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Insurance Dictionary

COVERAGE COVERAGE DESCRIPTION (for all industries, unless noted)

A

Abuse & Molestation (Abusive Acts) Provides coverage for acts of abuse or molestation and provides defense costs inside the limit and

not in addition to the limit of insurance.

In Oklahoma, for Institutional program, separate limits are provided for indemnity and defense costs.

Accounts Receivable - On Premises/Off

Premises

Pays direct physical loss or damage to accounts receivable caused by, or resulting from a covered

cause of loss. Lower limit is provided for accounts receivable losses not at the described premises.

Additional Insured - Controlling Interest Adds as an additional insured the person or organization with controlling interest, but only for their

liability arising out of their financial control of you or premises they own, maintain, or control while you

lease or occupy those premises.

Additional Insured - Co-Owner of

Insured Premises

Adds as an additional insured the person or organization but only with respect to liability as co-owner

of the premises.

Additional Insured - Designated Person

or Organization

Adds Designated Person or Organization as an additional insured

Additional Insured - Engineer,

Architects or Surveyors not Engaged by

the Named Insured

Adds as additional insured the engineer, architect or surveyor not directly engaged by the insured but

only with respect to liability arising out of the insured's ongoing operations performed by insured or on

insured's behalf.

Additional Insured - Engineers,

Architects or Surveyors

Adds as additional insured the engineer, architect or surveyor engaged by the insured but only with

respect to liability arising out insured's premises or ongoing operations performed by insured or on

insured's behalf.

Additional Insured - Grantor of

Franchise

Adds as an additional insured the person or organization, but only with respect to their liability as a

grantor of a franchise.

Additional Insured - Lessor of Leased

Equipment

Adds as an additional insured the person or organization, but only with respect to their liability arising

out of the maintenance, operation or use by insured of equipment leased to insured by that person or

organization.

Additional Insured - Managers or

Lessors

Adds as an additional insured the person or organization, but only with respect to their liability arising

out of the ownership, maintenance or use of that part of the premises leased to insured.

Additional Insured - Mortgagees,

Assignees, or Receivers

Adds as an additional insured the person or organization, but only with respect to their liability as

mortgagee, assignee, or receiver and arising out of the ownership, maintenance, or use of the

premises by insured.

Additional insured - Owner, Lessees, or

Contractors

Adds as additional insured a named person or organization, but only with respect to liability arising

out of our insured's ongoing operations performed for that additional insured.

Additional Insured - Owners of Garage

Premises

Adds as an additional insured a person or organization but only with respect to their liability arising

out of the ownership, maintenance or use of that part of the premises leased to our Insured.

Additional Insured - Owners or Other

Interests From Whom Land has Been

Leased

Adds as additional insured a named person or organization, but only with respect to liability arising

out of the ownership, maintenance or use of that part of the land leased to our insured and shown in

the schedule.

Additional Insured - State or Political

Subdivisions, Permits Relating to

Premises

Adds as an additional insured governmental organizations issuing permits to contractors for certain

premises hazards. This endorsement provides no coverage for operations performed for such

governmental organizations.

Additional Insured - Vendors Adds as additional insured a named person or organization, but only with respect to bodily injury or

property damage arising out of the distribution or sale of our insured's products as shown in the

schedule.

Advertising Injury See: "Personal & Advertising Injury"

Alternative Key Systems -

Reprogramming Costs

Pays for necessary cost to reprogram alternative key systems due to a loss or damage from covered

cause of loss at a covered location

Animal Bailee - Pet Services /

Veterinarian

Pays for loss, from a covered cause of loss, of domestic animals owned by others while in insured's

care, custody or control.

Arson Conviction Reward Pays persons other than the Named Insured or person responsible for a fire, for information leading

to an arson conviction regarding loss or damage to covered property.

Art Gallery Pays for loss of or damage from a covered cause of loss to Fine Arts owned by others in insured's

care, custody and control. Loss may be subject to per item limit.

Assault or Battery Covers damages resulting from the threat of, or use of force on another person that causes that

person apprehension; or physical or emotional injury that results from non-consensual physical

contact, whether negligent or intentional.

Association Fees and Extra Expense Pays for Association Fees that become uncollectible from unit owners whose units have been

rendered uninhabitable due to direct physical loss or damage caused by or resulting from a covered

cause of loss. Also covers extra expense incurred during the period of restoration that would not

have been incurred had there been no loss or damage from a covered cause of loss.

B

COVERAGE GLOSSARY

The definitions in this coverage glossary are designed for general guidance only an should not be relied upon for any legal

interpretation. Please refer to the specific form for a given state for applicable policy terms and conditions.

Back up of Sewer or Drains Pays for loss or damage caused by water that backs up or overflows from your sewer or drain or

enters into and overflows from a sump pump or any other system designed to remove subsurface

water from a foundation area.

Bailees (Customers Personal Property) Pays for direct physical loss or damage to property in the care, custody of control of the insured.

Barbers and Beauticians Professional

Liability

Pays the amount the insured is legally obligated to pay as a result of failing to provide professional

standard of care to a customer.

