1988-0621775L
NO "U(p01,
AN ORDINANCE ACCEPTING THE PROPOSAL OF ARKWRIGHT INSURANCE
COMPANY FOR FIRE AND EXTENDED INSURANCE COVERAGE FOR THE CITY'S
POWER PLANT, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND
DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I The proposal of Arkwright Insurance Company for
fire an extended insurance coverage for the City's power plant,
a copy of which is attached hereto and incorporated by reference
herein, is hereby accepted, and the expenditure of funds
therefore, in the amount of Fifty-eight Thousand Five Hundred
Eighty-seven Dollars ($58,587 00), is hereby authorized
SECTION II That this ordinance shall become effective
imme ate y upon its passage and approval
PASSED AND APPROVED this the day of 1988
Y S' ENS , 'IA OR
ATTEST
(IMAaA^ ~Az"
J ALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY
March 8, 1988
Purchasing Department
City of Denton
901B Texas Street
Denton, Texas 76201
SUBJECT Power Plant Property Insurance
,Bid #9831
Gentlemen
Enclosed is Arkwright Insurance Company's proposal for Property Insurance
Some objectives of our proposed "All Risk" program are
1 Consolidate all property coverages into one master program, including
the current Arkwright All Risk and Boiler & Machinery coverages This
currently encompasses the EDP equipment and mobile equipment This
also eases administration by combining several policies into a single
program
2 Only one deductible ap In ies in the event of a joint Property and Boiler
& Machinery loss This feature could save a significant amount of
money for the City of Denton No Joint Loss Agreement is necessary as
all coverages are underwritten by Arkwright and adjusted by Factory
Mutual Adjustment Division
3 Three year contract This provides stability while avoiding annual
negotiations caused by contracts expiring, as in the past
Superior engineering/property conservation services will be extended to
include the Power Plant Currently, this is the only City of Denton facility
which Arkwright does not provide detailed and comprehensive Loss Prevention
Surveys and Reports regarding Fire, Extended Coverages and Difference in
Conditions perils
The City of Denton needs to commit to providing protection to areas where loss
expectancies are $1 million or more There is a great likelihood that those
Large Loss Possibilities will occur at anytime, and can be prevented
Ntlpl 1111111`
Bid City of Denton
Purchasing Department
March 8, 1988
Page 2
This proposal meets or exceeds specifications See attached forms and
proposal details
If any questions arise from this proposal, I will be available for assistance
Cordially,
~CL'
Alan H Armbruster
Sr Account Representative
AHA/,j r
0459a
Enclosures
I
INSURANCE PROPOSAL
FOR
THE CITY OF DENTON, TEXAS
March 8, 1988
By
Alan H Armbruster
Arkwright Insurance Company
12700 Hillcrest Road
Suite 270
Dallas, TX 75230
TERMS and CONDITIONS
BASIC COVERAGES.
COVERAGES INCLUDE.
All Risk" coverages, Real and Personal Property, as per
specifications
Flood
Earth Movement
Electronic Data Processing
Automatic Coverage
Error and Omissions
Demolition
Increased Cost of Construction
Debris Removal
Collapse
Theft/Burglary
Transit
Property of Others
See Specifications
SPECIAL CONDITIONS. 60 Day Cancellation Clause
No Coinsurance Agreed Amount
Repair or Replace
Premium and/or Rates can be adjusted annually
POLICY TERM. April 2, 1988 to April 2, 1991
or
The Power Plant may be added to current
Arkwright "All Risk" program, effective
April 2, 1988 to October 1, 1990
LIMITS OF LIABILITY
Property Damage $68,124,0000
The coverages and limits below are provided in the current Arkwright All
Risk Property Insurance program for the City of Denton The Power Plant
would be included automatically as follows
EDP Equipment
1,500,000
EDP/Media
250,000
EDP/EE
100,000
Flood
5,000,000 annual aggregate
Earthquake
5,000,000 annual aggregate
Unnamed Floater Loc
500,000
Errors & Omissions
1 000 000
D I C C
1,000,000
i Automatic Coverage
5,000,000
Transit
100,000/200 000/per catastrophe/
100,000/200,000/per conveyance
DEDUCTIBLES
"All Risk" $50,000 Combined, except
$100,000 12,650 KW Units, 32,000 KW Unit
Transformers
$150,000 - 61,000 KW Unit, 65,481 KW Unit
PREMIUM
58,587 Annually
SUMMARY OF BENEFITS
1 Arkwright is a, major underwriter of Municipalities and Institutional
Organizations The property insurance programs we design for these
Insureds are unique in each case
2 Policy Administration will be simple and time expended by The City of
Denton management will be minimal
3 The, deductible for the various property coverages applies concurrently
A joint loss involving Fire, Boiler and Machinery, and Difference In
Conditions coverages would have only one deductible applying to any one
loss
4 There will be no need for a joint loss agreement as all property
coverages are being underwritten by Arkwright Insurance Company
5 Repair or replacement coverage is provided for property coverages without
coinsurance
6 Excellent Eneineerin /g Property Conservation services An engineer of our
organization will periodically visit with you to assist in property
conservation needs Free engineering reviews of plans, materials and
completed work is provided for any new or proposed projects
7 New additions at insured locations are covered automatically without the
need for additional Builder's Risk policy, up to the policy limits
8 Coverage for collapse and liquid damage is to full policy limits
9 Full DIC coverage including theft, flood, and earthouake
10 Damage to property of others is included while in your "care, custody
and control", with values appropriately reported
