COMMERCIAL PROPERTY ENHANCEMENT ENDORSEMENT

Transcription

1 COMMERCIAL PROPERTY ENHANCEMENT ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies Insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM CAUSES OF LOSS SPECIAL FORM COMMERCIAL PROPERTY CONDITIONS When this endorsement is attached to the policy, insurance under the Building and Personal Property Coverage Form and the Causes of Loss Special Form is extended to provide the coverage described in this endorsement. This coverage is subject to the provisions applicable to the Building and Personal Property Coverage Form, Causes of Loss Special Form, and the Commercial Property Conditions. COVERAGE EXTENSIONS The following applies to coverages under this endorsement only: Paragraph 5. Coverage Extensions on Form CP 00 10, the Building and Personal Property Coverage Form, is deleted in its entirety and replaced by the following: 5. Coverage Extensions Except as otherwise provided, the following Extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 1000 feet of the described premises. If a Coinsurance percentage of 80% or more or, a Value Reporting period symbol, is shown in the Declarations, you may extend the insurance provided by this Coverage Part as follows: A) Newly Acquired or Constructed Property 1) Buildings If this policy covers Building, you my extend that insurance to apply to: a) Your new buildings while being built on the described premises; and b) Buildings you acquire at locations, other than the described premises, intended for: Similar use as the building described in the Declarations Use as a warehouse. The most we will pay for loss or Damage under this Extension is $500,000 at each building. 2) Your Business Personal Property If this policy covers Your Business Personal Property, you may extend that insurance to apply to: a) Business Personal Property, including such property that you newly acquire, at any location you acquire other than at fairs, trade shows or exhibitions; b) Business personal property, including such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations; or c) Business personal property that you newly acquire, located at the described premises. Extension is $250,000 at each building. d) This Extension does not apply to: Personal Property of others that is temporarily in your possession in the course of installing or performing work on such property; or 3) Period of Coverage Personal property of others that is temporarily in your possession in the course of your manufacturing or wholesaling activities. With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the following first occurs: a) This policy expires; b) 30 days expire after you acquire the property or begin construction of that part of the building that would qualify as covered property; or c) You report values to us. We will charge you additional premium for values reported from the date you acquire property or begin construction of that part of the building that would qualify as covered property. B) Personal Effects and Property of Others You may extend the insurance that applies to Your Business Personal Property to apply to: IIC Page 1 of 9

2 1) Personal effects owned by you, your officers, your partners or members, your managers or your employees. This extension does not apply to loss or damage by theft. The most we will pay for loss or damage in any one loss occurrence under this Extension is $500 each person, subject to a maximum of $5,000 at each premises described in the Declarations. 2) Personal Property of others in your care, custody or control. Extension is $15,000 at each described premises. Our payment for loss of or damage to personal property of others will only be for the account of the owner of the property. C) Valuable Papers and Records Cost of Research You may extend the insurance that applies to Your Business Personal Property to apply to your costs to research, replace or restore the lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. The most we will pay under this Extension is $15,000 at each described premises, unless a higher limit is shown in the Declarations. D) Property Off-Premises You may extend the insurance provided by this Coverage Form to apply to your Covered Property while it is away from the described premises, if it is: 1) Temporarily at a location you do not own, lease or operate; 2) In storage at a location you lease, provided the lease was executed after the beginning of the current policy term; or 3) At any fair, trade show or exhibition. 4) This Extension does not apply to: a) In or on a vehicle; or b) In the care, custody or control of your salespersons, unless the property is in such care, custody or control at a fair, trade show or exhibition. Extension is $15,000. E) Outdoor Property You may extend the insurance provided by this Coverage Form to apply to your outdoor fences, radio and television antennas (including satellite dishes), trees, shrubs and plants (other than stock of trees shrubs and plants), including debris removal expense, caused by or resulting from any of the following causes of loss if they are Covered Causes of Loss: 1) Fire; 2) Lightning; 3) Explosion; 4) Riot or Civil Commotion; or 5) Aircraft Extension is $10,000, but not more than $500 for any one tree, shrub or plant. These limits apply to any one occurrence, regardless of the types or number of items lost or damaged in that occurrence. F) Outdoor Signs We will pay for direct physical loss of or damage to all outdoor signs (other than signs attached to the buildings) at the premises described in the Declarations: 1) Owned by you; or 2) Owned by others but in your care, custody or control. 