HomeMy WebLinkAbout000199.tiff CAPP
2002 Boiler & Machinery Policy
199
Boiler and Machinery Declarations
Issue Date . . 04/02/2002
Policy Number GP09 100425
Identification No BMI7318725
Named Insured:
Colorado Counties Casualty And Property Pool
MailingAddress 1700 Broadway, Suite 1512
Denver, CO 80290
Policy Period From 01/01/2002 to 01/01/2003 at 12:01 A.M.
Standard Time at the above Mailing Address
Annual Premium $90,191.00
Premium Due Now $90,191.00
Limit of Insurance $100,000,000 See Ecp Lmtanyl
Deductible $5,000.00
Locations Covered See Schedule of Locations
Schedule of Covered Objects
Obj. Definition Section Group or "Object"Description See Form Number
6 1 Comprehensive Coverage Including BM 01 31 02 91
Production Machines
r
DEC BMIR 01/1998 Page 1 of2
Declarations (continued)
Named Insured: Colorado Counties Casualty And Property
Pool
Policy Number GP09100425
Identification No BMI7318725
Effective Date 01/01/2002
Issue Date 04/02/2002
This policy is made up of these Declarations and the following forms:
Company Form No. Description ISO Form No.
R131F 0291 Boiler&Machinery Coverage Form BM 00 25 02 91
R131F 0291 Common Policy Conditions IL 00 17 11 85
R131F 0291 Calculation of Premium IL 00 03 11 85
ECP SCHLOC 01/1998 Schedule of Locations
ECP ADDLEXP 01/1997 Additional Limits of Insurance
ECP AUTOCOV 05/1995 Automatic Coverage
ECP BISCH 03/1996 Business Interruption - Actual Loss Sust
ECP CDSCHED 09/1995 Consequential Damage
ECP COINNO 05/1995 Coinsurance Waived
ECP DEM1 10/1996 Demolition &Increased Cost of Construct
ECP LMTANYI 04/1994 Limit Any One Accident
END OMNIBUS 05/1998 Omnibus Locations
ECP UISTD 09/1996 Utility Interruption
ECP ENDT C 03/1996 Consequential Damage BM 15 28 07 90
ECP ENDT L 11/1992 Combined Business Interruption & Extra E BM 15 33 02 91
ECP CO1 06/1998 Colorado Changes IL 02 28 04 98
ECP CO2 06/1998 Colorado Changes IL 01 69 04 98
DEC BMIR 01/1998 Page 2 of 2
Limits of Insurance
!—. Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09 100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
It is agreed that the Limits of Insurance, as stated in paragraph C. of the Boiler and Machinery Coverage
Form, are increased to the amounts stated below:
Expediting Expenses, paragraph C.2.a.(1).
It is agreed this Limit of Insurance is increased from$5,000 to
$100,000 ( )no change (applies if an "x" is inserted)
Hazardous Substance Limitation, paragraph C.2.b.
It is agreed this Limit of Insurance is increased from $5,000 to
,— $25,000 ( )no change (applies if an "x" is inserted)
Ammonia Contamination Limitation, paragraph C.2.c.
It is agreed this Limit of Insurance is increased from $5,000 to
/$ ( )no change (applies if an "x" is inserted)
/ad, 8Od �/' SL?-O z
%f}me.rcei6 fie irk ,d1
Water Damage Limitation, paragraph C.2.d.
It is agreed this Limit of Insurance is increased from $5,000 to
( ) no change(applies if an "x" is inserted)
//pO,el-00,26.
The above coverage limitations to our payment for direct damage to Covered Property are a part of and
not in addition to the Limit of Insurance for this Coverage Part.
ECP ADDLEXP 01/1997 Page 1 of 1
Automatic Coverage Modification Endorsement
n Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09 100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
It is agreed that the word "90" (days), appearing in the automatic coverage extension, paragraph A.3.b., of
the Boiler and Machinery Coverage Form, is hereby changed to read 365 Days.
ECP AUTOCOV 05/1995 Page 1 of 1
Business Interruption Schedule
r Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
Premises Any location described in and covered by the policy.
Location of"Obj ects"
Covered -Business
Interruption Above described premises
Endorsement L
Limit of loss $100,000,000 See ECP Lmtanyl
Deductible 12 Hours
( ) Ordinary payroll coverage(applies only when an "x" is inserted)
( )Days of ordinary payroll coverage provided (if"x" is inserted above)
Other address for notice of accident... 1-888-HSB-LOSS (1-888-472-5677)
Object
Definition Section Group Description Or Description Of"Object"
6 1 Comprehensive Coverage Including Production Machines
ECP BISCH 03/1996 Page 1 of 1
Consequential Damage Schedule
Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09 100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
Premises Any location described in and covered by the policy.
Location of"Objects"
Covered- Consequential
Damage Above described premises
Endorsement C
Limit of Loss $25,000.00
Coinsurance Nil
Specified Property:
Food Products solely while in storage; however specified property does not
include live animals.
Deductible $5,000.00
Object
Definition Section Group Description or Description of"Object"
6 1 Comprehensive Coverage Including Production Machines
ECP CDSCHED 09/1995 Page 1 of 1
BI - Coinsurance Suspended
Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09 100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
A current Business Interruption Report of Values has been received and is on file with us.
The Coinsurance Condition in the Business Interruption Endorsement forming part of this policy is
therefore suspended from the effective date above until 01/01/2003 .
An endorsement must be issued for each additional time period during which the Coinsurance Condition
is suspended.
Your next report of values is due on or before 01/01/2003 .
ECP COINNO 05/1995 Page 1 of 1
DICC Coverage
r Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09 100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
If at the time of an "accident" to an insured "bbj ect" there is in force any law or ordinance regulating the
reconstruction, repair, replacement, or use of buildings or structures damaged by the "accident", or such
insured "obj ect" then we shall cover:
1. The additional loss sustained in demolishing any undamaged portion of buildings or structures
necessitated by such law or ordinance.
2. The cost incurred in actually rebuilding both the damaged and demolished portions of such buildings or
structures with materials and in a manner to fully satisfy such law or ordinance.
We shall not be liable for any cost of demolition or increased cost of construction necessitated by any law or
ordinance regulating any form of pollution or contamination.
The total liability under this endorsement shall not exceed the actual expenditure incurred in demolishing the
undamaged portion of the building(s) or structures(s) involved plus the lesser of the following:
a. The actual expenditure incurred, not including the cost of land, in the rebuilding on another site, or
b. The cost of rebuilding on the same site.
It is agreed that, only as respects the specific coverage as provided under this endorsement, the "ordinance or
law" exclusion of this Coverage Part is considered eliminated.
Business interruption, extra expense or other time element or indirect coverage endorsed on this policy shall
apply to loss covered under this endorsement, unless otherwise excluded.
The total liability under this endorsement, for all policy coverages combined, shall not exceed $1,000,000.
The amount of covered loss payable under this endorsement, for each type of coverage, is also subj ect
to any combined or specific limit applicable to that coverage. The sublimit provided above applies only once
for any"one accident"regardless of how many coverages are involved and does not increase any applicable
combined or specific policy limit.
This endorsement does not change or alter any other terms or conditions of this policy.
ECP DEMI 10/1996 Page 1 of 1
Limit - Any One Accident
Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09 100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
It is agreed that our total liability for loss of the kinds insured against under this Coverage Form, or under
the endorsements included in this Coverage Part, resulting from any "one accident", shall in no event
exceed the amount specified as "Limit of Insurance" in the Declarations of this Coverage Part.
Order of Payment
Payments within the limit for any "one accident", as provided above, shall be determined in the following
fixed order and the portion of the Limit of Insurance applicable to each coverage of the Boiler and
Machinery Coverage Part shall be to the extent that any of the limit any "one accident" remains after
payment of all loss under all preceding coverages:
i—. (a) Paragraph A.I.a of the Boiler and Machinery Coverage Form
(b) Paragraph A.3.a., Expediting Expense, of the Boiler and Machinery Coverage Form
(c) Any business interruption or other indirect coverage endorsement attached to the Boiler and
Machinery Coverage Part.
(d) Paragraph A.l.b. of the Boiler and Machinery Coverage Form
ECP LMTANYI 04/1994 Page 1 of 1
Omnibus Locations Endorsement
i" Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09100425
Identification No BMI7318725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the policy. Please read it carefully.
Omnibus Location Description
In consideration of the initial Report of Locations and Values, which is on file with us, the following is
added to the Schedule of Locations:
Any location which is located anywhere in the"Coverage Territory" of this policy and which is:
a) Owned by you; or
b) Leased by and operated under your control and for which you are legally liable.
Report of Locations and Values
You shall prepare as of the date this coverage part becomes effective, and as of each 12 months thereafter,
an approved Report of Locations and Values showing the following:
1) Each location owned by you or leased and operated under your control on the date for which the report
is prepared;
2) The building and contents values of each location; and
3) The business income values of each location, if Business Income coverage is included.
This report shall be filed with us not later than 30 days after each anniversary date. We shall compute the
policy premium as of the anniversary date based on the report as field with us.
