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BOILER & MACHINERY PROGRAM FOR COUNTY GOVERNMENTS:
COMPREHENSP/E COVERAGE FOR ENERGY SYSTEMS
Provided by:
Arthur J. Gallagher & Co.
and
Zurich Insurance Company (Herein Called the Company)
Policy Number: 12-35-707
Named Insured: Board of County Commissioners, Weld County, Colorado
Mailing Address: 915 Tenth Street
Greeley, Colorado 80631
..ovations: All locations owned, leased, under the control of or for which the Insured
has requested coverage.
COVERAGE
County - Comprehensive
Effective Date: January 15, 1983 Until Canceled
Initial Annual Premium: $ 2,500.00
Limit Per Accident: $10,000,000
Deductible: $ 1,000.00 Per Occurrence
Authorized Representative ,/ '�,n /" '
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COUNTY COMPREHENSIVE COVERAGE
Definition of Object
"Object" shall mean any boiler, any fired or unfired vessel normally subject
to vacuum or internal pressure other than pressure of contents, any
refrigerating system, any piping with its accessory equipment, and any
mechanical or electrical machine or apparatus which generates, controls,
transmits, transforms or utilizes mechanical or electrical power; but object
shall not mean or include:
1. Any non-metallic vessel or piping, unless it is constructed and
applied in accordance with the American Society of Mechanical
Engineers (ASME) code;
2. Any sewer piping, any piping forming a part of a fire protective
system, or any water piping other than:
a. Boiler feed water piping,
b. Boiler condensate return piping,
c. Water piping used in a heat transfer system for cooling,
heating, humidifying or space heating purposes;
3. Any structure, foundation or setting (other than a bedplate of a
machine) supporting or housing such object; or any oven or kiln
or furnace or the lining or firewall of any object; or any elevator
but not excluding any pressure vessel or electrical equipment
used with a machine;
4. Any electronic computer or data processing equipment, any
electronic computer or data processing equipment used for the
control and operation of pressure vessels or machinery, any x-ray
machine, electron microscope, particle accelerator, beta gauge,
spectrograph or any other electronic machine, device or
instrument. Except coverage is not excluded for electronic data
processing equipment that is an internal and/or immediate part:
of an insured object.
Utility Equipment
"Object" shall mean any object described above, whether or not such an
object is located on the premises of the Insured, which is owned by a public
utility and which is used directly to supply the premises of the Insured.
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Definition of Accident
"Accident" shall mean any sudden and accidental breakdown of the object,
or part thereof, which results in physical damage to the object necessitating
repair or replacement of the object, or part thereof; but "Accident" shall
not mean:
a. depletion, deterioration, corrosion, or erosion of materials;
b. wear and tear;
c. leakage at any valve, fitting, shaft seal, gland packing, joint or
connection;
d. the breakdown of any vacuum tube, gas tube, brush, or semi-
conductor;
e. the functioning of any safety device or protective device.
Special Provisions
A. As respects any boiler, fired or unfired vessel, refrigerating system or
piping, the Company shall not be liable for loss from an accident while
said object is undergoing a pressure test or leakage test.
B. As respects any boiler or fired vessel, the furnace of the object and
the gas passages therefrom to the atmosphere shall be considered as
"outside the object" and the company shall not be liable for any
explosion of gas or unconsumed fuel within these areas.
C. As respects any electrical machine or electrical apparatus, the
company shall not be liable for loss from an accident
While said object, or part thereof, is being repaired or dried out.
D. As respects any object insured under Utility Equipment of Definition
of Object, coverages B, C, and D of the Insuring Agreement of the
policy shall not apply and the limit per accident shall be $1.00 with
respect to loss under Section A of the Insuring Agreement of the
policy.
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COUNTY INSURING AGREEMENT
In consideration of the Premium, the Company agrees with the Insured
named in the Declarations made a part hereof respecting loss from an
Accident, as defined herein, occurring during the Policy Period, to an
Object, as defined herein, whether or not the Object is in use or connected
ready for use at the Location specified for it in the Schedule, subject to the
Declarations; to the Exclusions, to the Definitions and Conditions, to other
terms of this policy and to the Schedule and Endorsements issued to form a
part thereof, as follows:
Coverage A - Property of Insured
Repair or Replacement
The Company agrees that loss of or damage to property of the Insured shall
mean the amount needed by the Insured to repair or replace such property of
the Insured subject to the following provisions:
a. The Company's liability for any repair or replacement shall be limited
to the smaller of the following: (1) the cost at the time of the
Accident to repair the said property, or (2) the cost at the time of the
Accident to replace the said property on the same site with property
of like kind, capacity, size and quality; provided that in the event the
replacement is by property of a better kind or quality or of larger
capacity or size, the liability of the Company shall not exceed the
amount that would be paid if the replacement had been made by
property of like kind, capacity, size and quality.
c. The Company shall not be liable for: (1) loss or damage to property
useless to the Insured or obsolete to the Insured, or (2) the cost of
repairing or replacing any part or parts of an Object which is in excess
of the cost of repairing or replacing the entire Object.