3) None of the exclusions in Section B. Exclusion of the Causes of Loss Special Form apply to that provided under this Extension except: a) B.1.c. Government Actions; b) B.1.d. Nuclear Hazard; and c) B.1.f. War and Military Action. 4) We will not pay for loss or damage caused by or resulting from: a) Wear and Tear; b) Hidden or latent defect; c) Rust; d) Corrosion; or e) Mechanical breakdown; Extension is $5,000. This limit applies to any one occurrence. G) Non-Owned Detached Trailers You may extend the insurance that applies to Your Business Personal Property to apply to loss or damage to trailers that you do not own, provided that: 1) The trailer is used in your business; 2) The trailer is in your care, custody or control at the premises described in the Declarations; and 3) You have a contractual responsibility to pay for loss or damage to the trailer. 4) We will not pay for any loss or damage that occurs: a) While the trailer is attached to any motor vehicle or motorized conveyance, whether or not the motor vehicle or motorized conveyance is in motion; b) During hitching or unhitching operations, or when a trailer becomes accidentally unhitched from a motor vehicle or motorized conveyance. Extension is $5,000, unless a higher limit is shown in the Declarations. This insurance is excess over the amount due (whether you can collect on it or not) from any other insurance covering such property. H) Accounts Receivable You may extend the insurance provided by this Coverage Form to apply to: 1) All amounts due from your customers that you are unable to collect; or IIC Page 2 of 9

3 2) Interest charges on any loan to offsetting amounts you are unable to collect pending our payment of these amounts; or 3) Collection expenses in excess of your normal collection expenses that are made necessary by the loss ; or 4) Other reasonable expenses that you incur to reestablish your records of accounts receivable. 5) Coverage does not apply to: a) Records of accounts receivable in storage away from the described premises shown in the Declarations; or b) Contraband, or property in the course of illegal transportation or trade. 6) The covered cause of Loss applicable to this Extension include only: a) Fire; b) Lightning; c) Explosion; d) Windstorm or Hail; e) Smoke, Riot or Civil Commotion; f) Willful and malicious vandalism g) Sprinkler leakage 7) If you give us written notice within 10 days of removal of your records of accounts receivable because of imminent danger of loss, we will pay for a loss while they are: a) At a safe place away from the described premises in the Declarations; b) Being taken to and returned from that place described in 7.a 8) Exclusions a) We will not pay for loss of or damage to accounts receivable resulting from any of the following: Delay loss of use, loss of market or any other consequential loss; Electrical or magnetic injury, disturbance or erasure of electronic recordings. (Exception: we will pay for direct loss caused by lightning). b) We will not pay for a loss of or damage to accounts receivable that requires any audit of records or any inventory computation to prove its factual existence. 9) Additional Conditions a) If you can not accurately establish the amount of accounts receivable outstanding as of the time of a loss, the following method will be used: Determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss occurs; and Adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss occurred or for any demonstrated variance from the average for that month. b) The following will be deducted from the total amount of accounts receivable however that amount is established: The amount of the accounts for which there is no loss, The amount of the accounts that you are able to re-establish; or (iii) An amount to allow for probable bad debts that you are normally unable to collect; and (iv) All unearned interest and service charges; c) You will pay us the amount of all recoveries you receive for a loss paid by us. But any recoveries in excess of the amount we have paid belong to you. Extension is $5,000 each occurrence. I) Arson Reward We will reimburse you for an arson reward that you give to someone who discloses information that leads to the conviction of a person or persons for arson at the premises described in the Declarations. The most we will pay under this extension is $5,000 each occurrence. J) Back-up of Sewers and Drains We will pay for direct physical loss or damage to Covered Property caused by or resulting from water that backs up from a sewer or drain. Exclusion B.1.g.(3) of the Causes of Loss Special Form CP1030 does not apply to this Extension. Extension is $2,500 each occurrence. K) Business Income You may extend the insurance provided by this Coverage Form to apply to Actual Loss of Business Income. The loss must be caused by direct physical loss or damage at the described premises in the Declarations, caused by or resulting from any Covered Cause of Loss. 1) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your operations during the period of restoration. The suspension must be caused by direct physical loss of or damage to property at the premises described in the Declarations including personal property at the premises in the open (or in a vehicle) within 1,000 feet caused by or resulting from any Covered Cause of Loss. 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) Extended Business Income. We will pay for the actual loss of Business Income you incur during the period that: 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 occurred; or b) 30 consecutive days after the date determined in K.3.a IIC Page 3 of 9