END OMNIBUS 5/1998 Page 1 of 1
Utility Interruption (UI) Coverage
r Named Insured Colorado Counties Casualty And Property
Pool
Policy Number GP09100425
Identification No BMI73 18725
Effective Date 01/01/2002
Issue Date 04/02/2002
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
A. Coverage
The coverage provided by any
1. Business Interruption
2. Consequential Damage, or
3. Extra Expense
Endorsement forming a part of this Coverage Part is extended to include an "accident" to an "object"
described in the schedule below, whether or not that "object" is on your premises.
The "object" must be:
4. Owned, operated or controlled by a public utility or other company you have contracted with to
supply the service(s) specified below; and
5. Used to supply the service(s) specified below Solely to your premises
B. "Obj ect(s)": Any "obj ect(s)" of the same type scheduled for coverage at a location where the loss
occurs, unless specified otherwise below.
Optional UI "obj ect" schedule: Transformers and Non-Rotating Electrical Apparatus Only
C. Specified Services:
Electrical Power
D. Waiting period and commencement of liability we will not be liable for payment of any loss or expense
unless the "period of interruption" of a specified service exceeds the specified waiting period. Our
liability then applies to the entire "period of interruption," subj ect to any applicable deductible(s).
Waiting Period: Not Applicable
E. Limit Per Interruption:
Included
If a limit is entered above, that limit is the most we will pay for the total of all applicable utility
interruption loss under all endorsements, after application of any applicable deductible(s). If"Per
ECP UISTD 09/1996 Page 1 of 2
Endorsement" is entered, any respective utility interruption loss will be part of and not in addition to
the limit of each applicable endorsement.
F. Exclusions
It is agreed that, with respect to an "accident"to any "obj ect" described in this endorsement, all of the
exclusions in the Boiler and Machinery Coverage Form apply. In addition, we will not pay for any loss
caused by or resulting from an "accident" caused by:
* Lightning * Aircraft
* Rising Water or Flood * Missiles or by obj ects falling from missiles
* Windstorm or Hail * Weight of Snow, Ice or Sleet
* Smoke * Collapse
* Riot * Sprinkler Leakage
* Civil Commotion * Molten Material
* Vandalism *A deliberate act or acts by the supplying
* Impact of Vehicles utility to shed load to maintain system
* Civil Authority integrity
G. Definition
"Period of Interruption" means the time from the interruption of a specified service to that time when
that specified service could be restored to the premises with due diligence and dispatch. All resultant
and concomitant interruptions shall be considered as one event.
"Period of Interruption" does not include any increased time period required by, caused by or resulting
from enforcement of any item cited by the ordinance or law exclusion in the Boiler and Machinery
Coverage Form.
ECP UISTD 09/1996 Paee 2 of 2
ENDORSEMENT C - CONSEQUENTIAL DAMAGE
This endorsement changes the Boiler and Machinery policy or Coverage Part. Please read it carefully.
A. COVERAGE resulting from any"one accident"until the amount of
1. We will pay you for"Consequential Damage"to loss or expense exceeds the Deductible shown in the
"Specified Property"that is caused solely by an Declarations. We will then pay the amount of loss or
"accident"to an"object,"provided all of the expense in excess of the Deductible,up to the applicable
following requirements are met: Limit of Insurance. If more than one"object"is
involved in"one accident,"only the highest Deductible
a. The"accident"must occur during the time this will apply.
coverage is in force;
D. CONDITIONS
b. The"object"that has the"accident"must be:
The following conditions apply in addition to the
(1) Specified as covered in the Consequential Common Policy Conditions and the Boiler and
Damage Schedule; Machinery Conditions.
(2)At a"location"specified in the 1. Coinsurance
Consequential Damage Schedule;and
We will not pay the full amount of your loss if the
(3) In use or connected ready for use. Limit of Loss at the time of the"accident" is less
2. We will also pay: than the product of the Coinsurance percentage
a. shown in the Consequential Damage Schedule times
For loss to"Specified Property"of others for
which you are legally liable; and the actual cash value of all"Specified Property"at
the"Location"where the"accident"occurs.
b. The reasonable expense incurred by you or us to
Instead,we will determine the most we will pay by
reduce or avert"Consequential Damage."The
amount we pay for that expense is limited to the using the following steps:
amount that our payment under paragraphs I a. Divide the Limit of Loss by the product of the
and 2.a.above is reduced. Coinsurance percentage multiplied by the total
actual cash value of all"Specified Property"at
! B. EXCLUSIONS the time of the"accident."
1. All the Exclusions of the Boiler and Machinery b. Multiply the total amount of the covered loss by
Coverage Form apply to loss or expense under this
the figure determined in paragraph a. above;c.
endorsement except:
c. Subtract the applicable deductible from the
a. Lack of power, light,heat,steam or
amount determined in paragraph b.above;
refrigeration;
b. A delay in,or interruption of,any business, d. The resulting amount or the Limit of Loss for
"Consequential Damage,"whichever is less,is
manufacturing or process activity;or
the most we will pay. We will not pay for the
c. Any other indirect result of an"accident." remainder of the loss.
2. In addition,we will not pay for: 2. Payment Limits
a. More than the actual cash value,at the time of Payment for loss or expense under this endorsement
the"accident,"of your"Specified Property" is subj ect to the following:
damaged or destroyed,however caused. Actual a. Our total payment for any"one accident" for
cash value will include proper deductions for
"Consequential Damage"or expenses will not
depreciation;or
exceed the Limit of Loss shown on the
b. Your failure to use due diligence and dispatch Consequential Damage Schedule.This Limit of
and all reasonable means to protect the Loss is not part of the Limit of Insurance;it is a
"Specified Property"from damage following an separate limit;
"accident." b. Our payment will not increase if more than one
C. DEDUCTIBLE insured is shown on the Declarations;
If a dollar deductible is shown in the Consequential c. Loss or expense under this endorsement from an
Damage Schedule,we will not pay for loss or expense "accident"that occurs during the time this
BM 15 28 07 90 Copyright,Insurance Services Office, Inc.
ECP ENDT_C 03/1996 Page 1 of 2
ENDORSEMENT C - CONSEQUENTIAL DAMAGE (Continued)
coverage is in force may continue beyond the b. Salvaging"Specified Property."
termination or expiration of this coverage. Our E. DEFINITIONS
liability for that loss or expense is not limited by
1. "Consequential Damage" means loss due to
the termination or expiration.
spoilage from lack of power,light,heat,steam or
3. Reducing Your Losses As soon as possible after an refrigeration,resulting solely from an"accident."
"accident"you must make use of every or available
2. "Location" means the premises at the address
means to reduce or avert loss partially
shown on the Consequential Damage Schedule.
completely,including:
a. 3. "Specified Property"means only the property
Merchandise or other property such as surplus
described in the Schedule of this endorsement.
machinery,duplicate parts,equipment,supplies
and surplus or reserve stock you own,control or
can obtain; and
BM 15 28 07 90 Copyright,Insurance Services Office,Inc.
ECP ENDT_C 03/1996 Page 2 of 2
ENDORSEMENT L
COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE ACTUAL LOSS
This endorsement changes the Boiler and Machinery policy or Coverage Part. Please read it carefully.
A. COVERAGE 3. Any other indirect result of an"accident"to an
1. We will pay you for your"Actual Loss"and"Extra "object."
Expense"during the"period of restoration"provided In addition,we will not pay for any loss or expense
all of the following requirements are met: due to:
a. The"Actual Loss"and"Extra Expense"must be 4. The interruption of business that would not or could
caused solely by an "accident"to an"object"; not have been carried on if the"accident"had not
b. The loss must be as a result of direct physical occurred;
damage to Covered Property; 5. Your failure to use due diligence and dispatch and
c. The"accident"must occur during the time this all reasonable means to resume business as nearly
coverage is in force. normal as practicable at the location(s) shown in the
Schedule;and
d. The"object"that has the"accident"must be:
6. The suspension,lapse or cancellation of a contract
(1) Specified as covered in the Combined following an"accident"extending beyond the time
Business Interruption and Extra Expense business could have resumed if the contract had not
Schedule; lapsed,been suspended or cancelled.
(2)At the"location" shown in the Combined C. DEDUCTIBLE
Business Interruption and Extra Expense
Schedule;and 1. Time Deductible
(3) In use or connected ready for use. If a time deductible is shown in the Business
Interruption Schedule,we will not be liable for any
2. We will pay: loss under this endorsement occurring during that
a. Your"actual loss"from a total or partial specified time period immediately following the
.^ interruption of business;and Commencement of Liability.
b. The"Extra Expense"you necessarily incur to 2. Dollar Deductible
operate your"Business" as nearly"normal"as If a dollar deductible is shown in the Business
practicable during the"Period of Restoration" Interruption Schedule,we will first subtract the
following an "accident." deductible amount shown in the Schedule from the
We will consider the actual experience of your amount we would otherwise pay under this
business before the"accident"and the probable endorsement. We will then pay the amount of loss
experience you would have had without the or expense in excess of the deductible,up to the
"accident"in determining the amount of our applicable Limit of Loss.
payment. 3. Multiple of Daily Value Deductible
3. Ordinary Payroll Coverage—If Ordinary Payroll If a multiple of daily value is shown in the Business
coverage is shown in the Business Interruption Interruption Schedule,we will first subtract from
Schedule,the words—but not your ordinary payroll the total amount we would otherwise pay,a dollar
expense—are deleted from the definition of"actual amount that is equal to the daily value during the
loss." period of interruption at the"location(s)"where the
B. EXCLUSIONS loss occurred,multiplied by the multiple specified
on the schedule. The daily value is the amount that
All the Exclusions of the Boiler and Machinery
Coverage Form apply to loss or expense under this would have been earned each working day had no
coverage,except: "accident"occurred.