PURCHASING DEPARTMENT
City of Denton
901 B Texas St
Denton Texas 76201
BID INVITATION
CITY OF DENTON, TEXAS
Dale January 27, 1988
BID NUMBER 11 9831
Arkwrtght Boston Insurance
Alan H Armbuster
12700 Hlllcrest Rd #270
Dallas, TX 75230
BID TITLE POWER PLANT PROPERTY
INSURANCE
Sealed bid proposals will be received until 2 00 p m
MARCH 8, 1988 at the office of the
Purchasing Agent 901 B Texas St Denton Texas 76201
For additional information contact
JOHN J MARSHALL C P M Tom D SHAW C P M
PURCHASING AGENT ASSIST PURCHASING AGENT
Office
817 566 8311
D/FW Metro
817 267-0042
INSTRUCTIONS TO BIDDERS
1 Sealed bid proposals must be received in duplicate on this form prior to opening date and time to be considered Late
proposals will be returned unopened
2 Bids shall be plainly marked as to the bid number name of the bid and bid opening date on the outside of completely
sealed envelope and mailed or delivered to the Purchasing Department City of Denton 901 B Texas St Denton TX
76201
3 Any submitted article deviating from the specifications must be identified and have full descriptive data accompanying
same or It will not be considered
4 All materials are to be quoted FOB Denton, Texas delivered to the floor of the warehouse or as otherwise Indicated
5 The City of Denton, Texas reserves the right to accept separate items In a bid unless this right Is denied by the bidder
6 In case of default after bid acceptance the City of Denton Texas may at its option hold the accepted bidder or contractor
liable for any and all resultant increased costs as a penalty for such default
7 The City of Denton reserves the right to reject any and all bids to waive all Informallties and require that submitted bids
remain In force for a sixty (60) day period after opening or until award Is made whichever comes first
8 The quantities shown maybe approximate and could vary according to the requirements of the City of Denton
throughout the contract period
9 The hems are to be priced each net (Packaging or shipping quantities will be considered I
10 The Purchatflttg Department assumes responsibility for the correctness and clarity of this bid and all Information and/or
questions pertaining to this bid shall be directed to the City of Denton Purchasing Agent
11 Any attempt to negotiate or give inlormetlon on the contents of this bid with the City of Denton or Its representatives
prior to award shall be Bounds for dlequallticetlone
12 The conditions and terms of this bid will be considered when evaluating for award
I
13 The City of Denton is exempt from all sales and excise taxes (Article 2004 B)
BID NUMBER 9831 BID PROPOSALS
Page 2 of 41
THIS IS A PROPERTY INSURANCE PROPOSAL FOR THE UTILITY POWER PLANT'S
BUILDING AND CONTENTS
THIS BID PROPOSAL WILL BE EVALUATED BY THE STAFF AND A RECOMMENDATION
PRESENTED TO THE CITY COUNCIL FOR APPROVAL AS SOON AS POSSIBLE AFTER
THE OPENING DATE
NOTE PLEASE INCLUDE THIS BID PROPOSAL, PROPERLY SIGNED BELOW WITH
YOUR BID ALL BID PROPOSALS MUST BE SUBMITTED IN DUPLICATE
AND IN SEPARATE PACKAGES SEPCIFICALLY MARKED ASZ7 ORIGINAL
AND (2) DUPLICATE
For more information about insurance on this Bid Proposal, CONTACT
Harlan L Jefferson, Rlsk Manager City of Denton
(817) 566-8320
Metro 434-2520
We quote the above fob Denton Texas Shipment can be made In immedidwntgrpm receipt of order Terms net unless
otherwise Indicated
In submitting the above bid the vendor agrees that acceptance of any or all bid Items by the City of Denton Texas within a
reasonable period of time constitutes a contract
12700 Rillcreat Road Suite 270
Melling Address
_ Dallas Texas 75023
City State Zip
Arkwriaht Insurance Company
Bidder
Signature
(214) 233-1094
Telephone
Senior Account Representative
Title
BID NUMBER 9831 SPECIFICATIONS Page 3 of 41
Purchasing Department
City of Denton Texas
SCOPE OF SPECIFICATIONS dr INSTRUCTIONS
i
SCOPE OF SPECIFICATIONS
The City will entertain bids on the property insurance for its Utility Power
Plant The scope of specifications contained herein will encompass, but will
not be limited to, buildings, contents, fine arts, and glass (includes
vandalism), and shall have been prepared in order to secure a proposal for
such insurance coverage The policy shall become effective April 2, 1988, and
shall be for a minimum of one year; however, policies for extended periods
will be considered, particularly in light of premium discounts of such
policies It will not be the normal practice of the city to request
quotations annually, and three year contracts will be encouraged where
substantial savings are involved.
The City not only will accept, but urges agents and underwriters to present
innovative approaches to the coverage being requested, within the limits of
Texas law as it pertains to municipalities An example of such innovations
may include combining fire and extended coverage with boiler machinery
coverage The City also encourages respondents to provide quotes on the basis
of replacement and actual cash value methods of evaluation (both values are
represented in the attachments).
The City will also accept, and encourage, innovative and alternative methods
of pricing and coverage of the insurance risk so long as they do not violate
Texas law, however, exceptions must be noted and made in addition to the
specific specifications, which should be adhered to for the purpose of proper
comparison, and all such variations must be clearly detailed including
advantages claimed to be gained thereby Please review the entire scope of
specifications, instructions, and the specification package carefully before
submitting quotations.