Bed & Breakfast - Additional Living

Expense and Personal Liability

Pays for consequential additional living expense, associated to sustain normal standard of living,

resulting from covered direct physical loss to principal living quarter. It also pays for additional living

expense incurred resulting from insured's inability to access the principal living quarter because of an

action by civil authority due to a loss elsewhere from covered cause of loss. For the liability coverage

section, it extends the policy to cover for insured's legal liability arising out of injuries or damages

from insured's personal or non-business activities.

Brands and Labels Pays the cost to stamp, salvage, or to remove brands or labels and re-label the merchandise to

comply with the law, on property for which we have paid a covered loss and have elected to take all

or part of the property at an agreed or appraised value.

Broad Form Liability Broadens liability coverage by adding or modifying coverage for the following; Incidental Malpractice,

Aircraft or Watercraft, Additional Insured - Broad Form Vendors, Unintentional Failure to Disclose

Hazards, Other Insurance - Primary Additional Insured, Newly Acquired organization, and Volunteers

as Insureds.

Broad Form Products Removes the Defective Products Exclusion under the Garage coverage form.

Building Pays for direct physical loss or damage from a covered cause of loss to the described building(s) or

structure(s) including completed additions, fixtures, permanently installed machinery and equipment,

and personal property used to maintain or service the buildings or structures such as fire

extinguishing equipment, outdoor furniture, floor coverings, and appliances.

Building - Automatic Increase Amount Provision to automatically increase building coverage amount by the specified percentage. This helps

to maintain the building coverage amount against the inflationary replacement/repair cost trend.

Building - Tenant Obligation Pays for loss or damage to any part of building that the insured is contractually required to cover via

written lease agreement

Building Limit - Automatic Increase (aka

Inflation Guard)

Automatically increases the Limit of Insurance for buildings, during the policy period, by the pro-rated

annual increase percentage.

Building Ordinance or Law - (A) Loss to

undamaged portion of building

Covers loss in value of the undamaged portion of the building due to demolition pursuant to a

building ordinance or law.

Building Ordinance or Law - (B) & (C)

Combined

Under a single blanket limit covers (1) the cost to demolish and remove debris of undamaged parts of

the building when it is required by building ordinance or law; (2) the increased cost to repair,

reconstruct or remodel damaged or undamaged parts of the building to comply with a building

ordinance or law.

Building Ordinance or Law - (B)

Demolition Cost

Covers the cost to demolish and remove debris of undamaged parts of the building when it is

required by building ordinance or law.

Building Ordinance or Law - (C )

Increased Cost of Construction

Covers the increased cost to repair, reconstruct or remodel damaged or undamaged parts of the

building to comply with a building ordinance or law.

Building Ordinance or Law - Business

Income & Extra Expense

Pays actual loss of Business Income and Extra Expense sustained during the increased period of

suspension caused by or resulting solely from the enforcement of ordinance or law.

Business Income - 72 Hour Waiting

Period Buyback

Removes the 72 hour waiting period requirement before the period of restoration begins for Business

Income Coverage.

Business Income - Boil Water Order Pays the actual loss of Business Income sustained, and necessary Extra Expense incurred, due to

the suspension of operations caused by a Boil-water order issued by a governmental, health or water

authority. A 24 hour waiting period applies.

Business Income - Franchisor Clarifies the definition of continuing normal operating expense to include franchisor fees and royalties

as stipulated in a franchise agreement.

Business Income - from Dependent

Property

Pays for the loss of Business Income if the insured has to suspend operations because of direct

physical loss to a dependent property. A dependent property is one that delivers goods or services to

the insured, accepts the insured's products or services, or attracts customers to the insured's

business.

Business Income - Off Premises Event

Cancellation

Pays for loss of Business Income sustained if a special event, not at a covered location, is canceled

due to direct physical damage caused by a covered cause of loss.

Business Income - Tips included Business Income coverage is extended to include tips/gratuity income of employees, as reported to

the IRS, as part of an ordinary payroll expense.

Business Income & Extra Expense -

Civil Authority

Pays actual loss of Business Income & Extra Expense caused by civil authority's act to limit access

due to a covered loss to property, other than at the described premises.

Business Income & Extra Expense –

Newly Acquired Or Constructed

Property

Pays for covered loss of Business Income and Extra Expense incurred due to the necessary

suspension of insured's operations at newly acquired or constructed location.

Business Income & Extra Expense

(BI&EE)

Pays the actual loss of Business Income sustained and Extra Expense incurred, due to the

suspension of the Insured's operations from a covered direct physical loss at the described premises.

Business Income & Extra Expense

(BI&EE) - Time Period

Maximum number of consecutive months allowed for covered Period of Restoration after the date of

direct physical loss or damage.

Business Income & Extra Expense-

Reservation System

Pays for loss of business income and extra expense incurred resulting from direct physical loss or

damage at premises operated by a franchiser, referral system or other service, excluding travel

agencies, upon which the insured depends for the booking of reservations.

