inside a building or structure,
unless the roof or an outside wall of the building or structure is first damaged by a
falling object.
3. Water damage means accidental discharge or leakage of water or steam as the direct
result of the breaking or cracking of any part of a system or appliance containing water
or steam.
Nothing herein contained shall be held to vary, alter, waive or extend any of these terms,
conditions agreement or limitations of the policy other than as above stated.
This Form must be attached to change endorsement when issued after the policy is written.
Includes copyrighted material of Insurance Services Office, with its permission.
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