HomeMy WebLinkAbout000308.tiff CTSI
Colorado Counties
Casualty and Property Pool
2018 Excess Boiler &
Equipment Breakdown Policy
Liberty Mutual
Policy No. YB2-L9L-468235-018
Summaries are brief outlines of the coverages afforded under the insurance policies.
Since summaries are for informational purposes only, they should not be construed to
constitute the entire insurance contracts. As the policies may contain additional
coverages and restrictions, the exact wording should be consulted.
Brief Summary of Boiler &
Equipment Breakdown Deductibles
This information is provided to present counties with a simple overview of
county deductibles in the pool. It does not provide information on limits.
The pool insuring agreements contain actual coverages and limits.
The county has a $500 deductible for property claims.
The pool pays up to $5,000 of each claim
CAPP's excess insurance carrier pays up to $100 million per
claim with sublimits unless otherwise stated in the CAPP Insuring Agreements.
Colorado Counties Casualty and Property Pool
Named Insured Schedule
Colorado Counties Casualty and Property Pool
including the following members:
Alamosa Gilpin Ouray
Archuleta Grand Park
Baca Gunnison Phillips
Bent Hinsdale Prowers
Chaffee Huerfano Pueblo
Cheyenne Jackson Rio Blanco
Clear Creek Kiowa Rio Grande
Conejos Kit Carson Routt
Costilla Lake Saguache
Crowley La Plata San Juan
Custer Las Animas San Miguel
Delta Lincoln Sedgwick
Dolores Logan Summit
Eagle Mineral Teller
Elbert Moffat Washington
Fremont Montrose Weld
Garfield Morgan Yuma
Otero
NOTE: Any entity not named as an insured may not be covered under this policy. This may include
Partnerships and Joint Ventures.
Arthur J. Gallagher Risk Management Services,Inc.
2018 CAPP Boiler&Equipment Summary CAPP Summary Page 1
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Colorado Counties Casualty and Property Pool
Equipment Breakdown
Liberty Mutual Fire Insurance Company
Carrier: Liberty Mutual Fire Insurance Company
Policy Period: January 1,2018 to January 1, 2019
Policy Number: YB2L9L468235018
Policy form: Liberty PowerPro SelectTM
Covered Locations: Per Statement of Values on file with the Company, dated August 16,2017
Limits: $ 100,000,000 Total Limits Per Breakdown—Property Damage
Included Expediting Expense
Included Business Income with sublimits below
$ 5,000,000 Extra Expense
$ 5,000,000 Data or Media(Business Income)
365 Days Business Income Period of Restoration
$ 5,000,000 Ordinance or Law
$ 10,000,000 Spoilage Damage
$ 10,000,000 Utility Interruption (the maximum limit for Utility interruption,subject to
any applicable lower coverage limits, including Business Income, Extra
Expense and/or Spoilage, respectively)
Included Newly Acquired Premises—90 days
Included Errors and Omissions
Included Brands and Labels
$ 2,500,000 Contingent Business Income/Extra Expense
Covered Premises—all direct suppliers and recipients
$ 10,000,000 Ammonia Contamination
Included Consequential Loss
$ 5,000,000 Data and Media
$ 2,500,000 Hazardous Substance
Included Water Damage
$ 1,000,000 Off Premises Equipment
$ 2,500,000 Miscellaneous Locations
$ 15,000 Limited Coverage for Fungus,Wet Rot and Dry Rot
$ 100,000 Green Upgrades— Increased Cost of Loss and Related Expenses
100 Miles/4 weeks Civil Authority Extension
$ 250,000 Ingress/Egress
$ 250,000 Claim Preparation Fees
150% Replacement Cost for Green Upgrade/Safety Improvements
Arthur J. Gallagher Risk Management Services,Inc.
2018 CAPP Boiler&Equipment Summary CAPP Summary Page 2
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Colorado Counties Casualty and Property Pool
Equipment Breakdown (Continued)
Valuation: • Repair or Replacement Cost
Deductibles: $ 5,000 Combined for all coverages
4 Hours Utility Interruption Waiting Period
Terms/Conditions: • Business Income Coinsurance Waived
■ New Generation Included
■ 90 Days' Notice of Cancellation except 10 Days Nonpayment of Premium
■ No Connected Ready for Use Requirement
■ Arbitration Clause
■ Joint or Disputed Loss Agreement
Significant Exclusions • Earth Movement, Fire Perils, Windstorm, Hail, Lightning, etc.
(including but not Water including:
limited to): a. Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water,
overflow of any body of water,or spray from any of these, all whether or not driven by
wind (including storm surge);
b. Mudslide or mudflow;
c. Water that backs up or overflows or is otherwise discharged from a sewer, drain,
sump, sump pump or related equipment;
d. Water damage caused by the discharge or leakage of a sprinkler system or domestic
water piping;
e. Water underground surface pressing on,or flowing or seeping through:
(1) Foundations, walls, floors or paved surfaces;
(2) Basements, whether paved or not;
(3) Doors, windows or other openings;or
f. Waterborne material carried or otherwise moved by any of the water referred to in
Paragraph a.,c. or e., or material carried or otherwise moved by mudslide or mudflow.
This exclusion applies regardless of whether any of the above, in Paragraphs a. through f.,
is caused by an act of nature or is otherwise caused.
■ Terrorism
■ Nuclear
■ War or Military Action
■ Explosion—section of caused by an explosion of"Covered Equipment"
■ Business Income/Extra Expense does not include loss of capacity payments, bonus
payments nor penalties resulting from the interruption of business as respects income
derived from sales of electricity to the local utility
Arthur J. Gallagher Risk Management Services,Inc.
2018 CAPP Boiler&Equipment Summary CAPP Summary Page 3
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PowerPro SelectTM
EQUIPMENT BREAKDOWN INSURANCE POLICY `�,�� Liberty
DECLARATIONS r Mutual,
INSURANCE
Issued by Liberty Mutual Fire Insurance Company
175 Berkeley Street Boston,MA 02116
Policy Number YB2-L9L-468235-018 Issuing Office L-Warrenville
Renewal of --- Issue Date 12/8/2017
Account Number 9-468235 Sub Account 0000
Named Insured and Mailing Address
Colorado Counties Casualty and Property Pool
c/o CTSI 800 Grant St Suite 400
Denver, CO 80203
Policy Period: The policy period is from 1/1/2018 to 1/1/2019 12:01 A.M. standard time at the Insured's mailing
address.
Premium: $47,625 (ANNUAL) Premium: $47,625 (TERM)
Covered Premises: Submitted locations on file at inception of this policy.
Coverage Limit Of Insurance Or
Days/Hours
Limit Per Breakdown $100,000,000
1. Property Damage Included
2. Expediting Expense Included
3. Business Income Included
a. Extra Expense $5,000,000
b. Extended Period Of Restoration (Number Of Days Of Coverage) 365 Days
c. Data Or Media $5,000,000
4. Spoilage Damage $10,000,000
5. Utility Interruption $10,000,000
(The maximum limit for Utility Interruption, subject to any applicable
lower coverage limits, including business income, extra expense,
and/or spoilage, respectively)
a. Coverage applies only if the interruption of services lasts at least: 4 Hours
6. Newly Acquired Premises Included
a. (Number Of Days Of Coverage) 90 Days
7. Ordinance Or Law $5,000,000
8. Errors And Omissions Included
9. Brands And Labels Included
10. Contingent Business Income/Extra Expense $2,500,000
a. Covered Premises: All Direct Suppliers & Recipients
b. Delivery of Services or Materials; or Sales: All Services & Materials
For the above Coverages, Insurance applies only to a coverage for which a Limit of Insurance, a number of
Days/Hours or the word INCLUDED is shown. If INCLUDED is shown, then the limit for that coverage is part of
the Limit Per Breakdown.
Coverage Limitations Limit Of Insurance
Ammonia Contamination $10,000,000
Consequential Loss Included
Data And Media $5,000,000
Hazardous Substance $2,500,000
Water Damage Included
To Report a Loss
• Dial toll-free#1 (844)777-8323 or visit our
2018 CAPP Boiler&Equipment Policy CAPP Page 1 of 46 •Website: https://my.rpsins.com/claimsfnol
RPSCHIP/SC/2018.01.02 • Contact Insurer directly (see policy section)
Limited Coverage For Fungus, Wet Rot And Dry Rot
Limit $15,000
Business Income and/or Extra Expense - Number Of Days 30 Days
Increased Cost of Loss and Related Expenses for"Green" Upgrades
Property Damage Limit $100,000
Business Income and/or Extra Expense - Number of Days 30 Days
Deductibles Amounts, Hours Or Days
Combined Deductible $5,000
Property Damage Included in Combined Deductible
Business Income Extra Expense Included in Combined Deductible
Spoilage Damage Included in Combined Deductible
Utility Interruption Business Income, Extra Expense
and/or Spoilage deductible apply
Other:
Conditions And Optional Coverages Limit Of Insurance
Business Income Report Date
Business Income Annual Value
Business Income Coinsurance Waived
Diagnostic Equipment Included
Other Conditions
Limit of Insurance Off Premises Equipment Coverage: $1,000,000
0064 008057
RISK PLACEMENT SERVICES INC
525 W VAN BUREN ST STE 1325
CHICAGO, IL 60607
2018 CAPP Boiler&Equipment Policy CAPP Page 2 of 46
Policy Number: YB2-L9L-468235-018
Issued by: Liberty Mutual Fire Insurance Company
PLEASE READ YOUR POLICY CAREFULLY.
EQUIPMENT BREAKDOWN POLICY INVENTORY
This INVENTORY is to help you read your Policy. It is not a part of the Policy and is in no way a substitute for
reading your entire Policy.
Title Form Number Edition Date
ANNUAL MEETING NOTICE/PARTICIPATING PROVISION LIL 90 04 06 13
POLICY INVENTORY PPS 00 03 03 13
EQUIPMENT BREAKDOWN DECLARATIONS PPS DS 01 07 12
EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM EB 00 20 01 13
ADDITIONAL NAMED INSURED PPS 99 05 09 12
EQUIPMENT BREAKDOWN ENHANCEMENT ENDORSEMENT PPS 04 01 07 15
MISCELLANEOUS LOCATIONS PPS 99 11 01 13
EXCLUSION AMENDATORY PPS 21 01 09 12
OFF-PREMISES EQUIPMENT COVERAGE EB 99 63 09 10
NOTICE OF CANCELLATION PPS 02 01 09 12
COMMON POLICY CONDITIONS IL 00 17 11 98
COLORADO CHANGES -CANCELLATION AND NONRENEWAL IL 02 28 09 07
CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM IL 09 52 01 15
DISCLOSURE PURSUANT TO TERRORISM RISK INSURANCE IL 09 85 01 15
ACT
COLORADO CHANGES EB 01 42 09 07
COLORADO CHANGES -CONCEALMENT, IL 01 69 09 07
MISREPRESENTATION OR FRAUD
2018 CAPP Boiler&Equipment Policy CAPP Page 3 of 46
EQUIPMENT BREAKDOWN PROTECTION
COVERAGE FORM
Various provisions in this policy restrict coverage. However, if coverage for "Extra
Read the entire policy carefully to determine rights, Expense" only is indicated in the
duties and what is and is not covered. Declarations, then coverage for
Throughout this policy, the words "you" and "your" "Business Income" is not provided.
refer to the Named Insured shown in the Declarations. We will consider the experience of your
The words "we", "us" and "our" refer to the company business before the "Breakdown" and
providing this insurance. the probable experience you would have
Other words and phrases that appear in quotation had without the "Breakdown" in
marks have special meaning. Refer to Section F. determining the amount of our payment.
