Business Owners Program Arizona 2016 STILLWATER INSURANCE GROUP

Transcription

1 Business Owners Program Arizona 2016 STILLWATER INSURANCE GROUP

2 Business Owners Program (BOP) Arizona Table of Contents About Stillwater Insurance What s New Contact Information Claims Procedure Contact Numbers Letter of Experience Verification Submit Authority Policy Submission How to Start a Quote Quote User Interface Tutorial Customer Service Customer Service Rep role Commercial Underwriting referrals Business Owner Policy Coverage Building Coverage Business Personal Property (BPP) Business Income and Extra Expense Liability Medical Payments Defense Costs Tenants Fire Liability s Mandatory Forms Coverage and Limits Base Policy Coverage Base Policy Additional Property Coverages Base Policy Coverage Extensions Property and Liability Endorsements Property Coverages Liability Coverages Additional Insured Applicable to Specific Classes Eligibility Grocery Stores and Supermarkets Processing and Service Risks Offices Self-storage Facilities Wholesale Risks Limited Cooking Restaurants Fast Food Restaurants Casual Dining Restaurants Fine Dining Restaurants Contractors Apartments Motels Convenience Food Stores Beauty & Nail Salon Coverage Underwriting Guidelines Insured/Applicant Amount of Insurance Structure Loss History Exposures Named Storm and Wildfire Underwriting Procedures Underwriting Tiers Miscellaneous Rules Policy Term Policy Minimum Premium Additional Premium Changes Insured Request Cancellation Inflation Guard Expense Fee / Policy Fee Inspections Lessors Risk with Multiple Occupants Discounts Payments Pay Plans Installment Fees Non Payment Cancel/Reinstatement BOP FIRST Service Features Billing Notes Policy History External PG Updated STILLWATER INSURANCE GROUP

3 About Stillwater Insurance Group 1 Stillwater Insurance Group consists of: Stillwater Insurance Company Stillwater Property and Casualty Insurance Company Stillwater Insurance Services, Inc. 1 Copyright 2016 Stillwater Insurance Group all rights reserved. Stillwater Insurance Group, Stillwater 3 Insurance Services, Inc. and their logos are registered trademarks of Duval Holdings, Inc. We re committed to helping agencies grow with stable, easy-to-sell products carrying an A.M. Best A- Excellent rating; accurate rates; and, 5 exceptional service. 3

4 What s New? What s New? Important Updates are archived on FIRST and provide information on system changes to FIRST. Click here to view the Important Updates Archive. 4

5 Contact Information Contact Information Underwriting & Submissions Phone: Fax: Service Hours Customer Service Representatives are available to meet your service needs and for technical assistance: Monday - Friday 8:00am - 9:00pm Eastern, and Saturday 8:00am 3:00pm Eastern. Service & Endorsements Phone: Fax: commercial@stillwater.com Mailing Address Stillwater Insurance Group P.O. Box Jacksonville, FL Physical Address (for Overnight deliveries) Stillwater Insurance Group 4905 Belfort Rd, STE 110 Jacksonville, FL Claims Toll Free: Fax Number: claims@stillwater.com Claims Mailing Address Stillwater Insurance Group I Street, STE 100 Omaha, NE

6 Claim Procedures Claims Procedure All claims should be immediately reported to Stillwater Claims Service. For fast claims service, and to completely eliminate your time involved in processing claims forms, please instruct your insureds and claimants to call our claims department directly. Remember, you have no claims settlement authority. Claims Contact Numbers: Phone Fax General Information: Toll-free Claims: Stillwater Staffed:: Monday - Friday 8:00am - 8:00pm ET Saturday 9:00am - 6:00pm ET After hours, Lynx Services LLC answers the line taking first notice of losses and providing limited remediation guidance (in the event of water damage, etc.). Note, they cannot verify coverage. Lynx Services LLC is available 24/7. If there is a severe emergency or loss, Lynx Services can put a Stillwater adjuster in touch with your client. We offer a translation service including dozens of languages such as Hmong, Farsi, Punjabi, Mandarin, Cantonese and Vietnamese. Letter of Experience(LOE) Stillwater Insurance is able to provide a letter that shows the insured s Loss History while insured with Stillwater Insurance Group. Send requests to: LOE@stillwater.com or via fax: Please include policy numbers. Allow hours to process. Letters of Experience will be ed. Include other party contact information, if an LOE needs to be sent to others. 6

7 Verification Verification As a part of new business process we may utilize third-party data sources to provide or verify information, including: Public Records Data NCF National Credit File. This helps determine Insurance Bureau Score(IBS). Our quote process recognizes underwriting issues in turn it may create an underwriting referral or may result in certain risks being declined based upon eligibility or acceptability rules. File Maintenance and Audit Requirements Producers are required to maintain relevant documentation for a period of seven years after policy expiration. Agents should expect occasional file audits to confirm required signatures and agency file documentation. Namely, these documents are required to be maintained in agency records: Signed applications Signed EFT Authorization when this pay plan is used Letters of Experience related to claims. Copy of support documents for discounts Contact customer service at if you have questions with respect to report information. 7

8 Submit Authority/Policy Submission Submit Authority Submit authority (or binding authority) may be suspended for new business submissions or requests for increased coverage endorsements during periods of imminent danger from natural disasters, or when the National Weather Service has issued a severe weather warning. Types of natural disasters include, but are not limited to, Earthquake, Earth movement (landslide, mudslide, sinkhole, etc.), Wild Fire, Hurricane, Tropical Storm, Tornado, and Flood. We reserve the right to suspend submission authority as we deem fit, and as allowed by state regulations and emergency orders. In the event of such suspension, we will issue a moratorium on FIRST. During moratoriums no new business or increased coverage endorsements may be submitted. Application Submission FIRST is a real-time Quoting and Underwriting system designed to assist our Producers in quoting and issuing insurance policies. This system provides an easy way of doing business by indicating whether risks are eligible and allows producers to instantly issue policies. Risk Acceptability Responses to questions during quoting will determine if there are underwriting eligibility conflicts. Producers do not have authority to submit coverage for any property exhibiting a conflict with underwriting rules. We may be contacted for prior approval regarding acceptability in gray areas. Policy submission is subject to acceptance of the risk based on our product design and regulatory filings. Requests or questions should be ed to commercial@stillwater.com. Submitting Policies are only valid when they are issued on FIRST with a policy number. Click below for information on starting a Quote on FIRST: How to Start a BOP Quote 8

9 Start a Business Owners Quote How to Start a Business Owners Quote Click on New Business Owners Quote and then enter the zip code of the business location. 9

10 Customer Service Role Customer Service Scope Customer Service provides Commercial Lines support via phone at or using our online chat capability within the quoting system. All CSRs are able to respond to calls and chats. CSR Role CSRs have authority to help with the following: Procedures 1. Billing answer inquiries, accept payments, resolve billing issues 2. Acceptability & Eligibility advise agents on qualification rules for acceptable business 3. On-line Business Class Selection assist with business class selection and rating questions. 4. Coverage & Endorsements answer questions about optional coverages and endorsements. CSRs will not process changes to policies or make coverage recommendations. Requests for that type of information should be sent to 5. FIRST User Interface Functions guide users through screens and fields in our quoting tool. CSRs may only speak with agents, applicants and policyholders all other callers will be referred to agents. Calls will be transferred to the Commercial Underwriters if questions or service requests exceed CSR roles above. If a Commercial team member is not available, CSRs ensure that the team is notified that the agent needs assistance. s sent to commercial@stillwater.com should include: 1. Contact information agent name, agency name, agent phone number and agent address. 2. Policyholder s name 3. Quote or policy number 4. Description of question/request with appropriate details 5. Desired outcome 10 Updated

11 BOP Core Coverages Building Coverage Business Personal Property (BPP) Liability Coverage for the buildings/structures identified in the declarations, as well as fixtures, permanently installed machinery and equipment, outdoor signs attached to buildings, etc. Stillwater BOP cannot provide coverage for multiple buildings on the same policy at this time. This is a system constraint multiple policies may be written to accommodate these risks. Each building/structure has its own limit of insurance, reflecting 100% of its replacement cost. Not every business will need Building Coverage. For example, a tenant that leases their building or business space would likely not need to insure the building. BOPs may be issued without Building Coverage, but must have BPP coverage. Minimum BPP coverage allowed is $2,000. Outdoor Property Fences, antennas, signs not attached to buildings have a sublimit of $2,500. Shrubs/trees/plants covered to a $1,000 sublimit. 11 Coverage for the personal property used in the business, as well as property of others in the insured s care, leased personal property the insured is contractually responsible to insure, etc. The limit of insurance should reflect 100% of the replacement cost of the personal property being insured. The BPP or Contents Coverage Limit of Indemnity is based on the replacement cost of the contents. The coverage amount is NOT based on a percentage of the Building Coverage Note: Not every business will need BPP Coverage. For example, a landlord that leases the building to a tenant may not need to insure any personal property. A Stillwater BOP must have at least one of the following: Building or BPP coverage; it cannot have neither. If a policy does not have Building coverage, the minimum limit of insurance for BPP is $2,000 Covers damages for which the insured is legally liable subject to a per occurrence limit and a per policy period aggregate limit. Available occurrence limits are $300K, $500K, $1M, and $2M. The per policy period aggregate limit is two times the occurrence limit and applies separately for claims from the products-completed operations hazard* and for claims from all other covered liability hazards Example: An insured purchases an occurrence liability limit of $300K. That means their Products-Completed Operations Aggregate Limit is $600K and their General Liability Aggregate Limit is $600K. This is expressed as 300/600/600. Business Income and Extra Expense s Medical Payments Coverage for loss of Business Income resulting from suspension of business operations due to direct damage from a covered loss to property at the insured premises and/or for expenses incurred in an effort to avoid or minimize the suspension of business operations is included with every policy. There is no dollar limit; in general, coverage exists for 12 months from the date of damage. The base property deductible is $1,000 which may be increased to $2,500, $5,000, or $10,000. Optional Windstorm/Hail percentage deductibles of 1%, 2%, and 5% are available. Three months into the policy period, they have a productscompleted operations claim with damages of $500K. Since the per occurrence limit is only $300K, we would only pay $300K for that claim. This also means that they only have $300K for the rest of the policy period to cover any future products-completed operations related claims. However, they still have $600K that can be used for any other type of covered liability claim (subject to the $300K per occurrence limit). $10K per person for injuries on the insured s premises or involving the insured s operations regardless of fault. Defense Costs Coverage for cost of defending lawsuits for covered damages. There is no dollar limit; however, we do not owe for additional defense costs once the applicable liability limit has been exhausted by payment of judgements or settlements. Tenants Fire Liability $50K in coverage for property damage by fire to a premises rented by the insured with increased limits of $100K and $300K available.