4 The most we will pay for loss under this Extension is $25,000 each occurrence. L) Electronic Data Processing Hardware, Data and Media You may extend the insurance that applies to Your Business Personal Property to apply to electronic data processing hardware, data, and media at the premises described in the Declarations. 1) Under this extension the following additional causes of loss are covered: a) Changes in your electrical power supply, including interruption, power surge, blackout or brownout, if the cause of such even originates 100 feet or less from the premises described in the Declarations. b) Dishonest acts committed by your employees acting alone or in collusion with other persons, except you and your partners, directors or trustees, but theft by employees is not covered. c) Dampness or dryness of atmosphere or changes in or extremes of temperature. d) Floods, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not. e) Earth movement, such as an earthquake, landslide or earth sinking, rising or shifting. 2) The exclusions listed below in Section B. Exclusions of the Causes of Loss Special Form CP do not apply to coverage provided by this Extension: a) 1.b.(1). Any earth movement, other than sinkhole collapse, such as an earthquake, landslide, mine subsidence or earth sinking, rising or shifting. b) 1.g.(1). Flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not. c) 2.a. Artificially generated electric current. d) 2.d.(7)(a)(b). Dampness or dryness of atmosphere, changes in or extremes of temperature. e) 2.h. Dishonest or criminal act. 3) We will not cover the following kinds of hardware, data, or media: a) Any data or media for which duplicates or replacements do not exist; or b) Property rented or leased to others while away from the premises described in the Declarations. 4) Hardware, Data or Media loss payment will be determined as follows: a) Hardware. We will pay the least of the following amounts: The cost of reasonably restoring that property to its condition immediately before the loss or damage; or The cost of replacing that property with identical property. However, when repair or replacement with identical property is not possible, we will pay the cost to replace that property with similar property capable of performing the same functions. b) Data. We will pay up to the actual cost incurred of reproducing the data. c) Media. We will pay to repair or replace the media with material of the same kind and quality. The most we will pay for loss of or damage to under this Extension is $15,000 each occurrence, but if the hardware, data, or media is lost or damaged while in transit or on a vehicle the most we will pay is $5,000. We will pay no more than a total of $15,000 each occurrence for this coverage when combined with Business Income, Extra Expense, Off Premises Power Direct Loss and Off Premises Power Time Element. M) Employee Dishonesty Coverage 1) We will pay for direct loss of or damage to Business Personal Property, Money and Securities resulting from dishonest acts committed by any of your employees acting alone or in collusion with other persons (except you or your partners) with the manifest intent to: a) Cause you to sustain loss or damage; and b) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotion, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment for: Any employee ; or Any other person or organization 2) We will not pay for loss or damage: a) Resulting from any dishonest or criminal act that you or any of your partners commit whether acting alone or in collusion with other persons. b) The only proof of which is to its existence or amount is: An inventory computation A profit and loss computation 3) This insurance is cancelled as to any employee immediately upon discovery by: a) You; or b) Any of your partners, officers or directors not in collusion with the employee ; of any dishonest act committed by that employee whether before or after becoming employed by you. 4) Policy Period a) The policy period is shown in the Declarations. b) We will pay only for loss or damage you sustain through acts committed or events occurring during the Policy Period. Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. Extension is $2,500 each occurrence. All loss or damage caused by one or more persons or involving a single act or series of related acts is considered one occurrence. We will only pay for covered loss or damage discovered no later than one (1) year from the end of the Policy Period. If not repaired or replaced, the property will be valued at its actual cash value. IIC Page 4 of 9

5 N) Extra Expense 1) Coverage a) We will pay the actual and necessary extra expense you sustain due to direct physical cause of loss of or damage to property at the premises described in the Declarations, including personal property in the open (or in a vehicle) within 1,000 feet, caused by or resulting from any Covered Cause of Loss. b) We will pay for the actual and necessary extra expense you incur caused by action of civil authority that prohibits access to the premises described in the Declarations due to direct physical loss of or damage to property, other than at the premises described in the Declarations, caused by or resulting from any Covered Cause of Loss. This coverage will apply for a period of up to two consecutive weeks from the date of that action. c) Extra Expense means necessary expense you incur during the period of restoration that you would not have incurred if there had been no direct physical loss or damage to the property: To avoid or minimize the suspension of business and to continue operations : (1) At the premises described in the Declarations; or (2) At replacement premises or at temporary locations, including relocation expenses; and costs to equip and operate the replacement or temporary locations. To minimize the suspension of business if you cannot continue operations. The most we will pay for loss or damage under this Extension is $25,000 in any one occurrence. O) Fine Arts You may extend the insurance provided by this Coverage Form to apply to Fine Arts owned by you and located on the premises described in the Declarations. 