Definitions. (2) If you have coverage for "Business
A. Coverage Income" and "Extra Expense" or "Extra
Expense" only and:
1. Covered Cause Of Loss
(a) If a number of days is shown in the
Covered Cause of Loss is a "Breakdown" to Declarations for Extended Period Of
"Covered Equipment". Restoration Coverage, it will replace
2. Coverages Provided the five consecutive days in the
Each of the following coverages is provided if definition of"Period of Restoration".
either a limit or the word INCLUDED is shown (b) If you have coverage for Ordinance
for that coverage in the Declarations. If neither or Law, then the "Period of
a limit nor the word INCLUDED is shown, then Restoration" is extended to include
that coverage is not provided. the additional period of time required
These coverages apply only to that portion of for demolition, removal, repair,
the loss or damage that is a direct result of a remodeling or reconstruction.
Covered Cause of Loss. (c) If"Media" are damaged or"Data" are
a. Property Damage lost or corrupted, we will pay your
actual loss of "Business Income"
We will pay for direct damage to "Covered and/or "Extra Expense" during the
Property" located at the premises described time necessary to:
in the Declarations.
(i) Research, replace or restore the
b. Expediting Expenses damaged "Media" or lost or
With respect to direct damage to "Covered corrupted "Data"; and
Property", we will pay for the extra cost you (ii) Reprogram instructions used in
necessarily incur to: any covered "Computer
(1) Make temporary repairs; and Equipment".
(2) Expedite the permanent repairs or There shall be no coverage for any
replacement of the damaged property. "Media" or "Data" that we determine
are not or cannot be replaced or
c. Business Income And Extra Expense Or
restored.
Extra Expense Only
(1) We will pay: Unless a higher limit is shown in the
Declarations, we will pay the lesser
(a) Your actual loss of "Business of your actual loss of "Business
Income" during the "Period of Income" and/or "Extra Expense" up
Restoration"; and to 30 days after the "Period of
(b) The "Extra Expense" you necessarily Restoration", or$25,000.
incur to operate your business during
the "Period of Restoration".
2018 CAPP Boiler&Equipment Policy CAPP Page 4 of 46
d. Spoilage Damage f. Newly Acquired Premises
(1) We will pay for the spoilage damage to We will automatically provide coverage at
raw materials, property in process or newly acquired premises you have
finished products, provided all of the purchased or leased. This coverage begins
following conditions are met: at the time you acquire the property and
(a) The raw materials, property in continues for a period not exceeding the
process or finished products must be number of days indicated in the
in storage or in the course of being Declarations for Newly Acquired Premises,
manufactured; under the following conditions:
(b) You must own or be legally liable (1) You must inform us, in writing, of the
under written contract for the raw newly acquired premises as soon as
materials, property in process or practicable;
finished products; and (2) You agree to pay an additional premium
(c) The spoilage damage must be due as determined by us;
to the lack or excess of power, light, (3) The coverage for these premises will be
heat, steam or refrigeration. subject to the same terms, conditions,
(2) We will also pay any necessary exclusions and limitations as other
expenses you incur to reduce the insured premises; and
amount of loss under this coverage. We (4) If the coverages and deductibles vary
will pay such expenses to the extent that for existing premises, then the
they do not exceed the amount of loss coverages for the newly acquired
that otherwise would have been payable premises will be the broadest coverage
under this Coverage Form. and highest limits and deductible
e. Utility Interruption applicable to the existing premises.
If you have coverage for "Business Income" g. Ordinance Or Law Coverage
and "Extra Expense", "Extra Expense" only The following applies despite the Ordinance
or Spoilage Damage, that coverage is Or Law Exclusion and provided these
extended to include loss resulting from the increases in loss are necessitated by the
interruption of utility services, provided all of enforcement of or compliance with any
the following conditions are met: ordinance or law that is in force at the time
(1) The interruption is the direct result of a of the "Breakdown", which regulates the
"Breakdown" to "Covered Equipment" demolition, construction, repair or use of the
owned, operated or controlled by the building or structure. With respect to the
local private or public utility or distributor building or structure that was damaged as a
that directly generates, transmits, result of a "Breakdown":
distributes or provides utility services (1) We will pay for:
which you receive; (a) The loss in value of the undamaged
(2) The "Covered Equipment" is used to portion of the building or structure as
supply electric power, communication a consequence of enforcement of or
services, air conditioning, heating, gas, compliance with an ordinance or law
sewer, water or steam to your premises; that requires the demolition of
and undamaged parts of the same
(3) The interruption of utility service to your building or structure;
premises lasts at least the consecutive (b) Your actual cost to demolish and
period of time shown in the clear the site of the undamaged
Declarations. Once this waiting period is parts of the same building or
met, coverage will commence at the structure as a consequence of
initial time of the interruption and will be enforcement of or compliance with
subject to all applicable deductibles. an ordinance or law that requires the
demolition of such undamaged
property; and
2018 CAPP Boiler&Equipment Policy CAPP Page 5 of 46
(c) The increased cost actually and (f) Loss or expense sustained due to
necessarily expended to: the enforcement of or compliance
(i) Repair or reconstruct the with any ordinance or law which
damaged or destroyed portions of requires the demolition, repair,
the building or structure; and replacement, reconstruction,
remodeling or remediation of
(ii) Reconstruct or remodel the property due to the presence,
undamaged portion of that growth, proliferation, spread or any
building or structure with activity of"Fungus", wet or dry rot; or
buildings or structures of like
materials, height, floor area and (g) Costs associated with the
style for like occupancy, whether enforcement of or compliance with
or not demolition is required on: any ordinance or law which requires
any insured or others to test for,
i. The same premises or on monitor, clean up, remove, contain,
another premises if you so treat, detoxify or neutralize, or in any
elect. However, if you rebuild way respond to or assess the effects
at another premises, the most of"Fungus", wet or dry rot.
we will pay is the increased
cost of construction that we (3) If:
would have paid to rebuild at (a) The building or structure is damaged
the same premises; or by a "Breakdown" that is covered
ii. Another premises if the under this policy;
relocation is required by the (b) There is other physical damage that
ordinance or law. The most is not covered under this policy; and
we will pay is the increased (c) As a result of the building damage in
cost of construction at the its entirety, you are required to
new premises. comply with the ordinance or law;
(2) We will not pay for any: then we will not pay the full amount of
(a) Demolition or site clearing until the the loss under this coverage. Instead,
undamaged portions of the buildings we will pay only that proportion of such
or structures are actually loss, meaning the proportion that the
demolished; covered "Breakdown" loss bears to the
(b) Increase in loss until the damaged or total physical damage.
destroyed buildings or structures are But if the building or structure sustains
actually rebuilt or replaced and direct physical damage that is not
approved by the regulating covered under this policy and such
government agency; damage is the subject of the ordinance
(c) Loss due to any ordinance or law or law, then there is no Ordinance Or
that: Law Coverage under this Coverage Part
even if the building has also sustained
(I) You were required to comply with damage by a covered "Breakdown".
before the loss, even if the
building was undamaged; and h. Errors And Omissions
(ii) You failed to comply with; We will pay for any loss or damage, which
is not otherwise payable under this
(d) Increase in loss, excess of the Coverage Part, solely because of the items
amount required to meet the listed below:
minimum requirement of any
ordinance or law enforcement at the (I) Any error or unintentional omission in
time of the "Breakdown"; the description or location of property as
insured under this Coverage Part or in
(e) Increase in loss resulting from a any subsequent amendments;
substance declared to be hazardous
to health or environment by any (2) Any failure through error to include any
government agency; premises owned or occupied by you at
the inception date of this Coverage Part;
or
2018 CAPP Boiler&Equipment Policy CAPP Page 6 of 46
(3) Any error or unintentional omission by (2) You shall use your influence to induce
you that results in cancellation of any the contributing or recipient premises to
premises insured under this policy. make use of any other machinery,
No coverage is provided as a result of any equipment, supplies or premises
error or unintentional omission by you in the available in order to resume operations
reporting of values or the coverage you and delivery of services or materials to
requested. you, or the acceptance of products or
services from you. You shall cooperate
It is a condition of this coverage that such with the contributing or recipient
errors or unintentional omissions shall be premises to this effect in every way, but
reported and corrected when discovered. not financially unless authorized by us.
The policy premium will be adjusted
accordingly to reflect the date the premises B. Exclusions
should have been added had no error or We will not pay for loss or damage caused directly
omission occurred. or indirectly by any of the following. Such loss or
I. Brands And Labels damage is excluded, regardless of any other
cause or event that contributes concurrently or in
(1) If branded or labeled merchandise that any sequence to the loss.
is "Covered Property" is damaged by a
"Breakdown", we may take all or any The exclusions apply whether or not the loss event
part of the property at an agreed or results in widespread damage or affects a
appraised value. If so, you may: substantial area.
(a) Stamp the word SALVAGE on the 1. Ordinance Or Law
merchandise or its containers if the Increase in loss from the enforcement of or
stamp will not physically damage the compliance with any ordinance, law, rule,
merchandise; or regulation or ruling which restricts or regulates
(b) Remove the brands or labels if doing the repair, replacement, alteration, use,
so will not physically damage the operation, construction, installation, cleanup or
merchandise. You must relabel the disposal of"Covered Property".
merchandise or its containers to However, the words use and operation shall be
comply with any law. eliminated as respects a covered "Breakdown"
(2) We will pay reasonable costs you incur to electrical supply and emergency generating
to perform the activity described in equipment located on the premises of a
Paragraphs (1)(a) and (1)(b), but the hospital.
total we pay for these costs and the 2. Earth Movement
value of the damaged property will not Earth movement, including, but not limited to,
exceed the applicable Limit of Insurance earthquake, tremors and aftershocks relating to
on such property. earthquake, landslide, land subsidence, mine
j. Contingent Business Income And Extra subsidence or volcanic action.