12 Mandatory Forms, Coverage, & Limits Mandatory Forms Coverages & Limits: In addition to the main coverages, the following coverages are included in the Business Owners Policy at no additional premium (except where noted below): Please click on a link to view a brief Mandatory Form description. Note: The descriptions of coverage are not intended to be complete. Please refer to the policy and endorsements for complete descriptions of each coverage. Business Owners Coverage Form Exclusion Access or Disclosure of Confidential or Personal Information and Data-related Liability Exclusion of Loss Due to By-products of Production or Processing Operations Endorsement Exclusion - Punitive Damages Exclusion Employment Related Practices Arson Reward Lock Replacement Cap on Losses from Certified Acts of Terrorism Primary and Noncontributory Other Insurance Conditon * Contractors' Installation, Tools and Equipment Coverage Endorsement ** Condominium Commercial Unit-Owners Coverage *** Self-Storage Facilities Endorsement * When insuring eligible contractor risks, this Endorsement must be attached. Subject to additional premium. ** When insuring eligible commercial condominium unit owners, this Endorsement must be attached *** When insuring eligible self-storage facility risks, this Endorsement must be attached. No additional premium for the Base Coverage. 12

13 Mandatory Forms, Coverage, & Limits Business Owners Coverage Form: (BP 00 03) Property Coverage Coverage is provided for direct physical loss or damage to Building and/or Business Personal Property, as well as for Business Income and Extra Expense. Liability and Medical Expenses Coverage Liability and Medical Expenses Coverage is provided on a comprehensive occurrence basis for all operations and premises owned, operated or leased by the insured. Coverage includes Bodily Injury, Property Damage, Medical Expenses (subject to an additional "per person" limit), Personal and Advertising Injury and Tenant's Fire Liability Coverage (subject to a separate limit). Limits of Insurance Liability and Medical Expenses Coverage is provided at a basic limit of insurance of $300,000 per occurrence which may be increased to either $500,000, $1,000,000, or $2,000,000. An aggregate limit of twice the per occurrence limit applies for all hazards other than Products-Completed Operations. An aggregate limit of twice the per occurrence limit applies separately for Products-Completed Operations hazard. Tenant's Fire Liability Coverage is provided at a basic limit of $50,000, with increased limits of $100,000 and $300,000 available, and is a separate limit. A "per person" Medical Expenses limit of $10,000 applies which may be decreased to $5,000. s The base property deductible is $1,000 which may be increased to $2,500, $5,000, or $10,000. The policy s property deductible is applicable to all property coverages unless otherwise noted in the description for a specific coverage. There is no deductible for liability coverages unless otherwise noted in the description for a specific coverage. Optional Windstorm/Hail percentage deductibles of 1%, 2%, and 5% are available. (Use SB for Wind/Hail deductibles) Exclusion Access or Disclosure of Confidential or Personal Information and Data-related Liability (BP or BP 15 06) s Exclusion Access or Disclosure of Confidential or Personal Information and Data-related Liability Limited Bodily Injury Exception Not Included Endorsement: (BP 15 05) - This endorsement excludes liability arising out of any access to or disclosure of any person's or organization's confidential or personal information. Exclusion Access or Disclosure of Confidential or Personal Information (Personal and Advertising Injury Only) Endorsement: (BP 15 06) - This endorsement excludes liability arising out of any access to or disclosure of any person's or organization's confidential or personal information only with respect to personal and advertising injury. Note/Rule BP should be attached to all policies unless Electronic Data Liability Broad Coverage BP is attached to the policy; in which case BP should be attached in lieu of BP Premium Modification There is no premium impact associated with either of these. Exclusion of Loss Due to By-products of Production or Processing Operations Endorsement: (SB 04 17) This endorsement explicitly excludes coverage for Property Damage or Business Interruption resulting from any substance released in the course of production or processing operations. SB must be attached to all policies. Premium Modification There is no premium impact associated with this endorsement. 13 Back to Mandatory Form Menu

14 Mandatory Forms, Coverage, & Limits Exclusion - Punitive Damages: (SB 04 03) This endorsement explicitly excludes coverage for punitive or exemplary damages imposed on any insured. SB must be attached to all policies. Premium Modification There is no premium impact associated with this endorsement. Exclusion Employment Related Practices: (BP 04 17) This endorsement explicitly excludes coverage bodily injury and personal injury arising out of employment-related practices. BP must be attached to all policies. Premium Modification There is no premium impact associated with this endorsement. Arson Reward: (SB 04 02) Coverage is provided for the payment of a reward on the named insureds behalf for information leading to an arson conviction in connection with a fire at a covered property, subject to a limit of 10% of the amount paid for the direct physical loss, or damage to, the covered property up to a maximum of $10,000. SB must be attached to all policies. Premium Modification There is no premium impact associated with this endorsement. Note: Do not attach SB if BP (Restaurants) is attached. Lock Replacement: (SB 04 06) $1,000 of coverage is provided for the cost of replacing locks on an insured premises made necessary by a lost or stolen key. SB must be attached to all policies. Premium Modification There is no premium impact associated with this endorsement. Note: Do not attach SB if BP (Restaurants) is attached. Cap on Losses from Certified Acts of Terrorism: (BP and BP 05 15) BP specifies that covered losses resulting from certified acts of terrorism are subject to the statutory cap on liability for losses as established by the Terrorism Risk Insurance Act (TRIA). BP discloses information related to the Terrorism Risk Insurance Act. BP and BP must be attached to all policies. Premium Modification There is no premium impact associated with these endorsements. Primary and Noncontributory Other Insurance Condition: (BP 14 88) BP provides that the coverage made available to an additional insured will be provided on a primary and noncontributory basis. Premium Modification There is no premium impact associated with this endorsement. 14 Back to Mandatory Form Menu

15 Mandatory Forms, Coverage, & Limits Contractors' Installation, Tools and Equipment Coverage Endorsement: (SB 04 11) When insuring eligible contractor risks, Endorsement SB must be attached. Coverage includes the following: Contractors Installation Coverage extends the insurance that applies to business personal property to apply to contractors' materials, supplies, equipment, machinery, fixtures and temporary structures while at any job site not owned, leased or operated by the insured contractor, awaiting and during installation, or awaiting acceptance by the purchaser, in transit, or at a temporary storage location. Contractors Tools and Equipment Coverage - extends the insurance that applies to business personal property to apply to contractors' tools and equipment owned by the insured while temporarily at a premises not owned, leased or operated by the insured or while in transit. This coverage also applies to non-owned tools and equipment the insured leases for a term of six months or more. Non-Owned Tools and Equipment Coverage provides coverage for nonowned tools and equipment leased or rented from others (other than employees' tools) that are in the insured's care, custody or control. This coverage does not apply to non-owned tools and equipment leased for a term of six months or more. Employees Tools Coverage provides coverage for employees' tools which are used in connection with the operations of the insured. Limits of Insurance Contractors Installation Coverage: o Property at each covered job site: $25,000 o Property at all covered job sites combined: $75,000 o Property in transit: $5,000 o Property at a temporary storage location : $5,000 Contractors Tools and Equipment Coverage: $25,000 o Sublimit for any one tool or piece of equipment is $2,000 Non-Owned Tools and Equipment Coverage: $25,000 Employees Tools Coverage: $10,000 o Sublimit for tools of any one employee is $100 per tool and $500 for all tools of any one employee. Policy s property deductible is applicable. Premium is dependent on the policy s property deductible. 15 Back to Mandatory Form Menu Condominium Commercial Unit-Owners Coverage (BP 17 02) Coverage is provided for commercial condominium unit owners. There is no premium associated with this endorsement. Note When insuring eligible commercial condominium unit owners BP must be attached. Self-Storage Facilities Endorsement: (BP 07 12) When insuring eligible self-storage facility risks, Endorsement BP must be attached. This endorsement revises several provisions of the property and liability coverages as follows: Property Coverage- This endorsement adds Accrued Rental Charges as a component of Business Income Coverage and amends the Employee Dishonesty coverage (if applicable) to include personal property of your customers. Liability Coverage -This endorsement provides coverage for Customers' Goods Legal Liability and coverage for Sale and Disposal Liability. Exclusions specific to these coverages are added. The pollution exclusion is also amended to exclude pollutants brought onto the location by customers. Any loss covered under Section I Property is excluded. Limits of Insurance A $25,000 annual limit applies to the Sale and Disposal Liability coverage, while the insured must choose a per occurrence limit between $50,000 and $100,000 for the Customers Goods Legal Liability coverage. A $250 per occurrence deductible applies to the Customers Goods Legal Liability coverage. No premium impact for the base limits ($25,000 for Sale and Disposal and $50,000 for Customers Goods). There is only a premium impact if a limit greater than $50,000 is chosen for Customers Goods, and then the premium is dependent on the amount over $50,000 chosen.

