Small Commercial Appetite & Product Guide

Transcription

1 The Hanover UPDATED 2011 We have a big appetite for small business. Small Commercial Appetite & Product Guide

2 Table of Contents Workers Compensation Guidelines 9 Auto Guidelines 10 BOP Guidelines 12 Small Commercial Package Policy 16 Condominiums 20 Contractors 24 Garages 28 Manufacturers 32 Offices 38 Professionals 46 Retail 50 Services 58 Technology 66 Wholesalers 72 Industry Niches 78 Affinity Programs 86 Broadening Endorsements 90 Index 105 2

3 OUR DIFFERENCE People, Products, Service, Programs* We have a voracious appetite for small business. The scope of this guide is clear evidence of that. However, our commitment to Small Commercial runs wide as well as deep. Which is why we back up our extensive product offering with local teams of experts that routinely apply our accumulated world-class resources to assist our winning agents in developing optimal Total Account solutions. At the same time, we offer the highest quality support through a group of exceptional loss control and claims professionals. And for those agents who want to focus more on their core business, there s our Customer Service Center, which acts as a seamless extension of an agent s customer service operation. Special programs to incite greater sales and bolster retention round-out our offering. The products, the people, the service, the support, the programs add them all up, place them atop our rock-solid stability and 159-year heritage* of thriving even during the most difficult of times, and you have our company s difference. How can we make a difference for you? Expanding Small Business Horizons in a Big Way Our full portfolio of insurance products for small businesses continues to grow. In fact, our total account solution allows you to provide your clients with truly comprehensive protection. It includes: Optional endorsements to increase limits and protection Unique optional coverages not offered by other insurance companies A wide range of industry-specific coverages Easy-to-use technology and responsive support services Underwriting expertise and local sales teams Industry-leading Customer Service Center Local Sales Staff and Knowledgeable Underwriters Local sales professionals armed with underwriting authority at the Point of Sale (POS) supported by professional, responsive Underwriters to help agents successfully grow their Small Commercial business. Fully Automated Products for Fast Quotes and Issuing Rapidly qualify, quote, and issue policies for all lines of business in our POS system at lightning speed. Attached Application Tool lets you transmit supporting information electronically or submit an application for our Commercial Package Policy with ease and fast underwriting response. *Refers to The Hanover Insurance Group. 1

4 OUR DIFFERENCE (continued) Total Account Solution Full range of products that cover all avenues Business Owner s Policy (BOP), Small Commercial Package, Commercial Auto, Workers Compensation, Commercial Umbrella, Marine, and Bond. Allows you to write the entire account with us, delivering more protection more affordably. BOP Product with 500+ Classes Broad market breadth/reach. Targeted businesses include: Offices, Professionals, Consultants, Services, Retail, Wholesale Value-Packed BOP Broadening Endorsements Affordable Optional Coverages Industry-Specific Broadening Endorsements Workers Compensation We have a healthy appetite for Workers Compensation business. Almost all of our BOP classes are eligible for Workers Compensation. And our POS system makes it quick and easy to get a competitive price and eligibility decision. Commercial Auto Offers very competitive pricing and one-stop shopping. Allows you to price a wide range of customers as well as offer the sharpest pencil to best-in-class, whether they have just one vehicle or a fleet. Our sophisticated pricing tool assesses risks from basic data and delivers our most competitive price right up front, in real time. Commercial Umbrella Offers limits of $1M, $5M, $10M, $15M, and $20M, competitively priced and easily added. Employer s Liability and Commercial Auto can be scheduled. Commercial Package Offers small businesses that exceed eligibility for BOP comprehensive protection that can be tailored to an array of industries. Rapid online rating and issuing capabilities available for select agents. Professional Coverages Employment Practices Liability Insurance Endorsement Options (EPL) (up to 25 employees) EPL coverage endorsement can be added via a Business Owner s Policy or Commercial Package Policy Protects the entity, the owner, and partners against claims made by employees Provides coverage on a claims-made basis Features defense within the limits of liability on a duty to defend basis Flexible limits/deductible options Not available in AR Stand-Alone Employment Practices Liability Provides broad coverage with limits up to $5 million for businesses up to 2,500 employees Dedicated EPL Claims specialists 2

5 Miscellaneous Professional Liability Insurance Endorsement Options (MPL) (available for most consultants, plus 250+ additional office, service, and other classes) MPL coverage endorsement can be added via a Business Owner s Policy Protects against liability for errors or omissions arising out of wrongful acts Provides coverage on a claims-made basis Offers limits up to $1 million Premiums start as low was $150 Not available in NY or FL Stand-Alone Miscellaneous Professional Liability Targets hundreds of eligible classes Provides Errors & Omissions liability to a wide variety of service providers Minimum premium $1,000 Limits up to $10 million available Management Liability Coverages Nonprofit Management Liability Available for non-profits of all sizes and types Coverages include Directors, Officers, and Organization Liability as well as Employment Practices Liability and Fiduciary Liability Commercial Crime/Surety One of the oldest bond markets in the country Wide range of Fidelity/Commercial Crime and Surety Products Local Fidelity and Surety Experts Web-based quote and issuance tool (BONDirect) allows you to quote, issue, and bind Commercial Surety and ERISA bonds within minutes Customer Service Center Offers customized services with agency identity (logo/name), proactive customer retention activities (outbound calls, follow-up calls, etc.), and active cross-sell to round-out accounts and drive higher retention. Claims Supported by comprehensive continuing education programs and sophisticated technology, driven by world-class service standards and a meticulous attention to detail, our claims professionals can turn around everything from a minor fender bender to a catastrophic loss quickly, accurately, and fairly. Private Company Management Liability Available for most privately held companies with up to 2,500 employees Coverages include Directors and Officers Liability, Employment Practices Liability, Fiduciary Liability, Crime Insurance, and Kidnap/Ransom and Extortion Insurance Loss Control Workplace safety guides, available online, help businesses prevent workplace injuries and control costs. 3

6 Commercial Lines Agency Help Line The new Interactive Voice Response (IVR) system provides you access to a wide range of services/ responses to address all of your needs. Use the extensions below for quick access, or contact your dedicated team directly Welcome to The Hanover and Citizens Commercial Lines Agency Help Line, where our policy is performance. Please listen carefully, as our options have changed. To report an accident or loss, or for information about an existing claim, Press 1 For billing inquiries, Press 2 For endorsement or policy issuance status, Press 3 For technical assistance with our Point of Sale system or with TAP, Press 4 For Small Commercial, Press 1 For coverage questions, including risk eligibility and underwriting assistance, Press 5 For premium audit inquiries, Press 6 For Middle Market, Press 2 To repeat these options, Press 7 4

7 Get Help Online We are committed to bringing you a full range of innovative and competitive Commercial Lines insurance products all complemented by the support of expert local underwriters, claims and loss control professionals, easy-to-use POS automation, and unsurpassed service. Visit our password-protected agency portal (The Agency Place) at 5

8 USING THE GUIDE Small Commercial Appetite Guide Clearly Defined Classes & Product Eligibility The success of your agency depends on knowing what markets are available to your customer with the ultimate goal of delivering a Total Account solution. Use this Small Commercial Appetite Guide as a reference tool to define the types of businesses we write and the products we offer to your customers. Ensuring Small Commercial Success We are dedicated to the Small Commercial market, and we want to be the first market you think of for Small Commercial. We sell a competitive suite of products enabling you to write the whole account through one carrier. We are also committed to making it easier for you to do business with us. Our goal is simple we want to be your carrier of choice for Small Commercial business. Information That Saves You Time This easy-to-use Small Commercial Appetite Guide will save you time and help you write more business with us. Inside you will find detailed product eligibility guidelines as well as our appetite for all lines, including Workers Compensation, Auto, and Umbrella, for each class of business. Of course, we will continue to expand our list of targeted Small Commercial business classes to accommodate the evolving market needs of your clients. 6

9 How This Guide Works Our Small Commercial Appetite Guide lists the business classes we offer under the following business segments: Condominiums* Professionals Industry Niches Contractors Retail Affinity Garages Manufacturers Offices Services Technology Wholesalers If you are not sure which business segment contains a particular class, please refer to the index at the back of this guide. For each business, we describe our appetite by Product with the following symbols: C % D or. We have the broadest appetite for businesses with products described as C typically. These businesses are eligible for straight-through processing for BOP, Workers Compensation, Auto, and Umbrella. We are also interested in writing coverage for businesses with %. Quotes for these products are usually referred to an underwriter. We have a limited appetite for businesses where the product is described as D. We encourage you to discuss these opportunities with your Small Commercial Sales Manager or Underwriter. Business types that are not available are designated with. *Not available in all states. For More Information For businesses not described in this Appetite Guide, or for any questions you have about our Small Commercial account eligibility, please contact your dedicated Small Commercial Sales Manager or Underwriter. 7

10 Small Commercial Account Eligibility At our company, we use our full suite of products to offer our clients the best coverage available. We define Small Commercial business as accounts up to $25,000 in written premium. Accounts greater than $25,000 in written premium are typically considered Middle Market. An account is one or more lines of business or products for the same customer. The vast majority of businesses eligible for a typical BOP fit within our company s Small Commercial definition. But, our appetite in Small Commercial goes beyond the BOP customer some customers, who our competitors write on a package product, are also within our company s Small Commercial definition. Think of our Small Commercial Sales Manager or Underwriter for customers with the following characteristics: Annual revenues up to $15 million* per location for businessowners and $25 million for package Total property values up to $15 million per location Up to 100 employees Operations within any industry, except transportation, farming, mining/oil/gas, and general/heavy contracting 8 * $1 million for Contractors.

11 Workers Compensation We Want to Write Workers Compensation Writing Workers Compensation policies is pivotal to writing the whole account for Small Commercial businesses. So we are committed more than ever to doing this. Workers Compensation is a very desirable product for more than 80% of the businesses described here. General Underwriting Guidelines for Workers Compensation Customer should be in business for at least two years and must be financially secure. Discuss new ventures in Retail, Service, Wholesale, Contracting, and Manufacturing with your Small Commercial Sales Manager or Underwriter. Experience mods of 1.10 or less Fewer than three claims in the past year No temporary or seasonal workers or if employed, perform only clerical/administrative functions Limited lifting exposures. Customers whose employees lift more than 50 lbs. should be discussed with your Underwriter. Customers with owned autos meet our automobile underwriting guidelines Workers Compensation quotes will refer to Underwriting for any of the following reasons: Agency has exceeded its premium, scheduled pricing, or monoline authority Customer has more than three claims Customer is in a class not eligible for straight-through processing and needs to be discussed with your Underwriter Quote is for an out-of-state location Monoline SMALL WorKErs COMPEnSATIOn* We offer monoline commercial Workers Compensation policies for eligible Small Commercial businesses. TarGET APPETITE Green thumbs up classes in Office, Retail, Professional, Service, and Manufacturers segments Payrolls excluding Officers, Clerical, and Sales: Up to $2 million for office exposures and consultants; $750,000 all other classes We meet your needs by offering monoline Workers Compensation policies for Small Commercial businesses where a checkmark (3) appears in the Mono WC column of this Guide. * Not available in all states. 9

12 Commercial Auto Steer Auto Business Our Way Our Commercial Auto product is available to all of the Small Commercial businesses found in this Guide. Whether you need coverage for a single vehicle or for fleets, drive your Small Commercial accounts to our POS application for fast, competitive results. Target Account Characteristics Types of Vehicles: majority of vehicles should be private passenger auto and light trucks. Schedules where medium or heavy trucks make up half or more of the vehicle schedules are also eligible please consult your Small Commercial Sales Manager or Underwriter. Fleet Size: 1 to 10 power unit. Larger fleets also eligible please consult your Small Commercial Sales Manager or Underwriter. Radius of Operations: local to intermediate General Underwriting Guidelines for Commercial Auto Fewer than four losses (other than glass) with no single loss over $25,000 within the past three years Vehicles with Original Cost New up to $100,000. High-performance or private passenger vehicle with Cost New in excess of $100,000 requires referral to your Underwriter. Vehicles operate within 200-mile radius Customers needing a state or federal filing require referral to an underwriter Some customers exceed our underwriting appetite. They include: Operators of parking garages, towing services, rent/lease operations, trucking operations, or backhauling operations, haulers of hazardous material, tankers, rush or express (including fast food and pizza delivery) services, and emergency vehicles Schedules with extra-heavy truck/tractors (gross vehicle weight exceeding 45,000 lbs.) Businesses customarily operating between midnight and 5 a.m. Operations requiring MCS-90 filings 10

