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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