1. Lack of power,light,heat,steam or
refrigeration;
2. A delay in,or interruption of,any business,
manufacturing or process activity;or
BM 15 33 02 91 Copyright,Insurance Services Office,Inc.
ECP ENDT_L 11/1992 Page 1 of 3
COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE ACTUAL LOSS (Continued)
D. CONDITIONS At our expense,you must immediately give notice
of"accident"to any of our offices.You must
The following conditions apply in addition to the confirm that notice in writing.Our liability under
Common Policy Conditions and the Boiler and this coverage starts:
Machinery Conditions:
a. At the time of the"accident";or
1. Adjustment of Premium
b. 24 hours before we receive notice of"accident";
Upon receipt of the annual reports you furnish us,
we will determine the amount of premium we whichever is later.
earned for the past year.If the amount determined is 5, Payment Limits
more than the premium we have already charged for Payment for loss or expense under this endorsement
this coverage,you must pay the difference. If the is subj ect to the following:
amount determined is less than the premium we
originally charged,we will refund the difference. a. Our total payment for any"one accident" for
However,the amount we return will not exceed interruption of business,or for expenses will not
75%of the premium we originally charged. exceed the Limit of Loss shown in Combined
Business Interruption and Extra Expense
2. Annual Reports Schedule. This Limit of Loss is not part of the
You must fill out the Approved Report Form we Limit of Insurance;it is a separate limit;
furnish you once each year. Your reports must b. Our payment will not increase if more than one
reach us within three months after the effective date insured is shown on the Declarations;
of the policy and each anniversary of the policy.
3. Coinsurance c. Loss or expense under this endorsement from an
"accident"that occurs during the time this
We will not pay the full amount of any loss,if the endorsement is in force may continue beyond the
Business Interruption"annual value" at the time of termination or expiration of this endorsement.
loss is greater than the"estimated annual value" Our liability for that loss or expense is not ^
shown in your latest report or if your report was limited by that termination or expiration.
received by us more than three months after the due d. The amount of our payment will reflect a
date,or if your report is overdue. Instead,we will deductible for the salvage value of any substitute
determine the most we will pay using the following or temporary property remaining after you
steps:
resume"normal" operations.
a. Divide the"estimated annual value"last 6. Reducing Your Loss
reported to us by the"annual value"at the time
of the"accident"; As soon as possible after an"accident,"you must:
b. Multiply the total amount of the covered loss by a. Resume business,partially or completely;and
the figure determined in paragraph a.above; b. Make up lost business within a reasonable
c. Subtract the applicable deductible from the period of time.This reasonable period does not
amount determined in paragraph b.above. necessarily end when operations are resumed.
The resulting amount or the Limit of Loss for c. Make use of every available means,including:
Business Interruption,whichever is less,is the most (1)Working extra time or overtime, either at the
we will pay.We will not pay for the remainder of "location"or at another location you-
the loss. acquire to carry on the same operations;
If more than one location is shown in the Schedule (2)The property or services of other concerns;
for this coverage,this Coinsurance Condition and
applies separately to each"location."
(3)Merchandise or other property,such as
4. Notice of"Accident" and Commencement of surplus machinery,duplicate parts,
Liability
BM 15 33 02 91 Copyright,Insurance Services Office,Inc.
ECP ENDT L 11/1992 Page 2 of 3
COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE ACTUAL LOSS (Continued)
equipment,supplies and surplus or reserve a. Means the cost of operating your"business"
stock you own,control or can obtain. during the"Period of Restoration"minus what
E. DEFINITIONS the cost of operating it would have been had no
xtra
The following definitions apply in addition to the "accident"xpe occurred.e Included ry items in as:
Expense"are such necessary as:
Definitions of the Boiler and Machinery Coverage Form emergency services,merchandise or other
and all provisions of any Obj ect Definitions property of other concerns.
endorsements shown in the Declarations:
1. "Actual Loss" means the sum of b. May also include all or part of the cost of
repairing or replacing property damaged or
a. The net profits you fail to earn because of destroyed by an"accident." To qualify as"Extra
business interruption resulting from an Expense,"the cost must be incurred for the
"accident";and purpose of minimizing the total of our"Extra
b. Whatever part of the following fixed charges and Expense"payment. The amount that we would
expenses the business failed to earn but would include in our"Extra Expense"payment would
have earned if there had been no"accident"; be equal to:
(1) Salaries and wages of officers,executives, (1)The savings in"Extra Expense"you have
employees under contract and other essential enabled us to realize by having the repairs or
employees,as well as pensions and directors' replacements made;or
fees but not your ordinary payroll expense; (2)The amount of"Extra Expense" you paid to
and have the repairs or replacements made;
(2) Manufacturing,selling,administrative whichever is less.
expenses and any other items contributing to c. Does not mean:
your overhead expenses.
(1)Loss of income;or
In calculating the"actual loss,"we will take into
account the actual experience of your business (2)Expense in excess of that which is necessary
before the"accident"and the probable to keep your"Business"operating in as
experience you would have had without the nearly"normal"a manner as practicable.
"accident." 6. "Location" means the premises at the address
2. "Annual Value"means the sum of net profits and shown on the Combined Business Interruption and
"fixed charges and expenses"that would have been Extra Expense Schedule.
earned had the'Accident"not occurred. 7. "Normal" means the condition that would have
3. "Estimated Annual Value"means the sum of net existed had no"accident"occurred.
profits and"fixed charges and expenses"as 8. "Period of Restoration" means the period of time
estimated by you in the most recent annual report. that:
4. "Fixed charges and expenses"means the sum of a. Begins at the time of the commencement of
the following: liability;and
a. Salaries and wages of officers,executives, b. Ends on the date when the damaged property at
employees under contract and other essential the described"location"is repaired or replaced.
employees,as well as pensions and directors'fees "Period of Restoration"does not include any
but not your ordinary payroll expense;and increased time period required by,caused by or
b. Manufacturing,selling,administrative expenses resulting from enforcement of any item cited by the
and any other items contributing to your Ordinance or Law exclusion in the Boiler and
overhead expenses. Machinery Coverage Form.
5. "Extra Expense"
BM 15 33 02 91 Copyright,Insurance Services Office, Inc.
ECP ENDT_L 11/1992 Page 3 of 3
Boiler And Machinery Coverage Form
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights,duties
and what is and is not covered.
Throughout this policy the words"you" and"your"refer to the Named Insured shown in the Declarations. The
words"we,""us"and"our"refer to the Company providing this insurance.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section F.-DEFINITIONS.
A. COVERAGE (2)The"object"must be in use or connected
We will pay for direct damage to Covered Property ready for use at the time of acquisition and
caused by a Covered Cause of Loss. throughout the period of automatic coverage
1. Covered Property and be of a type that would he included in
any"obj ect"Group Description shown in the
Covered Property,as used in this Coverage Part, Declarations;
means any property that: (3)The Limit of Insurance and Deductible
a. You own;or amount will be the highest amounts shown in
b. Is in your care,custody or control and for which the Declarations for the same type of
you are legally liable. In addition to paying for "object";
loss to this property,we will defend you against (4) We will not be liable under this coverage for
any claim or"suit"alleging liability for damage Consequential Damage,Business
to this property,subj ect to the Defense and the Interruption or any other indirect loss
Supplementary Payments provisions. resulting from an"accident"to an"obj ect";
2. Covered Cause of Loss and
A Covered Cause of Loss is an "accident"to an (5)You agree to pay an additional premium as
"object" shown in the Declarations. An"object" determined by us.
must be in use or connected ready for use at the c. Defense
location specified for it at the time of the"accident." If a claim or"suit"is brought against you
3. Coverage Extensions alleging that you are liable for damage to
a. Expediting Expenses property of another in your care,custody or
With respect to your damaged Covered control,that was directly caused by an
Property,we will pay the reasonable extra cost "accident"to an"obj ect,"we will either:
to: (1) Settle the claim or"suit";or
(I) Make temporary repairs; (2)Defend you against the claim or"suit,"but
(2)Expedite permanent repairs;and keep for ourselves the right to settle it at any
point.