DUTY OF A(ENTS/UNDLRWRIlLRS
Agents participating in this process must guarantee that these specifications
will be used in their presentations to underwriters without modification For
purposes of comparison, it is important that quotations be submitted on this
form Any amendments, or innovations must be submitted by addendum to this
specific package, and so noted. Sample policies, including endorsements, must
be submitted with all quotations. Commitments in writing from underwriters and
re-insure;s are also required as a part of the quotations. Any carrier which
is unable or unwilling to meet the specifications shall so state with a full
explanation in a supplementary letter to be attached to the submitted
quotations specifically noted, and made a part thereof
BID NUMBER 9831 SPECIFICATIONS
Purchasing Department
City of Denton Texas
SCOPE OF SPECIFICATIONS CONTINUED
Page 4 of 41
If the coverage cannot be furnished in the manner requested, please describe
in written form, as an addendum, any variations between the specifications and
the quotation. The City reserves the right to negotiate certain additional or
modified coverages, SIRS and formulas affecting rates
UNDERWRITERS' QUALIFICATIONS
All carriers must be licensed to do business in the State of Texas or meet the
requirements of Texas statutes regarding surplus lines, and maintain a Best's
Insurance Guide rating of at least A (excellent)
CAVEAT
Although every effort has been made to provide accurate and up to date
information regarding property, improvements, equipment and risks to be
considered, companies or agents supplying quotations shall not depend solely
upon the lists and information contained herein, and coverage shall include
all power plant property and be so specified, unless otherwise expressly
excepted
TIMES AND ~OCATIONS FOR FILING QUOTATIONS
Quotations shall be considered irrevocable for sixty (60) days, and the City
of Denton reserves the right to accept or reject any or all quotations and
waive any informalities in any quotation
Request for detailed specifications, loss experiences, statement of values and
questions should be' directed to Harlan Jefferson, the Risk Manager at
566-8320, and all quotations must be submitted in a sealed envelope clearly
marked "Property Insurance Quotations for the City of Denton, Texas' to the
Purchasing Department in the Service Center, 9018 Texas Street, Denton, Texas
76201, on or before March 8, 1988 at 2 00 o'clock p m.
BID NUMBER 9831 SPECIFICATIONS Page 5
Purchasing Department
City of Denton Texas
PROPERTY INSURANCE BID SPECIFICATIONS
JANUARY 1988
I GENERAL INFORMATION
A Denton population 63,000
i
B Total mileage of streets, roads, highways 259
(NOTE Verify this number )
C Total expenditures per 1987 operating budget $110,092,032
D Total receipts per 1987 operating budget
1
General Fund
21,564,673
2.
Debt Service Fund
4,105,655
3.
Electricity Sales
64,345,189
4
Water/Wastewater Sales
13,246,646
5.
Sanitation Fund
2,792,084
6.
Working Capital Fund
3,914,324
7
Recreation
447,000
8
General Project Fund
0
9
Revenue Sharing
0
TOTAL $11U,415,571
E Total personnel
of 41
1
General Fund
(a ) Regular
297
(b ) Sworn
175
(c ) Part-Time
24 45
2.
Electric Fund
136
3.
Water and Wastewater Fund
99 5
4
Sanitation Fund
48
5.
Working Capital
19
F Attachments
1. American Appraisal's Property Value Report
BID NUMBER 9931 SPECIFICATIONS Page 6 of 41
Purchasing Department
City of Denton Texas
II. CONDITIONS APPLICABLE TO POLICY
A Named Insured endorsement
it is hereby agreed and understood that the "Insured" includes the
following
1 The Named Insured, and;
2. While acting on behalf of the Named Insured
(a ) Any member of the governing body of the Named Insured;
(b ) Any member of boards, commissions and city councils of the
named insured;
3 Any elected or appointed officer of the Named Insured,
4 Any employee or authorized volunteer of the named insured
B 60 day notice of cancellation, non-renewal or material policy change
provision except for non-payment of premium
C Knowledge of an accident by an agent or employee of the insured
shall not in itself constitute knowledge of the insured unless the
city Manager, Director of Finance, City Attorney, Risk Manager or
other designated individual of the insured shall have received such
notice form his agent or employee
D Errors or omissions in the preparation of these specifications,
subsequent specifications, reports and/or other documents and in the
preparation of information shall not operate to invalidate the
insurance provided by these policies provided that the insured shall
promptly report such errors or omissions
on discovery and pay the premium due.
BID NUMBER 9831 SPECIFICATIONS Page 7 Of 41
Purchasing Department
City of Denton Texas
III PROPERTY DAMAGE
A Perils - All Risk coverage including fire, lightning, wind, hail,
sprinkler leakage, explosion, riot, civil commotion, V&MM, civil
authority, aircraft, vehicle, sonic boom, smoke, radioactive
contamination, collapse, volcanic eruption, theft, burglary, flood,
and earthquake
B Valuation - Replacement and actual cash value
C Joint Loss Agreement - with Boiler and Machinery carrier
i
D Include specimen copies - of all policies and endorsements proposed
E Coverage of building and structures shall include attached
additions and extensions, fixtures, machinery and equipment
constituting a permanent part of and pertaining to the service of
the building, materials and supplies intended for use in
construction, alteration or repair of the buildings or structures,
yard fixtures, personal property for the maintenance or service of
the buildings, including fire extinguishing apparatus, and outdoor
furniture
F. Coverage should also apply to property owned by the City while that
(property is temporarily removed for purposes of cleaning,
repairing, reconstruction, or restoration
G 'No Co-Insurance
R Personal Property of others in the care, custody and control of the
City while in or on the buildings or structures or in the open
within 50U feet of the designated premises
I Property also covered to include valuable papers and records and
EDP equipment and media
J Transit - contents or personal property of the City or property in
the care, custody and control of the City while in transit
K services - All inspection, appraisal and loss prevention,
engineering services which your company will provide and associated
additional premium or fees
IV. ADDITIONAL COVERAGE REQUEST
A Provide a sixty (6U) day notice of cancellations, material policy
change, or intent not to renew Is this agreeable? YES
AI MMGIIT
All Risk Policy
Arkwnght Insurance Company
225 Wyman Street
P O Box 9198
Waltham MA 02254 9198
Stock Company Form
Policy Number
In Consideration of the Provisions and Stipulations herein or added hereto and of
this Company for the term
of
to an amount not
does insure
from the day of
to the day of
Dollars Premium
19_ J at 12 01 a in Standard Time at
19_ location of property involved
and legal representatives to the extent of the actual cash value of the property at the time of loss but not exceeding the amount
which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after such
loss without allowance for any increased cost of repair or reconstruction by reason of any ordinance or law regulating con
struction, repair or use, and without compensation for loss resulting from interruption of business or manufacture nor in any
event for more than the interest of the insured against ALL RISKS OF PHYSICAL LOSS OR DAMAGE except as
hereinafter excluded to the property described herenafter while located or contained as described in this Policy or pro rata for
ninety days at each proper place to which any of the property shall necessarily be removed for preservation from loss insured
against in this Policy, but not elsewhere
Provisions Specially Applicable to this Policy
Assignment of this Policy shall not be valid except with the written consent of this Company
This Policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated which are
hereby made a part of this Policy, together with such other provisions stipulations and agreements as arty be added thereto as
provided in this Policy
In Witness Whereof, this Company has executed and attested these presents but this policy shall not be valid unless
countersigned by the duly authorized Agent of this Company at
1
~~~r " A'44-'?