Coverage B Expediting Expenses
To Pay, to the extent of any indemnity remaining after payment of all loss
as may be required under Coverage A, for the reasonable extra cost of
temporary repair and of expediting the repair of such damaged property of
the Insured, including overtime and the extra cost of express or other rapid
means of transportation.
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Coverage C - Liability for Property of Others
To Pay, to the extent of any indemnity remaining after payment of all loss
as may be required under Coverages A and B, such amounts as the Insured
shall become legally obligated to pay for loss of or damage to property of
others in the care, custody, or control of the Insured directly damaged by
such Accident;
Coverage D - Defense, Settlement, Supplementary Payments
To Defend the Insured against claim or suit alleging liability under Coverage
C, unless or until the Company shall elect to effect settlement thereof, and
to pay all costs taxed against the Insured in any legal proceeding defended
by the Company in accordance with such Coverage, all interest accruing
after entry of judgment rendered in connection therewith up to the date of
payment by the Company of its share of such judgment, all premiums on
appeal bonds required in such legal proceedings, all premiums on bonds to
release attachments for an amount not in excess of the applicable limits of
liability for Coverage C, and all expenses incurred by the Company for such
defense; the amounts incurred under Coverage D are payable by the
Company irrespective of the Limit per Accident, except settlements of
claims and suits;
Exclusions
This policy does not apply:
1. To loss from an Accident caused directly or indirectly by
a. Hostile or warlike action, including action in hindering,
combating or defending against an actual, impending or expected
attack, by
i. any government or sovereign power (de jure or de facto) or
any authority maintaining or using military, naval or air
forces,
ii. military, naval or air forces, or
iii. an agent of any such government, power, authority or
forces;
b. insurrection, rebellion, revolution, civil war or usurped power,
including any action in hindering, combating or defending against
such an occurrence, or by confiscation by order of any
government or public authority;
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2. to loss, whether it be direct or indirect, proximate or remote,
a. from an Accident caused directly or indirectly by nuclear
reaction, nuclear radiation or radioactive contamination, all
whether controlled or uncontrolled; or
b. from nuclear reaction, nuclear radiation or radioactive
contamination, all whether controlled or uncontrolled, caused
directly or indirectly by, contributed to or aggravated by an
Accident;
nor shall the Company be liable for any loss covered in whole or in
part by any contract of insurance, carried by the Insured which also
covers any hazard or perils of nuclear reaction, or nuclear radiation;
3. To loss under Coverages A, B and C
a. from fire concomitant with or following an Accident or from the
use of water or other means to extinguish fire, but only to loss
outside the object,
b. from an accident caused directly or indirectly by fire or from
the use of water or other means to extinguish fire,
c. from a combustion explosion outside the Object concomitant
with or following an Accident,
d. from an Accident caused directly or indirectly by a combustion
explosion outside the Object,
e. from flood unless an Accident ensues and the Company shall then
be liable only for loss from such ensuing Accident.
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CONDITIONS
1. Notice of Accident and Adjustment.
When an Accident occurs, written notice shall be given by or on behalf of
the Insured to Gallagher Bassett Insurance Service as soon as practicable.
The Insured shall give like notice of any claim made on account of such
Accident. The Company shall have reasonable time and opportunity to
examine the property and the premises of the Insured before repairs are
undertaken or physical evidence of the Accident is removed, except for
protection or salvage. Proof of loss shall be made by the Insured in such
form as the Company may require. If suit is brought against the Insured for
loss to which this insurance is applicable, the Insured shall immediately
forward to Gallagher Bassett Insurance Service any summons or other
process served upon the Insured. The Insured upon request of the Company
shall render every assistance in facilitating the investigation and adjustment
of any claim, submitting to examination and interrogation by any
representative of the Company.
In the event of disagreement between the Company and the Insured as to the
amount of loss of or damage to the property of the Insured for which the
Company is liable under this policy, each shall, on the written demand of
either, select a competent and disinterested appraiser. The appraisers shall
first select a competent and disinterested umpire, and failing for fifteen
days to agree upon such umpire, then, on the request of the Insured or the
Company, such umpire shall be selected by a judge of a court of record in
the State in which such appraisal is pending. The appraisers shall then
appraise the loss, stating separately the actual cash value at the time of the
loss and the amount of loss and upon failure to agree shall submit their
difference to the umpire. An award in writing of any two of said three
persons shall determine the amount of such loss. The Insured and the
Company shall pay the appraisers respectively chosen by each and shall
share and pay equally for the umpire and for other expenses of appraisal.