(3)Expedite permanent replacement. d. Supplementary Payments
We restrict the amount payable for Expediting We will pay with respect to any claim or"suit"
Expenses as explained in the Limits of Insurance we defend:
section of this Coverage Form.
b. Automatic Coverage for a Newly Acquired (1)All expenses we incur;
Location (2)The cost of bonds to release attachments,but
We will automatically cover an"accident"to an only for bond amounts within the Limit of
"object"at a newly acquired location.This Insurance. We do not have to furnish these
automatic coverage begins at the time you bonds;
acquire the property and continues for 90 days (3)All reasonable expenses incurred by you at
under the following conditions: our request to assist us in the investigation or
(I) You must inform us,in writing,of the newly defense of the claim or"suit,"including
acquired location within 90 days of the date
you acquire it;
r^
BM 00 25 02 91 Copyright, Insurance Services Offices, Inc.
R131F 02/1991 Page 1 of 18
Boiler And Machinery Coverage Form (Continued)
actual loss of earnings up to$100 a day 4. Other Exclusions
because of time off from work; Loss caused by or resulting from:
(4)All costs taxed against you in any"suit"we a. An explosion.However,we will pay for loss
defend: caused by or resulting from an explosion of an
(5)Prej udgment interest awarded against you "obj ect"of a kind described below and only to
on that part of the judgment we pay.If we "obj ects" covered by this insurance and as
make an offer to pay the applicable Limit of described on an Obj ect Definitions endorsement:
Insurance,we will not pay any prejudgment Explosion of any:
interest based on that period of time after the
offer;and (I) Steam boiler;
(6)All interest on the full amount of any (2)Electric steam generator;
judgment that accrues after entry of the (3) Steam piping;
j udgment and before we have paid,offered (4)Steam turbine;
to pay,or deposited in court the part of the
judgment that is within the Limit of (5) Steam engine;
Insurance shown in the Declarations. (6)Gas turbine;or
These payments will not reduce the Limit of (7)Moving or rotating machinery caused by
Insurance. centrifugal force or mechanical breakdown;
B. EXCLUSIONS b. Fire or explosion that occurs at the same time as
an"accident"or that ensues from an"accident".
We will not pay for:
With respect to any electrical equipment
1. Ordinance or Law forming a part of an"obj ect,"this exclusion is
Any increase in loss caused by or resulting from the changed to read:
enforcement of any ordinance,law,regulation,rule Fire or explosion outside the"object"that occurs
or ruling regulating or restricting repair, at the same time as an"accident"or ensues from
replacement,alteration,use,operation,construction an"accident";
or installation.
c. Explosion of gas or unconsumed fuel within the
As used here,increase in loss also includes expenses furnace of any boiler or fired vessel or within the
incurred beyond those for which we would have paid passages from that furnace to the atmosphere,
if no substance declared to be hazardous to health by whether or not the explosion is:
a governmental agency had been involved in the
(I)Contributed to or aggravated by an
"accident."
"accident"to any part of an"obj ect" that
2. Nuclear Hazard contains steam or water;or
Loss caused by or resulting from nuclear reaction or (2) Caused in whole or in part directly or
radiation,or radioactive contamination,however indirectly,by an"accident"to an"obj ect"or
caused. part of an"object."
3. War and Military Action d. An"accident"that is the direct or indirect result
Loss caused by or resulting from: of an explosion or fire;
a. War,including undeclared or civil war; e. Water or other means used to extinguish a fire,
b. Warlike action by a military force,including even when the attempt is unsuccessful;
action in hindering or defending against an f. Lightning,if coverage for that cause of loss is
actual or expected attack,by any government, provided by another policy of insurance or
sovereign or other authority using military coverage part you have;
personnel or other agents;or g. Flood.However,if an"accident"results from a
c. Insurrection,rebellion,revolution,usurped flood,we will pay for direct damage to Covered
power or action taken by governmental Property caused by the"accident";
authority in hindering or defending against any
of these.
BM 00 25 02 91 Copyright, Insurance Services Offices,Inc.
11.131F 02/1991 Page 2 of 18
Boiler And Machinery Coverage Form (Continued)
h. An"accident"to any"obj ect"while being substance hazardous to health had been
tested; involved.
i. An"accident"caused directly or indirectly by c. Ammonia Contamination Limitation
earth movement,including but not limited to If Covered Property is contaminated by
earthquake,landslide,mudslide,subsidence or ammonia as a result of an"accident"to an
volcanic eruption; "object,"the most we will pay for this kind of
j. Lack of power,light,heat,steam or damage,including salvage expense,is$5,000.
refrigeration; d. Water Damage Limitation
k. A delay in,or an interruption of,any business, If Covered Property is damaged by water as a
manufacturing or processing activity;or result of an"accident"to covered refrigerating or
1. Any other indirect result of an"accident"to an air conditioning vessels and piping,the most we
"object. " will pay for this kind of damage,including
We will not pay for any loss excluded above even salvage expense,is$5,000.
though any other cause or event contributes Any payment made under Section C will not increase if
concurrently or in any sequence to the loss. more than one insured is shown in the Declarations.
C. LIMITS OF INSURANCE D. DEDUCTIBLE
1. We will not pay more than the applicable Limit of We will not pay for loss or damage resulting from any
Insurance shown in the Declarations for all direct "one accident" until the amount of loss or damage
damage to Covered Property that results from any exceeds the Deductible shown in the Declarations.We
"one accident." will then pay the amount of loss or damage in excess of
the Deductible,up to the applicable Limit of Insurance.
2. The following coverage limitations to our payment
for direct damage to Covered Property are part of If more than one"object"is involved in"one accident,"
and not in addition to the Limit of Insurance for this only the highest Deductible will apply.
Coverage Form. E. BOILER AND MACHINERY CONDITIONS
a. Expediting Expenses The following conditions apply in addition to the
Our payment for Expediting Expenses will be Common Policy Conditions:
limited to: I. Loss Conditions
(1)$5,000;or a Duties In the Event of Loss or Damage
(2) What is left of the Limit of Insurance after (1)You must see that the following are done in
we pay your loss for Covered Property the event of loss or damage;
damaged by an"accident"; (a) Give us a prompt notice of the loss or
whichever is less. damage.Include a description of the
b. Hazardous Substance Limitation property involved.
The following applies despite the operation of (b) As soon as possible,give us a description
the Ordinance or Law Exclusion.This limitation of how,when and where the loss or
does not apply to damage,contamination or damage occurred.
pollution caused by ammonia. (c) Allow us a reasonable time and
If Covered Property is damaged,contaminated opportunity to examine the property and
or polluted as a result of an"accident" to an premises before repairs are undertaken or
"object"by a substance declared to be hazardous physical evidence of the"accident"is
to health by a governmental agency,the most we removed. But you must take whatever
will pay for any additional expenses incurred by measures are necessary for protection
you for clean up,repair or replacement or from further damage.
disposal of that property is$5,000.As used here, (d) Permit us to inspect the property and
additional expenses mean expenses incurred records.Also permit us to take samples
beyond those for which we would be liable if no
BM 00 25 02 91 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 3 of 18
Boiler And Machinery Coverage Form (Continued)
of damaged property for inspection, insurance covers the interest of the loss
testing and analysis. payee unless the loss results from conversion,
secretion or embezzlement on your part.
(e) If requested,permit us to question you
under oath,at such times as may he (2)We may cancel the policy as allowed by the
reasonably required about any matter Cancellation Condition.Cancellation ends
relating to this insurance or your claim, this agreement as to the loss payee's interest.
including your hooks and records. In If we cancel,we will mail you and the loss
such event,your answers must be signed. payee the same advance notice.
(f) Send us a signed,sworn statement of loss (3)If we make any payment to the loss payee,
containing the information we request to we will obtain their rights against any other
settle the claim.You must do this within party.
60 days after our request. e. Other Insurance
(g) Cooperate with us in the investigation or
(1)You may have other insurance subj ect to the
settlement of the claim.
same plan,terms,conditions and provisions
(2) We may examine any insured under oath, as the insurance under this Coverage Part. If
while not in the presence of any other insured you do,we will pay our share of the covered
and at such times as may he reasonably loss or damage. Our share is the proportion
required,about any matter relating to this that the applicable Limit of Insurance under
insurance or the claim,including an insureds this Coverage Part bears to the Limits of
hooks and records.In the event of an Insurance of all insurance covering on the
examination,an insured's answers must he same basis.
signed.
(2)If there is other insurance covering the same
b. Insurance Under Two or More Coverages loss or damage,other than that described in ...
If two or more of this policy's coverages apply to (1)above,we will pay only the amount of
the same loss or damage,we will not pay more covered loss or damage in excess of the
than the actual amount of the loss or damage amount due from that other insurance,
subject to the Limit of Insurance. whether you can collect on it or not.
c. Legal Action Against Us In no case will we pay more than the applicable
Limit of Insurance.