1) The following Exclusion is added to B. Exclusions under the Causes of Loss Special Form CP We will not pay for loss of or damage to fine arts property caused by or resulting from: a) Repairing restoration; or b) Retouching processes. 2) In the event of loss or damage we will pay the actual cash value of the item. The actual cash value will be: a) The price you paid for the item; or b) The value as determined by an appraisal of the item; or c) The value as determined by an appraisal of the item no more than 360 days prior to the date of loss or damage. In no event will the actual cash value exceed the amount necessary to repair or replace the item with substantially like property. Extension at any premises described in the Declarations is $5,000. P) Installation Coverage You may extend insurance that applies to this Coverage Form to direct physical loss or damage to your materials, supplies, machinery, fixtures, equipment and similar property of others in your care, custody and control which will become a permanent part of your installation, fabrication, or erection project. Extension is $15,000. Q) Inventory or Appraisal Cost You may extend the insurance provided by this Coverage Form to apply to the cost of any inventory or appraisal required as a result of direct physical loss or damage to covered property caused by or resulting from a covered cause of loss. Extension is $5,000 each occurrence. R) Money and Securities 1) We will pay for money and securities used in your business caused by theft (meaning any act of stealing), disappearance or destruction. The most we will pay for loss in any one occurrence under this Extension is: a) $5,000 for money and securities while inside the premises or a banking premises. b) $2,500 for money and securities while in the care and custody of a messenger. 2) Additional Exclusions applicable to money and Securities. We will not pay for loss as specified below: a) loss resulting from accounting or arithmetical errors or omissions; b) loss resulting from the giving or surrendering of property in any exchange for purpose; c) loss 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; d) loss resulting from any dishonest or criminal act committed by any of your employees, directors, trustees or authorized representatives: Acting alone or in collusion with other IIC Page 5 of 9 persons; or While performing services for you or otherwise. e) loss of property after it has been transferred or surrendered to a person or place outside the premises or banking premises. On the basis of unauthorized instructions; or As a result of a threat to do: (1) Bodily harm to any person; or (2) Damage to any property. (iii) But, this extension does not apply to loss of money or securities

6 while outside the premises or banking premises in the care and custody of a messenger if you: (1) Had no knowledge of any threat at the time the conveyance began; or (2) Had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat. f) loss resulting from your, or anyone acting on your express or implied authority, being induced by any dishonest act to voluntarily part with title to or possession of any property. 3) Additional Conditions a) The reference to money and securities in subparagraph A. Property Not Covered 2.a of the Building and Personal Property Coverage Form, CP does not apply to the coverage provided by this Extension. b) You must keep records of all money and securities so we can verify the amount of loss or damage. Subparagraph e. Increased Cost of Construction of Paragraph 4. Additional Coverages on Form CP 00 10, the Building and Personal Property Coverage Form is deleted in its entirety and replaced with extension S. Ordinance or Law of this endorsement. S) Ordinance or Law Coverage This additional coverage applies only to buildings to which the Replacement Cost Optional Coverage applies. 1) If a covered Cause of loss occurs to the covered Building Property, we will pay: a) For loss in value of the undamaged portion of the building as a consequence of enforcement of any ordinance or law that: Requires demolition of parts of the same property not damaged by a Covered Cause of loss ; Regulates the construction or repair of buildings, or establishes zoning or land use requirements at the described premises; and (iii) Is in force at the time of loss b) The cost to demolish and clear the site of undamaged parts of the property caused by enforcement of building, zoning or land use ordinance or law. c) The increased cost to: Repair or reconstruct damaged portions of that Building property; and/or Reconstruct or remodel undamaged portions of that Building property, whether or not demolition is required: When the increased cost is a consequence of enforcement of building, zoning or land use ordinance or law. d) Additional Conditions: This coverage applies only if the restored or remodeled property is intended for similar occupancy as the current property, unless such occupancy is not permitted by zoning or land use ordinance or law. We will not pay for the increased cost of construction if the building is not repaired, reconstructed or remodeled. 2) We will not pay under this coverage for the costs associated with the enforcement of any ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any way respond to, or access the effects of pollutants. 