Business Personal Property Pays for direct physical loss to property the insured owns that is used in the business; property of

others in the insured's care, custody and control; tenant's improvements & betterments; and leased

property for which the insured has a contractual responsibility.

Business Personal Property - Blanket If two or more locations are shown on the Declarations, and the Limit of Insurance shown for

Business Personal Property at each covered location is at least equal to the required % of the value

of the Business Personal Property at the time of a covered loss, the combined limit for all Business

Personal Property at all locations described on the Declarations may be applied to any one location

Business Personal Property - Newly

Acquired Or Constructed Property

Covers damage to business personal property at newly acquired or constructed buildings.

Business Personal Property - Newly

Acquired Premises

Covers damage to business personal property at newly acquired buildings, subject to specific

limitations.

Business Personal Property Limit -

Seasonal Increase

The limit of insurance for Business Personal Property will automatically increase by the specified

percentage to provide for seasonal increases.

C

Claims Expense Pays for all reasonable expenses the insured incurs at the Insurer's request to assist in the

investigation of a claim or suit; or the determination of the amount of loss, such as taking inventory.

Coinsurance Clause Coinsurance clause requires that the insured purchases adequate amount of insurance in order to be

indemnified for the total amount of the actual loss. If this requirement is not met, then there would be

a reduction in the payable amount after a property loss.

Collapse Pays for direct physical loss or damage caused by collapse of a covered building in part of whole, if

the collapse is caused by causes specified in the policy.

Commercial Condominium - Unit

Owners Loss Assessment

Covers policyholders share of an assessment charged to all unit owners for causes of loss covered

under this policy. A loss assessment limit applies for assessments as a result of a deductible in the

association's insurance policy.

Computer - EDP/EM&R Pays for direct physical loss or damage to Electronic Data Processing (EDP) Equipment, meaning

computers and associated peripheral equipment such as printing, or auxiliary functions such as data

transmission.

Electronic Media & records (EM&R), including recording or storage media such as films, tapes, discs,

drums or cells; data stored on such media; and programming records used for electronic data

processing or electronically controlled equipment; are covered up to 25% of the equipment limit.

Computer Coverage / Equipment See: "Computer - EDP/EM&R"

Computer Fraud And Funds Transfer

Fraud

Pays for loss or damage resulting directly from fraudulent transfer of covered property by the use of

computers. Also pays for loss of money or securities from a fraudulent instruction directing a financial

institution to transfer money or securities from the insured’s account.

Contamination Shutdown See: "Food Contamination Shutdown"

Contract Penalties Pays the contractual penalties required for failure to timely deliver products or services according to

the contract terms. The breach of duty must result from direct physical loss or damage by a covered

cause of loss.

Contractor's Errors &Omissions Covers the amount the insured is legally obligated to pay due to their negligent act, error or omission,

including the use of defective materials or products, while performing the described contractor

services. This is an occurrence coverage but with a separate defense expense limit and it does not

extend to damages performed on your behalf by a subcontractor.

Contractors Installation Pays for direct physical loss or damage to materials, supplies, equipment, machinery and fixtures

which are to be installed by the insured, and temporary structures built or assembled on site. The

property is covered while at any job site you do not own or operate, awaiting or during installation, in

transit or at a temporary storage location.

Contractor's Pollution Liability Covers the amount the insured is legally obligated to pay because of bodily injury or property damage

due to a pollution incident at a job site. This is a claims made coverage with defense expenses

included within the limit of insurance.

Contractors Tools and Equipment Pays for direct physical loss or damage to miscellaneous tools and equipment owned by, or in the

care, custody or control of the insured.

Contractual Liability Provides liability coverage for occurrences for which you would have been liable in the absence of

the contract or agreement, as well as liability assumed in a contact or agreement deemed an insured

contract.

Credit Card Forgery Pays for loss caused directly by theft, disappearance or destruction of written instruments required in

conjunction with customers’ credit, debit, or charge cards at the described premises.

Credit Card Slip Theft, Disappearance

or Destruction

Pays for loss caused directly by the theft, disappearance, or destruction of written instruments

required in conjunction with customer credit, debit or charge cards at the described premises.

Crime Conviction Reward Pays a reward to persons, other than an insured or person in any way responsible for the subject

loss, providing information which leads to a criminal conviction in connection with loss or damage

covered by the policy.

Customer's Property (Bailee) Pays for direct physical loss or damage to property of others under insured's care, custody or control.

Actual cash valuation and per item limit may apply.

Customer's Property (Laundry - Bailee) Pays for direct physical loss or damage to customer's property accepted for servicing by the insured.

Actual cash valuation and per item limit may apply.

Cyber Liability and Data Breach Provides coverage for privacy breach response services and expenses incurred to notify parties

affected by a security breach, including fees and costs related to hiring a company to operate a call

center; and reimbursing an insured for post-event credit monitoring costs for victims of breach.

D

Debris Removal Provides for reasonable cleanup expenses up to the specified percentage of the amount otherwise

paid for the direct physical damage as a result of a Covered Cause of Loss.