No one may bring a legal action against us under
this Cove*rage Part unless: f. Transfer of Rights of Recovery Against Others
(I)There has been full compliance with all the To Us
terms of this Coverage Part; and If any person or organization to or for whom we
(2)The action is brought within 2 years after the make payment under this Coverage Part has
rights to recover damages from another,those
date of the"accident"; or.
rights are transferred to us to the extent of our
(3)We agree in writing that you have an payment. That person or organization must do
obligation to pay for damage to Covered everything necessary to secure our rights and
Property of others or until the amount of that must do nothing after loss to impair them.
obligation has been determined by final
j udgment or arbitration award. No one has g Valuation
the right under this policy to bring us into an (1)We will pay you the amount you spend to
action to determine your liability. repair or replace your property directly
d.Loss Payable Clause damaged by an "accident." Our payment
will be the smallest of:
(1)We will pay you and the loss payee shown in
(a) The Limit of Insurance;
the Declarations for loss due to an"accident"
to an"obj ect",as interests may appear.The
BM 00 25 02 91 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 4 of 18
Boiler And Machinery Coverage Form (Continued)
(b) The cost at the time of the"accident"to If a person or organization is designated in this
repair the damaged property with Coverage Part as an additional insured,we will
property of like kind,capacity,size and consider them to he an insured under this
quality; Coverage Part to the extent of their interest.
(c) The cost at the time of the"accident"to b. Bankruptcy
replace the damaged property on the The bankruptcy or insolvency of you or your
same site with other property: estate will not relieve us of an obligation under
(i) Of like kind,capacity,size and this Coverage Part.
quality;and c. Obj ect Group
(ii)Used for the same purpose; All"obj ects"in use or connected ready for use
(d) The amount you actually spend that is and included in an"obj ect"Group Definition
necessary to repair or replace the will be considered as individually described in
damaged property. the Declarations. The premiums for"objects"
(2) As respects any"object,"if the cost of included in an"object"Group Description will
repairing or replacing only a part of the be adj usted as follows:
"obj ect"is greater than: (1) We will base the initial premium for these
(a) The cost of repairing the"object";or "obj ects"on information we obtain. The
rates charged will be those in effect on the
(b) The cost of replacing the entire"obj ect" first day of coverage.
on the same site; (2)We will charge an additional premium for
We will pay only the smaller of(a)or(b). "objects"that are added to the policy after
The repair parts or replacement"object" the effective date of this policy.The
must be: additional premium for these"obj ects"will
(c) Of like kind,capacity,size and quality; be computed pro rata.
and (3) We will allow a return premium for
(d) Used for the same purpose. "obj ects"that are removed from the policy
after the effective date of the policy.The
(3)We will not pay you: return premium will be computed pro rata
(a) If the loss or damage is to property that is from the time the"objects" are disconnected.
obsolete or useless to you;or d. Policy Period,Coverage Territory
(b) For any extra cost if you decide to repair Under this Coverage Part:
or replace the damaged property with
property of a better kind or quality or of (1)The"accident"must occur:
larger capacity. (a) During the Policy Period shown in the
(4) If you do not repair or replace the damaged Declarations;and
property within 18 months after the date of (b) Within the coverage territory.
the"accident,"then we will pay only the (2)The coverage territory is:
smaller of the:
(a) The United States of America;and
(a) Cost it would have taken to repair;or
(b) Puerto Rico.
(b) Actual cash value;
e. Concealment,Misrepresentation or Fraud
at the time of the"accident."
This Coverage Part is void in any case of fraud
Paragraph(4)does not apply to any time by you relating to it. It is also void if you
period beyond the 18 months that we agree intentionally conceal or misrepresent a material
to in writing. fact concerning:
2. General Conditions (1)This Coverage Part;
a. Additional Insured
BM 00 25 02 91 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 5 of 18
Boiler And Machinery Coverage Form (Continued)
(2)The Covered Property;or e. Breakdown of any electronic computer or
(3) Your interest in the Covered Property. electronic data processing equipment;
f. Suspension f. Breakdown of any structure or foundation
supporting the"obj ect"or any of its parts;or
Whenever an"object"is found to be in,or
g. The functioning of any safety or protective
exposed to,a dangerous condition,any of our
representatives may immediately suspend the device.
insurance against loss from an "accident"to that Turbine Units may have a separate definition of
"obj ect." This can be done by delivering or "accident." If so,refer to the Declarations for the
mailing a written notice of suspension to: appropriate accident definition.
(1)Your last known address;or If a strike,riot,civil commotion,act of sabotage or
(2)The address where the"object"is located. vandalism results in an "accident,"this insurance
applies. However,the War and Military Action
Once suspended in this way,your insurance can Exclusion and the conditions of this Coverage Part
be reinstated only by an endorsement for that still apply.
"obj ect."
2. "Obj ect"means the equipment shown in the
If we suspend your insurance,you will get a pro Declarations.Full description of specific "object"
rata refund of premium for that"object."But the categories are found in the Obj ect Definitions
suspension will be effective even if we have not endorsement attached to this Coverage Form.
yet made or offered a refund.
3. "One Accident"means:
F. DEFINITIONS
If an initial"accident"causes other"accidents" all
I. "Accident"means a sudden and accidental will be considered"one accident."All"accidents"at
breakdown of the"object"or a part of the"obj ect." any one location that manifest themselves at the
At the time the breakdown occurs,it must manifest same time,and are the result of the same cause will ^r.
itself by physical damage to the"obj ect"that be considered"one accident."
necessitates repair or replacement.
4. "Suit"means a civil proceeding and includes:
None of the following is an"accident":
a. An arbitration proceeding in which damages are
a. Depletion,deterioration,corrosion or erosion; claimed and to which you must submit or do
b. Wear and tear; submit with our consent;or
c. Leakage at any valve,fitting,shaft seal,gland b. Any other alternative dispute resolution
packing,joint or connection; proceeding in which damages are claimed and to
d. Breakdown of any vacuum tube,gas tube or which you submit with our consent.
brush;
BM 00 25 02 91 Copyright,Insurance Services Offices,Inc.
R131F 02/l991 Page 6 of 18
Common Policy Conditions
All Coverage Parts included in this policy are subject to the following conditions.
A. CANCELLATION D. INSPECTIONS AND SURVEYS
1. The first Named Insured shown in the Declarations We have the right but are not obligated to:
may cancel this policy by mailing or delivering to us 1.Make inspections and surveys at any time;
advance written notice of cancellation.
2.Give you reports on the conditions we find;and
2. We may cancel this policy by mailing or delivering
3.Recommend changes.
to the first Named Insured written notice of
cancellation at least: Any inspections,surveys,reports or recommendations
relate only to insurability and the premiums to be
a. 10 days before the effective date of cancellation
charged. We do not make safety inspections. We do
if we cancel for nonpayment of premium;or
not undertake to perform the duty of any person or
b. 30 days before the effective date of cancellation organization to provide for the health or safety of
if we cancel for any other reason. workers or the public. And we do not warrant that
3. We will mail or deliver our notice to the first Named conditions:
Insured's last mailing address known to us. 1.Are safe or healthful; or
4. Notice of cancellation will state the effective date of 2.Comply with laws,regulations,codes or standards.
cancellation. The policy period will end on that
This condition applies not only to us,but also to any
date.
rating,advisory,rate service or similar organization
5. If this policy is cancelled,we will send the first which makes insurance inspections,surveys,reports or
Named Insured any premium refund due. If we recommendations.
cancel,the refund will be pro rata. If the first
Named Insured cancels,the refund maybe less than E. PREMIUMS
pro rata. The cancellation will be effective even if The first Named Insured shown in the Declarations:
we have not made or offered a refund. 1.Is responsible for the payment of all premiums;and
6. If notice is mailed,proof of mailing will be sufficient 2.Will be the payee for any retum premiums we pay.
proof of notice. F. TRANSFER OF YOUR RIGHTS AND DUTIES
B. CHANGES UNDER THIS POLICY
This policy contains all the agreements between you Your rights and duties under this policy may not be
and us concerning the insurance afforded. The first transferred without our written consent except in the
Named Insured shown in the Declarations is authorized case of death of an individual named insured.
to make changes in the terms of this policy with our If you die,your rights and duties will be transferred to
consent. This policy's terms can be amended or waived
your legal representative but only while acting within
only by endorsement issued by us and made a part of
the scope of duties as your legal representative. Until
this policy.
your legal representative is appointed,anyone having
C. EXAMINATION OF YOUR BOOKS AND proper temporary custody of your properly will have
RECORDS your rights and duties but only with respect to that
We may examine and audit your books and records as property.
they relate to this policy at any time during the policy
period and up to three years afterward.
IL 00 17 11 85 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 7 of 18
Calculation of Premium
The premium shown in the Declarations was computed based on rates in effect at the time the
policy was issued. On each renewal, continuation, or anniversary of the effective date of this
policy, we will compute the premium in accordance with our rates and rules then in effect.
IL 00 03 11 85 Copyright,Insurance Services Offices,Inc.
12.131F 0211991 Page 8 of 18
Object Definitions No. 1 - Pressure and Refrigeration Objects
�\ This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
1. BOILERS,FIRED VESSELS AND ELECTRIC e. An"object"using a heat transfer medium other than
STEAM GENERATORS water or steam will be covered as though the
a. "Obj ect"means: medium were water or steam.