3) We will not pay the increased coverage afforded by 1.c above: a) Until the property is actually repaired or replaced, at the same or another premises; and b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. We may extend this period in writing during the two years. c) We will not pay for loss due to any ordinance or law that: You were required to comply with before the loss, even if the building was undamaged; and You failed to comply with. 4) The most we will pay under this extension is the lesser of the following: a) If the property is repaired or replaced on the same premises, the amount you actually spent to: Demolish and the clear the site; and The increased cost to repair, rebuild or reconstruct the property on the same premises and to the same height, floor area, style and comparable quality of the original property insured. b) If you elect to rebuild at another premises, the amount your actually spend to: Demolish and clear the site of the described premises; and The increased cost to repair, rebuild or reconstruct the property, but not for more than the amount it would cost to restore the property on the same premises and to the same height, floor area, style and comparable quality of the original property insured. c) If the ordinance or law requires relocation to another premises, the amount you actually spend to: Demolish and clear the site of the described premises; and The increased cost to replace the damaged or destroyed property with other property; of comparable material and quality; of the same height, floor area and style; and used for the same purpose. d) $25,000 for all loss or damage in any one occurrence. T) Property In Transit Causes of Loss Special Form CP is amended as follows: Subparagraph c. of E. Additional Coverage Extensions 1. Property in Transit of the Causes of Loss Special Form CP is amended to read as follows: c. Extension is $15,000 each occurrence. IIC Page 6 of 9

7 U) Recharging of Fire Extinguisher OTHER CONDITIONS We will pay for expenses you incur for the recharging of Fire Extinguishers made necessary by the fighting of a fire at the premises in the Declarations or adjacent to such property. Extension is $5,000 any one occurrence. V) Spoilage Coverage You may extend insurance that applies to this Coverage Form to direct physical loss or damage to perishable stock owned by you or by others that is in your care, custody and control. 1) Property located on buildings, in the open or in vehicles is not covered. 2) The Off-Premises Services exclusion in the Cause of Loss Special Form CP does not apply to this coverage. 3) The following Exclusions are added: 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. c) The inability of an Electrical Utility Company or other power source to provide sufficient power due to a lack of fuel or governmental order. d) The inability of a power source at the described premises to provide power due to lack of generating capacity to meet demand. e) Breaking of any glass that is permanent part of any refrigerating, cooling or humidity controls unit. The most we will pay for loss or damage under this Extension is $5,000 each occurrence. W) Tenant Glass 1) If glass in a building you occupy, but do not own is damaged, we will pay for direct physical loss of or damage to glass, including lettering or ornamentation, that is part of a building at the described premises. The glass must be in your care, custody or control and for which the lease holds you responsible. We will also pay for necessary: a) Expenses incurred to put up temporary plates or board up opening; b) Repair or replacement of encasing frames; and c) Expenses incurred to remove or replace obstructions. 2) We will not pay for loss or damage caused by or resulting from: a) Wear and Tear; b) Hidden or latent defect; c) Corrosion; or d) Rust 3) The most we will pay for loss or damage in any one occurrence under the Additional Coverage is $500 per pane up to $2,500 per occurrence. The amount payable under this Additional Coverage is additional insurance. A) Each of these Extensions is additional Insurance. 1) The Additional Condition, Coinsurance, does not apply to these Extensions. 2) Insurance under Two or More Coverages: a) The following is added to Paragraph C. Insurance under Two or More Coverages of the Commercial Property Conditions. (1) If a Coverage Form is attached to this policy that provides coverage for any of the Extensions provided by this endorsement and a limit is shown in the Declarations, then the coverage provided by this endorsement is deleted and replaced by the limits and coverage provided by the Coverage Form. 3) The valuation (Replacement Cost or Actual Cash Value) of each of these Extensions and additional coverages will be the same as the valuation of the corresponding building or business personal property in the description of the premises. B) Deductibles 1) The Deductible described in Section D. of the Building and Personal Property Coverage Form, CP 00 10, does not apply to this endorsement and is replaced by the following: 2) We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the deductible shown in the Declarations for the described premises. We will then pay the amount of the loss of or damage to property in the excess of that deductible, up to the applicable Limit of Insurance for the following Coverage Extensions: a) Newly Acquired or Constructed Property 3) We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds $500. We will then pay the amount of loss or damage in excess of $500 up to the applicable Limit of Insurance for the following Coverage Extensions: A) Personal Effects and Property of Others; B) Valuable Papers and Records Cost of Research; C) Property Off Premises; D) Outdoor Property; E) Outdoor Signs; F) Non-Owned Detached Trailers; G) Accounts Receivable; H) Back-up of Sewers and Drains; I) Business Income; J) Electronic Data Processing Hardware, Data and Media; K) Employee Dishonesty; L) Extra Expense; M) Fine Arts ; N) Installation; O) Money and Securities ; P) Ordinance or Law Coverage; IIC Page 7 of 9