Secretary
Countersigned this day of
President
19_
Agent
ARI GHT
SPECIAL CONDITIONS
® The coverages provided by the Texas Standard Policy are herein extended to mcludeAll Risks of physical
loss or damage to insured property located in Texas except as hereinafter excluded
The terms and conditions of the Texas Standard Policy shall take precedence over any terms and
conditicns if t~,s Form and Endorsements thereto which are inconsistent therewith
A PROPERTY INSURED
Unless otherwise excluded this Policy covers the following property while on the described premises and
w thin 1 000 feet thereof
real property in which the Insured has an insurable interest
2 personal property owned by the Insured
3 personal property other than motor vehicles of officers and employees of the insured
4 personal property of others in the custody of the Insured which the insured is under obliga,ion to
keep insured for physical damage of the type insured against under this Policy
5 personal property of others in the custody of the Insured to the extent of the Insured s legal liability
for physical loss or damage of the type insured against by this Policy This Company further agrees
to defend any suit against the Insured alleging liability for such damage destruction or loss and
seeking damages on account thereof even if such suit is groundless false or fraudulent but this
Company may without prejudice make such investigation negotiation and settlement of any
claim or suit as this Company deems expedient
8 PROPERTY EXCLUDED
This Policy does not insure against loss or damage to
1 bills evidences of title notes fine arts furs jewelry precious metals or precious stones
2 land standing timber growing crops
3 vehicles otherwise insured watercraft
4 property sold by the Insured under conditional sale trust agreement installment plan or other
deferrea payment plan after delivery to customers
5 property in transit unless endorsed hereon
6 underground mines and mining property located below the surface of the ground
7 dams or dikes
C EXCLUSIONS
GROUP A This Policy does not insure against loss or damage caused by or resulting from any of the
following regardless of any other cause or event contributing concurrently or in any other
sequence to the loss
1 nuclear reaction or nuclear radiation or radioactive contamination from any cause
all whether director indirect proximate or remote however
(a) if fire not otherwise excluded results the Company shall be liable for direct
loss by such resulting fire but not including any loss due to nuclear reaction
nuclear radiation or radioactive contamination and
(b) this Policy does insure against loss or damage caused by sudden and
accidental radioactive contamination including resultant radiation damage
from material used or stored or from processes conducted on the described
premises provided that at the time of such loss there is neither a nuclear reactor
capable of sustaining nuclear fission in a self supporting chain reaction nor any
new or used nuclear fuel on the described premises
Form 3000T
PAGE 1 OF 7 Edition May 1985
;_NAi f
2 (a) hostile or warlike action in time of peace or war including action in hinder
rng combating or defending against an actual impending or expected attack
(i) by any government or sovereign power (de lure or de facto) or by any
authority maintaining or using military naval or air forces or (n) by military
naval or air forces or (u1) by an agent of any such government power authority
or orces
(b) any weapon of war employing atomic fission or radioactive force whether in
time of peace or war
insurrection rebellion revolution civii war usurped power or action taken
by governmental authority in hindering combating or defending against such
air occurrence seizure or destruction under quarantine or custom regulations
confiscation by orde of any government or public authority or risks of contra
band or illegal transportation or trade
3 explosion rupture bursting cracking burning or bulging of steam boilers steam
turbines gas turbires steam engines and pressure vesselsor piping crapparatus
attached to any of the foregoing while such property is owned operated or
controlled by the Insured
(a) except loss or damage resulting from the explosion of accumulated com
bustible gases or unconsumed fuel within a furnace of a boiler or pressure
vessel other than combustion gas turbines or within the flues or passages
which conduct the gases of combustion therefrom
(b) unless
1 caused by fire or
2 damage by fire results and then the Company shall be liable fororly such
resulting fire damage
4 delay or loss of market •
5 any fraudulent or dishonest actoracts committed aloneor in collusion with others
(a) by any proprietor partner director trustee officer or employee of the
Insured whethe or not such acts are committed during regular business hours
or
(b) by any proprietor partner director trustee or officer of any proprietorship
partnership corporation or association (other than a common carrier) engaged
by the Insured to render any service or perform any act in connection with
property insured under this Policy
6 extremes or changes of temperature (except damage to equipment) or changes in
relative humidity all whether atmospheric or not unless liquid escapes to the open
in which case the Policy will cover damage caused by the escaped liquid and loss
of or damage to the liquid
7 lack of incoming electricity fuel water gas steam or refrigerant caused by an
occurrence off the premises described in this Policy unless specifically endorsed
herein however if the lack of such a service causes physical damage otherwise
insured under this Policy on the described premises this Policy shall cover the
resulting damage
8 insects or vermin
9 floodwaters waves tide or tidal water the release of water the rising overflowing
or breaking of boundaries of natural or man made bodies of water or the spray
from any of the foregoing whether or not caused by resulting from or contributed to
by loss or damage of the type insured under this Policy unless damage by fire or
explosion results and then the Company shall be liable for only such resulting •
damage
Form 30007
PAGE 2 OF 7 Eoi on May 1985
ARKWRI HT
10 any earth movement including but not limited to earthquake landslide or subsi
dence whether or not caused by resulting from or contributed to by loss or
damage of the type insured under this Policy unless damage by fire or explosion
results and then the Company shall be liable for only such resulting damage
GROUP B This Policy does not insure against
1 indirect or remote loss or damage
2 mechanical or electrical breakdown (except lightning damage) of any equip
ment unless physical damage not otherwise excluded results in which event
this Policy shall cover only such resulting damage
3 mysterious disappearance or loss or shortage disclosed on taking inventory or