Any boiler,fired vessel or electrical steam generator 2. UNFIRED VESSELS
shown in the Declarations and includes any: a. "Object"means any unfired vessel shown in the
(1)Steel economizer used solely with them; Declarations.However,"object"does not include
(2) Steam boiler piping,valves,fittings,traps and any:
separators; (1) Electric steam generator;
but only if they: (2)Part of a vessel that is not under:
(a) Are on your premises or between parts of (a) Pressure of the contents of the vessel;or
your premises;and (b) Internal vacuum;
(b) Contain steam or its condensate generated in (3) Insulating or refractory material;
whole or in part in an"object";and
(4) Reciprocating or rotating apparatus within or
(3)Feed water piping between any steam boiler and forming a part of the vessel;
a feed pump or inj ector.
(5) Electrical apparatus within or forming a part of
b. "Object"does not mean: the vessel;
(1)Any part not containing steam or water; (6) Piping leading to and from the vessel;
(2)Any boiler setting; (7)Buried vessels or piping;
(3)Any insulating or refractory material; (8) Cylinder containing a movable plunger or
(4)Any piping not containing steam or steam piston;or
condensate; (9) Vessel,radiator,inductor,convector or coil
rte. (5)Any buried piping; connected to or used with a refrigerating or air
(6) Piping,radiators,coils,vessels or apparatus, conditioning system.
other than those included above; b. We will consider that the-connected ready for use-
7 requirement of this Coverage Form and its
( )Any reciprocating or rotating machine;or
(8)My electrical a endorsements has been met by any"object"in this
apparatus. section if that "object"is:
c. My of the following vessels listed below are (1)Periodically filled,moved,emptied and refilled
included within the provisions of this section when in the course of its normal service;and
used with an "obj ect":
(2)Used for storage of gas or liquid.
(1) Condensate return tank;
3. REFRIGERATING AND AIR CONDITIONING
(2) Cushion or expansion tank used with a hot water VESSELS AND PIPING
heating boiler;and a. "Object"means any refrigerating or air conditioning
(3)Indirect water heater tank used for hot water vessel and piping shown in the Declarations
supply service but only if it: consisting of:
(a) Is directly in the water circulating system of (1)Interconnected vessels,coils and piping that
the"object"it is used with;and contain refrigerant;
(b) Does not form part of a storage water tank. (2) Vessels heated directly or indirectly that:
d. For any boiler or fired vessel, the furnace of the (a) Form part of an absorption type system;and
"obj ect"and the gas passages from there to the
atmosphere will be considered as outside the (b) Function as a generator,regenerator or
"object" concentrator;and
(3)Valves and fittings.
r
BM 00 26 11 85 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 9 of 18
Object Definitions No. 1 - Pressure and Refrigeration Objects (Continued)
When the"object"is an absorption system,it also 5. SMALL COMPRESSING AND
includes hermetic solution pumps,hermetic REFRIGERATING UNITS
evaporator refrigerant pumps and purge pumps(or a. "Object"means any small compressing or
compressors)together with their driving electric refrigerating unit shown in the Declarations(not
motors. over 15 h.p.-maximum nameplate rating).
If the Declarations show-Additional Vessels and b. However,"obj ect"does not include any wiring or
Piping Included-"obj ect"will also include: piping leading to and from the unit.
(4)Vessels,radiators,coils and all interconnecting 6. AIR CONDITIONING UNITS
piping along with their valves and fittings that
are connected to or used with the system and a. "Obj ect"means any air conditioning unit shown in
within which steam,water,brine or other the Declarations(not over 600,000 Btu per hour-
solution is circulated for cooling,humidity maximum nameplate rating)and including any:
control or space heating. (1) Interconnected vessels,radiators,inductors,
When a vessel uses a heat transfer medium other convectors and coils that make use of a
than water or steam,we will consider the refrigerant,steam,water,brine or other solution
medium or its vapor as substitutes for the words and form part of the unit;
-water or steam-as used in this section. (2) Interconnecting piping,valves and fittings
b. However,"object"does not include any: containing only a refrigerant,water,brine or
other solution;
(1)Boiler;
(3)Vessels heated directly or indirectly that:
(2)Steam piping;
(a) Form part of an absorption type unit;and
(3)Reciprocating or rotating machine or apparatus;
(b) Function as a generator,regenerator or
(4)Electrical apparatus except as included in concentrator;
paragraph(3)above;
(4)Compressors,pumps, fans and blowers used
(5) Electronic computer or electronic data solely with the unit together with their driving
processing equipment as well as any hose, electric motors;and
flexible device or non-metallic pipe connected to
such apparatus; (5) Control equipment used solely with the unit.
(6) Vessel,cooling tower,reservoir or other source b. However, "obj ect"does not include any:
of supply of cooling water for a condenser or (1)Boiler;
compressor as well as any water piping leading (2) Steam piping;
to or from such a source of supply;or
(3)Vessels,cooling tower,reservoir or other source
(7) Buried vessels or piping. of supply of cooling water for a condenser or
4. AUXILIARY PIPING compressor,or water piping leading to or from
a. "Obj ect"means any piping shown in the such a source of supply;
Declarations including any valve,fitting,trap or (4)Wiring or piping leading to or from the unit; or
separator on the piping. (5)Electronic computer or electronic data
b. However, "object"does not include any: processing equipment.
(1)Radiator,convector,coil or other vessel or
apparatus connected to that piping;or
(2)Buried piping.
BM 00 26 11 85 Copyright,Insurance Services Offices,Inc.
R131 F 02/1991 Page 10 of 18
Object Definitions No. 2 - Mechanical Objects
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
1. DEEP-WELL PUMP UNITS a. "Object"means any machine shown in the
a. "Object"means any deep-well pump unit shown in Declarations including any:
the Declarations including any: (1)Auxiliary or control apparatus mounted on that
(I)Nonrotating equipment used solely to start,stop machine or the bed or frame of that machine;
or control the driving electric motor of the unit; (2)Auxiliary electric motor or other apparatus used
and solely to rotate that machine for starting or
(2)Electrical conductors connecting the equipment maintenance purposes;
and motor. (3)Lubricating oil pump or fuel pump and its
b. However, "obj ect"does not include any: driving electric motor if used solely for that
machine;and
(1) Other electrical conductor;
(2)Electronic computer or electronic data (4)When the machine is a reciprocating pump or a
reciprocating compressor and:
processing equipment;
(a) Forms an integral part of a steam engine or
(3)Piping leading to or from the unit; internal combustion engine;or
(4)Mechanism,appliance or shaft connected to the (b) Is connected to such an engine by a coupling
unit;or clutch or gear set;then
(5) Well casing. (c) "Obj ect"also includes the driving engine and
2. MISCELLANEOUS MACHINES,GEAR any interconnecting coupling,clutch or gear
WHEELS AND ENCLOSED GEAR SETS set.
a. "Object"means any machine shown in the b. However,"object"does not include any:
Declarations including any control apparatus (1) Apparatus connected to the machine, other than
mounted on that machine. auxiliary or control apparatus included under
b. However,"object"does not mean any
: paragraph a.(1)above;
(1) Mechanism or other apparatus connected to the (2) Electrical apparatus other than electric motor
machine other than control apparatus included included under paragraphs a(2)and(3)above;
above;
(3)Air tank;
(2) Shaft on which a machine described as a gear (4)Electronic computer or electronic data
wheel is mounted or the bearings on any such
processing equipment;
shaft;
(5) Condenser or its adapter;
(3)Electrical apparatus;
(6)Piping or duct leading to or from the machine; or
(4)Electronic computer or electronic data
processing equipment unless used solely to (7) Well casing.
govern or control the machine; 4. WHEEL AND SHAFTING
(5) Felt,wire,screen,die,extrusion plate,swing "Object"means any wheel(except gear wheels)or shaft
hammer,grinding disc,cutting blade,chain,belt, shown in the Declarations including any:
clutch plate,brake pad,or any part or tool a. Rotating part or parts of any wheel,pulley,disc or
subj ect to frequent,periodic replacement;or coupling excluding the shaft it is mounted on,the
(6)Piping or duct leading to or from the machine. bearings for that shaft and any cutting blade;and
3. ENGINES,PUMPS,COMPRESSORS,FANS AND b. Rotating shaft and its couplings and bearings.
BLOWERS
BM 00 27 11 85 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 11 of 18
Object Definitions No. 3- Electrical Objects
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
1. ROTATING ELECTRICAL MACHINES, 2. MISCELLANEOUS ELECTRICAL APPARATUS
TRANSFORMERS AND INDUCTION FEEDER a. "Obj ect"means any electrical apparatus shown in
REGULATORS the Declarations including any:
a. "Obj ect"means any rotating electrical machine, (1)Rotating electrical machine used solely to
transformer or induction feeder regulator shown in operate a part of the apparatus;and
the Declarations.For rotating electrical machines,
"obj (2) Instrument transformer.