If the physical damage exceeds the policy limit and/or the clean up expenses exceed the above

limitation, additional limit is provided.

Deferred Payments Pays for insured's interest in lost or damaged Business Personal Property sold by the insured under

a conditional sale or any installment payment plan.

Delivery Errors and Omissions Covers legal liability for damages caused by failing to deliver or misdelivery of items held for sale.

Designated Person or Organization Adds Designated Person or Organization as an additional insured

Directors and Officers Liability -

Habitational

Pays those sums the insured is legally obligated to pay as a result of a claim against any insured for

wrongful acts arising out their capacity as a director, trustee, officer, employee or committee member

of the insured organization.

Directors and Officers Liability -

Religious Institution

Pays those sums the insured is legally obligated to pay as a result of a claim against any insured for

wrongful acts arising out their capacity as a director, trustee, officer, committee member or volunteer

of the insured organization.

E

Each Occurrence Liability Limit Each Occurrence Limit is the most the policy will pay for each covered claim

Earthquake (Building and/or Business

Personal Property)

Pays for direct damage resulting from earthquake or volcanic eruption.

Earthquake Sprinkler Leakage Pays for direct damage to Covered Property caused by the leakage of water from sprinkler heads or

feed pipes resulting from an earthquake or volcanic eruption.

Electronic Data Processing & Media

(EDP)

See: "Computer - EDP/EM&R"

Employee Benefit Liability Covers the amount the insured is legally obligated to pay due to errors in the administration of any

employee benefit program.

Employee Dishonesty Pays for direct physical loss to business personal property and money and securities resulting from

dishonest acts of the insured's employees

Employee Dishonesty - Customer Loss Pays for direct loss of or damage to the property of customers, including money and securities,

resulting directly from dishonest acts committed by the insured’s employees.

Employee Dishonesty - Designated

Agents

Extends Employee Dishonesty coverage to scheduled designated persons or entities appointed by

the insured, in writing, to act as their agent.

Employee Dishonesty ERISA Extends Employee Dishonesty coverage to apply to Employee Welfare Benefit Plan or Employee

Pension Benefit Plan.

Employee's Tools Covers employee's tools used in connection with the insured's business for direct physical loss from

specified causes of loss subject to a per item, employee and claim limit.

Employees as an Insured Employees are also an insured for acts within the scope of their employment or while performing

duties related to the conduct of the business.

Employers Liability (Stop Gap) See: "Stop Gap (Employers Liability)"

Employment Practices Liability (EPLI) Depending on the protection level, covers employers for liability arising from such workplace actions

as discrimination (age, sex, race, disability, etc) wrongful termination and sexual harassment. This is

a claims made coverage.

Equipment Breakdown Pays for direct damage and resulting loss of income caused by or resulting from covered equipment

breakdown.

Equipment Breakdown - Ammonia

Contamination

Additional coverage of Equipment Breakdown, pays for spoilage to Covered Property contaminated

by ammonia, including any salvage expense.

Equipment Breakdown - Business

Income and Extra Expense (Included

with Equipment Breakdown)

Additional coverage of Equipment Breakdown, pays for loss of business income resulting from

covered equipment breakdown.

Equipment Breakdown - Expediting

Expense

Additional coverage of Equipment Breakdown, pays for a reasonable extra cost to make temporary

repairs and to expedite permanent repairs or replacement of the damaged property.

Equipment Breakdown - Hazardous

Substance

Additional coverage of Equipment Breakdown, pays for clean up, repair or replacement or disposal of

Covered Property that is damaged, contaminated, or polluted by a Hazardous Substance.

Equipment Breakdown - Water Damage Additional coverage of Equipment Breakdown, pays for damage to Covered Property by water

including any salvage expenses, except no coverage applies to such damage resulting from leakage

of a sprinkler system or domestic water piping

Equipment Breakdown - Drying Out Additional coverage of Equipment Breakdown, pays for the cost to dry out equipment as a result of a

covered flood.

Extended Business Income Covers actual loss of business income after operations have been restored. Pays the difference in

the level of income generated before and after the loss

Extended Replacement Cost Coverage

A - Building

Pays for repair or replacement of the building(s) at the described premises, up to a specified amount

higher than the limits of insurance shown on the Declarations page, when replacement cost exceeds

the policy limit, but only if the terms of this endorsement are met, including that the building(s) are

insured to 100% of replacement cost at policy inception. Does not apply to Earthquake, outdoor sign,

other outdoor property, or ordinance or law.

Exterior Building Glass Pays direct physical loss of or damage to glass, including lettering or ornamentation, that is part of

the exterior of the building or structure at the described premises.

Extra Expense Pays necessary extra expenses incurred during the period of restoration following direct physical loss

or damage from a covered cause of loss. Extra expenses means expenses incurred to avoid or

minimize the suspension of business and continue operations.

F

Fine Arts - Blanket Pays for loss to Fine Arts owned and used in insureds business and those of others in insured's care,

custody or control. May be subject to per item limit.