Expense Or Extra Expense Only 3. Water
Coverage
(1) Subject to the same terms and a. Flood, surface water, waves (including tidal
wave and tsunami), tides, tidal water,
conditions, the "Business Income" and overflow of any body of water, or spray from
"Extra Expense" or "Extra Expense" only any of these, all whether or not driven by
coverage provided by this Coverage wind (including storm surge);
Part is extended to cover your loss, if
any, resulting from a "Breakdown" to b. Mudslide or mudflow;
"Covered Equipment" at a premises c. Water that backs up or overflows or is
shown in the Declarations, that is not otherwise discharged from a sewer, drain,
owned or operated by you which: sump, sump pump or related equipment;
(a) Wholly or partially prevents the d. Water damage caused by the discharge or
delivery of services or materials leakage of a sprinkler system or domestic
shown in the Declarations to you or water piping;
from you to others for your account;
or
(b) Results in the loss of sales at your
premises shown in the Declarations.
2018 CAPP Boiler&Equipment Policy CAPP Page 7 of 46
e. Water under the ground surface pressing c. Ensue from a "Breakdown".
on, or flowing or seeping through: 8. "Fungus", Wet Rot And Dry Rot
(1) Foundations, walls, floors or paved Presence, growth, proliferation, spread or
surfaces; activity of "Fungus", wet or dry rot. However, if
(2) Basements, whether paved or not; a "Breakdown" occurs, we will pay the resulting
(3) Doors, windows or other openings; or loss or damage.
f. Waterborne material carried or otherwise This exclusion does not apply to the extent that
moved by any of the water referred to in coverage for "Fungus", wet rot or dry rot is
Paragraph a., c. or e., or material carried or provided elsewhere in this Coverage Form and
otherwise moved by mudslide or mudflow. then only for that portion of any loss or damage
resulting from the presence, growth,
This exclusion applies, regardless of whether proliferation, spread or activity of"Fungus", wet
any of the above, in Paragraphs a. through f., or dry rot as a result of a "Breakdown".
is caused by an act of nature or is otherwise
caused. An example of a situation to which this 9. Any virus, bacterium or other microorganism
exclusion applies is the situation where a dam, that induces or is capable of inducing physical
levee, seawall or other boundary or distress, illness or disease. However:
containment system fails in whole or in part, for a. If a "Breakdown" occurs, we will pay the
any reason, to contain the water. resulting loss or damage;
4. Nuclear Hazard b. This exclusion does not apply to loss or
Nuclear reaction or radiation, or radioactive damage caused by or resulting from
contamination, however caused. "Fungus", wet rot or dry rot. Such loss or
damage is addressed in Exclusion B.8.;
5. War Or Military Action c. Regardless of the application of this
a. War, including undeclared or civil war; exclusion to any particular loss, the
b. Warlike action by a military force, including provisions of this Exclusion 9. do not serve
action in hindering or defending against an to create coverage for any loss that would
actual or expected attack, by any otherwise be excluded under this Coverage
government, sovereign or other authority Form.
using military personnel or other agents; or 10. Explosion within the furnace of a chemical
c. Insurrection, rebellion, revolution, usurped recovery type boiler or within the passage from
power or action taken by governmental the furnace to the atmosphere.
authority in hindering or defending against 11. Damage to "Covered Equipment" undergoing a
any of these. pressure or electrical test.
6. An explosion. However, we will pay for loss or 12. Water or other means used to extinguish a fire,
damage caused by an explosion of "Covered even when the attempt is unsuccessful.
Equipment" of a kind specified in a. through g.
below, if not otherwise excluded in this Section 13. Depletion, deterioration, corrosion, erosion or
B.: wear and tear. However, if a "Breakdown"
occurs, we will pay the resulting loss or
a. Steam boiler; damage.
b. Electric steam generator; 14. A "Breakdown" that is caused by any of the
c. Steam piping; following causes of loss if coverage for that
d. Steam turbine; cause of loss is provided by another policy of
insurance you have, whether collectible or not:
e. Steam engine;
a. Aircraft or vehicles;
f. Gas turbine; or b. Freezing caused by cold weather;
g. Moving or rotating machinery when such
explosion is caused by centrifugal force or c. Lightning;
mechanical breakdown. d. Sinkhole collapse;
7. Fire or combustion explosion including those e. Smoke;
that: f. Riot, civil commotion or vandalism; or
a. Result in a "Breakdown"; g. Weight of snow, ice or sleet.
b. Occur at the same time as a "Breakdown";
or
2018 CAPP Boiler&Equipment Policy CAPP Page 8 of 46
15. A "Breakdown" that is caused by windstorm or 20. Any indirect result of a "Breakdown" to
hail. "Covered Equipment" except as provided by
16. A delay in, or an interruption of, any business, the "Business Income" and "Extra Expense",
manufacturing or processing activity except as "Extra Expense" only, Spoilage Damage and
provided by the "Business Income" and "Extra Utility Interruption Coverages.
Expense", "Extra Expense" only and Utility 21. Neglect by you to use all reasonable means to
Interruption Coverages. save and preserve "Covered Property" from
17. With respect to "Business Income" and "Extra further damage at and after the time of the
Expense", "Extra Expense" only and Utility loss.
Interruption Coverages, the following additional C. Limits Of Insurance
exclusions shall apply: 1. The most we will pay for any and all coverages
a. The business that would not or could not for loss or damage from any "One Breakdown"
have been carried on if the "Breakdown" is the applicable Limit Of Insurance shown in
had not occurred; the Declarations.
b. Your failure to use due diligence and 2. Any payment made will not be increased if
dispatch and all reasonable means to more than one insured is shown in the
operate your business as nearly normal as Declarations.
practicable at the premises shown in the 3. For each coverage in Paragraph A.2., if:
Declarations; or
a. INCLUDED is shown in the Declarations,
c. The suspension, lapse or cancellation of a
the limit for such coverage is part of, not in
contract following a "Breakdown" extending addition to, the Limit per Breakdown.
beyond the time business could have
resumed if the contract had not lapsed, b. A limit is shown in the Declarations, we will
been suspended or canceled. not pay more than the Limit of Insurance for
each such coverage.
18. Any indirect loss following a "Breakdown" to
"Covered Equipment" that results from the lack 4. For any "Covered Equipment"that is:
or excess of power, light, heat, steam or a. Used solely to supply utility services to your
refrigeration except as provided by the premises;
"Business Income" and "Extra Expense", b. Owned by a public or private utility;
"Extra Expense" only, Spoilage Damage and
Utility Interruption Coverages. c. Not in your care, custody or control and for
19. With respect to Utility Interruption Coverage, which you are legally liable; and
any loss resulting from the following additional d. Covered under this Coverage Form;
causes of loss whether or not coverage for that the Limit Of Insurance for Property Damage
cause of loss is provided by another policy you stated in the Declarations is replaced by the
have: sum of one dollar.
a. Acts of sabotage; If you are a public or private utility, 4.b. is
b. Collapse; replaced by the following:
c. Deliberate act(s) of load-shedding by the b. Owned by a public or private utility other
supplying utility; than you.
d. Freezing caused by cold weather; 5. Unless a higher limit or INCLUDED is shown in
e. Impact of aircraft, missile or vehicle; the Declarations, the most we will pay for direct
damage as a direct result of a "Breakdown" to
f. Impact of objects falling from an aircraft or "Covered Equipment" is $25,000 for each of
missile; the following. The limits are part of, not in
g. Lightning; addition to, the Limit of Insurance for Property
Damage or Limit per Breakdown.
h. Riot, civil commotion or vandalism;
a. Ammonia Contamination
i. Sinkhole collapse;
The spoilage to "Covered Property"
j. Smoke; or contaminated by ammonia, including any
k. Weight of snow, ice or sleet. salvage expense.
2018 CAPP Boiler&Equipment Policy CAPP Page 9 of 46
b. Consequential Loss 6. Limited Coverage For "Fungus", Wet Rot
The reduction in the value of undamaged And Dry Rot
"Stock" parts of a product which becomes a. Property Damage
unmarketable. The reduction in value must We will pay for loss or damage by
be caused by a physical loss or damage to "Fungus", wet or dry rot only when the
another part of the product. "Fungus", wet or dry rot is the direct result
c. Data And Media of a "Breakdown" to "Covered Equipment"
Your cost to research, replace or restore that occurs during the policy period. As
damaged "Data" or "Media" including the used in this Limited Coverage, the term loss
cost to reprogram instructions used in any or damage means:
"Computer Equipment". (1) Direct physical loss or damage to
d. Hazardous Substance "Covered Property" caused by "Fungus",
wet or dry rot including the cost of
Any additional expenses incurred by you for removal of the "Fungus", wet or dry rot:
the cleanup, repair or replacement or
disposal of "Covered Property" that is (a) The cost to tear out and replace any
damaged, contaminated or polluted by a "Covered Property" as needed to
"Hazardous Substance". gain access to the "Fungus", wet or
dry rot; and
As used here, additional expenses means
the additional cost incurred over and above (b) The cost of testing performed after
the amount that we would have paid had no removal, repair, replacement or
"Hazardous Substance" been involved with restoration of the damaged property
the loss. is completed, provided there is a
reason to believe that "Fungus", wet
Ammonia is not considered to be a or dry rot is present.
"Hazardous Substance" as respects this
limitation. (2) The coverage described under
Paragraph 6.a.(1) of this Limited
This coverage applies despite the operation Coverage is limited to $15,000.
of the Ordinance Or Law Exclusion. Regardless of the number of claims, this
e. Water Damage limit is the most we will pay for the total
The damage to "Covered Property" by of all loss or damage arising out of all
water including any salvage expenses. occurrences of "Breakdown" to
"Covered Equipment which take place
If "Fungus", wet or dry rot results from within the 12-month period starting with
damage by water as limited in this the beginning of the present annual
paragraph, loss or damage attributable to policy period. With respect to a
"Fungus", wet or dry rot will be: particular occurrence of loss which
(1) Limited as described in Paragraphs results in "Fungus", wet or dry rot, we
C.6.a.(1)through C.6.a.(5); and will not pay more than a total of $15,000
even if the "Fungus", wet or dry rot
(2) Part of the Water Damage limit, not in
addition to it. continues to be present or active or
recurs in a later policy period.
(3) The coverage provided under this
Limited Coverage does not increase the
applicable Limit of Insurance on any
"Covered Property". If a particular
occurrence results in loss or damage by
"Fungus", wet or dry rot, and other loss
or damage, we will not pay more, for the
total of all loss or damage, than the
applicable Limit of Insurance on the
affected "Covered Property".