13 Driver Underwriting Guidelines Must have valid U.S. driver s license Preferably more than five years driving experience. Risks with any driver with less than five years experience requires referral to your Underwriter. Within the last five years, no driving under the influence (DUI), reckless driving, or conviction for negligent homicide, vehicular manslaughter, or aggravated assault with a motor vehicle Within the last three years, no other major violation such as driving while impaired (DWI), careless driving, or passing a stopped school bus Within the last three years, no more than two moving violations or one at-fault accident. Any driver with more than one at-fault accident and one moving violation (when not the same incident) is unacceptable and must be discussed with your Underwriter. Along with competitive pricing, our Commercial Auto product offering features an optional Auto Broadening Endorsement. The Auto Broadening Endorsement includes the following protection, bundled together at an economical price: Rental Reimbursement 60 days/$3,000 Auto loan/lease physical damage protection Sign coverage $2,000 Blanket Waiver of Subrogation And much more! MonOLIne SMALL commercial AUTO* We recognize that sometimes you need to place an individual product, such as general liability, with specialized markets or property in coastal markets, leaving you in search of a market for the remaining product for your customers. Or, sometimes the automobile product will drive a customer s total insurance placement decision and have a different effective date than other products. Either way, we meet your needs by offering monoline commercial auto policies for Small Commercial businesses where the auto product is shown as C in this Guide. Over 85% of the contractor classes alone are eligible. * Not available in all states. Please contact your Small Commercial Sales Manager or Small Commercial Underwriter for more details. 11

14 Business Owner s Policy Expanded BOP BOP with its expanded eligibility thresholds allows you to write many businesses using our efficient Internet-based POS system. With our Account View class description look-up, you ll find that the BOP is the product for 1,200+ common industry classes. Product Eligibility Property value up to $15 million per location Annual sales up to $15 million per location Square footage (Lessor s Risk) up to 50,000 per location (no limit for Office classes) Contractor s payroll up to $1 million eligible, target payroll < $250,000 BOP can be quoted and issued in our POS system in the following states: AR, CA, CT, FL, GA, IL, IN, LA, MA, MD, ME, MI, MN, MO, NH, NJ, NY, NC, OH, OK, PA, RI, SC, TN, TX, VA & WI. Coming in 2011: AZ, CO, DC, DE, KS, KY, NV, OR, UT, VT & WA Coverage Advantages No coinsurance, agreed amount for Buildings and Business Personal Property Actual loss sustained Business Income and Extra Expense coverage automatically included Equipment Breakdown plus over 40 Additional Coverages/Coverage Extensions automatically included Business Liability limits up to $2 million/$4 million Employment Practices Liability coverage optional for most classes up to 25 employees (not available in all states) An ever-expanding array of broadening endorsements available to tailor coverages for specific businesses Umbrella Coverage All small businesses need extra protection from the unexpected. You can provide Umbrella with your BOP and Small Commercial Package Policy (CPP) quotes (and easily add it to the BOP via POS) with limits up to $20 million available and, in most states, no self-insured retention. Coverage extends to Employee Benefits Liability, Condo, D&O, and Liquor Liability as well as Professional Liability for barbers, beauticians, printers, funeral directors, and veterinarians. Coverage does not extend 12

15 to Employment Practices Liability, Miscellaneous Professional Liability, or Technology Professional Liability coverages. Minimum underlying limits should be $1 million for all except Workers Compensation. All underlying lines should be written by us please consult your Small Commercial Sales Manager or Underwriter for exceptions. General Underwriting Guidelines for Business Owner s Policy (BOP) The following outlines the general underwriting guidelines for all the BOP programs: Customer should be in business for at least two years and must be financially secure. Discuss new ventures in Retail, Service, Wholesale, Contractors, and Manufacturers with your Small Commercial Sales Manager or Underwriter. No more than three incurred losses and no single incurred loss over $25,000 in the past three years Must insure buildings and personal property as either 100% replacement cost value or actual cash value If buildings are older than 25 years, proof of updates to roof, plumbing, heating, and electrical systems within the past 20 years is required Buildings must not be vacant, unoccupied, or under construction Security and protection (i.e., burglar, fire alarms) should be commensurate with the occupancy and the value of the customer s property Proper maintenance, including annual flow tests, is required for properties with sprinkler systems Off-site operations must be less than 25%, except for Contractors For Contractors, subcontracting can be up to 25%, provided appropriate risk transfer controls are in place Premises and operations should maintain excellent housekeeping BOP quotes will refer to Underwriting for any of the following reasons: Customer owns/operates in a building of frame construction located in protection class 9 or 10 Policy/quote is for an out-of-state location Agency has exceeded its premium or building values authority Losses: a single loss greater than $25,000 or one or more water damage losses Retail, Wholesale, Service: customer imports foreign products or assembles, installs, and/or repairs products. Customer sells used products. Customer is in a class not eligible for straight-through processing or exceeds total insured values or annual revenue thresholds Manufacturers: risks with building and contents values greater than $5 million; risks operating in unsprinklered buildings; risks with any recalled or discontinued products Residential Condominium: two or more swimming pools on-premises Lessor s Risk Wind Guidelines Wind guidelines vary by state. Avoid locations within one mile of the ocean, gulf, or bay. Consult your Small Commercial Sales Manager or Underwriter for specific coastal restrictions in your state. 13

16 Business Owner s Policy (continued) Incidental Exposures BOP offers additional classes for General Liability and Incidental Exposures. It provides you with the ability to offer multiple classes and multiple programs for a single location and also allows incidental class exposures. This enables you to give clients one policy, one quote. Eligibility Guidelines for Incidental Exposures You can add Incidental Classes to classes in any program except Apartments and Condominiums You can add up to three Incidental Classes to any location Incidental Classes cannot be primary classes Four classes are allowed per location made up of either General Liability or Incidental Classes 14

17 CLASSIFICATIOn DESCrIPTIOn NAICS GL CLASS GL ExPOSUre Refer If Greater Than Athletic Events Sponsored by Insured For Profit # of events 3 Athletic Events Sponsored by Insured Not for Profit # of events 3 Amateur Athletic Events For Profit # of events 3 Amateur Athletic Events Not for Profit # of events 3 Contractor Subcontracted Work (1 or 2 Family Dwelling) Payroll $25,000 Draftsmen Payroll $50,000 Office Management Sq. Footage No referral Parades # of events 3 Playgrounds # of playgrounds 0 Private Parking Sq. Footage 50,000 Public Parking for Fee Not Open Air Sales $50,000 Public Parking for Fee Open Air Sales $50,000 Public Parking Shopping Center Maintained by Lessee Public Parking Shopping Center Maintained by Insured Sq. Footage 50, Sq. Footage 50,000 Snow Removal Payroll $50,000 Vacant Land For Profit # of acres 15 Vacant Land Not for Profit # of acres 15 Vending Machine Operations Food, Beverage or Ice Sales $50,000 15

18 Small Commercial Package Policy Small Commercial Package Policy We know you need more than a BOP to place coverage for many small businesses. One excellent solution: Our Small Commercial Package Policy (CPP), which covers big small businesses and other small businesses that don t fit BOP criteria. You can do business easier, too, with our new POS attachment tool. In fact, for CPP, it s the preferred method to submit applications because it promises fast account clearing and underwriter turnaround. The bottom line: you ll save time and, as a consequence, boost your production. For select agents who are looking for the fastest decision making, we can even provide quoting capability within POS for Small CPP. Target Account Characteristics Desired CCP premium of $2,500 and up, and consists of Small CPP plus one or more lines of business (Auto, Workers Comp, Umbrella) Businesses with up to $15 million in gross sales, with higher annual revenues eligible Combined Property and Business Income values up to $25 million depending upon construction and protection $500 minimum deductible for values up to $1 million; $1,000 minimum deductible for values over $1 million. Higher deductibles available. The Small Commercial Package Policy is available in every state. Quoting within our POS platform is available for select agents in a growing number of states. Please consult with your Small Commercial Sales Manager to discuss online quoting capability for Small CPP. 16

19 Coverage Advantages Agreed amount or Blanket coverage available for Buildings and Business Personal Property Actual loss sustained Business Income and Extra Expense coverage or dollar limit Business Income and Extra Expense coverage available Equipment Breakdown coverage available General Liability limits up to $1 million/$2 million Employment Practices Liability coverage available for most classes up to 50 employees (not available in all states) Unique coverage for Emergency Event Management available Many broadening endorsements available to tailor coverages for specific businesses such as real estate owners/lessors, wholesalers, medical facilities, and hotels/motels Property broadening endorsements available for most classes, additional coverages/coverage extensions and a blanket limit of $250,000 or $500,000 for key coverages General Liability Broadening Endorsement available for most classes, featuring General Aggregate Per Location, Blanket additional insured, Increased limits for medical payments coverage, $500,000 Fire legal plus 17 more coverages another bundle of coverages at an economical price General Underwriting Guidelines for Small Commercial Package Policy (CPP) The following outlines the general underwriting guidelines for the Small CPP: Customers should be in business for at least three years at the same location and must be financially secure. Discuss all new ventures with your Small Commercial Sales Manager or Underwriter. No more than two incurred losses in the last three years. Hard copy loss runs are required. If buildings are older than 25 years, proof of updates to roof, plumbing, heating, and electrical systems within the past 20 years is required Buildings must not be vacant, unoccupied, or under construction Avoid locations in Protection Classes 9 or 10 Fire/burglar protection requirements:» Central station burglar for Retail operations with values over $500,000» Central station fire/smoke or sprinklered for Manufacturers with values over $500,000 Burglar alarms will be required if products are made of high-theft target metals such as copper» Central station monitoring for all other operations with values over $500,000 Proper maintenance, including annual flow tests, is required for properties with sprinkler systems Ancillary operations from exposures not classified within this Guide must be less than 15% of annual revenues For businesses not described in this Appetite Guide, consult with your Small Commercial Sales Manager or Underwriter For Lessors Risk, please see page 18 for underwriting guidelines Wind Guidelines Wind guidelines vary by state. Avoid locations within one mile of the ocean, gulf, or bay. Consult your Small Commercial Sales Manager or Underwriter for specific coastal restrictions in your state. 17

20 Lessor s Risk Only General Underwriting Guidelines The following outlines the general underwriting guidelines* for Lessor s Risk Only for the BOP and Small Commercial Package Policy: The customer must have lease agreements with all tenants requiring insurance and be provided additional insured protection The customer must have written contracts with service contractors including snow removal (if located in a state with winter weather), construction, and maintenance. The contracts must require insurance and that the lessor be named as an Additional Insured. For BOP Lessor s Risk Only, all tenants must be BOP eligible (with the exception of Office Lessor s Risk Only) Occupancy rate should be 80% or higher Buildings for public assembly such as theaters, auditoriums, and convention or trade show halls or with incidental apartment occupancy are ineligible for BOP Lessor s Risk Please consult with your Small Commercial Sales Manager or Underwriter for incidental apartment exposures, unsprinklered buildings over seven stories, or buildings over 50,000 square feet If sprinklered, systems must be designed for the occupancy Shopping Center and Enclosed Mall Guidelines The following guidelines apply to Shopping Centers (strip and enclosed malls): Buildings must be built after 1985 No more than 20% of the tenant space should be vacant LRO supplemental application required, including annual updates of tenant lists No habitational exposures Must properly maintain parking lot surfaces and sidewalks The following tenant occupancies are permitted if they represent less than 20% of the total square footage of the Shopping Center: Auto service shops (e.g., quick lube, brake shops) Variety stores Liquor stores 18 * Limited appetite in LA,NY, OK, TX.