8 Q) Property in Transit; R) Spoilage Coverage 4) No deductible provision applies to the following Extensions: A) Arson Reward; B) Inventory of Appraisal Cost C) Recharging of Fire Extinguishers C) Additional Definitions The following Additional Definitions apply to this endorsement only: 1) Banking Premises means the interior of that portion of any building occupied by a banking institution or similar safe depository. 2) Criminal Act means an act arising out of the willful violation of a penal statute or ordinance committed by or with the consent of the insured. 3) Employee a) Employee means : Any natural person: (1) While in your service for 30 days after termination of service; (2) Who you compensate directly by salary, wages or commissions; and (3) Who you have the right to direct and control while performing services for you; Any natural person who is furnished temporarily to you: (1) To substitute for a permanent employee as defined in Paragraph (1) above, who is on leave; or (2) To meet seasonal or short-term work load conditions; While that person is subject to your direction and control and performing services for you, excluding, however, any such person while having care and performing services for you, excluding, however, any such person while having care and custody of property outside the premises ; (iii) Any natural person who is leased to you under a written agreement between you and a labor leasing firm, to perform duties related to the conduct of your business, but does not mean a temporary employee as defined in Paragraph (2) above; (iv) Any natural person who is: (1) A trustee, officer, employee, administrator or manager, except an administrator or manager who is an independent contractor, of any employee benefit plan(s) insured under this insurance; and (2) Your director or trustee while that person is handling funds or other property of any employee benefit plan(s) insured under this insurance. (v) (vi) Any natural person who is a former employee, director, partner, member, manager, representative or trustee retained as a consultant while performing services for you; or Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such person while having care and custody of property outside the premises. (b) Employee does not mean: Any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character; or Any manager, director or trustee except while performing acts coming within the scope of the usual duties of an employee. 4) Employee benefits plan(s) means any welfare or pension benefit plan shown in the Declarations that is subject to the Employee Retirement Income Security Act of 1974 (ERISA). 5) Fine Arts means paintings, etchings, pictures, tapestries, art glass windows, valuable rugs, statuary, marble, bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass, bric-a-brac, and similar property of rarity, historical value or artistic merit. 6) Funds means money and securities. 7) Loss means accidental loss or damage. 8) Manager means a person serving in a directorial capacity for a limited liability company. 9) Member means an owner of a limited liability company represented by its membership interest, who also may serve as a manager. 10) Messenger means you, any of your partners or any employee while having care and custody of property outside the premises. 11) Money means: a) Currency, coins and bank notes whether or not in current use; and b) Traveler s checks, registered checks and money orders held for sale to the public. 12) Occurrence as used in the Money and Securities Extension means an act or series of related acts involving one or more persons; or an act or event, or a series of related acts or event not involving any person. 13) Operations means business activities occurring at the address in the Declaration that you occupy for your business. 14) Other property means any tangible property other than money and securities that has intrinsic value but does not include any property excluded under this insurance. 15) Period of Restoration means the period of time that: a) 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 b) Ends on the date when the property at the described premises should be repaired, rebuilt IIC Page 8 of 9

9 or replaced with reasonable and similar quality. Period of Restoration does not include any increased period required due to the enforcement of any ordinance or law that required any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or access the effects of pollutants. 16) Perishable Stock means personal property: a) Maintained under controlled conditions for its preservation; and b) Susceptible to loss or damage if the controlled conditions change. 17) Premises as used in Money and Securities Extension means the interior of that portion of any building you occupy conducting your business. 18) Securities means negotiable and non-negotiable instruments or contracts representing either money or other property include: a) Tokens, tickets, revenue and other stamps whether or not in current use; and b) Evidences of debt issued in connection with credit or charge cards, which are not or your own issue but does not include money. 19) Valuable Papers and Records means the following type of property that is your property or property of others in your care, custody and control: a) Inscribed, printed or written: Documents; Manuscripts; and (iii) Records, including abstracts, books, deeds, drawings, films, maps or mortgages. b) But, Valuable Papers and Records does not mean: Money or Securities (iii) Converted data; Programs or instructions used in your data processing operations, including the materials on which the data is recorded. All other conditions of this policy apply. IIC Page 9 of 9