2018 CAPP Boiler&Equipment Policy CAPP Page 10 of 46
If there is covered loss or damage to (b) If a covered loss of "Business
"Covered Property" not caused by Income" or an "Extra Expense" was
"Fungus", wet or dry rot, loss payment caused by loss or damage other than
will not be limited by the terms of this "Fungus", wet or dry rot, but
Limited Coverage, except to the extent remediation of "Fungus", wet or dry
that "Fungus", wet or dry rot causes an rot prolongs the "Period of
increase in the loss. Any such increase Restoration", we will pay for loss
in the loss will be subject to the terms of and/or expense sustained during the
this Limited Coverage. delay (regardless of when such a
(4) If a Revised Limit is shown in the delay occurs during the "Period of
Declarations, the amount of $15,000 in Restoration"), but such coverage is
Paragraph 6.a.(2) is replaced by the limited to 30 days. The days need
amount indicated in the Declarations. not be consecutive.
(5) If the Declarations indicates that the (2) If a Revised Number of Days is shown
Separate Premises Option applies, then in the Declarations, the number of days
the amount of coverage ($15,000, (30) in Paragraph b.(1)(a) or b.(1)(b) is
unless a higher amount is shown in the replaced by the number of days
Declarations) is made applicable to indicated in the Declarations.
separate premises as described in the c. If you have coverage for Ordinance Or Law,
Declarations. For each premises so then with respect to Property Damage,
described, the amount of coverage is an "Business Income" and "Extra Expense" or
annual aggregate limit, subject to the "Extra Expense" only, we will not pay under
terms set forth in Paragraph 6.a.(2). the Ordinance Or Law Coverage for:
b. Business Income And Extra Expense Or (1) Loss or expense sustained due to the
Extra Expense Only enforcement of or compliance with any
(1) If you have coverage for "Business ordinance or law which requires the
Income" and "Extra Expense" or "Extra demolition, repair, replacement,
Expense" only, then Paragraph b.(1)(a) reconstruction, remodeling or
or b.(1)(b) applies, provided that the remediation of property due to the
incurred loss or expense satisfies the presence, growth, proliferation, spread
terms and conditions applicable to the or any activity of "Fungus", wet or dry
"Business Income" and "Extra Expense" rot; or
or"Extra Expense" only coverage. (2) The costs associated with the
(a) If: enforcement of or compliance with any
ordinance or law which requires any
(I) The "Breakdown"; or insured or others to test for, monitor,
(ii) Any damage from water resulting clean up, remove, contain, treat,
from the "Breakdown"; detoxify or neutralize, or in any way
which resulted in "Fungus", wet or respond to or assess the effects of
dry rot, does not in itself generate a "Fungus", wet or dry rot.
loss of "Business Income" or an 7. Increased Cost Of Loss And Related
"Extra Expense", but the loss of Expenses For "Green" Upgrades
"Business Income" or "Extra a. Property Damage
Expense" is solely due to loss or Coverage is extended to include the
damage to property caused by additional loss or damage and related
"Fungus", wet or dry rot, then our expenses incurred by you that are
payment under "Business Income"
and "Extra Expense" or "Extra attributable to "Green" upgrades as a direct
Expense" only is limited to the result of a "Breakdown" to "Covered
amount of loss and/or expense Equipment" that occurs during the policy
sustained in a period of not more period. As provided in this "Green"
than 30 days. The days need not be upgrades coverage, we will pay for:
consecutive. (1) Additional expense to repair or replace
the damaged "Covered Property" except
raw materials, property in process,
finished goods and "Stock";
2018 CAPP Boiler&Equipment Policy CAPP Page 11 of 46
(2) Related additional expenses to: (ii) Additional cost to repair or
(a) Reuse or salvage the damaged replace damaged property solely
"Covered Property"; for the purpose of achieving
b Remove, transport and dispose of points toward certification or
{ ) p p recertification of the property by a
the recyclable damaged "Covered "Green standards-setter".
Property" and its construction waste
to appropriate sites; and Unless a different limit or INCLUDED is
shown in the Declarations, the most we pay
(c) Replace the damaged portions of under this "Green" upgrades coverage is an
roof section(s) of buildings or amount equal to 25% of the total Property
structures with a vegetated roof in Damage loss otherwise recoverable,
accordance with the recommended subject to a maximum limit of$100,000.
procedures of a "Green standards-
setter"; b. Business Income And Extra Expense Or
Extra Expense Only
(3) Additional reasonable and customary
expense to hire the services of an If you have coverage for "Business Income"
accredited architect or engineer with and "Extra Expense" or "Extra Expense"
respect to any necessary design and only and the terms and conditions
engineering recommendations in the applicable to the "Business Income" and
course of repair or replacement of "Extra Expense" or "Extra Expense" only
damaged portions of the building; and coverage are satisfied, then:
(4) Additional reasonable expense to pay: (1) If the remediation of the damaged
"Covered Property" using "Green"
(a) Fees imposed by the "Green upgrades prolongs the "Period of
standards-setter" in order to Restoration", we will pay for loss and/or
determine if certification or expense sustained during the delay
recertification is appropriate (regardless of when such a delay occurs
according to the organization's during the "Period of Restoration"), but
standard; such coverage is limited to 30 days. The
(b) Fees to test "Covered Equipment" days need not be consecutive.
following its repair or installation as (2) If a Revised Number of Days is shown
replacements, when such testing is in the Declarations, the number of days
undertaken in the course of (30) in Paragraph b.(1) is replaced by
submitting to the certification or the number of days indicated in the
recertification process; and Declarations.
(c) After repair or reconstruction is (3) As used here, the prolonged "Period of
completed, to flush out the renovated Restoration" is limited to the additional
space and/or conduct air quality days incurred over and above the
testing of the renovated space in amount needed had no "Green"
accordance with the recommended upgrades been involved with the loss.
procedures of a "Green standards-
setter" and for the purpose of c. The coverage provided under this "Green"
mitigating indoor air quality upgrades coverage:
deficiencies resulting from the repair (1) Does not increase any of the applicable
or reconstruction of the "Covered Limits of Insurance;
Property". (2) Applies despite the operation of the
As used here, additional expenses are Ordinance Or Law Exclusion; and
limited to the additional cost incurred over (3) Does not reduce the coverage otherwise
and above the amount that we would have applicable for repair or replacement of
paid had no "Green" upgrades been "Covered Property" that qualified as
involved with the loss. "Green" prior to loss or damage, with
In addition, we will not pay for any: comparable materials and products.
(i) Further modification if the
"Covered Property" fails to obtain
certification, recertification or a
specific level of certification; or
2018 CAPP Boiler&Equipment Policy CAPP Page 12 of 46
D. Deductibles (3) Multiply the daily value in Paragraph (2)
1. Application Of Deductibles by the number of days shown in the
Declarations. We will first subtract this
We will not pay for loss or damage resulting deductible amount from any loss we
from any "One Breakdown" until the amount of would otherwise pay. We will then pay
covered loss or damage exceeds the the amount of loss or damage in excess
deductible shown in the Declarations for each of the deductible, up to the applicable
applicable coverage. We will then pay the Limit of Insurance.
amount of covered loss or damage in excess of
the deductible, up to the applicable Limit of d. Percentage Of Loss Deductible
Insurance. If a deductible is expressed as a
Deductibles apply separately for each percentage of loss in the Declarations, we
applicable coverage except if: will not be liable for the indicated
percentage of gross amount of loss or
a. A deductible is shown as COMBINED for damage (prior to the applicable deductible
any of the coverages in the Declarations, or coinsurance) insured under the
then we will first subtract the combined applicable coverage.
deductible amount from the aggregate
amount of any loss to which the combined e. Minimum Or Maximum Deductibles
deductible applies; or (1) If:
b. More than one "Covered Equipment" is (a) A minimum dollar amount deductible
involved in "One Breakdown", then only one is shown in the Declarations; and
deductible, the highest, shall apply for each (b) The dollar amount of the Multiple of
of the applicable coverages. Daily Value or the Percentage of
2. Determination Of Deductibles Loss Deductible is less than the
a. Dollar Deductible Minimum Deductible;
If a dollar deductible is shown in the then the Minimum Deductible amount
Declarations, we will first subtract the shown in the Declarations will be the
deductible amount from any loss we would applicable deductible.
otherwise pay. (2) If:
b. Time Deductible (a) A maximum dollar amount deductible
If a time deductible is shown in the is shown in the Declarations; and
Declarations, we will not be liable for any (b) The dollar amount of the Multiple of
loss under that coverage that occurs during Daily Value or the Percentage of
that specified time period immediately Loss Deductible is greater than the
following a "Breakdown". If a time Maximum Deductible;
deductible is shown in days, each day shall then the Maximum Deductible amount
mean 24 consecutive hours. shown in the Declarations will be the
c. Multiple Of Daily Value Deductible applicable deductible.
If a multiple of daily value is shown in the E. Equipment Breakdown Protection Conditions
Declarations, this deductible will be The following conditions apply in addition to the
calculated as follows: Common Policy Conditions:
(1) For the entire premises where the loss 1. Loss Conditions
occurred, determine the total amount of
"Business Income" that would have a. Abandonment
been earned during the "Period of There can be no abandonment of any
Restoration" had no "Breakdown" taken property to us.
place.
(2) Divide the result in Paragraph (1) by the
number of days the business would
have been open during the "Period of
Restoration". The result is the daily
value.
2018 CAPP Boiler&Equipment Policy CAPP Page 13 of 46
b. Appraisal (e) Send us a signed, sworn proof of
If we and you disagree on the value of the loss containing the information we
property or the amount of loss, either may request to investigate the claim. You
make written demand for an appraisal of must do this within 60 days after our
the loss. In this event, each party will select request. We will supply you with the
a competent and impartial appraiser. The necessary forms.
two appraisers will select an umpire. If they (f) Cooperate with us in the
cannot agree, either may request that the investigation or settlement of the
selection be made by a judge of a court claim.
having jurisdiction. The appraisers will state (2) We may examine any insured under
separately the value of the property and oath, while not in the presence of any
amount of loss. If they fail to agree, they will other insured and at such times as may
submit their differences to the umpire. A be reasonably required, about any
decision agreed to by any two will be matter relating to this insurance or the
binding. claim, including an insured's books and
Each party will: records. In the event of an examination,
(1) Pay its chosen appraiser; and an insured's answers must be signed.
(2) Bear the other expenses of the e. Insurance Under Two Or More
appraisal and umpire equally. Coverages
If there is an appraisal, we will still retain If two or more of this policy's coverages
our right to deny the claim. apply to the same loss or damage, we will
not pay more than the actual amount of the
c. Defense loss or damage.
We may elect to defend you against suits f. Legal Action Against Us
arising from claims of owners of property.