any unexplained loss
4 faulty workmanship material construction or design from any cause unless
physical damage not otherwise excluded by this Policy results in which event
this Policy will cover only such resulting damage
5 loss attributable to manufacturing or processing operations which result in dam
age to stock or materials while such stock or materials are being processed
manufactured tested or otherwise being worked upon all unless physical dam
age not otherwise excluded by this Policy results mwhichevent tnisPolicyshall
cover only such resulting damage
6 deterioration depletion rust corrosion erosion wear and tear inherent vice or
latent defect unless physical damage not otherwise excluded by this Policy
results in which event this Policy shall cover only such resulting damage
7 contamination shrinkage or change in color flavor texture orfinish unless such
damage results directly from other physical damage not otherwise excluded by
this Policy
8 settling cracking shrinking bulging or expansion of pavements foundations
walls floors or ceilings unless physical damage not otherwise excluded by this
Policy results in which event this Policy will cover only such resulting damage
9 impact damage to docks piers and wharves
10 increase in loss attributable to any law or ordinance which regulates construc
tion repair replacement debris removal use or which necessitates demolition
of any undamaged portions of property on the premises described herein
D ADDITIONAL COVERAGES
CONSEQUENTIAL 1 This Policy covers reduction in value of insured components or parts of products
REDUCTION due to physical loss or damage insured against by this Policy to other insured
IN VALUE components or parts of such products
DEBRIS 2 This Policy covers expense of removal from the described premises of debris
REMOVAL remaining after any loss hereby insured against
Form 3000T
PAGE 3 OF 7 Edit on May 1985
ARKWWGHT
PROPERTY
3 This Policy covers property of the Insured at any location within the Continental
REMOVED
•
United States Hawaii Alaska Puerto Rico or Canada when removed from the
FROM
described premises for the purpose of being repaired serviced or in order to avoid
DESCRIBED
threatened damage from flood excluding
PREMISES
(a) property otherwise insured
(b) property excluded from the insurance under this Policy or
ic) property removed from the described premises for normal storage or proces
sirg or preparation for sale or delivery
This Policy also covers pro rata for ninety days at each proper place to which
property of the Insured shall necessarily be removed for preservation from loss
insured against in this Policy
DEMOLITION
4 If at the time of any physical loss or damage insured against by this Policy there is
AND
in force any law or ordinance regulating the construction repair replacement or use
INCREASED
of buildings or structures then this Policy shall cover as a result of enforcement of
COST OF
such law or ordinance
CONSTRUCTION
(a) the additional loss sustained in demolishing any undamaged portion of the
buildings or structures
(b) the cost incurred in actually rebuilding both the damaged and demolished
portions of such buildings or structures with materials and in a manner to satisfy
such law or ordinance
The total liability hereunder shall not exceed the actual expenditure incurred in
demolishing the undamaged portion of the building(s) or structure(s) involved plus
the lesser of the following
(a) the actual expenditure incurred not including the cost of land in rebuilding
on another site or
(b) the cost of rebuilding on the same site
This Policy shall not be liable for any cost of demolition or increased cost of
reconstruct on repair debris removal or loss of use necessitated by the enforcement
of any law or ordinance regulating any form of pollution
AUTOMATIC
5 Unless otherwise insured on an all risk basis this Policy also covers property up
COVERAGE
to a lima of $ at any location in the United States Puerto Rico or
Canada rented or purchased by the Insured after the inception date of this Policy for
a period of 90 days from date of acquisition of such location
ERRORS AND
6 In the event of loss or damage to property of the Insured located in the United
OMISSIONS
States Puerto Rico and Canada and such loss is not payable under this Policy
solely because of
(a) any error or unintentional omission in the description or location of property
insured underthis Policy which errororomissionexisted attheinception dateof
this Policy or
(b) any error or unintentional omission in the description or location of property
insured under this Policy in any subsequent amendments to this Policy or
(c) failure through error or unintentional omission to include (1) any location
owned or occupied by the Insured at the inception date of this Policy or (2) any
location newly acquired or occupied during the term of this Policy or
Form 3000T
PAGE 4 OF 7 Evion May 1985
ARKWRIGHT
ERRORS AND (d) any error or unintentional omission which results in cancellation of property
OMISSIONS insured under this Policy
(Cont d) such loss or damage shall be insured by this Policy only to the extent this Policy
would have provided coverage had the error or unintentional omission not been
made up to a limit of $
EXPEDITING 7 This Policy covers up to a limit of $ the reasonable and neces
EXPENSE Gary extra costs of temporary repair or damage to property and the extra costs of
expediting the permanent repairor replacementof such damaged property resulting
from physical damage insured against by this Policy
In no event shall these Expediting Expenses include expenses recoverable else
where in this Policy or the cost of permanent repair or replacement of the damaged
property
PROTECTION S In case of actual or imminent physical loss or damage of the type insured against
AND by this Policy the expenses incurred by the Insured in taking reasonable and
PRESERVATION necessary actions for the temporary protection and preservation of property insured
OF hereundershall be added tothe total physical lossordamage otherwise recoverable
PROPERTY underthe Policy and be subjectto the applicable Deductible and without increase in
the Limit provisions contained in this Policy
E GENERAL CONDITIONS
TITLES OF 1 The titles of the various paragraphs of this form (and of endorsements attached to
PARAGRAPHS the Policy) are solely for reference and shall not in any way affect the provisions to
which they relate
DEDUCTIBLE 2 In each case of loss or damage covered by this Policy this Company shall not be
liable unless the Insured sustains a loss in a single occurrence in excess of any
applicable deductible provided elsewhere in this Policy and then only for its share of
such excess
When this Policy covers more than one location the deductible shall apply against
the total loss or damage covered by this Policy in any one occurrence