16 Base Policy Coverage Base Policy Coverage The following coverages are included in the Base Policy. Coverage is provided for no additional premium. Please click on a link to view a brief coverage description. Note: The descriptions of coverage are not intended to be complete. Please refer to the policy and endorsements for complete descriptions of each coverage. Base Policy Additional Property Coverage Debris Removal Limited Coverage for Fungi, Wet or Dry Rot Preservation of Property Fire Department Service Charge Collapse Coverage Water Damage, Other Liquids, Powder, or Molten Material Damage Business Income Ordinary Payroll Business Income Extended Period of Indemnity Extra Expense Pollutant Clean-Up and Removal Civil Authority Money Orders and Counterfeit Money Forgery or Alteration Increased Cost of Construction Business Income from Dependent Properties Glass Expense Fire Extinguisher System Recharge Electronic Data Damage Interruption of Computer Operations Base Policy Coverage Extensions - Property and Liability Coverage Extensions Property Newly Acquired or Constructed Property Buildings Newly Acquired or Constructed Property Business Personal Property Personal Property Off-Premises Outdoor Property Personal Effects Valuable Papers and Records Accounts Receivable Business Personal Property Temporarily in Portable Storage Units Coverage Extensions Liability Supplementary Payments 16

17 Base Policy Additional Property Coverage Debris Removal: Coverage is provided for removal of debris that is caused by or results from a covered cause of loss at a limit of 25% of the sum of the deductible plus the amount paid for the direct physical loss or damage to the covered property. However, if the combined amounts of the direct physical loss or damage and the debris removal exceed the limit of insurance, an additional amount of up to $25,000 for Debris Removal is available. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Limited Coverage for Fungi, Wet or Dry Rot: $15,000 (per year aggregate) of coverage for loss or damage from fungi, wet rot, or dry rot when the loss or damage is the result of a specified cause of loss other than fire or lightning that occurs during the policy period. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Preservation of Property: Coverage is provided to covered property that suffers direct physical loss or damage while it is being moved or while temporarily stored at another location, when it was necessary to move that property to preserve it form loss or damage by a covered cause of loss. Loss or damage must occur within 30 days after the property is first moved. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Fire Department Service Charge: $2,500 (at each premises) of coverage for fire department service charges is provided in the base Business Owners coverage form. Increased limits are not offered. No deductible applies. No additional premium as the only coverage is provided via the base policy. Collapse Coverage: Coverage is provided for direct physical loss or damage to covered property (building and/or personal property) from the collapse of a building or a part of a building The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Water Damage, Other Liquids, Powder, or Molten Material Damage: Coverage is provided for the cost to tear out and replace any part of the building or structure in order to repair damage to a system from which water or other substance escaped, when there is a covered loss caused by such substance. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. 17 Back to Base Coverage Menu

18 Base Policy Additional Property Coverage Business Income Ordinary Payroll: 60 days of coverage for ordinary payroll expenses is provided in the base Business Owners coverage form. Additional days of coverage are not offered. No dollar deductible applies; however a 72 hour time deductible is applicable. No additional premium as the only coverage is provided via the base policy. Business Income Extended Period of Indemnity: 60 days of coverage for loss of business income that follows the insured s resumption of operations is provided in the base Business Owners coverage form. Additional days of coverage are not offered. No dollar deductible applies; however a 72 hour time deductible is applicable. No additional premium as the only coverage is provided via the base policy. Extra Expense: 12 months of coverage is provided for certain extra expenses incurred in an effort to avoid or minimize the suspension of business following physical loss or damage to property at the described premises. This coverage is not subject to the limits of insurance. No deductible applies. No additional premium as the only coverage is provided via the base policy. Pollutant Clean-Up and Removal: $10,000 (per year) of coverage is provided for expenses to extract pollutants from land or water at the described premises, if the discharge of the pollutants is a result of a covered cause of loss occurring during the policy period. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Civil Authority: 4 weeks of Business Income and Extra Expense coverage is provided for an action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to the property, other than at the described premises, caused by or resulting from any covered cause of loss. No dollar deductible applies; however a 72 hour time deductible is applicable for Business Income. No additional premium as the only coverage is provided via the base policy. Money Orders and Counterfeit Money: $1,000 of coverage is provided for loss resulting from the insured accepting counterfeit money and/or money orders that are not paid upon presentation. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. 18 Back to Base Coverage Menu

19 Base Policy Additional Property Coverage Forgery or Alteration: $2,500 of coverage for loss due to forgery or alteration of any check, draft, promissory note, bill of exchange, etc. issued by the insured or someone impersonating the insured, or by the insured s agent or someone impersonating the insured s agent is provided in the base Business Owners coverage form. Optional higher limits of $5,000, $10,000, $25,000, or $50,000 are available. $500 optional coverage deductible applies. Additional premium is dependent on the limit of insurance selected. No additional premium for the $10,000 that is provided via the base policy. Dependency 1. Optional increased limits for Forgery or Alteration Coverage may be selected only if optional Employee Dishonesty Coverage is also selected. 2. The optional increased limit selected for Forgery or Alteration Coverage and the optional increased limit for Employee Dishonesty Coverage must be the same. Increased Cost of Construction: $10,000 of coverage is provided for increased costs incurred to comply with the minimum standards of an ordinance or law. This coverage only applies to costs related to damaged property; it does not cover demolition or repairs to any undamaged property. Policy must have Building coverage for this coverage to apply. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Business Income from Dependent Properties: $5,000 of coverage for the loss of business income due to physical loss or damage at the premises of a dependent property is provided in the base Business Owners coverage form. Increased limits are not offered. No dollar deductible applies; however a 72 hour time deductible is applicable. No additional premium as the only coverage is provided via the base policy. Glass Expense: Coverage is provided for the expense of putting up temporary plates or boarding up openings when repair or replacement of damaged glass is delayed and/or the expense of removing or replacing obstructions in order to repair/replace damaged glass. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Fire Extinguisher System Recharge: $5,000 of coverage is provided for the cost of recharging or replacing fire extinguishers and/or fire extinguishing systems that have been discharged, as well as for loss or damage to covered property occurring as a result of an accidental discharge of a fire extinguisher or fire extinguishing system. No deductible applies. No additional premium as the only coverage is provided via the base policy. 19 Back to Base Coverage Menu

20 Base Policy Additional Property Coverage Electronic Data Damage: Electronic data (other than electronic data which is integrated in and operates or controls the building's elevator, lighting, heating, ventilation, air conditioning or security system) is Property Not Covered, except as provided under this Additional Coverage, which provides coverage for the cost to replace or restore electronic data that has been destroyed or corrupted by a Covered Cause Of Loss. Coverage is subject to an annual aggregate limit of $10,000. The aggregate limit is the maximum payable in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved. The Additional Coverage Electronic Data does not apply to electronic data which is integrated in and operates or controls a building's elevator, lighting, heating, ventilation, air conditioning or security system, because such electronic data is Covered Property as part of coverage on the building. Increased limits are not offered. Policy must have BPP coverage for this coverage to apply. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Interruption of Computer Operations: $10,000 of coverage for Business Income and Extra Expenses applicable to loss sustained in a suspension of operations due to destruction or corruption of electronic data by a Covered Cause of Loss is provided in the base Business Owners coverage form. The aggregate limit is the maximum payable in any one policy year, regardless of the number of interruptions or the number of premises, locations or computer systems involved. This coverage does not apply when loss or damage to electronic data involves only electronic data which is integrated in and operates or controls a building's elevator, lighting, heating, ventilation, air conditioning or security system, because such electronic data is Covered Property as part of coverage on the building. Increased limits are not offered. Policy must have BPP coverage for this coverage to apply. No dollar deductible applies; however a 72 hour time deductible is applicable for Business Income (not Extra Expense). No additional premium as the only coverage is provided via the base policy. 20 Back to Base Coverage Menu

21 Base Policy Coverage Extensions Property Newly Acquired or Constructed Property - Buildings: $250,000 of temporary property coverage for new buildings while being built on the described premises and/or buildings acquired at a premises other than one that is described on the declarations; as long as the acquired building is intended for a similar use as that of the building described in the declarations or is intended for use as a warehouse. This temporary coverage expires 30 days after the acquisition of the property or 30 days after the beginning of construction. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Newly Acquired or Constructed Property Business Personal Property: $100,000 of temporary property coverage for Business Personal Property at newly acquired premises and/or at newly constructed or acquired buildings at a premises described in the declarations. This temporary coverage expires 30 days after the acquisition of the property or 30 days after the beginning of construction. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Personal Property Off-Premises: $10,000 of property coverage for covered property (other than money, securities, valuable papers and records, or accounts receivable) while it is in the course of transit or at a premises that the insured does not own, lease, or operate. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Outdoor Property: $2,500 of coverage for outdoor property is provided under the Coverage Extensions Section of the Business Owners Coverage Form. Increased limits are not offered. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Personal Effects: $2,500 of property coverage for personal effects owned by the insured and/or an officer, partner, employee, etc. of the insured. Tools or equipment used in the insured s business and/or loss or damage by theft is not covered. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Valuable Papers and Records: $10,000 of on-premises coverage and $5,000 of off-premises coverage is provided for valuable papers and records owned by the insured or in the insured s care, custody, or control. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. 21 Back to Base Coverage Menu

22 Base Policy Coverage Extensions Property / Liability Coverage Extensions Property (cont.): Accounts Receivable: $10,000 of on-premises and $5,000 of off-premises coverage is provided for loss or damage to the insured s records of accounts receivable. Increased limits (on-premises only) of $25,000, $50,000, and $100,000 are available for additional premium. Policy must have BPP coverage for this coverage to apply. The policy's property deductible, shown in the Declarations, applies. Additional premium is dependent on the limit of insurance selected. No additional premium for the $10,000 that is provided via the base policy. Business Personal Property Temporarily in Portable Storage Units: $10,000 of coverage is provided for Business Personal Property temporarily stored in a portable storage unit located within 100 feet of the described premises. This coverage is only valid for the first 90 days that the storage unit is in place. Increased limits are not offered. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. Coverage Extension Liability: Supplementary Payments: The following liability costs and/or expenses are in addition to the limit of insurance. All expenses that we (the insurer) incur in defending a claim or suit against the insured. Up to $250 for cost of bail bonds required because of accidents or traffic violations arising out of the use of vehicles to which BI Liability coverage applies. The cost of bonds to release attachments. Reasonable expenses the insured incurs at our (the insurer) request to assist in the investigation of defense of a claim or suit. This includes up to $250/day for time off from work. All court costs taxed against the insured in a suit, not including attorneys fees or attorneys expenses taxed against the insured. Prejudgment interest awarded against the insured. However, when an offer is made to pay the Limit of Insurance, prejudgment interest will not be paid for the period after that offer. Interest that accrues between the time a judgment is entered and subsequently paid. The policy's property deductible, shown in the Declarations, applies. No additional premium as the only coverage is provided via the base policy. 22 Back to Base Coverage Menu