We will do this at our expense. No one may bring a legal action against us
under this Coverage Part unless:
d. Duties In The Event Of Loss Or Damage
(1) There has been full compliance with all
(1) You must see that the following are the terms of this Coverage Part; and
done in the event of loss or damage to
"Covered Property": (2) The action is brought within two years
after the date of the "Breakdown"; or
(a) Give us a prompt notice of the loss
or damage. Include a description of (3) We agree in writing that you have an
the property involved. obligation to pay for damage to
"Covered Property" of others or until the
(b) As soon as possible, give us a amount of that obligation has been
description of how, when and where determined by final judgment or
the loss or damage occurred. arbitration award. No one has the right
(c) Allow us a reasonable time and under this policy to bring us into any
opportunity to examine the property action to determine your liability.
and premises before repairs are g. Loss Payable Clause
undertaken or physical evidence of (1) We will pay you and the loss payee
the "Breakdown" is removed. But you
must take whatever measures are shown in the Declarations for loss due
necessary to protect the property to a "Breakdown" to "Covered
and premises from further damage. Equipment", as interests may appear.
The insurance covers the interest of the
(d) As often as may be reasonably loss payee unless the loss results from
required, permit us to inspect the conversion, secretion or embezzlement
property proving the loss or damage on your part.
and examine your books and
records. (2) We may cancel the policy as allowed by
the Cancellation Condition. Cancellation
Also, permit us to take samples of ends this agreement as to the loss
damaged and undamaged property payee's interest. If we cancel, we will
for inspection, testing and analysis, mail you and the loss payee the same
and permit us to make copies from advance notice.
your books and records.
2018 CAPP Boiler&Equipment Policy CAPP Page 14 of 46
(3) If we make any payment to the loss (d) Salvaging the damaged "Covered
payee, we will obtain their rights against Property".
any other party. k. Transfer Of Rights Of Recovery Against
h. Other Insurance Others To Us
(1) You may have other insurance subject If any person or organization to or for whom
to the same plan, terms, conditions and we make payment under this Coverage
provisions as the insurance under this Part has rights to recover damages from
Coverage Part. If you do, we will pay our another, those rights are transferred to us
share of the covered loss or damage. to the extent of our payment.
Our share is the proportion that the That person or organization must do
applicable Limit of Insurance under this everything necessary to secure our rights
Coverage Part bears to the Limits of and must do nothing after loss to impair
Insurance of all insurance covering on them. But you may waive your rights
the same basis. against another party in writing:
(2) If there is other insurance covering the (1) Prior to a loss to your "Covered
same loss or damage, other than that Property" or covered income.
described in Paragraph (1), we will pay
only for the amount of covered loss or (2) After a loss to your "Covered Property"
damage in excess of the amount due or covered income only if, at time of
from that other insurance, whether you loss, that party is one of the following:
can collect on it or not. But we will not (a) Someone insured by this insurance;
pay more than the applicable Limit of (b) A business firm:
Insurance.
I. Privilege To Adjust With Owner (i) Owned or controlled by you; or
In the event of loss or damage involving (ii) That owns or controls you; or
property of others in your care, custody or (c) Your tenant.
control, we have the right to settle the loss This will not restrict your insurance.
or damage with the owner of the property. A
receipt for payment from the owner of that I. Valuation
property will satisfy any claim of yours (1) We will determine the value of"Covered
against us. Property" in the event of loss or damage
j. Reducing Your Loss as follows:
As soon as possible after a "Breakdown", (a) The cost to repair, rebuild or replace
you must: the damaged property with property
of the same kind, capacity, size or
(1) Resume business, partially or quality on the same site or another
completely; site, whichever is the less costly; or
(2) Make up for lost business within a (b) The cost actually and necessarily
reasonable period of time. This expended in repairing, rebuilding or
reasonable period does not necessarily replacing on the same site or
end when operations are resumed; and another site, whichever is the less
(3) Make use of every reasonable means to costly;
reduce or avert loss, including: except we will not pay for such damaged
(a) Working extra time or overtime at the property that is obsolete and useless to
premises or at another premises you you.
own or acquire to carry on the same (2) If you elect or we require that the repair
operations; or replacement of the damaged
(b) Utilizing the property and/or services "Covered Equipment" be done in a
of other concerns; manner that enhances safety while
maintaining the existing function, then
(c) Using merchandise or other
property, such as surplus machinery, we will pay, subject to the limit of
of
duplicate parts, equipment, supplies insurance, up to an additional 25/o
the property damage amount for the
and surplus or reserve stock you
"Covered Equipment" otherwise
own, control or can obtain; or
recoverable.
2018 CAPP Boiler&Equipment Policy CAPP Page 15 of 46
(3) If: (7) We will determine the value of"Covered
(a) Any damaged "Covered Property" is Property" under Spoilage Damage
protected by an extended warranty, Coverage as follows:
or maintenance or service contract; (a) For raw materials, the replacement
and cost;
(b) That warranty or contract becomes (b) For property in process, the
void or unusable due to a replacement cost of the raw
"Breakdown"; materials, the labor expended and
we will reimburse you for the unused the proper proportion of overhead
costs of nonrefundable, nontransferable charges; and
warranties or contracts. (c) For finished products, the selling
(4) Unless we agree otherwise in writing, if price, as if no loss or damage had
you do not repair or replace the occurred, less any discounts you
damaged property within 24 months offered and expenses you otherwise
following the date of the "Breakdown", would have had.
then we will pay only the smaller of the: (8) Any salvage value of property obtained
(a) Cost it would have taken to repair or for temporary repairs or use following a
replace; or "Breakdown" which remains after repairs
are completed will be taken into
(b) Actual cash value at the time of the consideration in the adjustment of any
"Breakdown". loss.
(5) If all of the following conditions are met, m. The following additional conditions apply to
property held by you for sale will be the "Business Income" and "Extra Expense"
valued at the selling price as if no loss Coverage:
or damage had occurred, less any
discounts you offered and expenses you (1) Annual Reports
otherwise would have had: You must complete an Annual Report of
(a) The property was manufactured by Values form approved by us once each
you; year. Your reports must reach us within
three months of the annual report date
(b) The selling price of the property is shown in the Declarations and each
more than the replacement cost of anniversary of that date.
the property; and
(2) Adjustment Of Premium
(c) You are unable to replace the
property before its anticipated sale. Upon receipt of the annual reports of
values you furnish us, we will determine
(6) We will pay for loss to damaged "Data" the amount of premium we earned for
or"Media" as follows: the past year. If the amount determined
(a) Replacement cost for "Data" or is more than the premium we have
"Media" that are mass produced and already charged for this coverage, you
commercially available; and must pay the difference. If the amount
(b) The cost you actually spend to determined is less than the premium we
reproduce the records on blank originally charged, we will refund the
material for all other "Data" or difference. However, the amount we
"Media", including the cost of return will not exceed 75% of the
gathering or assembling information premium we originally charged.
for such reproduction. (3) Coinsurance
However, we will not pay for "Data" or This Coinsurance Condition applies only
"Media" that we determine are not or if we did not receive your Annual Report
cannot be replaced with "Data" or of Values form within three months of
"Media" of like kind and quality or the due date as outlined in Paragraph
property of similar functional use. (1).
2018 CAPP Boiler&Equipment Policy CAPP Page 16 of 46
(a) We will not pay the full amount of c. Concealment, Misrepresentation Or
any loss if: Fraud
(i) The "Business Income Actual This Coverage Part is void in any case of
Annual Value" at the time of loss fraud, intentional concealment or
is greater than the "Business misrepresentation of a material fact by you
Income Estimated Annual Value" or any other insured, at any time,
shown in your latest report; or concerning:
(ii) Your report was received by us (1) This Coverage Part;
more than three months after the (2) The "Covered Property";
due date, or your report is
overdue. (3) Your interest in the "Covered Property";
or
(b) Instead, we will determine the most
we will pay using the following steps: (4) A claim under this Coverage Part.
(i) Divide the "Business Income d. Liberalization
Estimated Annual Value" by the If we adopt any standard form revision for
"Business Income Actual Annual general use that would broaden coverage in
Value" at the time of the this Coverage Part without additional
"Breakdown"; premium, the broadened coverage will
(ii) Multiply the total amount of the immediately apply to this Coverage Part if
covered loss of "Business the revision is effective within 45 days prior
Income" by the figure determined to or during the policy period.
in Step (I); and e. Mortgageholder
(iii) Subtract any applicable (1) The term mortgageholder includes
deductible from the amount trustee.
determined in Step (ii). (2) We will pay for direct damage to
We will pay the amount determined "Covered Property" due to a
in Step (iii) or the "Business Income" "Breakdown" to "Covered Equipment" to
and "Extra Expense" limit of each mortgageholder shown in the
insurance, whichever is less. For the Declarations in their order of
remainder, you will either have to precedence, as interests may appear.
rely on other insurance or absorb the (3) The mortgageholder has the right to
loss yourself. receive loss payment even if the
If coverage is provided for more than mortgageholder has started foreclosure
one premises, then this Coinsurance or similar action on the "Covered
Condition applies separately to each Property".
premises. (4) If we deny your claim because of your
2. General Conditions acts or because you have failed to
a. Additional Insured comply with the terms of this Coverage
Part, the mortgageholder will still have
If a person or organization is designated in the right to receive loss payment if the
this Coverage Part as an additional insured, mortgageholder:
we will consider them to be an insured
under this Coverage Part to the extent of (a) Pays any premium due under this
their interest. Coverage Part at our request if you
have failed to do so;
b. Bankruptcy
(b) Submits a signed, sworn proof of
The bankruptcy or insolvency of you or your
loss within 60 days after receiving
estate will not relieve us of our obligation notice from us of your failure to do
under this Coverage Part. so; and
(c) Has notified us of any change in
ownership or material change in risk
known to the mortgageholder.
All of the terms of this Coverage Part will
then apply directly to the
mortgageholder.
2018 CAPP Boiler&Equipment Policy CAPP Page 17 of 46
(5) If we pay the mortgageholder for any (b) Puerto Rico; and
loss and deny payment to you because (c) Canada.
of your acts or because you have failed
to comply with the terms of this h. Premium And Adjustments
Coverage Part: You shall report to us 100% of the total
(a) The mortgageholder's rights under insurable values at each premises every
the mortgage will be transferred to year as of the anniversary date. The values
us to the extent of the amount we shall be reported separately for each of the
pay; and coverages provided. Premium for each
to anniversary will be promulgated for the
(b) The mortgageholder's right
recover the full amount o the ensuing period on the basis of rates in
mortgageholder's claim will not be effect at the anniversary date and for all
values at risk.
impaired.
You agree to keep the applicable records
At our option, we may pay to the for each policy year available for inspection
mortgageholder the whole principal on by our representatives at all times during
the mortgage plus any accrued interest. business hours, during the respective policy
In this event, your mortgage and note year, and for a period of 12 months after
will be transferred to us and you will pay the end of the respective policy year or after
your remaining mortgage debt to us. cancellation of this Coverage Part.
(6) If we cancel this policy, we will give i. Suspension
written notice to the mortgageholder at
least: Whenever "Covered Equipment" is found to
(a) 10 days before the effective date of be in, or exposed to, a dangerous condition,
any of our representatives may immediately
cancellation if we cancel for suspend the insurance against loss from a
nonpayment of premium; or "Breakdown" to that "Covered Equipment".