Fine Arts - Scheduled Pays for loss to scheduled Fine Arts owned and used in insureds business and those of others in

insured's care, custody or control.

Fine Arts (Habitational Only) Pays for certain covered loss or damage to Fine Arts at the insured premises.

Fire Department Service Charge Pays fire response charges levied for service provided by contract or agreement made prior to the

covered loss.

Fire Extinguisher Systems Recharge Pays for necessary cost to recharge or replace fire extinguishers used to extinguish a covered fire at

the described premises.

Food Borne Illness Business

Interruption

Pays for loss of income and extra expense resulting from announcement by a public health authority

or the media of an actual or alleged discovery of food borne illness at a scheduled location or another

location with the same trade name.

Food Contamination Shutdown Pays for loss of income as the result of a shut down ordered by the Board of Health or other

government authorities as well as certain other additional costs incurred to comply with such

authority's requirement because of actual or suspected contamination.

Forgery And Alteration Pays for loss directly resulting from forgery or alteration of, any check, draft, promissory note, bill of

exchange or similar written promise of payment in money, that the insured or agent has issued.

Functional Building Valuation

Endorsement

Provides coverage for specifically scheduled buildings, which can be replaced with similar property

that performs the same function as currently used but that is less costly. Coverage is provided on a

functional replacement cost basis when repair or replacement is contracted for within 180 days of the

loss or damage.

For partial losses, pays the cost to repair or replace the damaged portion with less expensive

material, if available, while still allowing the same architectural style.

G

Garagekeepers (Valet) See: "Garagekeepers Liability"

Garagekeepers Liability Provides coverage for physical damage to customer's vehicles while in the insured's care, custody or

control.

General Aggregate Limit The most the insurer will pay in any one policy period for damages the insured is legally obligated to

pay caused by covered injuries and damages (except those included in 'products - completed

operation hazard').

Glass Deductible Buyback This provides the option to replace the policy deductible with a lower deductible with respect to

claims for exterior building glass.

Guests' Evacuation Expense Pays for reasonable and necessary expenses incurred to evacuate a covered location because of

imminent danger posed by a covered cause of loss.

Guests' Property Covers legal liability for loss of or damage to guests properties while they are in a safe deposit box or

elsewhere at the covered location. Also known as Innkeepers Liability.

Guests' Inconvenience Cost

Reimbursement

Pays for expenses associated with finding new accommodations for guests whose prearranged hotel

accommodations cannot be honored due to a covered cause of loss.

H

Hired & Non-Owned Automobile Pays for Bodily Injury or Property Damage arising out of the maintenance or use of a hired

automobile in the course of business by the insured or an employee, or the use of a non-owned

automobile in the business by any person other than the insured.

Host Liquor Liability Provides liability coverage arising out of the incidental serving of alcohol by an insured who is not in

the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.

Household Personal Property Pays for covered loss to household personal property in a living quarter, located in, or within 1,000' of

the described premises, that belongs to the insured, their domestic worker, member of their

household, or for which the insured may be legally liable. A coverage extension is provide for loss to

Household Personal Property away from premise at additional limit

I

Installation Property - Blanket Pays for loss to property being installed by insured while at a job site or temporarily warehoused

elsewhere awaiting buyer's acceptance.

L

Laundry Facilities and Dry Cleaners

Additional Coverages

Pays for loss or damage to property of others caused by a) actual work performed and b) loss of

property of others due to unexplained disappearance or shortage found upon taking inventory.

Leasehold Interest Pays for the loss of Net Leasehold Interest sustained due to the cancellation of favorable lease terms

because of damage to the leased premises by a covered cause of loss.

Limited Care, Custody or Control

Property Damage

Covers the amount the insured is legally obligated to pay because of damage to property of others in

the insured's care, custody, or control, provided such damage arises out of installation, repair,

alteration or other operations away from the insured's premises.

Limited Coverage for Fungi, Wet Rot,

Dry Rot and Bacteria

Pays for loss or damage by fungi, wet or dry rot or bacteria, resulting from certain causes of loss if all

reasonable means were used to save and preserve the property from further damage at the time of

and after that occurrence.

Liquor Liability Covers the amount the insured is legally obligated to pay as damages for injury due to the selling,

serving or furnishing of any alcoholic beverage.

Lock Replacement Pays for the necessary replacement of lost or stolen keys, or cost of repair or replacement of locks,

made necessary by covered cause of loss at a covered location.

Lost Lease - Lessors' Interest Pays for the actual loss sustained due to the cancellation of lease contracts by tenants due to direct

physical loss or damage to the leased premises caused by or resulting from a covered cause of loss

during the policy period.

M

Medical Expenses Pays reasonable medical expenses of persons other than employees, owners and officers, for

injuries sustained on the insured premises

Mine Subsidence Pays for direct physical loss of or damage to scheduled buildings due to ground movement caused

by mine activity.

Money and Securities Pays for loss resulting directly from theft (by someone other than an employee), disappearance or

destruction of money and securities. Coverage applies when the covered property is on a scheduled

premises, at a bank or savings institution, within the living quarters of the insured or its partners or

employees, or in transit between any of these places.