ect"also includes any:
b. However,"obj ect" does not include any:
(1) Exciter that is:
(1)Rotating electrical machine other than a
(a) Mechanically connected to that machine;and
machine included above;
(b) Used solely for excitation of that machine; (2)Transformer other than an instrument
(2) Shaft of that machine and any gear,wheel or transformer included above;
magnetic brake mechanism on the shaft or on the (3)Induction feeder regulator;
frame of that machine,if the shaft does not form
an integral part of any other machine; (4)Electronic computer or electronic data
processing equipment;
(3)Continuous shaft that:
(5) Solid state rectifier unit;
(a) Forms an integral part of that machine;and
(6)Conduit;
(b) Also forms an integral part of another
rotating electric machine including any gear, (7) Electrical conductor or piping leading to or from
wheel or magnetic brake mechanism on the such apparatus;or
shaft or on the frame of that machine; (8) Cabinet or compartment in which any part of the
(4) Shaft coupled to that machine including the apparatus is installed. --�
couplings and bearings on it,if there is no 3. SOLID STATE RECTIFIER UNITS
mechanism other than a coupling on the shaft; a. "Obj ect"means any solid state rectifier unit shown
and in the Declarations including any:
(5)Nonrotating equipment used solely to start,stop (1) Rectifier;
or control any motor shown in the Declarations
including all electrical conductors connecting (2)Transformer used solely with the unit,other than
such equipment with that motor provided that an arc-furnace transformer;
control equipment does not form a part of a (3)Heat exchanger used solely with the unit
switchboard,cubicle or bus structure controlling together with its interconnected vessels,coils
any electrical machine other than the motor. and piping;
b. However,"obj ect"does not include any: (4) Cooling fan or pump and its driving electric
(1)Electrical conductor or piping leading to or from motor if used solely with the unit;and
the"object";or (5) Electrical conductors connecting parts of the
(2) Electronic computer or electronic data unit.
processing equipment. b. However,"obj ect"does not mean any:
(1) Electrical conductor or piping leading to or from
the unit;
(2) Electronic computer or electronic data
processing equipment;
(3)Equipment or apparatus other than that listed in
paragraphs a(1)through(5)above;or
(4)Cabinet or compartment on or in which any part
of the unit is installed.
BM 00 28 11 85 Copyright,Insurance Services Office,Inc.
R131F 02/1991 Page 12 of 18
Object Definitions No. 4 - Turbine Objects
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
1. TURBINES c. When the word-BREAKDOWN-is shown in the
a. "Obj ect"means any turbine unit shown in the Declarations,the following definition of"accident"
Declarations including any: applies to those units:
(1)Turbine; "Accident"means a sudden and accidental
breakdown of the"object"or a part of the"object."
(2) Combustor,precooler,intercooler,regenerator or At the time the breakdown occurs,it must manifest
heat exchanger of a gas turbine unit; itself by physical damage to the"obj ect"that
(3)Electric generator,pump,compressor,fan,blower, necessitates repair or replacement.
wheel or gear on:
None of the following is an"accident":
(a) Any shaft of the driving turbine or turbines;or
(I) Depletion,deterioration,corrosion or erosion;
(b) A shaft connected to any of the driving turbines by a (2) Wear and tear;
coupling,clutch or gear set;
(4)Mechanical or hydraulic governing mechanism (3)Leakage at any valve,fitting,shaft seal,gland
packing,joint or connection;
together with any electric motor used solely with the
governing mechanism; (4) Breakdown of any vacuum tube,gas tube or
brush;
(5)Auxiliary apparatus mounted on the unit or the bed
or frame of the unit; (5)Breakdown of any electronic computer or
electronic data processing equipment;
(6)Lubricating oil pump,fuel pump or pump for
circulating coolant,if used solely for the unit and (6) Breakdown of any structure or foundation
any machine driving such a pump; supporting the"obj ect"or any of its parts;
(7) Auxiliary electric motor,steam turbine or other (7)The functioning of any safety or protective
apparatus used solely to rotate the driving turbine or device;or
�... turbines for starting or maintenance purposes; (8)The cracking of any part of a gas turbine
(8)Apparatus used solely to scavenge a gas turbine exposed to the products of combustion.
unit; d. When the word-EXPLOSION-is shown in the
(9) Shaft that forms a part of the unit or connects parts Declarations,the following definition of"accident"
of the unit together with any coupling,clutch, applies to those units.
bearing,gear or gear set on such a shaft;and "Accident"means a sudden and accidental:
(10)Interconnecting wiring,piping or ducts between (1)Tearing asunder of any casing,combustor,duct,
parts of the unit and mounted on the unit. piping,precooler,intercooler,regenerator,or
b. "Object" does not include any: heat exchanger,forming a part of a gas turbine,
caused by pressure of gas,liquid or vapor
(1)Machine or other apparatus other than those therein,but not the tearing asunder of any
included in paragraphs a(1)through(10)above; gasket,rapture disc,shaft seal or seal strip; and
(2)Electronic computer or electronic data cracking does not mean tearing asunder;
processing equipment;
(2)Breaking of the casing of any driving turbine,or
(3)Wiring,piping or ducts leading to or from the the casing of any driven compressor or any
unit; auxiliary turbine of the"obj ect,"into two or
(4) Condenser,its connecting pipe or adapter; more separate parts,but not the breaking of any
(5)Penstock or draft tube;or gasket,rupture disc,shaft seal,seal strip or
diaphragm;or
(6)Boiler using exhaust gases from any gas turbine
unit. (3)Breaking of any spindle,rotor or shaft of the
"object,"into two or more separate parts,but
There are two definitions of"accident"for turbine not the breaking of any blade,bucket or vane
units: whether or not it forms a part of such spindle,
rotor or shaft,of any shroud ring or other
BM 00 29 11 85 Copyright, Insurance Services Office,Inc.
RI31F 02/1991 Page 13 of 18
Object Definitions No. 4 - Turbine Objects (Continued)
fastening,or of any gear or coupling,nor the repair or replacement is made necessary as a result
loosening of any assembled parts,nor the of an"accident"to,an"obj ect."
breaking or loosening of any electrical "Accident"does not mean:
conductor,or its insulation,or of any band wire,
retaining ring,wedge,or their fastenings. (1) Depletion,deterioration,corrosion or erosion of
material;
We will not pay for the repair or replacement of any
electrical conductor or its insulation,or of any band (2) Wear and tear;or
wire,retaining ring,wedge,or their fastening,if that (3)The breaking of any structure or foundation
supporting the"obj ect"or any part of the"obj ect."
BM 00 29 11 85 Copyright,Insurance Services Office,Inc.
R131F 02!1991 Page 14 of 18
Object Definitions No. 5 - Comprehensive Coverage
(Excluding Production Machines)
This endorsement changes the Boiler and Machinery Policy or Coverage Part. Please read it carefully.
1. COMPREHENSIVE (excluding production (10)Power shovel,dragline,excavator,vehicle,
machines): aircraft,floating vessel or structure,penstock,
a. "Object"means any: draft tube or well casing;
(1)Boiler,fired vessel,unfired vessel normally (I 1)Conveyor,crane,elevator,escalator or hoist,
subj ect to vacuum or internal pressure other but not excluding any electrical machine or
than weight of its contents,refrigerating and air electrical apparatus mounted on or used with
conditioning vessels,and any metal piping and this equipment;
its accessory equipment; (I2)Electronic computer or electronic date
(2)Mechanical or electrical machine or apparatus processing equipment,unless used to operate one
used for the generation,transmission or or more insured"objects";
utilization of mechanical or electrical power. (I 3)Media used with any electronic computer or
(3)Any of the following vessels listed below are electronic data processing equipment;
included within the provisions of this section (14)Machine or apparatus that is used for research,
when used with an"obj ect": medical,diagnostic,surgical,dental or
(a) Condensate return tank;and pathological purposes;
(b) Cushion or expansion tank used with a hot (15)Felt,wire,screen,die,extrusion,plate,swing
water heating boiler. hammer,grinding disc,cutting blade, cable,
b. "Object"does not mean any: chain,belt,rope,clutch plate,brake pad,non-
metallic part or any part or tool subj ect to
(1) Part of a boiler,fired vessel or electric steam frequent,periodic replacement;
generator that does not contain steam or water; (I 6)Production or process machine or apparatus that
(2)Insulating or refractory material; processes,forms,cuts,shapes,grinds,or conveys
(3)Non-metallic vessel,unless it is constructed and raw materials,materials in process or finished
used in accordance with the American Society of products.But,"object"does mean any:
Mechanical Engineers(A.S.M.E.)Code; (a) Pressure vessel or vacuum vessel, described
(4)Catalyst; in paragraph a.above,other than any
cylinder containing a movable plunger or
(5)Buried vessel or piping;
piston;
(6) Sewer piping,piping forming a part of a fire (b) Pump,compressor,fan,or blower that
protection system or water piping other than: conveys raw materials,materials in process
(a) Feed water piping between any boiler and its or finished products;
feed pump or inj ector; (c) Separate enclosed gear set connected by a
(b) Boiler condensate return piping;or coupling,clutch or belt;or
(c) Water piping forming a part of refrigerating (d) Separate driving electrical or mechanical
and air conditioning vessels and piping used machine connected by a coupling,clutch or
for cooling,humidifying or space heating heft.
purposes;
(17)"Object"manufactured by you for sale.