23 Endorsements Endorsements All Endorsements to existing policies must be requested via fax or The following Endorsements are available depending on the class of Business. Coverage can be purchased for additional premium. Please click on a link to view a brief coverage description. Fax: commercial@stillwater.com Note: The descriptions of coverage are not intended to be complete. Please refer to the policy and endorsements for complete descriptions of each coverage. Property Coverages Liability Coverages Additional Insured Specific Classes Outdoor Signs Money and Securities Employee Dishonesty Equipment Breakdown Computer Fraud and Funds Transfer Fraud Coverage Loss Payable Clauses Ordinance or Law Spoilage Coverage Utility Services Coverage Vacancy Permit Coverage Identity Fraud Expense Coverage Fine Arts Coverage Water Back-up and Sump Overflow Increased Cost of Loss and Related Expenses for Green Upgrades Wind/Hail Exclusion Condo Commercial Unitowners Optional Coverages Abuse or Molestation Exclusion Electronic Data Liability Broad Coverage Employee Benefits Liability Exclusion-Personal and Advertising Injury Hired Auto and Non-owned Auto Liability Employment-related Practices Liability Limitation of Coverage to Designated Premises or Project Exclusion Products Completed Operations Exclusion Personal and Advertising Injury Lawyers Liquor Liability Managers or Lessors of Premises Mortgagee, Assignee, or Receiver Co-owner of Insured Premises Lessor of Leased Equipment Vendors Designated Person or Organization Grantor of Franchise Executors, Administrators, Trustees, or Beneficiaries Barber Shops and Hair Salons Professional Liability Beauty Salons Professional Liability Funeral Directors Professional Liability Optical and Hearing Aid Establishments Professional Liability Printer s Errors and Omissions Liability Veterinarians Professional Liability Pastoral Counseling Professional Liability Extended Medical Payments Churches Residential Cleaning Services Photography Endorsement Restaurants Endorsement 23

24 Endorsements Property Coverage Outdoor Signs: Coverage is available for outdoor signs which are the property of the insured or the property of others in the care, custody and control of the insured. Maximum limit is $25,000 with the ability to choose a lower limit. $500 optional coverage deductible applies. Premium is dependent on coverage limit selected. Money and Securities: Coverage for loss of money and/or securities from theft, destruction, or disappearance both on-premises and off-premises is available as an optional coverage at limits of $2,500, $5,000, or $10,000. Limits for onpremises and off-premises cannot differ; they must be the same. $500 optional coverage deductible applies. Premium is dependent on coverage limit, territory, and class of business. Employee Dishonesty: Optional coverage for dishonest or fraudulent acts of the insured's employees is available at limits of $5,000, $10,000, $25,000, or $50,000 per occurrence. $500 optional coverage deductible applies. Premium is dependent on coverage limit selected. Equipment Breakdown Protection: Coverage is available for direct loss of or damage to covered property at the described premises caused by or resulting from a mechanical breakdown or electrical failure of pressure, mechanical or electrical machinery or equipment. The policy's property deductible, shown in the Declarations, applies. Premium is dependent on the limit of insurance of the building(s) or BPP (if building is not insured) and the policy s property deductible. Computer Fraud & Funds Transfer Fraud Coverage: (BP 05 47) Computer Fraud - Coverage is provided for loss of and loss from damage to money, securities and other property following and directly related to the use of any computer to fraudulently cause a transfer of that property from inside the described premises, bank or savings institution to a person or place outside those premises. Funds Transfer Fraud - Coverage is provided for loss of money and securities resulting directly from a fraudulent instruction directing a financial institution to transfer, pay or deliver money and securities from the insured's transfer account. Fraudulent instruction includes written instructions other than those described in the Forgery or Alteration Additional Coverage. The Forgery or Alteration Additional Coverage is meant to cover negotiable instructions while Computer Fraud and Funds Transfer Fraud Endorsement (BP 05 47) is designed to cover nonnegotiable instructions. Limits of Insurance The available limits for these coverages are $25,000, $50,000 and $100,000. Policy s property deductible, shown in the Declarations, is applicable for these coverages. Premium is dependent on coverage LOI, number of employees, and number of buildings. 24 Back to Endorsement Menu

25 Endorsements Property Coverage Loss Payable Clauses: (BP 12 03) This endorsement provides for naming a loss payee, a lender s loss payee, a loss payee under a contract of sale arrangement, or a building owner loss payee. There is no premium associated with this endorsement. Ordinance or Law: (SB 04 15) Coverage for Ordinance or Law is provided via the following: Coverage 1 - for loss in value of the undamaged portion of the building due to demolition pursuant to a building ordinance or law. Coverage 2 - for the cost of demolishing and removing the debris of the undamaged portion of the building, if demolition is required by building ordinance or law. Coverage 3 - for the increased cost to repair, reconstruct, or remodel damaged or undamaged parts of the building to comply with building ordinance or law, following damage to the building by a covered cause of loss. $10,000 in increased cost of construction coverage is automatically provided under the Additional Coverages section of the Business Owners Coverage Form. The coverage provided in Coverage 3 of this endorsement is in addition to the base $10,000 provided. Business Income and Extra Expense. Limits of Insurance The limit for Coverage 1 is the limit for each applicable building. The limit for Coverage 2 and Coverage 3 is a combined limit at the choice of the insured. The minimum limit is $10,000 with the maximum at 50% of the building LOI. s Policy s property deductible applies for Coverage 1, 2, and 3, while a time deductible of 72 hours applies for Business Income but does not apply for Extra Expense. Premium is dependent on the building rate, building LOI, and the combined limit selected for Coverage 2 and Back to Endorsement Menu Spoilage Coverage: (SB 04 09) Property coverage is available for the spoilage of perishable stock caused by breakdown or contamination and/or power outage. Limits of Insurance Available limits are $2,500, $5,000, and $10,000. Mandatory deductible of $500 applies. Premium is dependent on coverage limit of insurance and class of the business. Note/Rule The insured must maintain a refrigeration maintenance or service agreement. Utility Services Coverage: (BP 04 57) Coverage is available for loss of Business Income or Extra Expense caused by an interruption of utility service resulting from direct physical loss or damage to property of the utility service. Utility service applies to water supply, wastewater removal, communication supply, and power supply and includes overhead transmission lines. Limits of Insurance Available limits are $2,500, $5,000, and $10,000. Policy s property deductible does not apply. Time deductible of 72 hours does apply for Business Income but does not apply for Extra Expense. Premium is based on all of the utility services, including overhead lines; the option to pick and choose specific utility services does not exist. Premium is dependent on coverage LOI.

26 Endorsements Property Coverage Vacancy Permit Coverage: (SB 04 12) The vacancy clause in the Business Owners coverage form is waived for periods of vacancy beyond 60 days, meaning: o Coverage for vandalism, sprinkler leakage, building glass breakage, water damage, and theft or attempted theft exists, and; o The 15% loss payment penalty for all other causes of loss is no longer applicable. Limits of Insurance N/A Policy s property deductible, shown in the Declarations, is applicable for these coverages. Premium is dependent on the applicable Building and Business Personal Property limits of insurance. As the derived premium is based on an annual rate, the final premium must be pro-rated for the actual number of vacant days (number of vacant days / 365). Note/Rule The period of extension must not extend beyond the anniversary date of the policy. Coverage is not available at new business only available for renewal policies with prior approval from an Underwriter. Identity Fraud Expense Coverage: (SB 04 25) $25,000 aggregate limit of coverage is provided to pay the expenses incurred by the insured as a direct result of any act of identity fraud discovered or learned of during the policy period. By definition, such expenses include the costs of notarizing fraud affidavits or similar documents; certified mail sent to law enforcement or credit agencies or to financial institutions; loss of income resulting from time taken off from work to meet and confer with law enforcement or credit agencies; loan application fees for re-applying for a loan after an application has been rejected solely because the lender received incorrect credit information; and reasonable attorneys' fees incurred, whether to defend lawsuits brought against the insured or to remove criminal or civil judgments. The endorsement also provides a $5,000 aggregate limit of coverage for advertising expenses incurred by the insured to restore the insured's reputation after an event of identity fraud. Limits of Insurance See above. A deductible of $250 applies. Premium is a flat dollar amount. Fine Arts Coverage: (BP 07 77) $25,000 of coverage is available for direct loss of or damage to fine arts owned by or in the care, custody or control of the insured. Policy s property deductible, as shown in the Declarations, is applicable. Premium is a flat dollar amount. 26 Back to Endorsement Menu

27 Endorsements Property Coverage Water Back-up and Sump Overflow: (SB 04 21) $5,000 of coverage is provided for loss or damage to Covered Property caused by: Water which backs up through sewers or drains; or Water which overflows from a sump even if such overflow results from the mechanical breakdown of the sump pump. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown; and Business Income and Extra Expense losses sustained as a result of loss or damage to Covered Property. Limits of Insurance The limit is an annual aggregate limit and is per location. Increased limits of $7,500, $10,000, and $25,000 are available for additional premium The policy's property deductible, shown in the Declarations, applies to this endorsement. Premium is dependent on the coverage limit of insurance. Increased Cost of Loss and Related Expenses for Green Upgrades (SB 04 16) This endorsement amends various Section I Property coverage provisions to address green upgrades to real and personal property, and related expenses via the following: Green Upgrade Coverage modifies Replacement Cost Coverage to address loss settlement of damaged property using more energy-efficient, environmentally-preferable materials, products or methods in design, construction, manufacture or operation as recognized by a Green standardssetter. Business Interruption the period of restoration is extended for up to 30 days to recognize the increased period of time attributable to green upgrades and related expenses. Related Expenses optional coverage is available for the following related expenses with respect to property to which Green Upgrade Coverage applies: a. Waste reduction and recycling b. Design and engineering professional fees c. Certification fees and related equipment testing d. Building air-out and related testing Limits of Insurance The limit for Green Upgrade Coverage is 20% of the applicable Building and/or BPP limit of insurance. No other limit is available. The limit for the optional Related Expenses coverage is $10,000. No other limit is available. s Policy s property deductible applies. Green Upgrade Coverage premium is dependent on the Building and/or BPP rate and Building and/or BPP LOI. Business Interruption no additional premium (outside of that for Green Upgrade Coverage). Related Expenses - premium is dependent on the Building and/or BPP rate. Note Green Upgrade Coverage does not include Ordinance or Law coverage, and therefore will not pay any additional cost above the cost of Green Upgrades, solely for the purpose of satisfying an ordnance or law. Ordinance or Law coverage is addressed in a separate endorsement (see rule 3 above). 27 Back to Endorsement Menu