21 The following exposures are ineligible for Shopping Centers: Taverns/bars Cold storage facilities Tenants with 24-hour operations Tenants providing LPG tanks or refills Tenants conducting operations involving:» Electroplating» Heat treating» Chemical storage» Welding» Woodworking» Spray painting» Pharmaceutical storage BOP Condominiums Referral Guidelines: Building ConSTrUCTIOn WILL refer If Any of the FOLLOWIng APPLIES All Number of Units > 30 Frame Total Insured Values > $500,000 Joisted Masonry Total Insured Values > $750,000 Non-Combustible Masonry Non-Combustible Fire Resistive Total Insured Values > $1 million Total Insured Values > $1.5 million Total Insured Values > $2.5 million 19

22 20 Condominiums ElIGIBIlITy GUIDElINES

23 Appetite Targets habitational, commercial, and mixed-use condominium associations with up to $15 million in total property value per location. Eligibility Number of Units Frame/joisted masonry construction: Condominiums Up to 30 units per building Maximum of 10 buildings per location Masonry non-combustible/fire-resistive construction: Up to 100 units per building Maximum of 20 buildings per location Occupancy Requirement Must be at least 75% owner occupied Property & Structural Requirements All condominium units must have a second means of egress. If there are multiple buildings at any one location, please consult your Small Commercial Underwriter for clear space guidelines. Fire/smoke/heat detection devices must be hard-wired with local alarm in public areas. Battery or hard-wired fire/smoke/heat detection devices required in dwelling units. Full sprinkler system required if building exceeds six stories. The Association must have written contracts with service contractors including snow removal (if located in a state with winter weather), construction, and maintenance. The contracts must require insurance and that the Association be named as an Additional Insured. Ineligible Exposures Include: Vacant or unoccupied buildings Buildings under construction or renovation Buildings exceeding 10 stories Boat piers and docks Seasonal rentals Timesharing Assisted living residence Group homes Structures serving exclusively as recreational or auxiliary buildings Premises with underground storage tanks Condominium D&O Coverage Available for BOP residential or commercial condominiums only if developer is not a board member 21

24 Condominiums ElIGIBIlITy GUIDElINES (continued) Additional Underwriting Guidelines for Residential Condominiums Pools or recreation areas: Must be fenced No diving boards, slides, playgrounds, saunas, or steam rooms On-site supervision must be provided by: A full-time resident manager, An owner who resides on the premises, or A full-time property management company Additional Underwriting Guidelines for Commercial Condominiums Occupancy Requirement For BOP Condominiums, limited to occupants otherwise eligible for BOP (with the exception of Office-only occupants) For Small CPP condominiums, no enclosed malls or buildings used exclusively for warehousing/storage BOP General Liability Premium Audit Condominium Associations are not subject to premium audit. 22

25 Classifications CLASSIFICATIOn DESCrIPTIOn C Condo Association (Commercial) Garage Occupancy Condo Association (Commercial) Manufacturing Occupancy Condo Association (Commercial) Office Occupancy Including Contractors Condo Association (Commercial) Retail/Wholesale Occupancy Condo Association (Commercial) Service Occupancy Condo Association (Commercial) Shopping Center Eligible for straightthrough processing NAICS % Acceptable with underwriter referral D SIC BOP CPP COMM Auto Umb WC Ineligible Not available MOno WC CLASS Exp Basis C C C C C a C C C C C a C C C C C a C C C C C a C C C C C a C C C C C a PrOF Liab Condominiums Condo Association (Residential) 11 to 30 Units C C C C C u Condo Association (Residential) Over 30 Units C C C C C u Condo Association (Residential) Up to 10 Units C C C C C u Townhouse Association No Homeowner s Associations C C C C u 23

26 24 Contractors ElIGIBIlITy GUIDElINES

27 Appetite Targets skilled trade contractors, with total annual payrolls less than $250,000 (up to $1 million eligible) for BOP, servicing light commercial and residential customers. Eligibility* Subcontracting should be less than 25% of the Insured s operations (no general contractors) Exterior work must be three stories or less Contractors engaged in snow removal, as a supplemental revenue source, must limit removal to parking lots, sidewalks, and driveways only. Contractors whose sole revenue source is snow removal are ineligible. Contractors Types of ineligible operations or exposures, including rental or leasing of equipment to contractors engaged in the following: Transportation work (street, road, airport, railroad, shipping, etc.) Demolition and blasting Asbestos and lead work Work performed for industrial customers, hospitals, or amusement parks Excavation Cabinet/furniture making Furnace installation, servicing, or removal Security/fire alarm installation or servicing Swimming pool/hot tub installation Water/sewer installation or servicing Sub-Contracted Operations Requires Certificates of Insurance from subcontractors with limits equal to or greater than the Insured Must list the Insured on the subcontractor s insurance policy as an Additional Insured Subcontracted costs may be up to 25% of total annual revenues and the applicable class must be added to the policy Coverage Highlights See the Contractors property Broadening Endorsement for additional coverage for contractors tools and equipment, installation, and rental reimbursement. Marine Coverage Our Marine Specialists can meet your broadest coverage needs for Contractors Equipment, Builders Risk, and Installation. Additional Insured Available as optional coverage by endorsement subject to underwriting approval. A completed Additional Insured supplemental application may be required. BOP General Liability Premium Audit Contractors are subject to premium audit. * Currently not available in CA, NY. 25

28 Classifications C Eligible for straightthrough processing % Contractors Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Bricklaying & Tuckpointing Three stories or less. Cable Laying for Computer Networks No industrial work. Cable TV Installation No industrial work. Carpentry Contractors Residential Three stories or less. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C % p C C C C p C C C C p D C D D p PrOF Liab Carpet Laying & Removal C C C % p Chimney Construction & Maintenance Three stories or less. No chimney sweep. Communications Equip. Installation No security or alarm work. No industrial work. Concrete Contractors Includes construction of parking areas, building foundations, structures, & retaining walls using concrete & asphalt. No street, road, or highway work, & no ready-mix or mix in-transit operations. Door & Window Installation No overhead door installation. Drywall, Acoustical, & Insulation Contractors No asbestos work. Insulation must be incidental to drywall/acoustical work. Electrical Contractors No security or alarm work. No industrial work. Electronics (Consumer) Installation & Repair No security or alarm work. Fence Construction Contractors No guard rails. Fiber Optic Cable Installation No industrial work C C C D p C C C C p C % % % p % C % % p D C D D p C C C C p C C C C p C % C D p C C C C p Floor Laying Contractors C C C D p Fresco Contractors No exterior work D C D % p Furniture/Fixture (Office) Installation C C C D p General Contractors Refer General Contractors with account premium over $100,000 to Middle Market Underwriting. Glass & Glazing Contractors If auto glass repair, classify as Auto Glass Replacement Shops under Garage Program. Grading of Land Excludes drilling shafts, foundation digging/drilling, and all other excavation work. Gutter & Downspout Installation Three stories or less. Heating & A/C Contractors No sprinkler work. No industrial work % C % D s % % % D p % C % D p D C D D p Home Appliance Installation C C C % p 26 Home Theater Installation C C C % p

29 CLASSIFICATIOn DESCrIPTIOn Janitorial Services No residential cleaning. No transportation of workers. Light commercial work only. Landscaping Services 50% of employees must be full-time or year round. Residential snowplowing only (rated separately). No sprinkler work. < 10% tree work. No commercial spraying. Herbicide/pesticide coverage available from us. Lawn Care 50% of employees must be full-time or year round. Residential snowplowing only (rated separately). Contemplates maintenance of existing lawns. No sprinkler or tree work. No commercial spraying. Herbicide/pesticide coverage available from us. Lessor s Risk Only Non-Residential Bldgs. Occupants must be among eligible classes within the Contractor program. See page 18 for LRO referral guidelines. Lighting Installation No industrial work. Mantel Work No chimneys. Masonry & Stone Contractors Three stories or less. No chimneys. No quarry exposure. Painting Contractors Exterior Three stories or less. Property damage $250 deductible applies. Painting Contractors Interior Includes incidental exterior (< 25% of receipts). Property damage $250 deductible applies. Paving Driveway & Sidewalk No road, street, highway, or runway design. Plant Maintenance Interior 50% of employees must be full-time or year round. Plastering or Stucco No exterior work. Plumbing Contractors Commercial No sprinkler work. No industrial work. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % C % % p C % % D p C % % D p % C C C a C C C C p C C C D p C C C D p C C C D p C C C D p % % % % p C C C % p D C D D p D C D D p Plumbing Contractors Domestic D C D D p PrOF Liab Contractors Refrigeration System (Commercial) Installation & Repair % % % % p Sheet Metal Work Outside D C D D p Siding Installation Three stories or less. Sign Lettering Includes incidental exterior (< 25% of receipts). Solar Energy Installation & Repair Residential only D C D D p C C C D p % C C % p Sound Equip. Installation C C C % p Telephone Equip. Installation No industrial work C C C C p Tile, Marble, Terrazzo, & Mosaic Contractors C C C D p Wall Covering Contractors C C C D p 27

30 28 Garages ElIGIBIlITy GUIDElINES

31 Appetite Targets businesses providing replacement or servicing of automotive systems and general automotive repairs, with total annual receipts up to $15 million and up to $15 million in total property values per location. Eligibility Consult with your Small Commercial Sales Manager or Underwriter for garage operators with the following exposures (not eligible for BOP): Dealer plates Sale of used/new vehicles Tow trucks Garages The following exposures are ineligible: Auto body operations Painting operations Renting, leasing, or loaning of vehicles Parking garages 24-hour operations Oil-change-only operations Service bay or equipment and tool rental Gas stations or gas sales Remote warehousing not connected to a garage location Underground storage tanks Coverage Highlights See the BOP Garage Broadening Endorsement for additional coverage especially designed for garages, such as commercial tools and small equipment and contractual penalties. Garagekeepers Coverage Available on the BOP on a legal liability or direct primary basis. Available for Small CPP on a direct primary, direct excess, or legal liability basis. BOP General Liability Premium Audit Garage operators are not subject to premium audit. 29

32 Garages Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis PrOF Liab Auto Air Conditioning Repair % % C % % s Auto Brakes, Shocks, Struts, & Alignment Repair % % C % % s Auto Electrical Repair % % C % % s Auto Exhaust System Repair % % C % % s Auto Glass Replacement Shops % % C % % s Auto Repair General % % C % % s Auto Transmission Repair % % C % % s Auto Tune-Up & Emissions Testing % % C % % s Lessor s Risk Only Non-Residential Bldgs. See page 18 for LRO referral guidelines. For BOP Garage LRO, all occupants must otherwise be eligible for the BOP. Tire Dealers (Retail) 10,000 sq. foot warehouse limit. Private passenger & light truck tires only. Incidental used tires (< 10%). No recapping or vulcanizing % % C C % a % % % % % s 30

33 Garages 31

34 32 Manufacturers ElIGIBIlITy GUIDElINES

35 Appetite Targets metalworkers, beverage and food processors, and other miscellaneous light manufacturing businesses with up to $15 million in total annual receipts and up to $15 million in total property value per location. Eligibility Consult with your Small Commercial Sales Manager or Underwriter for manufacturers with the following exposures: Welding Spray painting Discontinued or recalled products Flammables on-premises: Must not exceed one 55-gallon drum Must be properly handled and stored Flammable storage Woodworking Manufacturers The following exposures are ineligible: Automotive, aircraft, aerospace, or other transportation-related product manufacturers Medical device/equipment products manufacturers Sports equipment products manufacturers Nuclear, petrochemical, or pharmaceutical products manufacturers Clean room exposures Electroplating Machinery manufacturers Remote warehousing not connected to a manufacturer s location Customers with railcar deliveries on-premises BOP Manufacturing Supplemental Application is available on TAP. Coverage Highlights Product recall coverage is automatically included for a limit of $25,000/$50,000 annual aggregate for manufacturers written on BOP. The Deluxe BOP Property Broadening Endorsement option features coverage for consequential loss to stock, contingent transit business income, and extra expense coverage, as well as worldwide property off-premises coverage valuable protection at an economical cost. Marine Coverage Contact our Marine Specialists for Ocean Cargo and other transit insurance coverage needs. BOP General Liability Premium Audit Manufacturers are subject to premium audit. 33