(7) Part of a vessel that is not under: c. For any boiler or fired vessel,the furnace of the
(a) Pressure of the contents of the vessel;or "object"and the gas passages from there to the
(b) Internal vacuum; atmosphere will he considered as outside the
(8) Oven,stove,furnace,incinerator,pot or kiln; "object."
(9) Structure,foundation,cabinet or compartment d. When a vessel uses a heat transfer medium other
containing the"object"; than water or steam we will consider the medium
BM 00 30 02 91 Copyright, Insurance Services Office,Inc.
R131 F 02/1991 Page 15 of 18
Object Definitions No. 5 - Comprehensive Coverage (Continued)
or its vapor as substitutes for the words-water or (1) Damage to media used with any electronic
steam. computer or electronic data processing
e. We will consider that the-connected ready for use- equipment;or
requirement of the Coverage Form and its (2) Any indirect loss resulting from damage to that
endorsements has been met by any"obj ect"in this media.
section if that"obj ect"is: i. For any"object" covered by this endorsement,
(I) Periodically filled,moved,emptied and refilled paragraph F.1.e.of the definition of"accident"in
in the course of its normal service;and the BOILER AND MACHINERY COVERAGE
(2) Used for storage of gas or liquid. FORM is replaced by the following:
f. For any gas turbine,"accident"does not include the Breakdown of any electronic computer or electronic
cracking of any part of the"object"exposed to the data processing equipment,unless used to operate
products of combustion. one or more insured"obj ects."
g. We will not pay for loss or damage to any catalyst.
h. We will not pay for:
BM 00 30 02 91 Copyright,Insurance Services Office,Inc.
R131F 02/1991 Page 16 of 18
Object Definitions No. 6 - Comprehensive Coverage
(Including Production Machines)
This endorsement changes the Boiler and Machinery Policy and Coverage Part. Please read it carefully.
1. COMPREHENSIVE (including production (10) Power shovel,dragline,excavator,vehicle,
machines) aircraft,floating vessel or structure,
a. "Object"means any: penstock,draft tube or well-casing;
(1)Boiler,fired vessel,unfired vessel normally (1 1) Conveyor,crane,elevator,escalator or hoist,
subject to vacuum or internal pressure other but not excluding any electrical machine or
than weight of its contents,refrigerating and air electrical apparatus mounted on or used with
conditioning vessels,and any metal piping and this equipment;
its accessory equipment; (12) Electronic computer or electronic data
(2) Mechanical or electrical machine or apparatus processing equipment,unless used to operate
used for the generation,transmission or one or more insured"objects";
utilization of mechanical or electrical power. (13) Media used with any electronic computer or
(3)Any of the following vessels listed below are electronic data processing equipment;
included within the provisions of this section (14) Machine or apparatus that is used for
when used with an"obj ect": research,medical,diagnostic,surgical,
(a) Condensate return tank,and dental or pathological purposes;
(b) Cushion or expansion tank used with a hot (15) Felt,wire,screen,die,extrusion,plate,swing
water heating boiler. hammer,grinding disc,cutting blade,cable
chain,belt,rope,clutch plate,brake pad,
b. "Object"does not mean any: non-metallic part or any part or tool subj ect
(1)Part of a boiler,fired vessel or electric steam to frequent,periodic replacement;
generator that does not contain steam or water 16 "Obj ect"manufactured( ) by you for sale.
(2) Insulating or refractory material; c. For any boiler or fired vessel,the furnace of the
(3)Non-metallic vessel,unless it is constructed and "object"and the gas passages from there to the
used in accordance with the American Society of atmosphere will be considered as outside the
Mechanical Engineers(A.S.M.E.)Code; "object."
(4)Catalyst; d. When a vessel uses a heat transfer medium other
(5)Buried vessel or piping; than water or steam we will consider the medium or
its vapor as substitutes for the words-water or
(6) Sewer piping,piping forming a part of a fire steam.
protection system or water piping other than:
(a) Feed water piping between any boiler and its e. We will consider that the-connected ready for use-
feed pump or inj ector; requirement of the Coverage Form and its
endorsements has been met by any"object"in this
(b) Boiler condensate return piping;or section if that "object"is:
(c) Water piping forming a part of refrigerating (1)Periodically filled,moved,emptied and refilled
and air conditioning vessels and piping used in the course of its normal service;and
for cooling,humidifying or space heating
purposes; (2)Used for storage of gas or liquid.
(7) Part of a vessel that is not under: f. For any gas turbine, "accident" does not include the
cracking of any part of the"obj ect"exposed to the
(a) Pressure of the contents of the vessel;or products of combustion.
(b) Internal vacuum; g. We will not pay for loss or damage to any catalyst.
(8)Oven,stove,furnace,incinerator,pot or kiln; h. We will not pay for:
(9) Structure,foundation,cabinet or compartment (1) Damage to media used with any electronic
containing the"object"; computer or electronic data processing
equipment;or
BM 01 31 02 91 Copyright,Insurance Services Offices,Inc.
R131F 02/1991 Page 17 of 18
Object Definitions No. 6 - Comprehensive Coverage (Continued)
(2)Any indirect loss resulting from damage to that
media.
i. For any"object" covered by this endorsement,
paragraph F.t.e.of the definition of"accident"in
the BOILER AND MACHINERY COVERAGE
FORM is replaced by the following:
Breakdown of any electronic computer or electronic
data processing equipment,unless used to operate
one or more insured"obj ects."
BM 01 31 02 91 Copyright,Insurance Services Offices, Inc.
R131F 02/1991 Page 18 of 18
Colorado Changes
This endorsement changes the policy. Please read it carefully.
This endorsement modifies insurance provided under the Boiler and Machinery Coverage Form.
A. Paragraph 2.of the Cancellation Common Policy D. The following condition is added:
Condition is replaced by the following: Increase in Premium or Decrease in Coverage
2. If this policy has been in effect for less than 60 days, We will not increase the premium unilaterally or
we may cancel this policy by mail-ing or delivering decrease the coverage benefits on renewal of this policy
to the first Named Insured written notice of unless we mail through First-Class Mail written notice of
cancellation at least: our intention,including the actual reason,to the first
a. 10 days before the effective date of cancellation if Named Insured's last mailing address known to us,at
we cancel for nonpayment of premium;or least 45 days before the effective date.
b. 30 days before the effective date of cancellation if Any decrease in coverage during the policy term must be
we cancel for any other reason. based on one or more of the following reasons:
B. The following is added to the Cancellation Common 1. Nonpayment of premium;
Policy Condition: 2. A false statement knowingly made by the insured on
7. Cancellation of policies in effect for 60 days or more the application for insurance;or
a. If this policy has been in effect for 60 days or 3. A substantial change in the exposure or risk other
more,or is a renewal of a policy we issue,we than that indicated in the application and
may cancel this policy by mailing through first- underwritten as of the effective date of the policy
class mail to the first Named Insured written unless the first Named Insured has notified us of the
notice of cancellation: change and we accept such change.
(1) including the actual reason,at least 10 If notice is mailed,proof of mailing will be sufficient
days before the effective date of proof of notice.
cancellation,if we cancel for nonpayment
of premium;or
/'" (2) at least 45 days before the effective date
of cancellation if we cancel for any other
reason.
We may only cancel this policy based on one or
more of the following reasons:
(1)nonpayment of premium;
(2) a false statement knowingly made by the
insured on the application for insurance;
or
(3) a substantial change in the expo-sure or
risk other than that indi-cated in the
application and under-written as of the
effective date of the policy unless the first
Named Insured has notified us of the
change and we accept such change.
C. The following is added and supersedes any other
provision to the contrary:
Nonrenewal
If we decide not to renew this policy,we will mail
through First-Class Mail to the first Named Insured
shown in the Declarations written notice of the
nonrenewal at least 45 days before the expiration date,or
its anniversary date if it is a policy written for a term of
more than one year or with no fixed expiration date.
If notice is mailed,proof of mailing will be sufficient
proof of notice.
IL 02 28 04 98 Copyright, Insurance Services Office,Inc., 1997
ECP CO1 06/1998 Page 1 of 1
Colorado Changes
This endorsement changes the policy. Please read it carefully.
This endorsement modifies insurance provided under the Boiler and Machinery Coverage Form.
The Concealment,Misrepresentation or Fraud Condition is
replaced by the following:
Concealment,Misrepresentation or Fraud
We will not pay for any loss or damage in any case of:
1. Concealment or misrepresentation of a material fact;or
2. Fraud;
Committed by you or any other insured("insured")at any
time and relating to coverage under this policy.
IL 01 69 04 98 Copyright,Insurance Services Office,Inc., 1997
ECP CO2 06/1998 Page 1 of 1
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