28 Endorsements Property Coverage Windstorm or Hail Exclusion (BP 14 84) Coverage for loss or damage caused directly or indirectly by Windstorm or Hail may be excluded via BP Rules Identify the Premises Number and the Building Number of the building(s) to which the endorsement is to apply. Premium discount is based on the applicable premises territory. Condominium Commercial Unit-owners Optional Coverages: (BP 17 03) This endorsement provides the option of the following two coverages for condominium unit-owners: Loss Assessment o Coverage for assessments charged to the unit-owners by the Condo Association as a result of direct physical loss of or damage to condo property. Available limits of $5,000, $10,000, $25,000, and $50,000 are available. A $500 deductible applies. o $1,000 of coverage for assessments from the deductible of the Condo Association s insurance. Higher limits of $2,500, $5,000, and $10,000 are available. A $500 deductible applies. Miscellaneous Real Property coverage for condominium property pertaining to the unit-owners unit or that which the unit-owner must insure according to a Condo Association agreement. Available limits are $1,000, $2,500, $5,000, and $10,000. The policy s property deductible applies. Premium is dependent on the coverage limits selected. 28 Back to Endorsement Menu

29 Endorsements Liability Coverage Abuse or Molestation Exclusion: (BP 04 39) Liability coverage is excluded for abuse or molestation by anyone of any person while in the care, custody or control of any insured. There is no premium associated with this endorsement. Note When insuring eligible church and other places of worship risks, Endorsement BP must be attached. Electronic Data Liability Broad Coverage: (BP 05 96) $10,000 of liability coverage is provided against damages because of loss of electronic data that is caused by an electronic data incident. Loss of electronic data means damage to, loss of use of, corruption of, inability to access, or inability to properly manipulate, electronic data. Electronic data incident means an accident, or a negligent act, error or omission, or a series of causally related accidents, negligent acts, or errors or omissions, which results in loss of electronic data. This endorsement excludes liability arising out of any access to or disclosure of any person's or organization's confidential or personal information. Premium is a flat dollar amount. Notes Retroactive Date listed on endorsement will always be the effective date of the policy. Endorsement is not available to those classes of business that are in the business of providing technology services or products to others. Exclusion Personal and Advertising Injury: (BP 04 37) All coverage for Personal and Advertising Injury Liability is excluded. Attachment of Endorsement BP is mandatory for the following classifications: Detective or Investigative Agencies Private; Employment Agencies; Labor Union Offices; Lawyers Offices; Political Campaign Headquarters or Offices; and Security and Patrol Agencies. Premium discount is based on the policy s mandatory Liability and Medical Expenses Coverage premium. Hired Auto and Non-owned Auto Liability: (BP 04 04) Coverage is provided for both Non-Owned Auto and Hired Auto. Non-Owned Auto Liability provides coverage for any auto that is not owned, borrowed or hired by the insured. Hired Auto Liability provides coverage for autos leased, hired or borrowed by the insured. An auto leased with a term of six months or more is treated as an owned auto and is not eligible for this coverage. Premium is dependent on the policy s liability limit. Notes This endorsement is not available to insureds that have a policy covering other commercial automobile exposures. The Hired Auto and Non-Owned Auto liability limit of insurance should be the same as the policy s Liability and Medical Expense limit. Employee Benefits Liability Coverage: (BP 04 98) Liability coverage is provided against claims for damages because of the insured's negligent acts, errors or omissions committed in the administration of an employee benefit program which result in the loss of any or all of an employee's benefits. Premium is dependent on policy s liability limit. 29 Back to Endorsement Menu

30 Endorsements Liability Coverage Employment-related Practices Liability Coverage : (BP 05 89) Coverage is provided for liability arising out of claims for wrongful acts committed against an employee because of an employment related offense, as well as a duty to defend. Limits of Insurance Available limits are $10,000, $25,000, $50,000, $75,000, and $100,000. The base deductible is $500, with optional deductible of $1,000, $2,500, and $5,000 and $10,000 available. Premium is dependent on the number of employees, class of business, coverage limit of insurance, and coverage deductible. Limitation of Coverage to Designated Premises or Project: (BP 04 12) Liability coverage is limited to only those premises, operations and projects specifically designated. No premium associated with this endorsement. Exclusion Products Completed Operations: (SB 04 24) All coverage for Bodily Injury and Property Damage is excluded within the Products Completed Operations hazard. Premium discount is based on the class of business. Exclusion Personal and Advertising Injury - Lawyers: (SB 04 26) All coverage for Personal and Advertising Injury Liability arising out of the rendering of or failure to render professional services as a lawyer is excluded. Premium discount is based on the policy s mandatory Liability and Medical Expenses Coverage premium. Liquor Liability Coverage: (BP 04 88) Liquor Liability Coverage is provided for businesses that manufacture, distribute, sell, or furnish alcoholic beverages, subject to the policy s liability and medical expenses limit of insurance via the deletion of the liquor liability exclusion in Section II Liability of the Business Owners Coverage Form. All other types of business are provided Liquor Liability Coverage (subject to the policy s Liability and Medical Expense limit of insurance) as part of the base policy, as the policy s liquor liability exclusion does not apply to them. Premium is dependent on the annual gross alcoholic beverage sales (per $1,000) and the policy s liability limit. Note The ISO Liquor Liability Grade for Arizona is 5. A state designated with a 0 (zero) is one in which there is no cause of action against one who supplies, furnishes, vends or sells liquor (the "liquor vendor") for bodily injury, property damage or death caused by an intoxicated person. A state designated with a number from 1 to 9 imposes moderate liability for the liquor vendor. A cause of action for bodily injury, property damage or death caused by an intoxicated person may be brought against the liquor vendor under certain circumstances. For example, a cause of action may exist if the liquor vendor supplies liquor to a minor, or to a person the liquor vendor knew or should have known was intoxicated, or to a person the liquor vendor has been advised is a known alcohol abuser, or in violation of the state liquor control laws. A special provision (most commonly a limitation on liability) may also apply. A state designated with the number 10 imposes strict liability for the liquor vendor. A cause of action for bodily injury, property damage or death caused by an intoxicated person may be brought against the liquor vendor, without limitation, because he or she provided liquor to the intoxicated person and death, bodily injury or property damage was the result. In other words, the mere act of furnishing the liquor is deemed the proximate cause of the injury. 30 Back to Endorsement Menu

31 Endorsements Additional Insured Additional Insured Managers or Lessors of Premises: (BP 04 02) This endorsement is used to include designated persons or organizations as additional insureds for their liability as owners of a designated premises leased to the named insured. No premium associated with this endorsement. Additional Insured Vendors: (SB 04 01) This endorsement includes a vendor shown in the Schedule of the endorsement as an additional insured, but only with respect to liability arising out of the vendor's sale or distribution of the named insured's products. No premium associated with this endorsement. Additional Insured Mortgagee, Assignee, or Receiver: (BP 04 09) This endorsement covers mortgagees, assignees or receivers on policies covering owners or general lessees. Construction and alterations are excluded. No premium associated with this endorsement. Additional Insured Co-owner of Insured Premises: (BP 04 11) This endorsement covers co-owners of the insured premises. No premium associated with this endorsement. Additional Insured Lessor of Leased Equipment: (BP 04 16) This endorsement is used to include a designated person or organization leasing equipment to the insured as an additional insured for liability that involves contributory negligence and arises out of an occurrence that takes place during the term of the lease. A separate endorsement should be attached for each such lessor named as an additional insured. No premium associated with this endorsement. Additional Insured Designated Person or Organization: (BP 04 48) This endorsement includes the person or organization shown in the Schedule of the endorsement as an additional insured, but only with respect to the liability arising out of the ongoing operations of the insured or liability in connection with premises owned by or rented to the insured. No premium associated with this endorsement. Additional Insured Grantor of Franchise: (SB 04 23) This endorsement includes the person or organization shown in the Schedule of the endorsement as an additional insured, but only with respect to their liability as a grantor of a franchise. No premium associated with this endorsement. Additional Insured Executors, Administrators, Trustees, or Beneficiaries: (SB 04 08) This endorsement is used to include any executor, administrator, trustee, or beneficiary of the named insured s estate or living trust as an additional insured. No premium associated with this endorsement. 31 Back to Endorsement Menu

32 Endorsements Specific Classes Barber Shops and Hair Salons Professional Liability: (BP 08 01) Professional liability coverage is provided for bodily injury, property damage, personal injury and advertising injury or other injury that results from the rendering of or failure to render professional services in the operation of a barbershop or hair salon. Premium is dependent on the number of barbers, hair stylists, etc. and the policy s liability limit. Beauty Salons Professional Liability: (BP 08 09) Professional liability coverage is provided for bodily injury, property damage, personal injury and advertising injury or other injury that results from the rendering of or failure to render professional services in the operation of a beauty salon. Premium is dependent on the number of beauticians, stylists, etc. and the policy s liability limit. Funeral Directors Professional Liability: (BP 08 02) Professional liability coverage is provided for bodily injury, property damage, personal injury, advertising injury or other injury arising out of the rendering of, or failure to render, professional services as a funeral director. Premium is dependent on the policy s liability limit. Optical and Hearing Aid Establishments Professional Liability: (BP 08 03) Professional liability coverage is provided for bodily injury, property damage, personal injury and advertising injury arising out of the rendering of or failure to render, professional services by an establishment's certified/licensed opticians or hearing aid specialists while performing services at the designated premises. Premium is dependent on the policy s liability limit Printer s Errors and Omissions Liability: (BP 08 04) Liability coverage is provided for the insured's negligent acts, errors or omissions in providing printing services. The endorsement does not apply to any claim resulting from any publishing function. Premium is dependent on the policy s liability limit. Veterinarians Professional Liability Coverage: (BP 08 05) Professional liability coverage is provided for bodily injury, property damage, personal injury and advertising injury arising out of the rendering of, or failure to render, professional services as a veterinarian. Premium is dependent on the number of veterinarians covered and the policy s liability limit. Eligible Veterinarians Veterinarians specializing in the treatment of house pets.. Ineligible Veterinarians Veterinarians providing veterinary services for: Animals used or bred for professional racing, show or delivering; Animals belonging to zoos, circuses, carnivals, rodeos, theatrical or other show enterprises; Training or obedience schools; Laboratory animal breeders; Animal shelters; Commercial cattle or hog confinement operations; Animal auctions; or Prize livestock 32 Back to Endorsement Menu