Money and Securities - Inside & Outside

the Premise

Pays for loss due to theft, disappearance or destruction of insured's money and securities on

premises, in a bank or savings institution, in the insured's living quarters, or the living quarters of

partners or employees having use and custody, or in transit between any of the above.

Money Orders And Counterfeit Paper

Currency

Pays for loss due to the good faith acceptance of money orders not paid upon presentation to the

issuer and for counterfeit paper currency which was received as part of normal business operations.

N

Newly Acquired or Constructed

Buildings

Covers, for a limited number of days, for damage to new buildings being constructed on the

described premises, or to buildings acquired at a new location, if intended for similar use as a

building described in the declarations, or used as a warehouse.

Newly Acquired or Formed

Organizations

Adds, as a named insured, any organization that the insured newly acquires or forms, other than a

partnership or joint venture, and over which ownership or majority interest is maintained. Coverage is

afforded for a limited number of days after acquisition or formation or policy expiration, whichever is

earlier.

Newly Acquired Organizations See: "Newly acquired or formed organizations"

Non Owned Auto Liability Pays Bodily Injury or Property Damage for any autos you do not own, lease, hire, rent or borrow that

are used in connection with your business. This includes autos owned by your employees, partners,

members or members of their households but only while used in your business.

O

Off - Premises Power or Water Failure -

Direct

Pays for direct physical loss or damage to covered property caused by an interruption of covered

utility services to the described premises. The interruption must result from direct physical loss or

damage by a Covered Cause of Loss to specified types of property away from the described

premises.

Off-Premises Power or Water Failure -

Time Element

Pays for loss of Business Income and Extra Expense caused by an interruption of covered utility

services to the described premises. The interruption must result from direct physical loss or damage

by a Covered Cause of Loss to specified types of property away from the described premises.

Ordinance or Law - Equipment

Coverage

Pays for the additional costs, due to ordinance or law, in the repair or replacement of covered

equipment damaged by a covered cause of loss.

Outdoor Property Extends coverage to apply to outdoor fences, radio and television antenna (including satellite

dishes), signs not attached to buildings, trees, shrubs and plants, including debris removal expense,

due to certain specified causes of losses

Outdoor Property - Antennas And

Satellite Dishes

Pays for loss to radio and television antennas and satellite dishes, including their lead-in wiring,

masts and towers due to certain specified causes of loss.

Outdoor Property - Fences and Walls Pays for loss to free standing fences and walls (but not retaining walls that are used to contain water)

due to certain specified causes of loss.

Outdoor Property - Trees, Plants,

Shrubs & Lawns

Pays for loss to trees, shrubs, plants and lawns, other than those held in storage or for sale, including

debris removal expense, due to certain specified causes of loss.

Outdoor Signs Pays for direct physical loss of, or damage to, outdoor signs at the described premises that are

owned by the insured or owned by others but in the care, custody, and control of the insured.

Outdoor Signs - Non Specified

Premises

Pays for direct physical loss or damage to outdoor signs owned by the insured that are located away

from the described premises, due to Fire, Lightening, Explosion, Riot or Civil Commotion, Aircraft, or

Vehicle.

P

Patterns, Dies, and Molds Pays for loss to Patterns, Dies and Molds located anywhere in the coverage territory, including at

exhibitions.

Peak Season BPP Increase (Seasonal

Increase) Amount

See: "Business Personal Property Limit - Seasonal Increase"

Per Location General Aggregate Limit For policies with multiple locations, general aggregate (other than products and completed

operations aggregate) limit is provided separately for each location

Personal & Advertising Injury Pays for liability associated with personal and advertising injuries from covered offenses as defined.

Example of such offenses are false arrest, malicious prosecution, wrongful eviction, violation of a

person's right of privacy, slander and libel and misappropriation of advertising ideas.

Personal Effects Extends coverage that applies to Business Personal Property to apply to personal effects owned by

the insured, officers, partners or employees. Does not extend to tools or equipment used in the

business, or loss or damage by theft.

Personal Effects - Clergy Extends coverage that applies to Business Personal Property to apply to personal effects, wherever

located, owned by full time Pastors or equivalent, or officially appointed ministerial staff.

Personal Injury See: " Personal and Advertising Injury "

Personal Liability - Bed & Breakfast Extends coverage that applies to Business Liability to damages that the insured becomes legally

obligated to pay because of bodily injury, property damage or personal injury arising out of the

insured's personal or non-business activities.

Personal Property - Newly Acquired

/Constructed Premises

For a limited period, extends the coverage that applies to Business Personal Property to property at

any premises you acquire or construct.

Personal Property Off Premises Extends coverage that applies to Business Personal Property to apply to Personal Property, other

than money, securities, valuable papers and records and accounts receivable, while temporarily

located at premises you do not own, lease or operate.