36 Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Manufacturers Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Automobile, Bus and Truck Parts Mfg. Not Operating Parts No critical parts. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % C C % s PrOF Liab Bakeries Commercial C C C C C s Bearing Mfg C C C % s Bottled Water Mfg C C % C % s Candy, Chocolate, & Confectionery Mfg C C C C C s Canned Fruits & Vegetables Mfg C C C % s Canned Specialties Mfg C C C C s Chewing Gum Mfg C C C % s Chocolate and Cocoa Products Mfg C C C % s Coffee & Tea Mfg % % C C C s Cookies and Cracker Mfg C C C C s Craft Brewers Refer to your Middle Market underwriter Creamery Butter Mfg C C C C s Cutlery & Flatware (Except Precious) Mfg C C C C C s Dried & Dehydrated Food Mfg. No baby food C C C C C s Dried Fruits and Vegetables Mfg C C C % s Dry, Condensed Dairy Products C C C C s Dry Pasta Mfg C C C C C s Fastener, Button, Needle, & Pin Mfg. No precious metals, or precious or semi-precious stones & gems C C C C C s Flavor Extracts and Syrups Mfg % % % % s Flour Mixes and Dough Preparation % % % % s Food Preparation Not Otherwise Classified % % % % s Frozen Bakery Products Mfg C C C C s Frozen Fruits and Vegetables Mfg C C C % s Furniture (Metal Household) Mfg. No children s furniture. Handbags & Purses (Women s) Mfg. Assembly of pre-molded pieces only. No plastic mfg C C C C C s C C C C % s Ice Cream and Frozen Desserts Mfg C C C C s 34

37 CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis PrOF Liab Kitchen Utensil, Pot, & Pan Mfg C C C C C s Lamp Shade Mfg C C C % s Leather Goods (Personal) Mfg. Not for women s handbags & purses. No tanning. Lessor s Risk Only Non-Residential Bldgs. See page 18 for LRO referral guidelines C C C C % s % % C C C a Light Bulb Mfg C C C C C s Lighting Fixture Mfg C C C C C s Luggage Mfg. Assembly of pre-molded pieces only. No plastic mfg. Machine Shops All products to customer specifications with customer sign-off. No industrial, automotive, aircraft/aerospace, or other transportation-critical operating parts. Metal Container (Light Gauge) Mfg. No aerosol cans C C C C % s % % C % D p C C C C C s Manufacturers Metal Foil Mfg % % C C D s Metal Goods Mfg. No hot rolling operations Metal Goods Mfg. Stamping Includes unfinished metal stampings & spinning unfinished metal products. Excludes crowns, cans, closures, coins, automotive, & aircraft/aerospace. Metal Pattern/Plate Work Mfg. Excludes boiler plates & electrical plates C C C % s % % C C D s % % C C % s Metal Springs (Light Gauge) Wire Good Mfg C C C C C s Metal Work Decorative or Artistic No staircases or structural work C C C C C s Milk Mfg C C C C s Nail or Spike Mfg % % C C % s Natural, Processed Cheese Mfg C C C C s Needles, Pins, or Tacks Mfg C C C % s Netting Made on Net Machines Mfg. of nets or netting made from purchased materials. Includes fishing nets, sports nets, & tennis nets. No safety nets. Nuts & Bolts Mfg. Turned Product & Screw No aircraft, aerospace, or transportation critical operating products % % C C % s C C C C C s Office Furniture (Except Wood) Mfg % % % % s Office Machinery Mfg. Not for computers & photocopiers % % C C % s Pen & Mechanical Pencil Mfg % % C C C s 35

38 Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Manufacturers Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Photographic Supplies Mfg. Sprinkler system required; no expanded plastics or lamination % C C % s Pickled Fruits and Vegetables Mfg C C C % s Exp Basis PrOF Liab Pipe and Pipe Fittings % % % % s Pipes or Tubes Mfg. Metal Limited appetite for copper materials; No pressurized products or transportation of hazardous materials end-use. Pipes or Tubes Mfg. Plastic Sprinkler system required; no expanded plastics, lamination, or fiberglass lay-up/spray-up Plastic or Rubber Goods Mfg. Household Sprinkler system required; no expanded plastics or lamination Plastic or Rubber Goods Mfg. Other Than Household Sprinkler system required; no expanded plastics or lamination Plumbing Fixture, Fitting, & Trim Mfg. No industrial, sprinkler, or boiler parts. Plumbing Fixtures Mfg. Sprinkler system required; no expanded plastics, lamination, or fiberglass lay-up/spray-up C C C % s % C C % s % C C % s % C C % s % % C C % s % C C % s Precision Turned Products % % % % s Sewing Machine (Household) Mfg. No industrial or commercial grade machines. Sheet Metal Work Mfg. No installation. Sign (Electric) Mfg. No installation C C C C % s % % C % % s % % C % C s Snack Foods Mfg % % % % s Stamp & Marking Device Mfg. Includes hand-operated stamps, embossing stamps, & stencils. Inks must be water-based C C C C C s Steel Wool or Wire Wool Mfg C C C % s Tool & Die Mfg % % C % C s Tool Mfg. Accessories Limited plating operations Tool Mfg. Hand Type, Not Powered Limited plating operations Watch, Clock, & Parts Mfg. Jeweler s block available through Marine Specialist Window & Door (Metal) Mfg. No automatic, revolving, overhead, or fire doors. No installation C C C % s C C C % s C C C C C s % % C % % s Wines or Brandy Mfg % % % D s Wire Cloth Mfg. No wire drawing. Wire Rope or Cable Mfg. Metal No wire drawing C C C % s C C C % s 36

39 Manufacturers 37

40 38 Offices ElIGIBIlITy GUIDElINES

41 Appetite Target professionals in the healthcare, legal, financial, and real estate fields as well as consultants, with up to $15 million in total annual receipts per location and up to $15 million in total property value per location. Home-based businesses are eligible as well. Coverage Highlights In addition to our Deluxe BOP Property Broadening Endorsement option, our extensive BOP offering includes specific options tailored for the Medical/Dental establishments, Lawyers, and Accounting professionals. There are also options for Hired & Non-Owned Auto Liability and Employee Benefits. What s more, for almost all Office classes of BOP, Employment Practices Liability is available for businesses with up to 25 employees with the ability to provide coverage for larger risks. (Not available in all states.) Professional Liability Coverage Miscellaneous Professional Liability is available on the BOP for specified Office classes. Professional Liability coverage must be placed elsewhere for healthcare, financial, architects/engineers, and, where specified in this Guide, other office professionals. Professional Liability limits should be equal to or greater than the Business Liability limit. Offices Professional Liability coverage must also be in place for legal professionals, architects and engineers, accountants, etc., available from Hanover Professional Portfolio located at BOP General Liability Premium Audit Office risks are not subject to premium audit. 39

42 Offices Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis ProF Liab Accounting & Bookkeeping Offices C C C C C a Actuarial Services Offices C C C C C a Acupuncturists Offices Must be state licensed or possess certification, as required C C C C C a Allergists Offices C C C C C a Architectural Services Offices No site work, construction, or project management % % C % C p Attorneys Offices C C C C C a Audiologists Offices C C C C C a Auditors Offices C C C C C a Auto Appraisers Offices C C C C C p Bank Holding Companies Offices C C C C C a Cardiologists Offices C C C C C a Certified Public Accountants (CPA) Offices C C C C C a Chiropractors Offices C C C C C a Commercial Artists Offices C C C C C a Consultants Offices Advertising Includes consultants advising on or developing broadcast, print, outdoor, Internet, direct mail, or other advertising media on behalf of clients. Consultants Offices Audio/Visual Includes consultants advising on integration of audio/visual equipment, i.e., defining requirements & scope, planning timetables, acting as a liaison. No installation. Professional Liability available from us. Consultants Offices Business/Management Includes consultants advising clients on matters relating to general management & strategy, e.g., investigating problems or opportunities, offering suggestions, & developing action plans. Excludes financial consulting & guarantee of future returns. Consultants Offices Communications/Media/ Public Relations Includes consultants advising clients on communications, media, or public relations, e.g., helping to build & maintain positive image & relationships with the press & public. Consultants Offices Compensation & Benefits Includes consultants who design & administer compensation & benefits programs for clients. Excludes payroll processing, financial consulting, guarantee of future returns, & actuarial analysis. BOP does not cover personal & advertising injury C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p 3 40

43 CLASSIFICATIOn DESCrIPTIOn Consultants Offices Educational Includes consultants advising individuals or institutions on education issues, e.g., the selection of educational programs based on a student s needs/talents, or the development of a new curriculum or program for a school. Excludes teaching, tutoring, & financial-loan consulting. Consultants Offices Event Planning Includes consultants involved in planning & coordinating events, e.g., contract negotiations, menu planning, audio/ visual coordination, & on-site event management. No cooking or catering. Consultants Offices Executive Coaching Includes consultants advising business executives by providing feedback & guidance on how to improve performance & effectiveness in the workplace. Excludes job placement. Consultants Offices Financial Includes consultants advising individuals or institutions on financial matters, e.g., investment decisions, financial structure, etc. Requires employee dishonesty exclusion. Consultants Offices Graphic Design Includes consultants advising clients on graphic design, e.g., branding & marketing materials. No painting, silk-screening, etc. Consultants Offices Health Care No home care. Includes consultants focusing on operational & clinical performance improvement of healthcare businesses & managed-care best practices. Consultants Offices Human Resources Includes consultants advising clients on human resource issues, e.g., recruiting, talent management, compensation, employee benefits, payroll management, etc. Excludes hiring, terminating, or performance reviews on behalf of clients. BOP does not cover personal & advertising injury. Consultants Offices Image Includes consultants advising individuals or businesses on their image or branding. Consultants Offices Market Research Includes opinion research firms and consultants advising clients on market research practices, e.g., demographic studies, market sizing, etc. Consultants Offices Procurement Includes consultants advising companies on purchasing strategies to achieve cost savings. Excludes contract negotiations or actual procurement on behalf of clients. Consultants Offices Project Management Includes consultants managing projects for businesses by creating project workplans, making recommendations on project methodology, identifying & coordinating resources, defining project requirements, reviewing deliverables, etc. No construction or special trade contracting management. If technology project management, please refer to Computer Consultants classification Consultants Offices Recruiting Includes consultants helping employer clients identify, assess, & recruit candidates for job openings. BOP does not cover personal & advertising injury. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p C C C C C p 3 ProF Liab Offices 41

44 Offices Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Consultants Offices Sales & Marketing Includes consultants advising clients on sales & marketing practices, e.g., investigating problems or opportunities, offering suggestions, & developing action plans. Consultants Offices Strategic Planning Includes consultants advising corporate clients on identifying & developing strategic goals & initiatives. No financial consulting or guarantee of future returns. Consultants Offices Training & Development Includes consultants advising clients on training methods, people development, & performance metrics. Decorating Consulting Services (Interior) Includes consultants advising on aesthetic improvements only as well as interior designers providing advice and designing interior space for healthcare, hospitality, and other commercial customers. Any installation exposure, classify WC as 9521 and consult with Underwriter. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C p C C C C C p C C C C C p C C C C C p 3 ProF Liab Dental Hygienists Offices C C C C C a Dentists Offices C C C C C a Dermatologists Offices C C C C C a Dieticians Offices C C C C C a Drafting Services Offices C C C C C p Ear, Nose, & Throat Offices C C C C C a Endocrinologists Offices C C C C C a Engineering Services Offices No site work, construction, or project management. Financial Planners Offices Requires employee dishonesty exclusion % % C % D p C C C C C a Gastroenterologists Offices C C C C C a General Practitioners Offices C C C C C a Geriatric Specialists Offices C C C C C a Graphic Design Services Offices C C C C C a Gynecologists Offices C C C C C a Health Practitioners Offices C C C C C a Hematologists Offices C C C C C a Holding Companies Offices Other Than Bank C C C C C a Insurance Adjusters Offices C C C C C a 3 Insurance Agencies & Brokerages C C C C C a 42