33 Endorsements Specific Classes Pastoral Counseling Professional Liability Coverage: (SB 04 04) This endorsement is used to provide professional liability coverage for bodily injury, property damage, personal injury, and advertising injury or other injury that results from the rendering of or failure to render professional services in connection with the insured s business of pastoral counselling Premium is dependent on the policy s liability limit. Extended Medical Payments - Churches: (SB 04 07) This endorsement amends the Business Owners Liability Coverage to extend medical expenses coverage for injuries sustained while taking part in athletic activities related to or sponsored by a religious organization. Premium is a flat dollar charge. Residential Cleaning Services Endorsement: (BP 07 81) s Rewards Payment Coverage $5,000 of property coverage for a reward for information leading to an arrest and conviction for a crime that caused loss or damage to covered property and/or for a reward that leads to the return of stolen covered property. Key and Lock Replacement Coverage $1,000 property coverage for the cost to replace keys and/or locks at a client s residence due to theft or loss to keys entrusted to the insured by the client. A $100 per occurrence deductible applies. Employee Dishonesty Coverage property coverage for theft of customers money, securities, etc. by an employee. If the insured does not have the Employee Dishonesty Optional Coverage then this part of BP is not applicable. Coverage is subject to the limit of insurance selected in the Employee Dishonesty Optional Coverage. Your Work Coverage $5,000 ($10,000 annual) of liability coverage for claims made by a client for property damage arising directly from the insured s work. Premium is dependent on whether Employee Dishonesty Coverage is applicable. Photography Endorsement: (SB 04 22) s Employee s Photographic Equipment amends the Business Personal Property section of the Business Owners Coverage Form to include the photographic equipment of employees used in connection with the operation of the insured s business as a photographer. Rewards Payment Coverage $5,000 of property coverage for a reward for information leading to an arrest and conviction for a crime that caused loss or damage to covered property and/or for a reward that leads to the return of stolen covered property. Photographic Equipment Off-Premises Coverage $5,000 per item/ $25,000 per occurrence of property coverage for photographic equipment while in transit or at premises not owned, leased, or operated by the insured. Per-Item Photographic Equipment Coverage - $5,000 per item of property coverage for photographic equipment at the described premises or in the open (or in a vehicle) within 100 feet of the described premises. Employee Dishonesty Coverage - property coverage for theft of customers money, securities, etc. by an employee. If the insured does not have the Employee Dishonesty Optional Coverage then this part of BP is not applicable. Coverage is subject to the limit of insurance selected in the Employee Dishonesty Optional Coverage. Failure to Deliver Photographic Product Coverage - $5,000 per occurrence ($10,000 annual) of liability coverage for those sums that the insured becomes legally obligated to pay as damages because of a failure to deliver photographic product to customers due to loss of or damage to photographic film or electronic media. A $250 per occurrence deductible applies. Premium is dependent on whether Employee Dishonesty Coverage is applicable. Note When Endorsement BP is attached to the policy, it is mandatory that Endorsement BP Abuse or Molestation Exclusion be attached as well. 33 Back to Endorsement Menu

34 Endorsements Specific Classes Restaurants Endorsement: (BP 07 78) s Rewards Payment Coverage $5,000 of property coverage for a reward for information leading to an arrest and conviction for a crime that caused loss or damage to covered property and/or for a reward that leads to the return of stolen covered property. Brands and Labels Coverage property coverage for the cost of removing the brands/labels or marking as salvage any branded or labeled merchandise and/or property that is damaged by a covered loss. Ordinance or Law Equipment Coverage coverage for repair or replacement of covered property as required by law. Lock Replacement Coverage $1,000 property coverage for the cost to repair or replace locks due to theft or loss to keys. Spoilage Coverage $10,000 property coverage for the spoilage of perishable stock cause by breakdown or contamination and/or power outage with the option to select a higher limit of insurance up to $50,000. The insured must maintain a refrigeration maintenance or service agreement for spoilage coverage to apply. Food Contamination Coverage property coverage for certain expenses and Business Income losses sustained as a result of the described premises being ordered closed by any governmental authority as a result of the discovery or suspicion of food contamination. Expenses may include those to clean equipment, to replace affected food, to provide necessary medical tests or vaccinations, and/or to advertise in order to restore the insured s reputation. The limit for all expenses except for advertising expenses is $10,000 with the option to select a higher limit up to $50,000. The limit for advertising expenses is $3,000 with an option to select a higher limit up to $10,000. Employee Dishonesty Coverage property coverage for theft of customers money, securities, etc. by an employee. If the insured does not have the Employee Dishonesty Optional Coverage then this part of BP is not applicable. Coverage is subject to the limit of insurance selected in the Employee Dishonesty Optional Coverage. Restaurants Endorsement (cont.): Delivery Errors and Omissions Coverage $10,000 liability coverage for damages that the insured is legally obligated to pay due to failure to deliver or a misdelivery of items held for sale by the insured, the insured s employees, or a concessionaire trading under the insured s name. A $250 per occurrence deductible applies. Merchandise Withdrawal Coverage $25,000 liability coverage for expenses related to a necessary withdrawal of merchandise during the policy period. Expenses may include costs of notification, costs of overtime paid to employees, costs of hiring independent contractors and/or temporary employees, costs of transportation, storage, disposal of products, etc. A $250 per occurrence deductible applies. Premium is dependent on the limits selected for Food Contamination Coverage and Spoilage Coverage and whether Employee Dishonesty Coverage is applicable. Note When Endorsement BP is attached to the policy, do not attach either Spoilage Endorsement BP or Food Contamination Endorsement BP Back to Endorsement Menu

35 Eligibility General Eligibility The following classes of business are ineligible for the BOP program: Automobile repair or service stations; automobile, motor home, mobile home and motorcycle dealers; parking lots or garages; unless incidental to another otherwise eligible class. Bars, pubs. Condominium associations other than office, commercial or residential condominiums. Buildings occupied in whole or in part for manufacturing. Insureds whose business operation involves one or more locations which are used for manufacturing. Household personal property. One or two family dwellings unless of garden apartment variety where multiple units are grouped within a single area and are under common ownership, management and control. Places of amusement. Banks, building and loan associations, savings and loan associations, credit unions, stockbrokers and similar financial insti tutions. Unless otherwise noted elsewhere, the following would make a risk ineligible: Buildings of more than 35,000 square feet in total floor area. More than $6,000,000 in annual gross sales at each location. Note: See Underwriting Guidelines for details on acceptable/unacceptable risks (a risk may be eligible for the BOP program yet a more specific factor could make it an unacceptable risk). Click on any of the following for Specific Eligibility Guidelines: Grocery Stores and Supermarkets Processing and Service Risks Offices Self-storage Facilities Wholesale Risks Limited Cooking Restaurants Fast Food Restaurants Casual Dining Restaurants Fine Dining Restaurants Seasonal Restaurants Contractors Apartments Motels Convenience Food Stores Beauty & Nail Salon Coverage 35 Click here to view an Eligibility by Business Class Help Document

36 Eligibility Note: While a risk may be eligible for the BOP program, that does not mean the risk is acceptable by Stillwater s standards. The BOP user interface on FIRST will determine whether a risk is acceptable. Grocery Stores and Supermarkets Definition: A grocery store or supermarket is an establishment where the primary activity is the retail sale of food, such as canned and frozen foods; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry. (Items typically sold in a convenience food store may also be sold.) Eligibility: Any of the following would make a risk ineligible: More than 3,000 square feet in total floor area, when sale of gasoline is also provided. The presence of automobile service or repair operations. The presence of a car wash operation. The presence of propane or kerosene filling operations. Acceptability: The Business Owner User Interface will determine whether a specific business class is acceptable Processing and Service Risks Eligibility: The following would make a risk ineligible: More than 25% of annual gross sales derived from off-premises operations. Acceptability: The Business Owner User Interface will determine whether a specific business class is acceptable Offices (including Office and Commercial Condominium Associations) Eligibility: Any of the following would make a risk ineligible: More than 6 stories in height. More than 100,000 square feet in total floor area. Wholesaler, mercantile, processing, and service occupancies and contractors, which in total exceed 35,000 square feet. If contractors occupy more than 7,500 square feet, or more than 15% of the total area, the risk should be classified as a Contractor Office. Acceptability: The Business Owner User Interface will determine whether a specific business class is acceptable Self-storage Facilities Eligibility: Any of the following would make a risk ineligible: More than two stories in height. (No limitation applies to floor area). Permitting of cold storage or the storage of industrial materials, chemicals, pollutants, and/or waste. Providing outdoor storage for any type of motorized vehicles, including campers and recreational vehicles. Wholesale Risks Eligibility: Any of the following would make a risk ineligible: More than 25% of annual gross sales are derived from retail operations. More than 25% of total floor area is open to the public. Acceptability: The Business Owner User Interface will determine whether a specific business class is acceptable Limited Cooking Restaurants Definition: Limited cooking restaurants are those where foods are prepared cold or cooked using appliances which do not emit smoke or grease-laden vapors that require an exhaust system (for example, electric sandwich grills, toasters, warming ovens, roller warmers, infrared snack warmers, microwave ovens, domestic ranges, domestic ovens and pizza ovens). No grilling, open broiling, deep fat frying, roasting, barbecuing, solid fuel cooking (for example, mesquite, charcoal or hardwood) or other processes capable of producing grease-laden vapors requiring an exhaust system are permitted. Eligibility: Any of the following would make a risk ineligible: More than 7,500 square feet in total floor area. Seating capacity greater than 75. Liquor sales other than beer or wine. Sales of beer and wine of greater than 25% of total sales. The presence of a bar or cocktail lounge. Catering service that exceeds 10% of total sales. 36 Back to Eligibility Menu