Pollutant Clean Up And Removal Pays for expenses to extract pollutants from land or water at the described premises if the discharge,

dispersal, seepage, migration, release or escape of the pollutants is caused by or results from a

Covered Cause of Loss that occurs during the policy period.

Pollution Exclusion - Hostile Fire

Exception

Provides an exception to Pollution exclusion for bodily injury or property damage arising out of a fire

which becomes uncontrollable or breaks out from where it was intended to be.

Premises Boundary Defines the designated distance from the described premises for which materials, equipment,

supplies and temporary structures used for making additions, alterations or repairs to the buildings or

structures, are covered property.

Preservation of Property If it is necessary to move covered property from the described premises to preserve it from loss or

damage by a covered cause of loss, direct physical loss or damage will be covered, for a limited

number of days, while the covered property is being moved or while temporarily stored at another

location.

Printers Errors & Omissions Pays those sums the insured is legally obligated to pay as damages resulting from the insured's

negligent act, error or omission in providing printing services.

Product Liability Exclusion Excludes bodily injury and property damage from products completed operations hazard.

Product Recall and Replacement Pays for necessary expenses incurred in withdrawing or recalling insured's product from the market

or from use because of a known or suspected defect that could reasonably be expected to cause

covered injury or damages

Products Completed Operation Hazard Provides liability coverage for bodily injury and property damage, occurring away from your premises,

arising out of products sold or distributed by the named insured or out of operations performed for

someone else after the operations have been completed.

Products Completed Operation Hazard

Aggregate Limit

Aggregate Limit - is the most the insurer will pay for damages arising out of the products-completed

operations hazard.

Professional Liability - Barbers and

Beauticians

Pays those sums the insured is legally obligated to pay as a result of rendering or failure to render

professional services in connection with the operation of a barber shop or beauty salon.

Professional Liability - Cemetery

Professional

Pays those sums the insured is legally obligated to pay as a result of a negligent act or omission

arising out of covered cemetery professional service.

Professional Liability - Counseling

Professionals

Pays those sums the insured is legally obligated to pay as a result of professional liability damages

because of a negligent act or omission arising out of a covered professional counseling service.

Professional Liability - Pastoral

Professional

Pays those sums the insured is legally obligated to pay as a result of professional liability damages

because of a negligent act or omission arising out of a covered pastoral counseling service.

Property In Transit See: "Transportation - Excluding Spoilage"

Protection Response Service Expense Pays for the fees or service charges levied by civil authorities, police or independent protection

agencies, (other than those of fire departments) assumed by contract or agreement prior to the

event, or required by local ordinance.

R

Realty Tax - Increased Assessment Pays for increased realty taxes assessed, attributable to repair, rebuilding or reconstruction, following

direct physical loss or damage caused by, or resulting from, a covered cause of loss.

Reasonable Expenses See: "Claims Expenses"

Replacement Cost Valuation Valuation option that provides for replacement cost of damaged property without deduction for

depreciation, provided certain policy conditions are met.

S

Seasonal Automatic Increase - BPP See: "Business Personal Property Limit - Seasonal Increase"

Services Errors and Omissions Pays those sums the insured is legally obligated to pay as damages as a result of a failure or error in

providing facilities, goods or services.

Spa Services Professional Liability Pays those sums the insured is legally obligated to pay as a result of failing to provide professional

services in connection with the day spa.

Specified Property - Habitational Only Pays for direct physical loss or damage to fences, walls, walks, driveways and pools at the described

premises.

Spoilage Pays for damage to insured's personal property, at the described premises, due to mechanical

breakdown or failure of refrigerating equipment, contamination by refrigerant or power outages

beyond the insured's control.

Stop Gap (Employers Liability) Pays amounts the insured is legally obligated to pay because of bodily injury to an employee if such

injury is covered by the policy, arising out of and in the course of the employee’s employment by

insured.

T

Tenant's Exterior Glass Pays for direct physical loss of or damage to glass, including lettering or ornamentation, which is part

of the exterior of a building or structure. We will also pay for the necessary expenses incurred to put

up temporary plates or board up openings, to repair or replace encasing frames, and to remove or

replace obstructions. The glass must be owned by others but in your care, custody or control as a

tenant.

Tenant's Improvements and

Betterments

Tenant's improvements and betterments (TIB) are fixtures, alterations, installations or additions that

the insured acquired or made as his expense, are made part of the building and cannot be legally

removed. Coverage for TIB is provided automatically under the Business Personal Property (BPP)

limit, provided the limit is sufficient. The insured may elect to specify such improvements and

betterments as a separate, explicit coverage and enjoy lower than BPP rate.

Tenants Liability Pays the amount the insured is legally obligated to pay as a result of covered causes of loss to that

part of a non-owned building rented to, or occupied by, the named insured.

Tenants' Move Back Expense Pays for expenses the insured incurs to move displaced tenants back to the Described Premises

after completion of repairs made necessary due to a covered loss.

Theft of Bullion /Precious Metals Pays for loss or damage by theft of bullion, gold, silver, platinum and other precious alloys or metals.

Theft of Patterns & Dies Pays for loss or damage by theft of patterns, dies, molds and forms.