The Company shall not be held to have waived any of its rights by any act
relating to appraisal.
The Insured shall not voluntarily assume any liability or incur any expense,
other than at the Insured's own cost, except as otherwise expressly
permitted in this policy, or interfere in any negotiation for settlement or
any legal proceeding, without the consent of the Company previously given
in writing.
2. Inspection.
The Company shall be permitted to inspect at all reasonable times, any
object covered by this policy and will provide jurisdictional inspections in
accordance with applicable state, county, or city codes and these
inspections will satisfy the inspection requirements of the applicable
jurisdictions.
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3. Suspension.
Upon the discovery of a dangerous condition with respect to any Object, any
representative of the Company may suspend the insurance with respect to
an Accident to said Object by written or oral notice delivered to Gallagher
Bassett Insurance Service prior to such suspension. Insurance so suspended
may be reinstated by the Company but only by an Endorsement issued to
form a part of this policy. The Insured shall be allowed the unearned portion
of the premium paid for such suspended insurance, pro rata, for the period
of suspension.
4. Limit Per Accident
The Company's total liability for loss from any One Accident shall not
exceed the amount specified as Limit per Accident. The term "One
Accident" shall be taken as including all resultant or concomitant Accidents
whether to one Object or to more than one Object or to part of an Object.
The inclusion herein of more than one Insured shall not operate to increase
the limits of the Company's liability.
5. Other Insurance - Property
The words "joint loss" as used herein, means loss to which both this
insurance and other insurance carried by the Insured apply. In the event of
such "joint loss",
a. The Company shall be liable under this policy only for the
proportion of the said joint loss that the amount which would
have been payable under this policy on account of said joint loss,
had no other insurance existed, bears to the combined total of
the said amount and the amount which would have been payable
under all other insurance on account of said joint loss, had there
been no insurance under this policy, but
b. In case the policy or policies affording such other insurance do
not contain a clause similar to Clause (a), the Company shall be
liable under this policy only for the proportion of said joint loss
that the amount insured under this policy, applicable to said joint
loss, bears to the whole amount of insurance, applicable to said
joint loss.
6. Other Insurance - Liability
The insurance, if any, afforded by this policy with respect to loss under
Coverage C shall be excess insurance over any other valid and collectible
insurance available to the Insured. As used herein, the words "other valid
and collectible insurance" include any deductible or self-insured retention
provisions to which such insurance may be subject.
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7. Joint Loss Agreement
In the event of damage to or destruction of property, at a location
designated in this policy and also designated in a all-risk property or fire
insurance policy and there is a disagreement between the insurers with
respect to:
(1) whether such damage or destruction was caused by a Peril
insured against by this policy or by an Accident insured against
by such all-risk property or fire insurance policy
or,
(2) the extent of participation of this policy and of such all-risk
property or fire insurance policy in a loss which is insured
against, partially or wholly, by any or all of said policies.
The Underwriters' shall upon written notice request of the insured, pay to
the Insured one-half of the amount of the loss which is in disagreement, but
in no event more than the Underwriters would have paid if there had been no
all-risk property or fire insurance policy in effect, subject to the following
conditions:
(1) The amount of the loss which is in disagreement after making
provisions for any undisputed claims payable under the said
policies and after the amount of the loss is agreed upon by the
insured and the insurers, is limited to the minimum amount
remaining payable under either the boiler and machinery or all-
risk property or fire policy(ies);
(2) The all-risk property or fire insurer shall simultaneously pay to
the Insured one-half of said amount which is in disagreement;
(3) The payments by the insurers hereunder and acceptance of the
same by the insured signify the agreement of the insurers to
submit to and proceed with arbitration within 90 days of such
payments;
The arbitrators shall be three in number, one of whom shall be
appointed by the boiler and machinery insurer and one of whom
shall be appointed by the all-risk property or fire insurer(s) and
the third appointed by consent of the other two, and the decision
by the arbitrators shall be binding on the insurers and that
judgment upon such award may be entered in any court of
competent jurisdiction;
(4) The insured agrees to cooperate in connection with such arbitra-
tion but not to intervene therein;
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(5) The provisions of this endorsement shall not apply unless such
other policy issued by the all-risk property or fire insurance
company is similarly endorsed;
and
(6) Acceptance by the Insured of sums paid pursuant to the
provisions of this endorsement, including an arbitration award,
shall not operate to alter, waive, surrender or in any way affect
the rights of the Insured against any of the insurers.