45 CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis ProF Liab Internists Offices C C C C C a Landscape Architectural Offices Includes garden planning, golf course & landscape design C C C C C a Lawyers Offices C C C C C a Lessor s Risk Only Non-Residential Bldgs. See page 18 for LRO referral guidelines. For BOP, mixed office/retail occupants Retail operations must be less than 25% of total area. Mortgage Brokers Offices Requires employee dishonesty exclusion % % C C C a C C C C C a Nephrologists Offices C C C C C a Neurologists Offices C C C C C a Notaries Offices C C C C C a 3 Obstetricians Offices C C C C C a Occupational Therapists Offices C C C C C a Oncologists Offices No chemotherapy or radiation treatments on-premises C C C C C a Offices Ophthalmologists Offices C C C C C a Oral Surgeons Offices C C C C C a Orthodontists Offices C C C C C a Orthopedic Surgeons Offices C C C C C a Osteopaths Offices C C C C C a Pediatricians Offices C C C C C a Physical Therapists Offices C C C C C a Physicians Offices C C C C C a Podiatrists Offices C C C C C a Primary Care Physicians Offices C C C C C a Professional/Trade Organizations, for Profit, With or Without Owned/Leased Premises No labor unions. Professional/Trade Organizations, Not for Profit, With or Without Owned/Leased Premises No labor unions C C C C e C C C C e Psychiatrists Offices C C C C C a Psychologists Offices C C C C C a 43

46 Offices Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis ProF Liab Pulmonologists Offices C C C C C a Real Estate Agents & Brokers Offices C C C C C p 3 Real Estate Appraisers Offices C C C C C p 3 Speech Therapists Offices C C C C C a Stockbrokers Offices Requires employee dishonesty exclusion C C C C C a Surgeons Offices C C C C C a Surveying/Mapping Services Offices % % C % D p Tax Preparation Services Offices C C C C C a 3 Telemarketing Offices No fax blasting or spamming C C C C C a 3 Ticket Agencies C C C C C a 3 Title Abstract & Settlement Offices C C C C C a 3 Travel Agencies Excludes tours C C C C C a 3 Urologists Offices C C C C C a 44

47 Offices 45

48 46 Professionals ElIGIBIlITy GUIDElINES

49 Appetite Targeting businesses providing beauty services, funeral services, and pet-related services, with total annual receipts up to $15 million and up to $15 million in total property value per location. Eligibility All professionals must have a license or certification in good standing, where required All operations performed must be permitted by state regulations For home-based operations, please consult with your Small Commercial Sales Manager or Underwriter Coverage Highlights In addition to our Deluxe BOP Property Broadening Endorsement option, our extensive BOP offering includes specific options tailored for Veterinary and Pet-related establishments. There are also options for Hired & Non-Owned Auto Liability and Employee Benefits. What s more, for almost all Professional classes of BOP, Employment Practices Liability is optional for businesses with up to 25 employees with the ability to provide coverage for larger risks. (Not available in all states.) Professional Liability Coverage Professional Liability Coverage is required to be placed for specified Professional classes in this Guide and is available on the BOP as noted. Professional Liability limits should be equal to or greater than the Business Liability limit. Professionals BOP General Liability Premium Audit Professionals are not subject to premium audit. 47

50 Classifications C Eligible for straightthrough processing % Professionals Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Barber Shops Requires Prof. Liability coverage. No tanning, electrolysis, body piercing, tattooing, massage service, or schools. Beauty Salons Requires Prof. Liability coverage. No tanning, electrolysis, body piercing, tattooing, massage, or medi-spa services. For schools, see Training Schools Cosmetology. Eyeglass Stores Prof. Liability coverage automatically included for preparation, fitting, demonstration, or distribution of ophthalmic lenses. Does not include practice of optometry, prescription of any drugs, or performance of surgery. No packaging or repackaging of products under the insured s label. Funeral Homes Includes incidental cemeteries & crematories. Requires Prof. Liability coverage. Hair Salons Requires Prof Liability coverage. No tanning, electrolysis, body piercing, tattooing, massage, or medi-spa services. For schools, see Training Schools Cosmetology. Hearing Aid Stores Prof. Liability coverage automatically included for preparation, fitting, demonstration, or distribution of hearing aid devices. No manufacturing, packaging, or repackaging of any product with the insured s label. Kennels (Boarding) Requires Prof. Liability coverage. No stables. No guard/ attack dogs. Nail Salons Requires Prof. Liability coverage. No medi-spas. No tanning, electrolysis, body piercing, tattooing, massage, or other services not covered by professional liability coverage. For schools, see Training Schools Cosmetology. Optical Goods Stores Prof. Liability coverage automatically included for preparation, fitting, demonstration, or distribution of ophthalmic lenses. Does not include practice of optometry. Pet Daycare Requires Prof. Liability coverage. No stables. No guard/ attack dogs. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s C C C C C s C C C C C s C C C C D s C C C C C s C C C C C s C C C C C u C C C C C s C C C C C s C C C C C u 3 Pet Grooming C C C C C s 3 ProF Liab Pet Motels/Hotels Requires Prof. Liability coverage. No stables. No guard/ attack dogs. Pet Training Requires Prof. Liability coverage. No guard/attack dogs. Veterinary Services Requires Prof. Liability coverage. Domestic animals only. Specialists in pedigreed bulls or race animals or zoo veterinarians are ineligible. No animal shelters or animal research labs C C C C C u C C C C C s C C C C C p 3 48

51 Professionals 49

52 50 Retail ElIGIBIlITy GUIDElINES

53 Appetite Targeting brick-and-mortar operations as well as risks selling goods via the Internet, with annual receipts up to $15 million per location and up to $15 million in total property value per location. Eligibility Less than 25% of total annual receipts from off-premises operations (installation, service, and repair). Revenue from transactional website operations must be less than 75% of overall revenues. The following exposures are ineligible: Products directly imported by the Insured Products that qualify as sell/resell, salvage, reclaim, liquidated, or used/secondhand Repackaging or proprietary products Remote warehousing not connected to retail location BOP Enclosed malls (Lessor s Risk Only) 24-hour operations Tavern/bar Gas pumps Check cashing Tobacco shops Sale of ammunition or firearms, antiques, or sporting goods Car dealerships Self-storage Coverage Highlights Our extensive BOP offering includes Deluxe or Bronze BOP Property Broadening Endorsement options, which feature increased limits for personal property in-transit, broad form water damage, and much more. Broad liability coverage automatically includes medical expenses and fire damage legal liability with options to increase limits. For all Retail classes, Employment Practices Liability* is optional for businesses with up to 25 employees with the ability to provide coverage for larger risks. For any business with over 25 employees, a stand-alone Employment Practices Liability Insurance policy is available from Hanover Professional Portfolio located at Retail BOP General Liability Premium Audit Retailers with $10 million or more in annual receipts are subject to premium audit. * Not available in all states. 51

54 Retail Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis prof LIAB Appliance (Household) Stores C C C C C s Art & Craft Supply Stores C C C C C s Art, Picture, & Poster Stores C C C C C s Athletic Footwear Stores C C C C C s Auto Parts & Accessories Stores Incidental brake drum machining (< 10%). No used or rebuilt parts. Bakeries Baking on Premises No delivery. Bakeries No Baking on Premises No delivery C C % % % s C C C C C s C C C C C s Balloon Shops C C C C C s Bath, Chinaware, & Glassware Shops C C C C C s Bedding Stores C C C C C s Beverage Stores Beer & Wine Requires Liquor Liability Coverage from us. No delivery. Beverage Stores Soft Drinks Location must be fixed. No seasonal operations. Not for immediate consumption or made on-premises. Book & Magazine Stores For Profit No used or antique. No adult bookstores. Specialized coverage available for antique & rare book collections from Hanover Inland Marine. Bottled Water Stores Location must be fixed. No seasonal operations. Not for immediate consumption or made on-premises C C C C % s C C C C C s C C C C C s C C C C C s Bridal Shops C C C C C s Butcher Shops % % C C C s Camera & Photo Equip. Stores Central station alarm required. Equip. display must be locked C C C C C s Candle Shops C C C C C s Candy & Confectionery Stores If manufacturing on-premises, classify as Candy, Chocolate, & Confectionery Mfg. under Manufacturing Program. Cell Phone Stores Central station alarm required. Cheese Shops Location must be fixed. Not for immediate consumption or made on-premises. China, Ceramic, & Pottery Stores Kilns must have automatic shut-off switch C C C C C s % % C C C s C C C C C s C C C C C s 52

55 CLASSIFICATIOn DESCrIPTIOn Christmas Stores 15,000 sq. foot limit. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s prof LIAB Church Supply Stores C C C C C s Clock Stores Central station alarm required. Clothing Accessories Stores Central station alarm required. Clothing Stores Children & Infants Central station alarm required. Clothing Stores Family Central station alarm required. Clothing Stores Men s Central station alarm required. Clothing Stores Other No Furs. Refer to Marine Specialist for furriers block & furriers customers. Central station alarm required. Clothing Stores Women s No Furs. Refer to Marine Specialist for furriers block & furriers customers. Central station alarm required. Coffee & Tea Stores Location must be fixed. Not for immediate consumption or made on-premises. Collectibles: New Merchandise Only Central station alarm required. Refer higher valued collections to Marine Specialist. Computer Equip. & Software Stores Laptop display must be locked. Central station alarm required. No software development. Convenience Stores No Gas No 24-hour operations. No gas pumps or gas sales. No LPG filling. Convenience Stores With Gas To rate for gasoline, add Gasoline Service Station as a secondary classification. No 24-hour operations. No towing operations. No LPG filling. (NAICS /Class 85237) C C C C C s C C C C C s % % C % C s % % C % C s C C C C C s % % C C C s C C C C C s C C C C C s C C C C C s C C C C C s % % C % D s % % C % D s Retail Cookie Shops C C C C C s Cosmetic, Beauty Supplies, & Perfume Stores No spa services C C C C C s Cutlery & Flatware Stores C C C C C s Dairy, Eggs, & Ice Cream Stores Location must be fixed. No seasonal operations. Not for immediate consumption or made on-premises. Dance & Figure Skating Apparel Stores No sports equipment or protective equipment. Delicatessens If there is on-premises consumption, classify as Pizza Parlors & Delis under Service Program. Department Stores 15,000 sq. foot limit C C C C C s C C C C C s % % C C C s C C C C C s 53