(b) 30 days before the effective date of This can be done by delivering or mailing a
cancellation if we cancel for any written notice of suspension to:
other reason. (1) Your last known address; or
(7) If we do not renew this policy, we will (2) The address where the "Covered
give written notice to the Equipment" is located.
mortgageholder at least 10 days before
the expiration date of this policy. Once suspended in this way, your
insurance can be reinstated only by an
(8) If we suspend coverage, it will also be
endorsement for that"Covered Equipment .
suspended as respects the
mortgageholder. We will give written If we suspend your insurance, you will get a
notice of the suspension to the pro rata refund of premium for that
mortgageholder. "Covered Equipment". But the suspension
will be effective even if we have not yet
f. No Benefit To Bailee made or offered a refund.
No person or organization, other than you, 3. Joint Or Disputed Loss Agreement
having custody of "Covered Property" will
benefit from this insurance. a. This condition is intended to facilitate
payment of insurance proceeds when:
g. Policy Period, Coverage Territory
(1) Both a commercial property policy and
Under this Coverage Part: this equipment breakdown protection
(1) We cover loss or damage commencing: policy are in effect;
(a) During the policy period shown in the (2) Damage occurs to "Covered Property"
Declarations; and that is insured by the commercial
(b) Within the coverage territory. property policy and this equipment
breakdown protection policy; and
(2) The coverage territory is:
(3) There is disagreement between the
(a) The United States of America insurers as to whether there is coverage
(including its territories and or as to the amount of the loss to be
possessions); paid, if any, by each insurer under its
own policies.
2018 CAPP Boiler&Equipment Policy CAPP Page 18 of 46
b. This condition does not apply if: (c) The total amount of the loss is
(1) Both the commercial property insurer(s) agreed to by you, the commercial
and we do not admit to any liability; and property insurer(s) and us.
(2) Neither the commercial property d. If the requirements listed in Paragraph c.
insurer(s) nor we contend that coverage above are satisfied, we and the commercial
applies under the other insurer's policy. property insurer(s) will make payments to
the extent, and in the manner, described as
c. The provisions of this condition apply only if follows:
all of the following requirements are met:
(1) We will pay, after your written request,
(1) The commercial property policy carried the entire amount of loss that we have
by the Named Insured, insuring the agreed as being covered, if any, by this
"Covered Property", contains a similar equipment breakdown protection policy
provision at the time of the loss or and one-half (1/2) the amount of the
damage, with substantially the same loss that is in disagreement.
requirements, procedures and
conditions as contained in this condition; (2) The commercial property insurer(s) will
pay, after your written request, the entire
(2) The damage to the "Covered Property" amount of loss that they have agreed as
was caused by a loss for which: being covered, if any, by the commercial
(a) Both the commercial property property policy and one-half (1/2) the
insurer(s) and we admit to some amount of loss that is in disagreement.
liability for payment under the (3) Payments by the insurers of the
respective policies; or amounts that are in disagreement, as
(b) Either: described in Paragraphs (1) and (2), do
(i) The commercial property not alter, waive or surrender any rights
insurer(s) does not admit to any of any insurer against any other with
liability for payment, while we regard to the portion of the loss for
contend that: which each insurer is liable.
I. All liability exists under the (4) The amount in disagreement to be paid
commercial property policy; or by us under this condition shall not
exceed the amount payable under the
ii. Some liability exists under equivalent Loss Agreement(s) of the
both the commercial property commercial property policy.
policy and this equipment (5) The amount to be paid under this
breakdown protection policy; condition shall not exceed the amount
(ii) We do not admit to any liability we would have paid had no commercial
for payment, while the property policy been in effect at the time
commercial property insurer(s) of loss. In no event will we pay more
contends that: than the applicable Limit Of Insurance
i. All liability exists under this shown in the Declarations.
equipment breakdown (6) Acceptance by you of sums paid under
protection coverage policy; or this condition does not alter, waive or
ii. Some liability exists under surrender any other rights against us.
both the commercial property e. Arbitration
policy and this equipment (1) If the circumstances described in
breakdown protection policy; Paragraph c.(2)(a) exist and the
or commercial property insurer(s) and we
(iii) Both the commercial property agree to submit our differences to
insurer(s) and we: arbitration, the commercial property
i. Do not admit to any liability for insurer(s) and we will determine the
payment; and amount each will pay and will pay the
ii. Contend that some or all insured within 90 days. Arbitration will
liability exists under the other then take place within 90 days after
lia lity policy;st and payment of the loss under the terms of
insurer's s
this condition.
2018 CAPP Boiler&Equipment Policy CAPP Page 19 of 46
(2) If any of the circumstances described in unless such loss or damage is otherwise
Paragraph c.(2)(b) exist, then the excluded within this Coverage Form.
commercial property insurer(s) and we b. Does not mean or include:
agree to submit our differences to
arbitration within 90 days after payment (1) Malfunction including but not limited to
of the loss under the terms of this adjustment, alignment, calibration,
condition. cleaning or modification;
(3) You agree to cooperate with any (2) Defects, erasures, errors, limitations or
arbitration procedures. There will be viruses in computer equipment and
three arbitrators: one will be appointed programs including the inability to
by us, and another will be appointed by recognize and process any date or time
the commercial property insurer(s). The or provide instructions to "Covered
two arbitrators will select a third Equipment";
arbitrator. If they cannot agree, either (3) Leakage at any valve, fitting, shaft seal,
may request that selection be made by gland packing,joint or connection;
a judge of a court having jurisdiction. A (4) Damage to any vacuum tube, gas tube,
decision agreed to by two of the three or brush;
arbitrators will be binding on both
parties. Judgment on any award can be (5) Damage to any structure or foundation
entered in any court that has jurisdiction. supporting the "Covered Equipment" or
f. Final Settlement Between Insurers any of its parts;
(6) The functioning of any safety or
The insurer(s) found responsible for the
greater percentage of the ultimate loss protective device; or
must return the excess contribution to the (7) The cracking of any part on an internal
other insurer(s). In addition, the insurer(s) combustion gas turbine exposed to the
found responsible for the greater portion of products of combustion.
the loss must pay Liquidated Damages to 2. "Business Income" means the:
the other insurer(s) on the amount of the a. Net Income (Net Profit or Loss before
excess contribution of the other insurer(s). income taxes) that would have been earned
Liquidated Damages are defined as interest
from the date the insured invokes this or incurred; and
Agreement to the date the insurer(s) that b. Continuing normal operating expenses
contributed the excess amount is incurred, including payroll.
reimbursed. The interest is calculated at 1.5 3. "Business Income Actual Annual Value" means
times the highest prime rate from the the sum of the Net Income and continuing
Money Rates column of the Wall Street normal operating expenses incurred, including
Journal during the period of the Liquidated payroll that would have been earned had the
Damages. Arbitration expenses are not a "Breakdown" not occurred.
part of the excess contribution for which
Liquidated Damages are calculated. 4. "Business Income Estimated Annual Value"
Arbitration expenses will be apportioned means the sum of the Net Income and
between insurers on the same basis that continuing normal operating expenses
the ultimate loss is apportioned. incurred, including payroll as estimated by you
in the most recent Annual Report of Values
F. Definitions form on file with us.
1. "Breakdown": 5. "Computer Equipment" means:
a. Means the following direct physical loss that a. Your programmable electronic equipment
causes damage to "Covered Equipment" that is used to store, retrieve and process
and necessitates its repair or replacement: data; and
(1) Failure of pressure or vacuum b. Associated peripheral equipment that
equipment; provides communication including input and
(2) Mechanical failure including rupture or output functions such as printing or auxiliary
bursting caused by centrifugal force; or functions such as data transmission.
(3) Electrical failure including arcing; It does not include "Data" or"Media".
2018 CAPP Boiler&Equipment Policy CAPP Page 20 of 46
6. "Covered Equipment": (8) Vehicle, aircraft, self-propelled
a. Means and includes any: equipment or floating vessel including
any "Covered Equipment" that is
(1) Equipment built to operate under mounted upon or used solely with any
internal pressure or vacuum other than one or more vehicle(s), aircraft, self-
weight of contents; propelled equipment or floating vessel;
(2) Electrical or mechanical equipment that (9) Dragline, excavation or construction
is used in the generation, transmission equipment including any "Covered
or utilization of energy; Equipment" that is mounted upon or
(3) Communication equipment and used solely with any one or more
"Computer Equipment"; and dragline(s), excavation or construction
(4) Equipment in Paragraphs (1), (2) and equipment;
(3) that is owned by a public or private (10) Felt, wire, screen, die, extrusion plate,
utility and used solely to supply utility swing hammer, grinding disc, cutting
services to your premises. blade, nonelectrical cable, chain, belt,
However, if Coverage A.2.e. Utility rope, clutch plate, brake pad, nonmetal
Interruption is provided, then Paragraph part or any part or tool subject to
6.a.(4) does not apply. periodic replacement;
Except for Paragraph 6.a.(4), Utility (11) Machine or apparatus used solely for
Interruption and Contingent "Business research, diagnosis, medication,
Income" and "Extra Expense" or "Extra surgical, therapeutic, dental or
Expense" only coverages, the "Covered pathological purposes including any
Equipment" must be located at a premises "Covered Equipment" that is mounted
described in the Declarations and be upon or used solely with any one or
owned, leased or operated under your more machine(s) or apparatus unless
control. Diagnostic Equipment is shown as
INCLUDED in the Declarations; or
b. Does not mean or include any: (12) Equipment or any part of such
(1) "Media"; equipment manufactured by you for
(2) Part of pressure or vacuum equipment sale.
that is not under internal pressure of its 7. "Covered Property" means any property that:
contents or internal vacuum;
a. You own; or
(3) Insulating or refractory material, but not b. Is in your care, custody or control and for
excluding the glass lining of any which you are legally liable.
"Covered Equipment ;
(4) Nonmetallic pressure or vacuum 8. "Data" means:
equipment, unless it is constructed and a. Programmed and recorded material stored
used in accordance with the American on "Media"; and
Society of Mechanical Engineers b. Programming records used for electronic
(A.S.M.E.) code or another appropriate data processing, or electronically controlled
and approved code; equipment.
(5) Catalyst; 9. "Extra Expense" means the additional cost you
(6) Vessels, piping and other equipment incur to operate your business during the
that is buried belowground and requires "Period of Restoration" over and above the
the excavation of materials to inspect, cost that you normally would have incurred to
remove, repair or replace; operate the business during the same period
(7) Structure, foundation, cabinet or had no "Breakdown" occurred.
compartment supporting or containing 10. "Fungus" means any type or form of fungus,
the "Covered Equipment" or part of the including mold or mildew and any mycotoxins,
"Covered Equipment" including spores, scents or by-products produced or
penstock, draft tube or well casing; released by fungi.