This agreement shall become effective on January 15, 1983, and shall
continue in force until the expiration of the all-risk property or fire
insurance policy or until canceled by either carrier on ten days written
notice to the Assured, whichever occurs first.
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8. Cancellation.
This policy may be cancelled by the Insured by mailing to the Company
written notice stating when thereafter such cancellation shall be effective.
This policy may be cancelled by the Company by mailing to Gallagher
Bassett Insurance Service, written notice stating when not less than ninety
days thereafter such cancellation shall be effective. The mailing of notice
as aforesaid shall be sufficient proof of notice and the effective date and
hour of cancellation stated in the notice shall become the end of the Policy
Period. Delivery of such written notice either by the Insured or by the
Company shall be equivalent to mailing.
If the Insured cancels, the earned premium shall be computed in accordance
with the Short Rate Cancellation Table. If the Company cancels, the earned
premium shall be computed pro rata. Premium adjustment may be made at
the time cancellation is effected and, if not then made, shall be made as
soon as practicable after cancellation becomes effective. The Company's
check or the check of its representative mailed or delivered as aforesaid
shall be a sufficient tender of any refund of premium due the Insured.
The determination of the return premium for any cancellation shall be
subject to the Minimum Premium Rules set forth in the Company's Manual
of Rules and Rates applicable.
9. Subrogation.
In the event of any payment under this policy, the Company shall be
subrogated to the Insured's rights of recovery therefor against any person or
organization and the Insured shall execute and deliver instruments and
papers and do whatever else is necessary to secure such rights. The Insured
shall do nothing after the Accident to prejudice such rights.
10. Action Against Company.
Except Coverage C, no action shall lie against the Company unless, as a
condition precedent thereto, the Insured shall have fully complied with all
the terms of this policy, nor unless commenced within fourteen months from
the date of the Accident. If this limitation of time is shorter than that
prescribed by any statute controlling the construction of this policy, the
shortest permissible statutory limitation in time shall govern and shall
supersede the time limitation herein stated.
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11. Action Against Company - Coverage C.
No action shall lie against the Company unless, as a condition precedent
thereto, the Insured shall have fully complied with all the terms of this
policy, nor until the amount of the Insured's obligation to pay has been
finally determined either by judgement against the Insured after trial or by
written agreement of the Insured, the claimant and the Company. The
Insured upon request of the Company shall aid in effecting settlements, in
securing evidence and the attendance of witnesses and in prosecuting
appeals.
Any person or organization or the legal representative thereof who has
secured such judgement or written agreement shall thereafter be entitled to
recover under this policy to the extent of the insurance afforded by this
policy. Nothing contained in this policy shall give any person or
organization any right to join the Company as a codefendant in any action
against the Insured to determine the Insured's liability.
Bankruptcy or insolvency of the Insured or of the Insured's estate shall not
relieve the Company of any of its obligations hereunder.
12. Assignment.
Assignment of interest under this policy shall not bind the Company until its
consent is endorsed hereon; if, however, the Insured shall die or be adjudged
bankrupt or insolvent during the Policy Period, this policy, unless cancelled,
shall, if written notice be given to the Company within sixty days after the
date of such death or adjudication, cover the Insured's legal representative
as the Insured.
13. Changes.
By accepting this policy, the Insured agrees that this policy embodies all
agreements existing between the Insured and the Company or any of its
agents relating to this insurance. Notice to any agent or knowledge
possessed by any agent or by any other person shall not effect a waiver or a
change in any part of this policy or estop the Company from asserting any
rights under this policy; nor shall the terms of this policy be waived or
changed, except by Endorsement issued to form a part of this policy, signed
by a duly authorized officer or representative of the Company. The
additional or return premium for any such Endorsement shall be computed in
accordance with the Company's Manual of Rules and Rates applicable to
such change.
14. Malicious Mischief.
Subject to Exclusion (1) of this policy, any Accident, as defined in any
Schedule or Endorsement forming a part hereof, arising out of strike, riot,
civil commotion, acts of sabotage, vandalism or malicious mischief, shall be
considered "accidental" within the terms of said definition.
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REFRIGERATION INTERRUPTION
INSURING AGREEMENT
Subject to the following Exclusions and Conditions, the Company hereby
agrees:
1. To pay the Insured the amount of loss of or damage to Specified
Property of the Insured.