If two or more deductible amounts provided in this Policy apply to a single occur
rence the total to be deducted shall not exceed the largest deductible applicable
unless otherwise provided in this Policy
If this Policy insures against both Property Damage and Time Element losses the
deductibles as shown in this Policy shall apply separately to each such coverage
even if both are involved in a single occurrence unless otherwise provided in this
Policy
VALUATION 3 Unless otherwise endorsed hereon adjustment of loss underthis Policy shall be
(a) on stock in process the value of raw materials and labor expended plus the
proper proportion of overhead charges
(b) on finished goods manufactured by the Insured the regular cash selling price
at the location where the loss occurs less all discounts and charges to which the
merchandise would have been subject had no loss occurred
(c) on raw materials supplies and other merchandise not manufactured by the
Insured the replacement cost
(d)on exposed film records manuscripts and drawings the value blank plus the
cost of transcription
Form 3000T
PAGE 5 OF 7 Ed 1 on May 1985
ARKWRIGHT
VALUATION (e) on media data and programs for electronic and electromechanical data
(Cont d) processing and p oduction equipment the cost of reproducing such media data •
and programs from duplicates or from originals of the previous generation of the
data
(f) on jigs and fixtures dies small tools patterns contractors equipment em
pioyees pe sonal propertyand personal propertyofthird parties theactual cash
value with proper deduction for depreciation but not to exceed the cost to repair
or replace the property with material of like kind and quality
fg) on leasehold improvements and betterments the replacement cost less
physical depreciation if actually replaced at the Insured s expense within two
years from the date of loss if not so replaced the unamortized value
(h) on all other property the actual cash value with proper deduction for depre
ciation but rot to exceed the cost to repair or replace the property with material
of like kind and quality
all to be computed at the time and place of loss
CONSEQUENTIAL 4 In the event of physical damage insured by this Policy to any property situate on
DAMAGE the described premises and such damage without the intervention of any other
independent cause results in a sequence of events which causes physical damage
to other property insured by this Policy then this Policy will cover such resulting loss
or damage Nothing in this clause shall be deemed to extend this insurance to
property which is otherwise specifically excluded from coverages by the terms of
this Policy
The liability of this Company includes only the physical damage incurred during
such period as would be required with the exercise of due diligence under normal
conditions to repair or replace the damaged property and does not include any •
liability resulting from inability of the Insured to make repairs or replacements
because of strikes or labor disputes
BRANDS AND 5 If branded or labeled merchandise covered by this Policy is damaged and this
LABELS Company elects to take all or any part of such merchandise at the value established
by the terms of this Policy thelnsuredmay at their own expense stamp salvage on
the merchandise or its containers or may remove or obliterate the brands or labels if
such stamp removal or obliteration will not physically damage the merchandise but
the Insured must re label the merchandise or containers in compliance with the
requirements of law
SUBROGATION 6 This Company may require from the Insured an assignment of all right of recovery
against any party for loss to the extent that payment therefor is made by this
Company but this Company shall not acquire any rights of recovery which the
Insured has expressly waved prior to loss nor shall such waiver affect the Insureds
rights under this Policy
Any recovery as a result of subrogation proceedings arising out of a loss occurrence
after expenses incurred in such subrogation proceedings are deducted shall
accrue to the Insured in the proportion that the amount of deductible and/or the
amount of any provable uninsured loss bears to the amount of the entire provable
loss
NO REDUCTION 7 Any loss hereunder shall not reduce the amount of this Policy
BY LOSS
DIVISIBLE 8 If the premises described in this Policy include two or more buildings or the
CONTRACT contents of two or more buildings the breach of any condition of this Policy in
respect to any one or more of the buildings insured or containing the property
insured shall not prejudice the right to recover for loss occurring in any building •
insured or containing the property insured where at the time of the loss a breach of
condition does not exist
Form 3000T
PAGE 6 OF 7 Edition May 1985
ARKWMGHT
INSPECTION
9 The Company at all reasonable times during the Policy period shall be permit
ted but not obligated to inspect the property insured by this Policy Neither the
•
Company s right to make inspections nor the making thereof nor any report thereon
shall constitute any undertaking on behalf of or for the benefit of the named Insured
or others to determine or warrant that such property is safe or healthful
COLLECTION
10 No loss or part of a loss shall be paid or made good hereunder to the extent the
FROM OTHERS
Insured has collected such loss from others
OTHER
11 The Company shall not be liable for loss under this Policy if at the time of loss
INSURANCE
there is any other insurance which would attach if this insurance had not been
effected except that this insurance shall apply only as excess and in no event as
contributory insurance and then only after all other insurance has been exhausted
CANCELLATION
12 This Policy shall be cancelled at any time at the request of the Insured in which
case this Company shall upon demand and surrender of this Policy refund the
excess of paid premium above the customary short rates for the expired time This
Policy may be cancelled at anytime by this Company by giving to the Insured a thirty
(30) days written notice of cancellation with or without tender of the excess of paid
premium above this Company s normal earned premium for the expired time which
excess if not tendered shall be refunded on demand Notice of cancellation shall
state that said excess premium (if not tendered) will be refunded on demand
However this Policy may be cancelled by the Company if the Insured fails to remit
when due the payment of Premium for such policy by giving the Insured not less
than ten (10) days written notice of cancellation
Arkwrrght Mutual Insurance Company
•
•
Form 3000T
PAGE 7 OF 7 Etln on May 1985
ARKWR~IGT
REPAIR OR REPLACE ENDORSEMENT
In consideratior of additional premium paragraphs (f) (g) and (h) of General Condition No 3 VALUA
TION of part E GENERAL CONDITIONS of the Policy to which this Endorsement is attached are amended