2018 CAPP Boiler&Equipment Policy CAPP Page 21 of 46
11. "Green" means enhanced energy efficiency or 14. "Media" means electronic data processing or
use of environmentally-preferable, sustainable storage media such as films, tapes, discs,
materials, products or methods in design, drums or cells.
construction, manufacture or operation, as 15. "One Breakdown" means if an initial
recognized by a "Green standards-setter". "Breakdown" causes other "Breakdowns", all
12. "Green standards-setter" means an will be considered "One Breakdown". All
organization or governmental agency which "Breakdowns" at any one premises that
produces and maintains guidelines related to manifest themselves at the same time and are
"Green" products and practices. "Green the direct result of the same cause will be
standards-setters" include but are not limited considered "One Breakdown".
to: 16. "Period of Restoration" means the period of
a. The Leadership in Energy and time that:
Environmental Design (LEED®) program of a. Begins at the time of the "Breakdown" or 24
the U.S. Green Building Council; hours before we receive notice of
b. ENERGY STAR, a joint program of the U.S. "Breakdown", whichever is later; and
Environmental Protection Agency and the b. Ends five consecutive days after the date
U.S. Department of Energy; and when the damaged property at the
c. Green GlobesTM, a program of the Green premises described in the Declarations is
Building Initiative. repaired or replaced with reasonable speed
13. "Hazardous Substance" means any substance and similar quality.
other than ammonia that has been declared to 17. "Stock" means merchandise held in storage or
be hazardous to health by a government for sale, raw materials, property in process or
agency. finished products including supplies used in
their packing or shipping.
2018 CAPP Boiler&Equipment Policy CAPP Page 22 of 46
Policy Number YB2-L9L-468235-018
Issued by Liberty Mutual Fire Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL NAMED INSURED
This endorsement modifies insurance provided under the following:
EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM
We will provide insurance under this policy to each of the persons or organizations shown as an additional named
insured on the Schedule of this endorsement.
We will adjust any covered loss only with you.
You will pay the premium for the insurance we provide to the additional named insureds. In the event that you
become bankrupt or insolvent, each additional named insured shall pay the premium for the insurance it receives.
We will make our payment jointly to you and any person or organization shown on the Schedule of this
endorsement.
Schedule
Additional Named Insured Location
Per Schedule on File All Covered Locations Per Schedule on File with Us
2018 CAPP Boiler&Equipment Policy CAPP Page 23 of 46
Policy Number YB2-L9L-468235-018
Issued by Liberty Mutual Fire Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
EQUIPMENT BREAKDOWN ENHANCEMENT ENDORSEMENT
This endorsement modifies insurance provided under the following:
EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM
A. The following coverage(s) are added to A.2. Coverages Provided of the EQUIPMENT
BREAKDOWN PROTECTION COVERAGE FORM:
k. Civil Authority
If the Declarations show you have business income and/or extra expense coverage:
(1) The applicable coverage is extended to cover loss caused by the action of civil authority
that prohibits access to the premises described in the Declarations. The action of civil
authority must directly result from a "Breakdown" to "Covered Equipment" or to
equipment of the type covered by this policy that is located within 100 miles of a premise
shown in the Declarations.
(2) Coverage provided under(1) above will commence 24 hours after the time of the civil
authority action and will continue until the earlier of:
a. 4 consecutive weeks thereafter; or
b. The date access is restored.
I. Ingress/Egress
We will pay for the actual loss of business income that you sustain if your ingress to, or egress
from the premises described in the Declarations is prevented as a direct result of a "Breakdown"
to "Covered Equipment" or to equipment of the type covered by this policy that is located off of
the premises described in the declarations. This coverage does not apply if the ingress to or
egress from your premises is prohibited by civil authority.
The most we will pay for actual loss of Business Income you sustain under this coverage is
$250,000.
m. Claim Preparation Fees
(1) We will pay the reasonable expenses that you incur when we require you to provide us
with property value assessments, income statements, and other related documentation
to show the extent of loss. This includes the cost of taking inventories, assessing
property values, preparing income statements, and preparing other similar
documentation.
(2) We will not pay for:
2018 CAPP Boiler&Equipment Policy CAPP Page 24 of 46
a. Any expenses incurred for, billed by or payable to attorneys or adjusters, or their
associates or subsidiaries
b. Any costs in connection with E. Conditions, 1 Loss Conditions, b. Appraisal; or
c. Any expenses incurred for, billed by or payable to insurance brokers or agents, or
their associates or subsidiaries, without our written consent prior to such expenses
being incurred.
(3) The most we will pay for preparation of claim data expenses under this Coverage
Extension in any "One Breakdown" is $250,000. This limit is part of, not in addition to,
any applicable Limit per Breakdown as shown in the Declaration.
B. Item f. (4) Newly Acquired Premises of A.2. Coverages Provided is deleted and replaced by the
following:
f.(4) The limit available for this coverage is the amount shown as the Newly Acquired Premises
Limit in the Declarations. If the coverages and deductibles vary for existing premises, then the
coverages for the newly acquired premises will be the broadest coverage and highest limits
and deductible applicable to the existing premises. However, in no circumstance will the limit
available for the newly acquired premises exceed the amount shown as the Newly Acquired
Premises Limit in the Declarations.
C. Item j. Contingent Business Income and Extra Expense or Extra Expense Only Coverage of
A.2. Coverages Provided is deleted and replaced by the following:
j. Dependent Location
If you have selected the Business Income Coverage Extension or Extra Expense Coverage
Extension, that applicable coverage is extended to cover loss caused by the necessary partial
or total interruption of your business during the "Period of Restoration" for a "Dependent
Location". The interruption must be caused by direct physical loss or damage at a "Dependent
Location," shown in the Declarations or elsewhere in this Coverage Part, caused by or resulting
from "Breakdown" to equipment of the type insured by this policy.
However, coverage under this Coverage Extension does not apply when the only loss to
"Dependent Location" is loss or damage to "Electronic Data, including destruction or corruption
of"Electronic Data".
"Dependent Location" means property operated by others whom you depend on to:
(1) Deliver materials or services to you or to others for your account. But any property which
delivers any of the following services is not a Supplying Location with respect to such
utility services: air conditioning, communication services, electric power, gas, heating,
refrigeration, steam, water or waste treatment.
(2) Accept your products or services;
(3) Manufacture products for delivery to your customers under contract of sale; or
(4) Attract customers to your business.
2018 CAPP Boiler&Equipment Policy CAPP Page 25 of 46
D. The last paragraph of 7. Increased Cost of Loss And Related Expenses For "Green" Upgrades
of section C. Limits Of Insurance is deleted and replaced by the following:
Unless a different limit or INCLUDED is shown in the Declarations, the most we pay under this
"Green" upgrades coverage is an amount equal to 50% of the total Property Damage loss otherwise
recoverable.
E. Item I. (2) Valuation of E.1. Loss Conditions is deleted and replaced by the following:
If"Covered Equipment" requires replacement due to a "Breakdown", we will pay the additional cost
to replace the equipment with equipment that we and you agree improves the environment,
increases efficiency or enhances safety while maintaining the existing function, subject to the
following conditions:
(a) We will not pay more than one hundred fifty percent (150%) of what the cost would have
been to replace with like kind and quality;
(b) We will not pay to increase the size or capacity of the equipment;
(c) This provision only applies to property damage coverage;
(d) This provision does not increase any of the applicable limits;
(e) This provision does not apply to any property valued on an "Actual Cash Value" basis; and
(f) This provision does not apply to the replacement of component parts.
F. Item 16. "Period of Restoration" under F. Definitions is deleted and replaced with the following:
16. "Period of Restoration" means the period of time that:
a. Begins at the time of the "Breakdown"; and
b. Ends on the earlier of:
(1) The number of consecutive days indicated for the applicable "Period of Restoration"
shown in the Declarations or elsewhere in this Coverage Part after the date when the
property at the Covered Premises should be repaired, rebuilt or replaced with
reasonable speed and similar quality; or
(2) The date when business is resumed at a new permanent location.
2018 CAPP Boiler&Equipment Policy CAPP Page 26 of 46
Policy Number YB2-L9L-468235-018
Issued by: Liberty Mutual Fire Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
MISCELLANEOUS LOCATIONS
This endorsement modifies insurance provided under the following:
EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM
The following is added to Paragraph A.2.:
Miscellaneous Locations
We will pay subject to a sub-limit of $2,500,000 for all loss or damage from any "One Breakdown,"for a
"Breakdown"to your "Covered Equipment" at any premise (within the policy territory)that is not scheduled in the
Declarations or otherwise covered by us or this policy.
No coverage is provided under this provision, however, for any property:
(1) in transit; or
(2) excluded elsewhere in this policy; or
(3) for which coverage is found, in whole or in part, elsewhere in this policy.
2018 CAPP Boiler&Equipment Policy CAPP Page 27 of 46
Policy Number YB2-L9L-468235-018
Issued by Liberty Mutual Fire Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
EXCLUSION AMENDATORY
This endorsement modifies insurance provided under the following:
EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM
Paragraph B.14 is deleted and replaced with the following:
14. A"Breakdown"that is caused by any of the following causes of loss:
a. Aircraft or vehicles;
b. Freezing caused by cold weather;
c. Lightning;
d. Sinkhole collapse;
e. Smoke;
f. Riot, civil commotion or vandalism; or
g. Weight of snow, ice or sleet.
2018 CAPP Boiler&Equipment Policy CAPP Page 28 of 46
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
OFF-PREMISES EQUIPMENT COVERAGE
This endorsement modifies insurance provided under the following:
EQUIPMENT BREAKDOWN COVERAGE PART
A. Coverage is extended for loss or damage to "Cov- B. Paragraph 6.b.(8) of Section F. Definitions does
ered Property" as a direct result of a "Breakdown" not apply to coverage provided by this endorse-
to "Covered Equipment" while such equipment is ment to the extent that "Covered Equipment" may
away from the premises described in the Declara- be mounted upon or used solely with a vehicle or
tions, and is: self-propelled equipment, unless such "Covered
1. Operated under your control; Equipment" is used in the operation or propulsion
of the vehicle or self-propelled equipment.
2. Situated at a fixed location and not in transit:
and
3. In use or connected and ready for use.
2018 CAPP Boiler&Equipment Policy CAPP Page 29 of 46
Policy Number YB2-L9L-468235-018
Issued by Liberty Mutual Fire Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
NOTICE OF CANCELLATION CHANGE
This endorsement modifies insurance provided under the following:
COMMON POLICY CONDITIONS
Item A. 2. b. of the Cancellation Condition is replaced with the following:
b. 90 days before the effective date of cancellation if we cancel for any other reason.
2018 CAPP Boiler&Equipment Policy CAPP Page 30 of 46
COMMON POLICY CONDITIONS
All Coverage Parts included in this policy are subject to the following conditions.