2. To pay on behalf of the Insured the amount of loss of or damage
to Specified Property of others which the Insured shall become
legally obligated to pay for such loss;
Provided such loss is due to
a. Spoilage from lack of power, light, heat, steam or
refrigeration, resulting solely from an Accident to an
Object.
b. Contact or permeation of Specified Property by the
primary or secondary refrigerant, resulting solely from an.
Accident to an Object.
c. An accidental occurrence to the physical equipment of a
Public Utility which immediately prevents and continues to
prevent the delivery of usable power to the premises.
EXCLUSIONS
The Company shall not be liable for payment for any loss or expense
1. Resulting from an Accident to which Exclusions 1, 2, 3(a), 3(b),
3(c), 3(d), or 3(e) or the policy applies;
2. Resulting from the failure of the Insured to use due diligence and
dispatch and all reasonable means to protect the Property from
damage, following an Accident.
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COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE
INSURING AGREEMENT
Subject to the following Exclusions and Conditions of this Endorsement, the
Company hereby agrees, with respect to Business,
1. To pay the Insured the Actual Loss Sustained for each Total
Prevention of Business;
2. To pay the Insured a proportionate part of the Actual Loss Sustained
Partial Prevention of Business.
3. To pay that amount of Extra Expense
which
Prevention reasonably
Bus is iness.
incurred
by
the Insured or the Company reduce or avert
The term "Extra Expense" wherever used shall mean the additional cost to
conduct the Insured's business during the period of restoration over and
above the cost that normally would have been incurred to conduct the
business during the same period had no Accident occurred; such additional
cost to include the expense of obtaining and using other proper
ty
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expenses.
facilities of other concerns or other necessary emergency
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event, however, shall the Company be liable for Extra Expense in excess of
that necessary to continue as nearly as practicable the normal conduct of
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the Insured's business, nor for the cost of repairing or replacing any property
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that has been damaged or destroyed by an Accident, except such cost
incurred for the purpose of reducing the total amount of Extra Expense; the
Company's liability for such cost, however, shall not exceed the amount by
which the total Extra Expense otherwise ui payable is property d remainuced. ing salvaer
value of substitute or temporary equipment
resumption of normal operations shall be taken into consideration in the
adjustment of any loss hereunder provided the Total Prevention of Business
or the Partial Prevention of Business is caused solely by an Accident.
EXCLUSIONS
The Company shall not be liable for payment for any Prevention of Business
or Extra Expense
1. Resulting from any loss to which Exclusion 1, 2, 3(a), 3(b), 3(c), 3(d), or
3(e) of the policy applies;
2. For any time during which Business would not or could not have been
carried on if the Accident had not occurred;
3. Resulting from the failure of the Insured to use due diligence and
dispatch and all reasonable means in order to resume Business; or if,
following an Accident, any lease, license or order is suspended, lapsed
or cancelled, the Company shall not be liable for payment for any
Prevention of Business
Business could ave been suspended or canceleding after the time when
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COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE (Continued)
DEFINITIONS
"Current Business" shall mean one-half of the total Business on the Premises
during the two Months next preceding the Month of the Accident, in each of
which there has been any Business on the Premises.
"Total Prevention of Business" shall mean the prevention of all Business on
the Premises during all of a Month.
"Reduction in Business" shall mean the amount determined by subtracting
the amount of the total Business on the Premises for each Month following
an Accident from the amount of Current Business.
"Partial Prevention of Business" shall mean a decrease in Business on the
Premises during part or all of a Month, sufficient to make the total Business
for said Month less than Current Business. The liability of the Company for
Partial Prevention of Business for said Month shall be determined by
dividing the amount of Reduction in Business, caused by the Accident, for
said Month by the amount of Current Business and then multiplying the
result so obtained by the monthly Indemnity for said Month.
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SERVICE INTERRUPTION
INSURING AGREEMENT
The Company agrees to pay the Insured the loss as defined in the Business
Interruption Forms to which this is attached for the Period of Interruption
during which there is total or partial interruption of business operations or
services caused by the lack of the incoming service(s), but subject to a
deductible of four hours.
GENERAL CONDITIONS
Definitions
"Period of Interruption" shall mean those hours, or fractions thereof,
between the time when an interruption occurs and when with due diligence
and dispatch, the service so interrupted has been wholly restored to the
Premises, and shall be limited to only those hours during which the Insured
would have or could have used the Service(s), if it had been available.
Notice to Supplier(s) of Service
The Insured shall notify the Supplier(s) immediately at the time of
interruption of such Service.
Limitations of Liability
The Company shall not be liable for any payment under this Policy if the
interruption of Service is caused directly or indirectly by the failure of the
Insured to comply with the terms or conditions of the contract which the
Insured has for the supply of Service.
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