56 Retail Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis prof LIAB Drapery Stores C C C C C s Drug Stores Requires Prof. Liability coverage from another carrier. DVD & Video Stores Central station alarm required. No adult video. Electronics (Consumer) Stores If computers, classify as Computer Equip. & Software Stores. Central station alarm required. No installation. Fabric Stores No warehouse storage of bolt fabrics. Fish & Seafood Markets Location must be fixed. Shops located on docks, piers, or wharves ineligible % % C % C s C C C C C s % % C C C s C C C C C s % % C % C s Flag & Banner Shops C C C C C s Floor Covering Stores Oriental & Persian rugs ineligible. See Marine Specialist for Rug Dealers coverage. We are not a market for Workers Comp. if there is an installation exposure. Florists with Greenhouses No plastic construction for greenhouses C C C C % s C C % % % s Florists without Greenhouses C C % % % s Flower (Artificial) Stores C C C C C s Food Stores Miscellaneous C C C C s Framing Shops C C C C C s Fruit & Vegetable Markets Location must be fixed. Farmers markets & farm stands ineligible. No delivery. Furniture (Outdoor) Stores 15,000-sq.-foot limit. No antique stores. No refinishing or reupholstering. Furniture Stores 15,000-sq.-foot limit. No antique stores. No refinishing or reupholstering. General Merchandise Stores 15,000-sq.-foot limit. Includes general stores & variety stores; no dollar stores C C C C C s % % % % % s % % % % % s % % C C C s Gift, Greeting Card, Novelty, & Souvenir Stores C C C C C s Gourmet Food Stores Location must be fixed. No seasonal operations. Not for immediate consumption or made on-premises. Grocery Stores 15,000-sq.-foot limit. No 24-hour stores. No gas pumps or gas sales C C C C C s % % C C C s 54

57 CLASSIFICATIOn DESCrIPTIOn Hardware Stores CPP if > 25% of receipts from lumber sales, or if > 25% of receipts from power equip. repair including, but not limited to, chainsaws, lawnmowers, snowblowers. No liquid propane refill. No rentals. See Marine Specialist for Equipment Dealer & Rental coverage. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % % C C C s prof LIAB Hat Stores C C C C C s Health & Personal Care Stores No nutritional supplements. No service. Health Food Supplement Stores Includes vitamins, nutrition, & body-enhancing supplements. No proprietary products % % C C C s D D C D C s Hobby Supply Stores % % C % C s Home Furnishings Stores If > 10% of receipts from furniture sales, classify as Furniture Stores. Jewelry Stores Central station alarm required and Jewelers block required. Jewelers block available through Marine Specialist C C C C C s C C C C C s Kitchen Accessories Stores C C C C C s Knives & Scissors Stores C C C C C s Lamps & Lighting Fixtures Stores C C C C C s Lawn & Garden Equip. Stores CPP if > 25% of receipts from power equip. repair including, but not limited to, chainsaws, lawnmowers, snowblowers. No rentals. See Marine Specialist for Equipment Dealer & Rental coverage. Leather Goods Stores Central station alarm required. Lessor s Risk Only Non-Residential Bldgs. See page 18 for LRO referral guidelines % % C % C s C C C C C s % % C C C a Retail Lingerie Stores C C C C C s Liquor Stores No delivery; Requires liquor liability coverage from us C C C C % s Luggage Stores C C C C C s Maternity Shops C C C C C s Meat & Poultry Markets % % C C C s Music & CD Stores Central station alarm required. Musical Instruments & Supplies Stores Central station alarm required. Refer to Marine Specialist for Musical Instruments Dealers coverage for higher valued collections C C C C C s C C C C C s 55

58 Retail Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Newspaper & Magazine Shops No delivery or newsstands. Nursery & Garden Centers No commercial spraying operations. No landscaping or selling of building materials. Nuts Shops If manufacturing on-premises, classify as Candy, Chocolate, & Confectionery Mfg. under Manufacturing Program. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s % % C % % s C C C C C s prof LIAB Office Supplies & Stationery Stores C C C C C s Paint & Wallpaper Stores C C C C C s Party Goods Stores C C C C C s Pet & Pet Supplies Stores C C C C C s Piano & Organ Stores Central station alarm required. Available for high-value Musical Instrument Dealers through Marine Specialist C C C C C s Piece Goods, Sewing, & Needlework Stores C C C C C s Popcorn Shops If manufacturing on-premises, classify as Candy, Chocolate, & Confectionery Mfg. under Manufacturing Program C C C C C s Pretzel Shops C C C C C s School Supplies Stores C C C C C s Scrapbooking Stores C C C C C s Sewing Machine Stores C C C C C s Shoe Stores C C C C C s Shopping Centers Full-Cooking Restaurants Between 20% & 40% of Total Area Please refer to Shopping Center guidelines on page 18. Shopping Centers Full-Cooking Restaurants Up to 20% of Total Area Please refer to Shopping Center guidelines on page 18. Shopping Centers No Full-Cooking Restaurants Please refer to Shopping Center guidelines on page 18. Specialty Food Stores Location must be fixed. No seasonal operations. Not for immediate consumption or made on-premises. Spice Shops Location must be fixed. No seasonal operations. Not for immediate consumption or made on-premises. Sports Apparel & Accessories Stores No sports equipment or protective equipment % % C C C a % % C C C a % % C C C a C C C C C s C C C C C s C C C C C s 56

59 CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis prof LIAB Sunglass Stores C C C C C s Tie Shops C C C C C s Trophy Stores C C C C C s T-Shirt Stores C C C C C s Uniform Stores Includes professional, service, military, school, sports, & club uniforms. No protective or industrial garments C C C C C s Vacuum Cleaner Sales & Service C C C C C s Video Game Stores Central station alarm required. Watch Stores Central station alarm required and Jewelers block required. Jewelers block available through Marine Specialist C C C C C s C C C C C s Wig & Toupee Stores C C C C C s Window Treatment Stores C C C C C s Yarn Stores C C C C C s Retail 57

60 58 Services ElIGIBIlITy GUIDElINES

61 Appetite Targets business-to-business service providers, food and hospitality service providers, vocational services, and other specified service establishments with total annual receipts up to $15 million per location and up to $15 million in total property value per location. Eligibility Subcontracting is limited to 25% of total annual receipts Products that qualify as sell/resell, salvage, reclaim, liquidated, or used/second hand are ineligible Remote warehousing not connected to service location ineligible Dry Cleaning and Printing Operations must use and dispose of cleaning fluids, inks, press wash, and other solvents strictly in accordance with local, state, and federal regulations and requirements Coverage Highlights Our extensive BOP offering includes Deluxe and Bronze BOP Property Broadening Endorsement options, which feature consequential loss to stock, broad form water damage, tenant signs, and much more. Broad liability coverage automatically includes medical expenses and fire damage legal liability with options to increase limits. For all BOP Service classes, Employment Practices Liability is available for businesses with up to 25 employees with the ability to provide coverage for larger risks (not available in all states). Optional coverage for Spoilage, Employee Benefits Liability, and more is available. Professional Liability Coverage Miscellaneous Professional Liability coverage is available on the BOP and CPP for specified Service classes. A supplemental application is available from your underwriter. Printers E&O coverage available on BOP if operations do not include: Services Phone directories Financial statements Lottery tickets or other material with intrinsic value Currency, stock certificates, traveler s checks, stamps, or securities Publishing Professional liability is required to be placed elsewhere for Publisher classes. BOP General Liability Premium Audit Service providers are not subject to premium audit. 59

62 Services Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Advertising Services Indoor Personal & advertising injury exclusion. Advertising Services Outdoor Personal & advertising injury exclusion. Answering Service Professional Liability available from us. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C a C C C C D p C C C C C a 3 prof LIAB Appliance (Household) Repair & Maintenance C C C C C p Arboreta & Botanical Gardens % % % % u Art Galleries Not For Profit Art Galleries Other Than Not For Profit Bagel Shops Limited cooking only. No table service. No delivery / / % % % % s 8412 % % % % s C C C C C s Bed and Breakfast Inns % % % % s Bookbinding For Profit C C C C C s Building Inspection Services C C C C p 3 Burrito/Taco Shops Independent, family-owned businesses only. No franchises. No table service. No delivery. Carpet & Upholstery Cleaning Services No Oriental or Persian rugs. Caterers Requires Liquor Liability Coverage from us. Clubs Civil, Social, and Fraternal Target market: alumni clubs, business persons clubs, university clubs or social/community membership other than for amusement or recreation. Coffee Bars or Cafes No table service. Communication Equipment Repair & Maintenance Includes photocopiers, computer terminals, & printers. No software development C C C C C s % % C C % p % % % % s % % % % a C C C C C s C C C C C p Copy Shops C C C C C s 3 Court Reporting and Stenotype Services C C C C a Dental Laboratories C C C % % s Document Preparation Services C C C C a Doughnut Shops Independent, family-owned businesses only. No franchises. Limited cooking only. No table service. No delivery. Dry Cleaning & Laundry Pickup Stores Contemplates drop-off/pick-up only; no cleaning on premises. Bailee Customers coverage available through Marine Specialist for higher limits on customers goods C C C C C s % % C C % s 60

63 CLASSIFICATIOn DESCrIPTIOn Dry Cleaning & Laundry Services No dry cleaning plants. No linen supply operations. Solvent must be DF2000 or the like. Must be stored and disposed of in accordance with applicable regulations. Bailee Customers coverage available through Marine Specialist for higher limits on customers goods. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % % C C % s prof LIAB Film Processing C C C C C s Formal Wear & Costume Rental C C C C C s Frozen Yogurt Shops No table service. Gasoline Station Self Service No 24-hour operations; No towing operations; No LPG filling. Hotels & Motels < 4 Stories No Pools or Beaches Liquor receipts must be < 30% of restaurant sales & requires Liquor Liability coverage from us. Restaurant rated separately. No passenger livery. Hotels & Motels < 4 Stories with Pools or Beaches Liquor receipts must be < 30% of restaurant sales & requires Liquor Liability coverage from us. Restaurant rated separately. No diving boards or slides. No passenger livery. Ice Cream Shops No table service C C C C C s % % C % D Gallons % % % D s % % % D s C C C C C s Ink Cartridge Refill Shops C C C C C p Juice Bars No table service C C C C C s Key Cutting C C C C C s Laundries & Dry Cleaners (Coin-Operated) Unattended ineligible. Lessor s Risk Only Non-Residential Bldgs. See Page 18 for LRO Referral Guidelines. Libraries Specialized coverage available for high-valued collections from Inland Marine. Locksmiths No security or alarm work % % C C C s % % C C C a C C C C C a C C C C C s Services Medical Laboratories D D C D C s Museums Not For Profit Museums Other Than Not For Profit Musical Instrument Tuning & Repair No antiques. Contemplates repairs of musical instruments primarily on-premises and with no off-premises piano tuning / / % % % % s 8412 % % % % s C C C C C p 61

64 Services Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Office Administrative Services Temporary employment agencies ineligible. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C a prof LIAB Office Equip. (Precision) Repair & Maintenance C C C C C p Office Equip. Rental & Leasing % % C % % s Packaging Services Includes packaging client-owned materials, & labeling/ imprinting packages. Excludes packing & crating for transportation. Includes mailing service other than U.S. Post Office. Refer to Marine Specialist for transit & warehousing exposures C C C C C s Photo Engraving % % C C C s 3 Photo Studios Portrait C C C C C s 3 Photofinishing Except one-hour labs % % C C C s Photofinishing One-Hour C C C C C s Photography (Commercial) C C C C C s 3 Piano Tuning C C C C C p Pizza Parlors & Delis No delivery. Printing Books Any publishing operation, classify as Publishers % % % % % s % % C C % s 3 Printing Business Forms % % C C C s 3 Printing Commercial Inks must be water-based. Security printing ineligible. Any publishing operation, classify as Publishers. Printing Commercial Flexographic Water-based ink only. Printing Commercial Gravure Water-based ink only. Printing Commercial Silk Screen Water-based ink only. Printing Digital Any publishing operation, classify as Publishers % % C C % s C C C % s C C C % s C C C % s C C C C C s 3 Printing Lithography % % C C % s 3 Printing Prepress Services % % C C % s 3 Printing Quick Printing C C C C C s 3 Printing Support Activities C C C C % s 3 Publishers Book Requires E&O Coverage from another carrier. Publishers Greeting Cards Requires E&O Coverage from another carrier % % C % % s C C C C C s 3 62