to indemnify the Insurea 'or he )st of rebuilding repair ng or eplacing the damaged or destroyed
property sub,ecr to the to 'ow rg -crdit ons
1 If prope ty damaged cr destroyed is useless to the Insured or is not epalred rebuiltor replaced on
the same or another s to N nin two years from the date of loss or damage 'his Company shall not
be fable for more than Ine actual cash value (with proper deduction for deprecation) of the
property destroyed
2 The total liability of his Companv under this Policy for loss to property included rider this
Endorsement sha I not exceed the smallest of the ollowrng
a the cost to repa r or
b the cost to reeuilo or replace on the same site with new materials of equivalent size kind and
quality or
c the actual expenditure incurred in rebuilding repairing or replacing the damaged or destroyea
property on the same or another site but not to exceed the size and operating capacity that
existed at the time of loss
all as of the time when with due diligence and dispatch ebuilding repairing or replacement of the
damaged or destroyed property could be effected
3 If at the time of loss covered under this Policy claim is made for the cost of replacement of the
property damaged or destroyed then this Company shall be liable under this Endorsement for no
greater proportion of such loss than the amountof $ bears to 100% of the cost at
the hme of loss and at the same site of replacement in a new condition with materials of equivalent
size kind and quality of all the property ncluded under the terms of this Endorsement The value
of the foundations and other property located below the lowest basement floor or where there is no
basement below the surface of the ground shall be disregarded in applying this co insurance
provision In the event that the aggregate claim for any loss covered under the conditions of this
Endorsement is less than $100 000 ro special inventory or appraisement of the undamaged
property shall be required
For property located n the Commonwealth of Massachusetts or the State of North Carolma paragraph 2 c
of this Endorsement is amended to read as follows
2 c the actual expend ture incurred in rebuilding repairing or replacing the damaged or des
troyed property on the premises described in this Policy or some other location within the
Commonwealth of Massachusetts or the State of North Carolina as the case maybe mutually
agreed upon between the Insurer and the Insured but not to exceed the size and operating
capacity that existed at the time of loss
Arkwright Mutual Insurance Company
Form ]100
-A. E or %l Id
ARKWRIGHT
AGREED AMOUNT ENDORSEMENT
(Repair or Replace)
Until the amount stipulated under Paragraph 3 of the Repair or Replace Endorsement
represents at least 100% of the value of the property included under the Endorsement
Arkwright Mutual Insurance Company
Form 3101
PAGE 1 OF 1 Eomon November 1984
Repiaces March 1984
ARKWWGHT
TRANSPORTATION ENDORSEMENT
In consideration of additional premium the Policy is extended to cover Personal Property as described
herein except as otherwise excluded by this Policy while such property is in transit
PROPERTY INSURED
1 Personal Property owned by the Insured
2 Personal Property shipped to customers on FO
interest in such shipments is admitted
C & F or similar terms The Insured s contingent
3 The interest of the Insured in and legal liability for Personal Property of others in the actual or con
structive custody of the Insured
4 Personal Property of others sold by the Insured which the Insured has agreed prior to loss to insure
during course of delivery
ADDITIONAL PROPERTY EXCLUDED
1 Samples in the custody of salespersons or selling agents
2 Property insured under import or export ocean marine policies
3 Waterborne shipments via Panama Canal and waterborne or airborne shipments to and from Alaska
Puerto Rico and Hawaii
4 Shipments made by air unless via regularly scheduled airlines
5 Property shipped by mail
6 Property of others including the Insured s legal liability therefor hauled on vehicles owned leased
or operated by the Insured when acting as a common or contract carrier as defined by the Interstate
Commerce Commission Regulations or state regulatory agencies
LIMIT OF LIABILITY
The liability of this Company in any one loss disaster or casualty either in case of partial or total loss or
salvage charges or any other charges or expenses or all combined shall not exceed the applicable limit
of liability as follows
(A) $ on Personal Property in or on any one conveyance or individ
ual unit thereof except
(B) $ aggregate liability in any one loss disaster or casualty
DEDUCTIBLE CLAUSE
Each claim for loss or damage or expense under this Endorsement shall be adjusted separalely and this
Company shall not be liable unless the Insured sustains a loss in excess of $ and
then only for its share of such excess
ATTACHMENT AND DURATION OF COVERAGE
Except as hereinafter provided this insurance attaches from the time the property leaves the. unyinal point
of shipment for the commencement of transit and covers thereafter continuously in the due course of transit
within the Continental United States of America and Canada and Alaska within Hawaii or within Puerto
Rico until delivered at destination
Coverage on export shipments not insured under ocean marine policies does not extend beyond the time
when the property is loaded on board overseas vessel or aircraft Coverage on import shipments not
insured under ocean cargo policies does not attach until after discharge from overseas vessel or aircraft
Form 3107
PAGE 1 OF 2 Etl ton May 198
ARKWRIGHT
ADDITIONAL COVERAGE
Coverage provided by this Endorsement shall include general average and salvage charges on shipments
covered while waterborne
ADDITIONAL EXCLUSION
This Endorsement does not insure against loss or damage caused by or resulting from delay loss of market
or business interruption
GENERAL CONDITIONS
ELIMINATION The following exclusions Nos 6 and 7 in Group A of Part C EXCLUSIONS of this Pol
OF icy do not apply to coverage under this Endorsement
EXCLUSIONS 6 Flood waters waves tide or tidal water the release of water the rising overflow
ing or breaking of boundaries of natural or man made bodies of water or spray
from any of the foregoing unless damage by fire or explosion results and then
the Company shall be liable for only such resulting damage
7 Any natural or man made earth movement including but not limited to earth
quake landslide or subsidence unless damage by fire explosion or sprinkler
leakage results and then the Company shall be liable for only such resulting
damage
NO BENEFIT This insurance shall in no way inure directly or indirectly to the benefit of any carrier or
TO BAILEE bailee
VALUATION In case of loss the basis of adjustment unless otherwise endorsed hereon shall be
as follows