37 Eligibility Fast Food Restaurants Definition: Fast food restaurants may include limited cooking type appliances and only the following cooking processes capable of producing grease-laden vapors requiring an exhaust system: grilling, enclosed broiling, deep fat frying, roasting or barbecuing. Open broiling and solid fuel cooking (for example, mesquite, charcoal or hardwood) are not permitted. Eligibility: Any of the following would make a risk ineligible: More than 7,500 square feet in total floor area. Seating capacity greater than 150. Liquor sales other than beer or wine. Sales of beer and wine of greater than 25% of total sales. The presence of a bar or cocktail lounge. Catering service that exceeds 10% of total sales. Table service. Lack of an automatic extinguishing system for cooking equipment equivalent to that which is recommended by NFPA Standard #96, or the lack of a maintenance contract for such equipment. Casual Dining Restaurants Definition: Casual dining restaurants serve moderately priced food in a casual atmosphere to patrons who generally order and are served while seated and pay after eating. Take-out service and the use of a buffet may also be available. These restaurants may serve beer, wine, or liquor. Eligibility: Any of the following would make a risk ineligible: More than 7,500 square feet in total floor area. Seating capacity greater than 150. Alcohol sales of greater than 50% of total sales. Bar operations during hours when full table service is not also available and/or bar operations for the sole purpose of consuming alcoholic beverages. Dancing on premises. Providing of live entertainment (including karaoke) other than incidental music, such as piano playing. Catering service that exceeds 10% of total sales. Lack of an automatic extinguishing system for cooking equipment equivalent to that which is recommended by NFPA Standard #96, or the lack of a maintenance contract for such equipment. 37 Back to Eligibility Menu Fine Dining Restaurants Definition: Fine dining restaurants provide quality food and alcoholic beverages prepared by highly trained chefs and served with a great deal of attention to customers by wait staff. These restaurants typically have valuable business personal property consisting of furniture, tableware, lighting, art and other items of décor. Eligibility: Any of the following would make a risk ineligible: More than 7,500 square feet in total floor area. Seating capacity greater than 150. Alcohol sales of greater than 75% of total sales. Bar operations during hours when full table service is not also available and/or bar operations for the sole purpose of consuming alcoholic beverages. Dancing on premises. No live entertainment (including karaoke) other than incidental music, such as piano playing, provided by the establishment Catering service that exceeds 15% of total sales. Lack of an automatic extinguishing system for cooking equipment equivalent to that which is recommended by NFPA Standard #96, or the lack of a maintenance contract for such equipment. Lack of chef supervision of food preparation and other kitchen operations. Lack of maître d supervision of wait staff and to control customer turnover. Seasonal Restaurants Restaurants of any category that are closed for more than 30 consecutive days are ineligible. Convenience Food Stores Many types of convenience stores are eligible and acceptable for the BOP program. The User Interface will determine if specific classes are acceptable or not.

38 Eligibility Contractors The following types of contractors and/or activities are ineligible for the BOP program: General Contractors. (A General Contractor is a contractor who is responsible for managing an entire project on behalf of the client, rather than just a portion of the project. In addition, a General Contractor hires and coordinates the efforts of subcontractors.) Contractors who use cranes in their operations. Contractors who repair, install or service or previously repaired, installed or serviced boilers, burglar alarm systems, automatic fire extinguishing systems, elevators, escalators or computers. Contractors with products manufactured or sold under the insured's name. Contractors who engage in or previously engaged in: 1) Demolition, blasting, wrecking, high pressure boiler work or liquid petroleum gas (LPG) work. 2) Insulation work. 3) Lawn chemical spraying operations, except with respect to the operations of a landscape gardener, provided that such landscape gardener operations meet all standards of any statute, ordinance, regulation or license requirement of any federal, state or local government that apply to such operations. 4) Hazardous material or pollution abatement operations, including but not limited to: asbestos, lead, and/or radon mitigation and testing. Contractors who engage in: 1) Sales, service or installation of any kind of automatic opening doors or garage doors (residential or commercial). 2) Heavy construction including but not limited to: o Bridge, caisson, cofferdam, dam, dike, dry dock, jetty, levee or pier construction. o Cable laying and cable installation. o Crane or derrick installation or rigging. o Dredging. o Drilling. o Excavation of wait staff and to control customer turnover. o Grading of land. o Iron or steel erection. Contractors continued: o Pipeline construction. o Sandblasting. o Scaffolding, hoists, tower erection. o Tunneling. o Installing, repairing, or servicing hot tubs. o Ship repair or painting work. o "Shop-only" carpentry or sheet metal work. o Installing and repairing swimming pools. o Tree service or removal contracting work. o Waterproofing contracting operations. o Installing wood and coal stoves. Contractors with more than $300,000 of annual payroll. Contractors that work at a height of over three stories. Contractors with the total cost of subcontracted work exceeding more than 10% of total gross sales. Contractors that rent or lease equipment to others. Contractors with sales unrelated to installation, service, or repair exceeding 25% of annual gross sales. Acceptability: The Business Owner User Interface will determine whether a specific business class is acceptable Apartments (including Residential Condominium Associations) Though some apartments are eligible for the ISO program, none are currently acceptable for the Stillwater program. Motels Though some motels are eligible for the ISO program, none are currently acceptable for the Stillwater program. 38 Back to Eligibility Menu

39 Beauty and Nail Salon Coverage How does Stillwater handle Beauty and Nail Salon profession service exposures? For starters, like most BOP s, our policy contains this exclusion: B. Exclusions 1. Applicable To Business Liability Coverage This insurance does not apply to: j. Professional Services "Bodily injury", "property damage" or "personal and advertising injury" caused by the rendering or failure to render any professional service. This includes but is not limited to: (6) Any service, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming; (8) Body piercing services; These two items apply specifically to Beauty and Nail Salons This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the "occurrence" which caused the "bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering or failure to render of any professional service. However, Stillwater offers BP Beauty Salons Professional Liability which removes the referenced exclusion and provides liability for salon services. The specific services that this endorsement covers are: haircutting, hairstyling, hair dyeing, hair trimming, hair shaving, hair conditioning, hair shampooing, facial massages and treatments, nail manicures and pedicures, hair removal waxing, and advice or instruction for the appearance or personal grooming. Other more risky services, such as the application of permanent eyebrows or makeup, micro-blading, eyebrow weaving, etc., are not covered by this endorsement. This does not mean that a salon that performs these services is an unacceptable risk; just that there is no professional liability coverage afforded for those specific services. A liability claim arising from a nail manicure would be covered. A liability claim arising from eyebrow weaving would not be covered. 39 Back to Eligibility Menu Updated

40 Underwriting Guidelines All applications are to be submitted via our website FIRST. The acceptability of a business class will be determined by the FIRST Quote system. Responses to the various Quote Detail Questions during the quote process will advise of underwriting eligibility conflicts. The producer does NOT have the authority to submit coverage for any property exhibiting a conflict with one or more of the characteristics shown in our Underwriting Guidelines. Please click on any topic listed below to view specific Underwriting Guidelines: General Guidelines Insured/Applicant Amount of Insurance Alcohol Sales Thresholds Home Based Businesses Structure Exposures Named Storm and Wildfire Underwriting Procedures Loss History Underwriting Tiers Click on the following tab to view specific Business Class Eligibility Guidelines: Miscellaneous Rules Policy Term Policy Minimum Premium Additional Premium Changes Insured Request Cancellation Inflation Guard Expense Fee / Policy Fee Inspections Lessors Risk with Multiple Occupants Underwriting Contact info: Fax: commercial@stillwater.com BOP Eligibility Guidelines 40

41 Underwriting Guidelines General Guidelines Acceptable risks must be evaluated on the construction, maintenance and location of the business. o Construction well constructed and built in accordance with prevailing building codes as defined by local authorities. o Maintenance well maintained with regular upkeep of items such as painting, roof repairs, landscaping, and other maintenance items that reflect a pride of ownership. o Location located in stable neighborhoods with other similar businesses located nearby. * Risks with more than 4 locations per policy or 4 buildings per location are unacceptable. * Note: Multiple locations and buildings are not currently available. Security and protection must be commensurate with values and nature of property insured. Minimum all-perils deductible is $1,000. Refer to Eligibility by Business Class document. Insured / Applicant Risks with any cancellation in the past 36 months are unacceptable. Occupancy Unacceptable if: o Vacant or unoccupied. Vacant is defined as more than 30% of structure being unoccupied. o Manufacturing takes place on premises. o Wholesalers, distributors or retailers of moderate risk products Gross Annual Sales greater than $6,000,000 per location are unacceptable. Bankruptcy, lien, suit or judgment within last 5 years is unacceptable. Amount of Insurance Amount of insurance for Building and Business Personal Property must equal 100% of replacement cost. Insurance to value will be verified by using rebuilding estimates based on current construction industry costs. Maximum amount of insurance for Building and Business Personal Property combined is $2,000,000 per location, no matter the number of buildings at a given location. Maximum amount of insurance on Business Personal Property for policies without a building limit is $500,000. Endorsement requests increasing coverage at an existing location by more than $100,000 (building) or $50,000 (contents) requires prior approval from Underwriting. Alcohol Sales Thresholds A risk is unacceptable if the ratio of alcohol sales to total sales is greater than the following: o Fast Food, Fast Casual, and Casual Restaurants greater than 25% o Upscale Casual Restaurants/Bistros greater than 50% o Fine Dining Restaurants greater than 75% o Grocery/Convenience/Drug Stores greater than 30% Home-Based Businesses A risk is unacceptable if the business is one that brings routine customer foot traffic to a personal residence. For acceptable risks, building coverage is not available; only BPP and Liability may be provided. The residence must be insured via a Homeowners, Condo, or Dwelling policy. 41 Back to Underwriting Menu Updated