65 CLASSIFICATIOn DESCrIPTIOn Publishers Magazine Requires E&O Coverage from another carrier. Publishers Newspaper Requires E&O Coverage from another carrier. Publishers Software Requires E&O Coverage from another carrier. Radio Broadcasting Stations No antennas or towers. Refer to Marine Specialist for Antennas & Tower coverage. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % % C % C s % % C % C s % % C % C s % % % % % p Recording Studios C C C C a 3 prof LIAB Refreshment Stands Includes snack & non-alcoholic beverage bars. No table service. Restaurants Alcohol < 30%, with Seating, No Table Service Requires Liquor Liability coverage from us. No delivery. No 24-hour operations. Restaurants Alcohol < 30%, with Table Service Requires Liquor Liability coverage from us. No delivery. No 24-hour operations. Restaurants No Alcohol, No Seating No delivery. No 24-hour operations. Restaurants No Alcohol, with Table Service No delivery. No 24-hour operations. Restaurants Operated by Concessionaires (For Profit) No alcohol. No delivery. No 24-hour operations Restaurants Operated by Concessionaires (Non-Profit) No alcohol. No delivery. No 24-hour operations. Sandwich Shops Limited cooking only. No table service. No delivery C C C C C s % C % % s % C % % s % C % % s % C % % s % C % C s % C % C s C C C C C s Shoe & Leather Goods Repair C C C C C s Services Smoothie Bars No table service. Tailors & Seamstresses Contemplates modification of garments made by others C C C C C s C C C C C s Taxidermists % % C C D s Training Cosmetology Professional Liability coverage required elsewhere C C C % e Training Professional & Mgmt. Development % % C % C a 3 Training Secretarial % % C % C a Translation and Interpretation Services % % % % a 3 Video & DVD Rental No adult video C C C C C s 63

66 Services Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC Videographers C C C C C s 3 MOno WC CLASS Exp Basis prof LIAB Window Treatment Installation Includes blinds, curtains, or drapes C C C C D s 64

67 Services 65

68 66 Technology ElIGIBIlITy GUIDElINES

69 Appetite Targeting businesses providing Information Technology Services, Electronics Manufacturers, and Telecommunication Services with total annual receipts up to $15 million and up to $15 million in total property value per location. Eligibility* The following exposures are ineligible: Risks involved in aerospace, automotive, chemical, energy production, engineering (CAD/CAM), healthcare, medical, mining, navigation, pharmaceutical, pollution detection, control or remediation, utilities, waste management, waste treatment, or weapons systems Risks involved with freeware, file sharing or distribution, intellectual property licensing, social networking, gambling or other vice related, content aggregation/distribution, online gaming, mass development/distribution Cell phone manufacturers or distributors or risks involved with manufacturing cell phone components, other than keyboards and displays Manufacturers of batteries or back-up power supply systems In addition, the three exposures below are also ineligible for E&O Development of network security products Development of financial software with end uses for funds transfer, financial trading, or financial modeling Managed Network Security or development of network security Coverage Highlights BOP includes 38 proprietary classes for technology business and features many coverage enhancements, such as: Tech Broadening Endorsement Deluxe and Deluxe Gold (over 30 enhancements) Tech & Telecom Professional Services Endorsements Modifies the professional services exclusion found on the BOP GL Enhanced Website & Internet Coverage Extends Personal and Advertising Injury coverage to the Insured s website Worldwide Liability Endorsement Broadens coverage territory to include claims brought outside the U.S. BOP General Liability Premium Audit Technology Services and Electronics Manufacturers, Contractors, Retail and Wholesaler classes are subject to premium audit. Technology Technology Errors and Omissions Coverage Highlights Full on-line rating and submission capability through POS Affordable minimum premiums starting as low as $600 Broad definition of Covered Technology Services Coverage includes breach of warranties and representations Includes coverage for independent contractors and clients Contact your underwriter if you need broader technology E&O coverages including network security, privacy, and intellectual property * Not available in AR, LA, or FL. 67

70 Technology Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available Electronics Manufacturing CLASSIFICATIOn DESCrIPTIOn Analytical Laboratory Instrument Mfg. No products for medical monitoring or analysis. Manufacturing Program Audio & Video Equipment Mfg. Central station alarm required. Products not to include alarm or security systems. Manufacturing Program Cable TV Equipment Mfg. No installation, service or repair. Manufacturing Program Camera & Photo Equip. (Except Lenses) Mfg. Refer to Optical Instrument Mfg. if Mfg. Lenses. Manufacturing Program Computer Equipment & Software Wholesalers Central station alarm required. Not to include direct sales to end users. Refer to Computer Stores class. Wholesalers Program Computer Mfg. Includes PC s, laptops, workstations, & servers. No mainframes. Manufacturing Program Computer Peripheral Equipment Mfg. No Automated Teller Machines (ATM), Biometric Systems Input Devices, Funds Transfer Devices, or Lottery Terminals. Manufacturing Program Computer Storage Device Mfg. Central station alarm required. Inventory secured, preferably in locked cages. Manufacturing Program Computer Terminal Mfg. Central station alarm required. Manufacturing Program Electronic Component Mfg. Central station alarm required. No control panel manufacturers. Manufacturing Program Electronic Parts & Equipment Wholesalers Includes blank video tapes/cds/dvds, & broadcasting or communications equip. Central station alarm required. No installation. If online sales to end user (direct to consumer), see Retail section. Wholesalers Program Home Entertainment Equipment Mfg. Central station alarm required. Manufacturing Program Measuring and/or Controlling Device Mfg. Not for products with end uses involved in industrial process control or factory automation. Manufacturing Program Optical Instruments & Lens Mfg. No medical, aircraft, aerospace, or satellite products. Manufacturing Program NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % % C % C s % % C C C s % % C C C s % % C C C s % % C C C s % % C C C s % % C C C s % % C C C s % % C C C s % % C % C s % % C C C s % % C C C s % % C % C s % % C C C s 3 prof LIAB 68

71 CLASSIFICATIOn DESCrIPTIOn Printed Circuit Assembly No wet PCB processes including etching and plating or dip tanks. PCB assembly only or commonly referred to as Board Stuffing. Manufacturing Program Radio/TV Broadcasting, & Wireless Communication Equipment Mfg. No navigational, search, or guidance control equip. No towers, antenna, satellite, or alarm equip. No installation. Manufacturing Program Semiconductor Design No Mfg. No onsite manufacturing operations. Design work only with manufacturing of chips being handled by insured customer or contract manufacturer. Services Program Sound Equip. Mfg. Central station alarm. Products not to include alarm or security systems. Manufacturing Program Telephone Apparatus Mfg. No cell phones or cordless phones. Manufacturing Program NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % % C C C s % % C C C s % % C % C s % % C C C s % % C C C s 3 prof LIAB Information Technology CLASSIFICATIOn DESCrIPTIOn Computer Consultants If programming, see Custom Computer Programming. Services Program Computer Facilities Management Services Program Computer Related Services Low Hazard This is designed to pull the lower E&O rates for risks that provide eligible IT services that could fit multiple IT classes. This class code is ideal when the concentration of those services has a greater representation of IT classes that present a low exposure (computer repair & maintenance, computer training, software research & development, and information technology staffing). Services Program Computer Related Services Medium Hazard This is designed to pull the medium E&O rates for risks that provide eligible IT services that could fit multiple IT classes. This class code is ideal when the concentration of those services has a greater representation of IT classes that present a moderate or medium exposure (packaged software, website design, Internet service providers, data processing, and web search portals). Services Program NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s C C C C C s C C C C C s C C C C C s 3 prof LIAB Technology 69

72 Technology Classifications CLASSIFICATIOn DESCrIPTIOn Computer Related Services High Hazard This is designed to pull the higher E&O rates for risks that provide eligible IT services that could fit multiple IT classes. This class code is ideal when the concentration of those services has a greater representation of IT classes that present a higher exposure (custom computer programming, Computer Consulting, Systems Integration). Services Program Computer Repair & Maintenance Services Program Computer Systems Integrators Includes consulting on types of hardware and software, value added reselling, and integration. Services Program Computer Training Services Program C Eligible for straightthrough processing NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s C C C C C s C C C C C s C C C C C s 3 Custom Computer Programming C C C C C s 3 Data Processing Services, Hosting & Related Svcs. No software development or programming. No Internet service providers. No risks that specialize in servicing the financial services or healthcare industries. Services Program Information Technology Staffing Must be entirely IT staffing only. No other staffing services even if incidental. Services Program % Acceptable with underwriter referral D Ineligible Not available C C C C C s C C C C C s 3 Packaged Software Development C C C C C s 3 prof LIAB Software Research & Development No risks with actual sales of products or services. Services Program Web Search Portals No social networking or media sites. Services Program Website Design Services Program % % C % C p C C C C C s C C C C C s 3 70

73 Telecommunications CLASSIFICATIOn DESCrIPTIOn Internet Service Providers No social networking or media sites. Consult your underwriter if any owned towers. Services Program Other Communication Services Not for companies involved in building telecom infrastructure, trenching, or utilities. Services Program Telecommunications Service Provider Rebillers & Resellers only Rebillers and Resellers only. Not intended for companies that own the telecommunications facilities or equipment. No companies involved in building telecom infrastructure, trenching, or utilities. Services Program Telecommunications Service Provider Wired Not for companies involved in building telecom infrastructure, trenching, or utilities. Services Program NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis % % C C C s % % C % C s C C C C C s 3 prof LIAB % % C % C s 3 Technology 71

74 72 Wholesalers ElIGIBIlITy GUIDElINES

75 Appetite Targets distributors of durable goods supplied by domestic-based subsidiaries of foreign suppliers, with up to $15 million in total annual receipts per location and up to $15 million in total property value per location. Manufacturers representatives, home-based risks, and risks selling goods via the Internet are also eligible. Eligibility Less than 25% of total annual receipts from off-premises operations (installation, service, and repair). Please consult with your Small Commercial Sales Manager or Underwriter for rack storage exposures. Sprinkler systems are desired and must be designed for the occupancy. The following exposures are ineligible: Products directly imported by the Insured Products that qualify as sell/resell, salvage, reclaim, liquidated, or used/secondhand Repackaging or proprietary products Remote warehousing not connected to wholesale location Distributors of the following:» Tobacco products» Guns or ammunition» Antiques» Oriental/Persian rugs» Medical/Pharmaceutical products» Coins, stamps, or rare books» Fruits or vegetables, fresh or frozen» Meat, fish, or poultry, fresh or frozen» Sports equipment Limited Workers Compensation appetite if there is a delivery exposure. BOP Wholesale supplemental application is available on TAP. Coverage Highlights Our extensive BOP offering includes a Distributor Pac Plus Endorsement, which features business income & extra expense coverage from dependent properties, coverage for forklifts, transit business income, and more! Broad liability coverage automatically includes product recall coverage. For all BOP Wholesale classes, Employment Practices Liability is available for businesses with up to 25 employees with the ability to provide coverage for larger risks. (Not available in all states.) Wholesalers Marine Coverage Consult with our Marine Specialists to meet your ocean cargo, warehousing, and transit needs, as well. BOP General Liability Premium Audit Wholesalers are subject to premium audit. 73

76 Classifications C Eligible for straightthrough processing % Wholesalers Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn Appliance Wholesalers Household appliances including TV & radio. Central station alarm required. Art, Craft, & Hobby Supply Wholesalers No distribution of toys. Auto New Parts & Accessories Wholesalers Except tires & tubes. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s C C C C C s C C % % C s PrOF Liab Baked Goods & Canned Food Wholesalers C C % C C s Beauty & Cosmetics Supply Wholesalers % % C % % s Beer and Ale Wholesalers % % % D s Book, Magazine, & Newspaper Wholesalers % % % % % s Bottled Water Distributors C C % % % s Camera & Photo Equip. Wholesalers Central station alarm required C C C C C s Candy & Confectionery Wholesalers C C C C C s Canned & Dried Milk Wholesalers C C % C C s Canned Fruit & Vegetable Wholesalers C C % C C s Canned Meat, Seafood, & Poultry Wholesalers C C % C C s Caskets & Coffins Wholesalers % % % C % s China & Glassware Wholesalers C C C C C s Clothing Men & Boys Wholesalers Central station alarm required. Clothing & Accessories Women, Children, & Infants Wholesalers Sprinkler system required if warehouse over 25,000 sq. feet; limited appetite for children s clothing or sleepwear. Central station alarm required. Clothing or Wearing Apparel Distributors Sprinkler system required if warehouse over 25,000 square feet; limited appetite for children s clothing or sleepwear. Central station alarm required % % C % % s % % C % % s C C C % s Dairy Products Wholesalers C % % % s Drapery Wholesalers No installation. Electrical Construction Materials Wholesalers Includes wiring supplies, electric light fixtures, light bulbs, electrical power equip. No lumberyards. Central station alarm required. No installation. No rentals C C C C C s C C C C C s 74