(A) Property shipped to or for the account of the Insured shall be valued at actual
invoice to the Insured together with such costs and charges (including the corn
mission of the Insured as selling agent) as may have accrued and become
legally due thereon
(B) Property which has been sold by the Insured and has been shipped to or for
account of the purchaser (if covered hereunder) is valued at the amount of the
Insured s selling invoice including prepaid or advanced freight
(C) Property not under invoice shall be valued at the actual cash market value at the
point of destination on the date of disaster less any charges saved which would
have become due and payable under delivery at destination
BILLS OF Permission is hereby granted to the Insured without prejudice to this insurance to
LADING accept the ordinary Bills of l used by carriers including released and/or
under valued Bills of Lading andfor Shipping or Messenger Receipts and the
Insured may waive subrogation against railroads under side track agreements and
except as otherwise provided the Insured shall not enter into any special agreement
with carriers releasing them from their common law or statutory liability
FRAUD This Endorsement also covers loss of or damage
OR DECEIT (A) Occasioned by the acceptance by the Insured Insureds agent customer or
consignee(s) or others of fraudulent Bills of Lading Shipping or Messenger
Receipts
(B) Obtained by fraud or deceit perpetrated by any person(s) who may represent
themselves to be the proper party or parties to receive the property for shipment
or to accept it for delivery
Arkwnght Mutual Insurance Company
Form 3107
PAGE 2 OF 2 Ed Lion May 1987
ARKWRIG T
EARTH MOVEMENT ENDORSEMENT
In consideration of additional premium the Policy is extended by deleting the following exclusion No 7 in
GROUP A of Part C EXCLUSIONS
7 Any natural or man made earth movement including but not limited to earthquake land
slide or subsidence unless damage by fire explosion or sprinkler leakage results and
then the Company shall be liable for only such resulting damage
LIMITS OF LIABILITY
This Company shall not be liable under the terms of this Endorsement for more than the limit specified
elsewhere in this Policy for each single earth movement nor for more than the limit specified elsewhere in
this Policy during any twelve consecutive months
If this Policy includes Time Element Coverage or Automatic Coverage or Floater Coverage the foregoing
limits shall be the maximum amount collectible under this Policy
For the purposes of this Endorsement the term single earthquake includes all shocks occurring within a
continuous 72 hour period
DEDUCTIBLE CLAUSES APPLICABLE TO COVERAGE IN ALASKA CALIFORNIA HAWAII AND
PUERTO RICO
PROPERTY DAMAGE
In case of claim for loss or damage under this Endorsement the Company shall not be liable as a
result of a single earthquake or other covered occurrence in Alaska California Hawaii or Puerto Rico
unless the Insured sustains a loss in excess of per cent ( of the
value of the property (including foundations) insured under this Endorsement and then only for
its share of such excess If the insurance provided by this Endorsement covers more than one
location this deductible percentage shall apply separately at each location
2 TIME ELEMENT COVERAGES
If this Policy is endorsed to include Time Element coverage the Company shall not be liable under
such Endorsement(s) as a result of a single earthquake or other covered occurrence in Alaska
California Hawaii or Puerto Rico for more than the amount by which such Time Element loss shall
exceed per cent ( of the full annual Time Element value which would have been
earned in the twelve month period following the occurrence by use of the facilities at the location
where the physical damage occurred and then only for its share of such excess If the insurance
provided by this Endorsement covers more than one location this deductible percentage shall apply
separately to each such location
ADDITIONAL EXCLUSIONS
1 This Endorsement does not apply to property in transit
2 This Endorsement does not insure against loss or damage caused by or resulting from flood waters
waves tide or tidal water the release of water the rising overflowing or breaking of boundaries of
natural or man made bodies of water or spray from any of the foregoing all regardless of cause
3 Unless otherwise indicated below this Endorsement does not apply to any property covered under
this Policy by virtue of any Automatic or Floater Coverages attached to this Policy
Form 9300
PAGE 1 OF 2 Edition May 1987
ARKWWGHT
AUTOMATIC COVERAGE
❑ If this block is checked the coverage provided by this Endorsement is extended to cover property
insured under this Policy by virtue of any Automatic Coverage Endorsement attached hereto subject to
the Limits of Liability set forth in the Automatic Coverage Endorsement
FLOATER COVERAGE
❑ If this block is checked the coverage provided by this Endorsement is extended to cover property
insured under this Policy by virtue of any Floater Coverage subject to the Limits of Liability applicable to
Floater Coverage
Arkwrfght Mutual Insurance Company
Form 3300
PAGE 2 OF 2 Edition May 1987
ARKW1UGIrr
FLOOD ENDORSEMENT
In consideration of additional premium the Policy is extended by deleting the following exclusion No 6 in
GROUP A of Part C EXCLUSIONS
6 Flood waters waves tide or tidal water the release of water the rising overflowing or
breaking of boundaries of natural or man made bodies of water or the spray from any of
the foregoing unless damage by fire or explosion results and then the Company shall be
liable for only such resulting damage
LIMITS OF LIABILITY
This Company shall not be liable under the terms of this Endorsement for more than $ each
single occurrence nor for more than $ during any twelve consecutive months If this Policy
includes Time Element Coverage or Automatic Coverage or Floater Coverage the foregoing limit shall be
the maximum amount collectible under this Policy
ADDITIONAL EXCLUSIONS
This Endorsement does not apply to property in transit
Unless otherwise indicated below this Endorsement does not apply to any property covered under
this Policy by virtue of any Automatic Coverage or Floater Endorsement(s) attached to this Policy
AUTOMATIC COVERAGE
❑ If this block is checked the coverage provided by this Endorsement is extended to cover property
insured under this Policy by virtue of any Automatic Coverage Endorsement attached hereto subject to the
Limits of Liability set forth in the Automatic Coverage Endorsement
FLOATER COVERAGE
❑ If this block is checked the coverage provided by this Endorsement is extended to cover property
insured under this Policy by virtue of any Floater Coverage subject to the Limits of Liability applicable to
Floater Coverage
Arkwright Mutual Insurance Company
Form 7301
PAGE 1 OF 1
Edition May 1987