A. Cancellation b. Give you reports on the conditions we find;
1. The first Named Insured shown in the Declara- and
tions may cancel this policy by mailing or deliv- c. Recommend changes.
ering to us advance written notice of cancella- 2. We are not obligated to make any inspections,
tion. surveys, reports or recommendations and any
2. We may cancel this policy by mailing or deliv- such actions we do undertake relate only to in-
ering to the first Named Insured written notice surability and the premiums to be charged. We
of cancellation at least: do not make safety inspections. We do not un-
a. 10 days before the effective date of cancel-
organization to perform the duty of any person or
lation if we cancel for nonpayment of pre organization to provide for the health or safety
mium; or of workers or the public. And we do not warrant
that conditions:
b. 30 days before the effective date of cancel-
lation if we cancel for any other reason. a. Are safe or healthful; or
3. We will mail or deliver our notice to the first b. Comply with laws, regulations, codes or
Named Insured's last mailing address known to standards.
us. 3. Paragraphs 1. and 2. of this condition apply not
4. Notice of cancellation will state the effective only to us, but also to any rating, advisory, rate
date of cancellation. The policy period will end service or similar organization which makes in-
on that date. surance inspections, surveys, reports or rec-
ommendations.
5. If this policy is cancelled, we will send the first
Named Insured any premium refund due. If we 4. Paragraph 2. of this condition does not apply to
cancel, the refund will be pro rata. If the first any inspections, surveys, reports or recom-
Named Insured cancels, the refund may be mendations we may make relative to certifica-
less than pro rata. The cancellation will be of tion, under state or municipal statutes, ordi-
fective even if we have not made or offered a nances or regulations, of boilers, pressure ves
refund. sels or elevators.
6. If notice is mailed, proof of mailing will be suffi- E. Premiums
cient proof of notice. The first Named Insured shown in the Declara-
B. Changes tions:
This policy contains all the agreements between 1. Is responsible for the payment of all premiums;
you and us concerning the insurance afforded. and
The first Named Insured shown in the Declarations 2. Will be the payee for any return premiums we
is authorized to make changes in the terms of this pay.
policy with our consent. This policy's terms can be F. Transfer Of Your Rights And Duties Under This
amended or waived only by endorsement issued Policy
by us and made a part of this policy.
Your rights and duties under this policy may not be
C. Examination Of Your Books And Records transferred without our written consent except in
We may examine and audit your books and rec- the case of death of an individual named insured.
ords as they relate to this policy at any time during If you die, your rights and duties will be transferred
the policy period and up to three years afterward. to your legal representative but only while acting
D. Inspections And Surveys within the scope of duties as your legal repre-
1. We have the right to: sentative. Until your legal representative is ap-
pointed, anyone having proper temporary custody
a. Make inspections and surveys at any time; of your property will have your rights and duties
but only with respect to that property.
2018 CAPP Boiler&Equipment Policy CAPP Page 31 of 46
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
COLORADO CHANGES - CANCELLATION
AND NONRENEWAL
This endorsement modifies insurance provided under the following:
CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART
COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
A. Paragraph 2. of the Cancellation Common Policy We may only cancel this policy based on
Condition is replaced by the following: one or more of the following reasons:
2. If this policy has been in effect for less than 60 (1) Nonpayment of premium;
days, we may cancel this policy by mailing or (2) A false statement knowingly made by
delivering to the first Named Insured written the insured on the application for insur-
notice of cancellation at least: ance; or
a. 10 days before the effective date of cancel- (3) A substantial change in the exposure or
lation if we cancel for nonpayment of pre- risk other than that indicated in the ap-
mium; or plication and underwritten as of the ef-
b. 30 days before the effective date of cancel- fective date of the policy unless the first
lation if we cancel for any other reason. Named Insured has notified us of the
B. The following is added to the Cancellation Com- change and we accept such change.
mon Policy Condition: C. The following is added and supersedes any other
7. Cancellation Of Policies In Effect For 60 provision to the contrary:
Days Or More NONRENEWAL
a. If this policy has been in effect for 60 days If we decide not to renew this policy, we will mail
or more, or is a renewal of a policy we is- through first-class mail to the first Named Insured
sued, we may cancel this policy by mailing shown in the Declarations written notice of the
through first-class mail to the first Named nonrenewal at least 45 days before the expiration
Insured written notice of cancellation: date, or its anniversary date if it is a policy written
(1) Including the actual reason, at least 10 for a term of more than one year or with no fixed
days before the effective date of cancel expiration date.
lation, if we cancel for nonpayment of If notice is mailed, proof of mailing will be sufficient
premium; or proof of notice.
(2) At least 45 days before the effective
date of cancellation if we cancel for any
other reason.
2018 CAPP Boiler&Equipment Policy CAPP Page 32 of 46
D. The following condition is added: Any decrease in coverage during the policy term
INCREASE IN PREMIUM OR DECREASE IN must be based on one or more of the following
COVERAGE reasons:
We will not increase the premium unilaterally or 1. Nonpayment of premium:
decrease the coverage benefits on renewal of this 2. A false statement knowingly made by the in-
policy unless we mail through first-class mail writ- sured on the application for insurance; or
ten notice of our intention, including the actual 3. A substantial change in the exposure or risk
reason, to the first Named Insured's last mailing other than that indicated in the application and
address known to us, at least 45 days before the underwritten as of the effective date of the poli-
effective date. cy unless the first Named Insured has notified
us of the change and we accept such change.
If notice is mailed, proof of mailing will be sufficient
proof of notice.
2018 CAPP Boiler&Equipment Policy CAPP Page 33 of 46
CAP ON LOSSES FROM CERTIFIED ACTS OF
TERRORISM
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
STANDARD PROPERTY POLICY
A. Cap On Certified Terrorism Losses If aggregate insured losses attributable to terrorist
"Certified act of terrorism" means an act that is acts certified under the Terrorism Risk Insurance
certified by the Secretary of the Treasury, in Act exceed $100 billion in a calendar year and we
accordance with the provisions of the federal have met our insurer deductible under the
Terrorism Risk Insurance Act, to be an act of Terrorism Risk Insurance Act, we shall not be
terrorism pursuant to such Act. The criteria liable for the payment of any portion of the amount
contained in the Terrorism Risk Insurance Act for of such losses that exceeds $100 billion, and in
a "certified act of terrorism" include the following: such case insured losses up to that amount are
subject to pro rata allocation in accordance with
1. The act resulted in insured losses in excess of procedures established by the Secretary of the
$5 million in the aggregate, attributable to all Treasury.
types of insurance subject to the Terrorism
Risk Insurance Act: and B. Application Of Exclusions
2. The act is a violent act or an act that is The terms and limitations of any terrorism
dangerous to human life, property or exclusion, or the inapplicability or omission of a
infrastructure and is committed by an individual terrorism exclusion, do not serve to create
or individuals as part of an effort to coerce the coverage for any loss which would otherwise be
civilian population of the United States or to excluded under this Coverage Part or Policy, such
influence the policy or affect the conduct of the as losses excluded by the Nuclear Hazard
United States Government by coercion. Exclusion or the War And Military Action
Exclusion.
2018 CAPP Boiler&Equipment Policy CAPP Page 34 of 46
Policy Number YB2-L9L-468235-018
IL 09 85 01 15
THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN
RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK
INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR
CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY.
DISCLOSURE PURSUANT TO TERRORISM RISK
INSURANCE ACT
SCHEDULE
SCHEDULE—PART I
Terrorism Premium (Certified Acts) $0
This premium is the total Certified Acts premium attributable to the following Coverage Part(s),
Coverage Form(s) and/or Policy(ies):
Equipment Breakdown Protection Coverage Form
Additional information, if any, concerning the terrorism premium:
SCHEDULE—PART ll
Federal share of terrorism losses 85 %Year: 20 15
(Refer to Paragraph B. in this endorsement.)
Federal share of terrorism losses 84 %Year: 20 16
(Refer to Paragraph B. in this endorsement.)
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Disclosure Of Premium
In accordance with the federal Terrorism Risk
Insurance Act, we are required to provide you with
a notice disclosing the portion of your premium, if
any, attributable to coverage for terrorist acts
certified under the Terrorism Risk Insurance Act.
The portion of your premium attributable to such
coverage is shown in the Schedule of this
endorsement or in the policy Declarations.
2018 CAPP Boiler&Equipment Policy CAPP Page 35 of 46
B. Disclosure Of Federal Participation In Payment C. Cap On Insurer Participation In Payment Of
Of Terrorism Losses Terrorism Losses
The United States Government, Department of the If aggregate insured losses attributable to terrorist
Treasury, will pay a share of terrorism losses acts certified under the Terrorism Risk Insurance
insured under the federal program. The federal Act exceed $100 billion in a calendar year and we
share equals a percentage (as shown in Part II of have met our insurer deductible under the
the Schedule of this endorsement or in the policy Terrorism Risk Insurance Act, we shall not be
Declarations) of that portion of the amount of such liable for the payment of any portion of the amount
insured losses that exceeds the applicable insurer of such losses that exceeds $100 billion, and in
retention. However, if aggregate insured losses such case insured losses up to that amount are
attributable to terrorist acts certified under the subject to pro rata allocation in accordance with
Terrorism Risk Insurance Act exceed $100 billion procedures established by the Secretary of the
in a calendar year, the Treasury shall not make Treasury.
any payment for any portion of the amount of such
losses that exceeds $100 billion.
2018 CAPP Boiler&Equipment Policy CAPP Page 36 of 46
COLORADO CHANGES
This endorsement modifies insurance provided under the following:
EQUIPMENT BREAKDOWN COVERAGE PART
The following Condition is added to Paragraph 1. 2. We will pay for covered loss or damage within 30
Loss Conditions in Section E. Equipment Break- days after we receive the sworn proof of loss, if
down Protection Conditions: you have complied with all the terms of this Cov-
LOSS PAYMENT erage Form and:
1. We will give you notice of our intentions within 30 a. We have reached agreement with you on the
days after we receive the sworn proof of loss; and amount of loss; or
b. An appraisal award has been made.
2018 CAPP Boiler&Equipment Policy CAPP Page 37 of 46
COLORADO CHANGES - CONCEALMENT,
MISREPRESENTATION OR FRAUD
This endorsement modifies insurance provided under the following:
CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART
COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART- FARM PROPERTY- OTHER FARM PROVISIONS FORM - ADDITIONAL
COVERAGES, CONDITIONS, DEFINITIONS
FARM COVERAGE PART- LIVESTOCK COVERAGE FORM
FARM COVERAGE PART- MOBILE AGRICULTURAL MACHINERY AND
EQUIPMENT 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.
2018 CAPP Boiler&Equipment Policy CAPP Page 38 of 46
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