42 Underwriting Guidelines Structures The following risks are unacceptable, even if the building is not being insured: Age of building is older than 100 years (unless prior approval by the Company has been received). Buildings older than 50 years, if: o The roof is older than 25 years (roofs comprised of clay or terra cotta, concrete roof decking, and metal roods comprised of steel or aluminum are not subject to an age restriction), or o The electrical/wiring system has not been updated within the past 25 years, or o The HVAC system has not been replaced in the last 25 years, or o The plumbing has not be updated in the last 25 years. Buildings with roofs possessing any of the following: o Known damage, deterioration, missing shingles, excessive granular loss, raised or lifted shingles, or patches. o More than two layers of shingles. o Made of wood shakes or wood shingles. Buildings that do not use circuit breakers. Buildings using unconventional construction, design, materials, or methods. Buildings that have unrepaired damage. Buildings without properly functioning smoke detectors. Properties of an isolated or remote nature, meaning: o More than five road miles from a responding fire department; or o Over 1,000 feet from a fire hydrant (unless a company approved alternative water supply exists); or o Difficult to access from the road. Properties located in Protection Class 10. Properties located within 400 feet of brush or forest. Properties susceptible to damage from earth movement due to construction design or site location, including landslide or mudslide areas. Properties with existing damage from sinkhole damage or any known current or proximate sinkhole activity. Properties that do not meet ADA requirements. Structures continued The following risks are unacceptable if the building is being insured but are acceptable if the building is not being insured (i.e. the insured is leasing the building or space in the building): Buildings with more than 3 stories. Buildings listed on a Historical Register. Exposures The following exposures are unacceptable: Habitational risks, contractors, schools, daycare facilities, social services, and fitness centers. Properties with livestock or exotic animals. Governmental entities as the primary insured (acceptable as an additional insured). Any liability exposure involving aircraft, watercraft or motor vehicles. Properties used for any farming, ranching or agricultural activity, whether for profit or not. Parking lots, hallways, stairways, etc. not well lit and free of areas of significant darkness. Multi-story buildings equipped with railings with vertical openings that exceed 6 inches. Railings must be at least 36 inches in height. Named Storm and Wildfire Underwriting Procedures Named Storms - No new or additional coverage may be bound on new business or by endorsement to in-force policies if the National Weather Service has issued a Tropical Storm or Hurricane warning for a specific area for the duration of the watch/warning. Wildfires - No new or additional coverage may be bound on new business or by endorsement to in-force policies if the risk lies within 25 miles of an existing wildfire. The company will issue bulletins announcing ZIP codes that are affected by any moratorium, but the 25-mile rule should always be obeyed. The moratorium will continue in effect until such time as the fire is contained, and the public safety is secured and evacuated residents are allowed to re-enter the area. Binding Authority will remain suspended until an announcement is made indicating that the restriction has been lifted. 42 Back to Underwriting Menu

43 Underwriting Guidelines Loss History A business is an unacceptable risk if it has had a loss in the 5 years prior to the New Business effective date. Underwriting Tiers Each building to be insured will be placed in an underwriting tier based on an evaluation of the following criteria: Prior Loss History Number of Years in Business Age of the Building to be insured Type of Roof Insurance Score Number of Locations for the entire risk Number of Employees for the entire business Number of policies written with Stillwater Insurance Group Number of days the policy was quoted in advance of the effective date Type of Entity (Corporation, Sole Proprietorship, Partnership, etc.) Business Class The relativities for the 11 different variables used in tier determination (above) are multiplied together to produce an underwriting tier score. Risks whose tier score exceeds 2.48 will be considered unacceptable to write. 43 Back to Underwriting Menu

44 Miscellaneous Rules Policy Term The Business Owners Policy may be written for a term of 12 months and renewed annually, according to the current rules, underwriting guidelines, and forms. Policy Minimum Premium There is a minimum premium for each class and mandatory coverage. If the sum of all mandatory coverage minimum premiums on the policy is less than $349, then a premium of $349 is charged. Minimum premiums rules do not apply to optional coverages. Additional Premium Changes All premium bearing changes made to a policy after its effective date should use the rates and rules that were in effect on the effective date of the policy. For policies where the inception premium was less than the policy writing premium, the premium changes should be based on the inception premium and not the minimum premium amount. If the resulting premium is still less than the minimum premium then minimum premium should be charged. Any additional premium or return premium should be calculated on a pro rata basis. Policy Fee All policies are charged a policy fee of $50. The fee is fully earned when the policy is written. Inspections Certain risks either because of property values and / or the nature of a business class (restaurants, convenience stores ) may necessitate physical property inspections or a survey of operations. Company representatives will call and schedule these in advance. Follow-up possibilities, as you know, are numerous. We are positioned as a preferred carrier. Obviously if a risk has below average conditions, we ll take action and we ll be sure to notify you first. Insured Requested Cancellation Any return premium is computed on a pro rata basis. Inflation Guard The amount of insurance limit applicable to all buildings and business personal property will be automatically increased by 4% at each annual renewal to account for inflation. 44 Back to Underwriting Menu

45 Lessors with Multiple Occupants Business Occupancy Types For rating purposes, a weighted average of all tenants in the insured building is used. The percentage of total leasable square footage of each applicable Business Occupancy Type should be entered in the Occupant Information screen in the on-line quoting tool. Total percentage of all Business Occupancy Types must equal 100%. Office or Clinic Retail clothing Retail other Food or Convenience Store Laundry or Dry Cleaning Personal Service or Studio Restaurant Contractor s Shop Distributor or Wholesaler clothing/fabric Distributor or Wholesaler food/flowers Distributor or Wholesaler other Vacant Space Insured/applicant who is an occupant of the building should be treated the same as any tenant when entering business occupancy percentages. Unoccupied leasable space should be entered under Vacant Space. Common areas (lobby, stairwells, restrooms, etc.) shared by tenants are not considered leasable space. Building is unacceptable if any single tenant engages in the following: Provides space for lodging or for residential use. Main operation is a bar. Handles hazardous, explosive, or highly flammable materials. Performs any manufacturing or welding on premises. Example An insured/applicant accounting office occupies 1,000 square feet of a building. Three additional tenants occupy the building: restaurant (2,000 square feet), real estate office (500 square feet), and florist (1,500 square feet). Percentage for each applicable Business Occupancy Type is: Office or Clinic = 30% [(1, ) / 5,000] Restaurant = 40% (2,000 / 5,000) Retail other = 30% (1,500 / 5,000) The entry in the User Interface is: Business Occupancy Types Percent of Leasable Space Office or Clinic 30% Restaurant 40% Retail - other 30% Total 100% 45 Back to Underwriting Menu

46 Discounts Paid in Full Discount A discount of 5% will be provided to policyholders who pay their premium in full at the beginning of the policy term. Advance Quoting If a risk is quoted at least 15 days in advance of the policy effective date, the rate will be about 2% lower. If the quote is completed at least 31 days in advice, the rate will be about 5% lower. Multiple Policies If the policyholder purchases multiple policies form Stillwater their premium will be lower based on the following: Number of Stillwater polices Discount % 2 Stillwater policies 5% 3 Stillwater policies 10% 4 or more Stillwater policies 15% Eligible multiple policies include both Commercial and Personal Lines policies issued by Stillwater. Some Coverage Exclusions may result in a reduction in premium, and include the following: Exclusion Personal and Advertising Injury: (BP 04 37) Exclusion Products Completed Operations: (BP 14 22) Exclusion Personal and Advertising Injury - Lawyers: (BP 14 15) IRPM Manual Credits/Debits We do not apply manual credits or debits, as they would be redundant for our quotes and policies. Traditional underwriting characteristics used by other companies to determine credits/debits are already integrated into our pricing. The final quote presented by our quoting system is always our best price. 46

47 Payments Payments Pay Plans Paid-in-full (receives a discount) 2 Pay Plan : First payment is due at inception, or renewal, for 50% of the total annual premium plus all state mandated charges and policy fees. The remaining 50%, plus a $5 installment fee, is due 180 days after policy inception. 4 Pay Plan: First payment is due at inception or renewal for 25% of the total premium plus all state mandated charges and policy fees. 25% of total policy premium, plus a $5 installment fee, will be billed at 90 days, 180 days and 270 days after inception. Monthly EFT: This plan is only available with Electronic Funds Transfers (EFT). For new business, the first installment payment is due at inception, for 15% of total premium plus all policy fees and state mandated charges. The balance is divided equally betwe en 11 payments and includes a $3 monthly installment fee. For renewals, total policy premium, policy fees, and state mandated char ges are divided equally between 12 payments, and a #3 monthly installment fee is included with each payment. Withdrawals must be mad e from a checking or savings account. Note: Monthly draft from a credit card is currently NOT an option. Payment Method Down Payments can be made via: o Agency Trust Account o Client Bank Account o Credit or Debit Card We accept all major Credit Cards: o Visa o Master Card o American Express o Discover Non Payment Cancellation / Reinstatement A notice of cancellation for nonpayment is mailed to the insured 15 days prior to the date that the policy will run out of equity ( computed cancel date ). If payment is not received by the computed cancel date, the policy is placed into lapse status. If the policy is eligible for reinstatement, and payment is received 14 days or less after the cancel date, the policy may be reinstated without a lapse, as long as the insured signs a no loss statement. A policy that has already been reinstated 2 times in a policy term is not eligible for reinstatement. Note: All reinstatements should be handled directly by the Commercial Lines Underwriter. 47 Updated

48 FIRST Service Features FIRST Service Features Click on the drop down Select Menu to view the available FIRST Service Features. The Service features for Business Owners Policies include: Billing Notes Policy History Click on an above link for additional information on these Service Features. 48

49 FIRST Service Features- Billing FIRST Service Features -Billing 1. Click on Billing from the drop down select menu. 2. The Policy Billing Status screen provides two options: o o Make A Payment & Transaction History Transaction History provides a History of all payments. Use Start Date and End Date to select the time frame parameters Back to Service Features Menu

50 FIRST Service Features Notes FIRST Service Features Notes 1. Click on Notes from the drop down select menu. 2. All Policy Notes are archived. Click on the desired Note Transaction Type to view Back to Service Features Menu

51 FIRST Service Features Policy History FIRST Service Features Policy History 1. To view a Document click on Policy History from the drop down select menu. Policy History is an archive of all Documents mailed to the insured Click on the desired document to view/print Back to Service Features Menu