Tools and Equipment - Scheduled Pays for direct physical loss or damage to scheduled tools and equipment, including mobile

communications equipment not permanently installed in a vehicle, owned by, or in the care, custody

or control of the insured.

Tools and Equipment - Blanket Pays for direct physical loss or damage to tools and equipment, including mobile communications

equipment not permanently installed in a vehicle, owned by, or in the care, custody or control of the

insured.

Transportation - Excluding Spoilage Pays for the direct physical loss of or damage to Covered Property from any covered cause of loss,

including an accident, while in the insured's custody or in the custody of a common or contract

carrier. Applies while such property is in transit from the point of shipment to its destination and while

located on docks, wharves, piers, bulkheads, depots or stations. Does not cover loss from spoilage.

Transportation Including Spoilage Pays for the direct physical loss of or damage to Covered Property from any covered cause of loss,

including an accident, while in the insured's custody or in the custody of a common or contract

carrier. Applies while such property is in transit from the point of shipment to its destination and while

located on docks, wharves, piers, bulkheads, depots or stations. Includes payment for loss to

perishable goods from spoilage as a result of mechanical breakdown of temperature control

equipment attached to the vehicle.

Transportation See: "Transportation - Excluding Spoilage"

Trees, Shrubs & Plants See: "Outdoor Property - Trees, Plants, Shrubs & Lawns"

Tuition and Fees Subject to Business Income and Extra Expense Time Period, pays for loss of earnings, including the

loss of tuition and other specified fees or revenues, when school operations are interrupted by

physical damage to property due to a covered cause of loss. If the period of restoration ends 60 days

or less before the opening of the next school term, it will be extended to include the following school

term if operations cannot be resumed in time to avoid loss of Business Income in that term.

U

Unauthorized Business Card Use Pays for loss of money resulting directly from theft, forgery or unauthorized use of credit, debit or

charge cards issued in insureds' name, including fund transfer cards, charge plates and telephone

cards.

Unintentional Errors and Omission Provision not to penalize the insured for an unintentional error or omission in the description of, or

failure to completely describe, any premises or operations intended to be covered by the policy.

Unit Owner Coverage - Condominium

(Habitational)

Building coverage for condominiums excludes any of the following types of property contained within

a residential unit. Fixtures, improvements and alterations that are part of the building structure;

appliances used for refrigerating, ventilating, cooking, dishwashing, laundering, security or

housekeeping; any other personal property owned by, used by or in the care, custody or control of a

unit-owner.

The insured (the Association) has the option to cover unit-owners building property. This should

always be done if the Association by-laws require such coverage. Coverage pays for direct physical

loss to any of the following types of property contained within a residential unit:

(a) Fixtures, improvements and alterations that are a part of the building or structure; and

(b) Permanently installed appliances, such as those used for refrigerating, ventilating, cooking,

dishwashing, laundering, security or housekeeping.

Coverage can be provided by endorsement in one or three ways:

E3418 (Unit Owner Coverage - Included): This endorsement provides unit owner coverage that is

included in the total building limit. The only deductible that applies is the Property Deductible.

E3417 (Unit Owner Coverage - Blanket): This endorsement provides unit owner coverage as a

single blanket limit for all units and separate from the building limit. The Unit Owner Deductible

applies to the Unit Owner Blanket Coverage limit. The Property Deductible applies to the building

limit.

E3440 (Unit Owner Coverage - Per Unit): This endorsement provides unit owner coverage with a

limit that applies per-unit and is separate from the building limit. The Unit Owner Deductible applies

separately to each unit. The Property Deductible applies to the building limit.

Certain states, such as Utah, Washington and Illinois, mandate inclusion of unit owner coverage

within the building property.

Utility Services - Direct Damage (Bldg.

and/ or BPP)

Pays for direct physical loss or damage to covered property caused by an interruption of covered

utility services to the described premises. The interruption must result from direct physical loss or

damage by a Covered Cause of Loss to specified types of property away from the described

premises.

Utility Services - Time Element Pays for loss of Business Income and Extra Expense caused by an interruption of covered utility

services to the described premises. The interruption must result from direct physical loss or damage

by a Covered Cause of Loss to specified types of property away from the described premises.

V

Valuable Papers and Records Pays direct physical loss or damage to valuable papers and records caused by, or resulting from a

covered cause of loss. Includes cost to research lost information on valuable papers and records for

which duplicates do not exist.

Lower limit is provided for losses of valuable papers and records not at the described premises.

W

Waiver of Subrogation

(Waiver or Transfer of Rights of

Recovery of Others to Us)

Waives our right of recovery, against any person or organization named in the endorsement,

because of payments under the Businessowners Liability coverage form.

Wine Collection Pays for loss or damage to covered alcoholic beverage collections at the insured’s net selling price

subject to per bottle limit.

12/2016

The definitions in this coverage glossary are designed for general guidance only an should not be relied upon for any legal interpretation.

Please refer to the specific form for a given state for applicable policy terms and conditions.

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