77 CLASSIFICATIOn DESCrIPTIOn Electrical Equipment Distributors Sprinkler system required if warehouse over 25,000 sq. feet. Electronics (Consumer) Distributors Includes TVs, stereos, electric appliances. Central station alarm required. No installation. No rentals. Equipment, Fixtures or Supplies for Bars, Hotels, Offices, Restaurants or Stores Distributors Sprinkler system required if warehouse over 25,000 sq. feet. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C % s C C C C s C C C % s PrOF Liab Fabric Distributors C C C C C s Fence Dealers If installation receipts > 10%, classify as Fence Construction Contractors under Contractors Program. Floor Coverings Wholesalers No installation C C C C D s C C C C C s Flower (Artificial) Wholesalers C C C C C s Flower, Nursery, Stock, & Florists Supplies Wholesalers No seeds or plant bulbs. Footwear Wholesalers Central station alarm required. Fur Garment and Pelts Distributors Central station alarm required; sprinkler system required if warehouse over 25,000 sq. feet. Gift, Candle, Novelty, & Souvenir Wholesalers Central station alarm required. Glass Dealers If installation receipts > 10%, classify as Glass & Glazing Contractors under Contractors Program C C C C C s C C C C C s % C C % s C C C C C s C C C C D s Groceries & Related Products Wholesalers % % % % Groceries (Non-Perishable) Wholesalers Central station alarm required. No tobacco products. Hardware Wholesalers & Tool Distributors No lumberyards. Heating & A/C Equip. Wholesalers No installation. Home Furnishings Wholesalers < 25% in furniture sales. No installation % % C C % s C C C C C s C C C C C s C C C C C s Ice Distribution C C % C % s Wholesalers Janitorial Supplies Wholesalers % % % % % s Jewelry Wholesalers Central station alarm required and Jewelers block required. Jewelers block may be available through Marine Specialist C C C C C s 75

78 Wholesalers Classifications C Eligible for straightthrough processing % Acceptable with underwriter referral D Ineligible Not available CLASSIFICATIOn DESCrIPTIOn NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis PrOF Liab Kitchen Accessories Wholesalers C C C C C s Lamps & Lighting Fixtures Wholesalers C C C C C s Lessor s Risk Only Non-Residential Bldgs. See page 118 for LRO referral guidelines. For BOP, no buildings over 50,000 sq. feet. Linens Bed & Bath Wholesalers < 25% in furniture sales. Luggage & Leather Goods Wholesalers Central station alarm required. Metal Dealers or Distributors Nonstructural Sprinkler system required if warehouse over 25,000 sq. feet; cut-to-size metal working desired. Metal Dealers or Distributors Structural Sprinkler system required if warehouse over 25,000 sq. feet; cut-to-size metal working desired. Music & CD Wholesalers Central station alarm required. Musical Instrument Wholesalers Central station alarm required % % C C C a C C C C C s C C C C C s % C C % s % C C % s C C C C C s C C C C C s Nuts Salted or Roasted Wholesalers C C C C C s Office Equip. Wholesalers If computer equip., classify as Computer Equip. & Software Wholesalers. No installation. Office Furniture Wholesalers No installation. No rentals. Office Supplies & Stationery Wholesalers Central station alarm required C C C C C s C C C C C s C C C C C s Packaged Frozen Foods Wholesalers % % % % s Paint & Wall Coverings Wholesalers C C C C C s Paper Products Distributors Sprinkler system required % C C % s Paper & Paper Products Wholesalers C C C C C s Picture Frames Wholesalers C C C C C s Piece Goods & Notions Wholesalers C C C C C s Plastic or Rubber Supply Goods Distributors Sprinkler system required if warehouse over 25,000 sq. feet. Plastics Materials Wholesalers 15,000 sq. foot warehouse limit. Includes plastic materials & resins, & unsupported plastics, film, sheet, rod, tube, & other basic forms & shapes % C C % s D D % % % s 76

79 CLASSIFICATIOn DESCrIPTIOn Plumbing & Heating Equip. Wholesalers No installation. NAICS SIC BOP CPP COMM Auto Umb WC MOno WC CLASS Exp Basis C C C C C s PrOF Liab Popcorn & Chips Wholesalers C C C C C s Printing & Bookbinding Supply Wholesalers % % % % % s Professional Equip. Wholesalers Includes school equip., scientific instruments, drafting tables, surveying equip. No medical or dental equip. Central station alarm required. No installation. Refrigeration Equip. (Commercial) Wholesalers No installation. Religious Articles & Church Supplies Wholesalers Central station alarm required. No installation. Restaurant & Other Commercial Equip. Wholesalers No installation. No rentals. Retail Equip. Wholesalers Includes shelving, electrical signs, partitions, store fixtures. No installation. No rentals. School Supplies Wholesalers Central station alarm required. Service Establishment Equip. Wholesalers Includes equip. for such service establishments as amusement parks, beauty parlors, car washes, dry cleaners, & upholsterers. No installation. Higher limits or specific scheduled coverage for equip. available through Marine Specialist. Shoe Wholesalers Central station alarm required. Telecommunication Equipment Distributors Sprinkler system required if warehouse over 25,000 sq. feet % % % % % s C C C C C s C C C C C s C C C C C s C C C C C s C C C C C s % % % % % s C C C C C s C C C % s Toy Distributors D D C D % s Vending Machine Wholesalers No tobacco. No installation. No rentals. Watch & Clock Wholesalers Central station alarm required and Jewelers block required. Jewelers block may be available through Marine Specialist C C C C % s C C C C C s Wine & Liquor Wholesalers % % % D s Wholesalers 77

80 78 Industry Niches ElIGIBIlITy GUIDElINES

81 Small Commercial Niche Offerings Hanover offers industry leading solutions to the following under-served markets: Sports & Fitness Facilities Amateur Sports Teams and Leagues Religious Institutions Record Storage and Destruction Who Can Access Hanover s suite of niche products is only available to a limited number of agents in each territory. Access to these products is determined by the local Commercial Lines Regional Vice President. Interested agents should contact their Regional Vice President to discuss access to these products. Industry Niches Hanover Niche Advantages Experienced People Our niche underwriters: have a high degree of underwriting authority have long track record of experience in specific industries are service focused and can make quick decisions Innovative Products Tailored specifically for these under-served markets Full product range offers comprehensive protection Wide array of unique coverages to differentiate your sales and service Value-Added Services Delivers value beyond coverages Loss control value-added services to help customers to mitigate exposures as well as third-party vendor discounts Dedicated Claims Professionals fairly and effectively expedite claims Local experts available to work directly with you and your agency Selective Distribution By limiting the distribution to a select number of agents, we provide an advantage for our Partner Agents to grow their books of business in these classes with limited competition from other agents Attractive Compensation Unlike competitors who use Managing General Agents, Hanover Agents with access to these niches can work directly with The Hanover Underwriters increasing their revenue per account Unlike some competitors, niche premiums are included in Hanover s Profit Sharing agreements 79

82 Industry Niches Hanover Document Management Advantage (Record Storage and Destruction) Appetite Targets document storage and/or destruction companies engaged in the secure pickup and delivery, storage, retrieval, and/or complete destruction of confidential information Stored or destroyed information can be contained upon a variety of possible media Hanover offers Property, General Liability, Professional Liability, Commercial Auto, and Umbrella Eligibility The following exposures are ineligible: Document Storage Facilities without automatic sprinkler protection Electronic Data Storage Centers (e.g., backups, excess storage) Storage centers or depositories for negotiable instruments Operations that store rare books, manuscripts, or cultural historical records Recycling contractors (other than recycling as a byproduct of records destruction) Coverage Features The Hanover offers a suite of industry leading products for the Document Management niche including: Property & Marine Highlights include: The Hanover s Standard, Special, Select and Choice Property Broadening Endorsements providing over 40 important expanded or additional coverages Data Breach Endorsement Warehouse Legal Liability and Customer Goods Coverage Moving & Storage proprietary Inland Marine forms when Moving & Storage is primary operation Equipment Breakdown and business income extension to include mobile and fixed based shredding units Professional Liability Highlights include: Separate policy covering the unintentional release of confidential information, accidental shredding of customers documents Classifications Document Management CLASSIFICATIOn DESCrIPTIOn NAICS SIC CODE BOP CPP COMM Auto Umb WC Records and Document Shredding Services C C C % Records and Document Storage Services C C C % 80

83 Hanover Religious Institutions Advantage Appetite Targets a wide range of Houses of Worship, Study & Education (churches, synagogues, temples, chapels, etc.) Eligible ancillary operations include Sponsored Youth Activities such as child care services, charitable work in the community, and churches with private schools. Hanover offers Property, General Liability, Professional Liability, Commercial Auto, Workers Compensation, and Umbrella Industry Niches Eligibility The following exposures are ineligible: Account premium less than $5,000 Buildings greater than 50 years old Any building greater than 25 years old in which the heating, roof, electric, and plumbing has not been updated Organizations that do not have administrative oversight by a rotating group of lay members elected or appointed by the congregation or conference Coverage Features The Hanover offers a suite of industry leading products for Religious Institutions niche including: Property Highlights include: The Hanover s Religious Institution Extra Coverage Endorsement provides a variety of special coverage enhancements and limits The Hanover s Religious Institution Deluxe Property Broadening Endorsement provides enhanced coverages similar to those of the Religious Institution Extra Coverage Endorsement including:» Limits for certain coverages are broader than those provided by Form » A blanket limit of coverage is being offered for designated coverages» Additional limits will be available for some coverages through our Amended Limits of Insurance Endorsement Emergency Event Management Data Breach General Liability Highlights include: The Hanover s Religious Institutions General Liability Broadening Endorsement provides 20 valuable new and expanded liability coverages Additional Supplement Payments Endorsement providing five valuable coverages Sexual Abuse and Molestation Coverage with option for innocent party defense Religious Institution Incidental Medical Liability Coverage Religious Institution Broadcasting, Telecasting, and Publication Personal and Advertising Injury Liability Endorsement Professional Liability Highlights include: Counseling Professional Liability Directors, Officers, and Trustees Liability Employment Practices Liability with Third-Party Liability Option Religious Institutions Teachers Endorsement 81

84 Industry Niches Classifications Religious Institutions CLASSIFICATIOn DESCrIPTIOn NAICS SIC CODE BOP CPP COMM Auto Umb WC Churches C C C % Synagogues C C C % Temples, Religious C C C % Religious Institutions with Schools C C C % Hanover Sports & Fitness Advantage Appetite Targets a wide range of Fitness Facilities, Sports Facilities, Sports Instruction and Schools, and Amateur Sports organizations. Eligible ancillary operations include: Spas, Swimming Pools, Child Care, Tanning Beds and Massage Therapists. The Hanover offers Property, General Liability, Professional Liability, Commercial Auto and Umbrella Eligibility The following exposures are ineligible: Professional Sports Teams (includes Pro-sport Try Out and Training Camps, Recruiting Camps, Showcases or combinations of these) Motor Sports Combat Sports including Boxing, Mixed Martial Arts, and Ultimate Fighting Recreation Venues (includes Bowling and Billiards Centers, Entertainment Centers, Arenas and Stadiums, Convention Centers, Festivals, Fairs and Fairgrounds) Outdoor Guides and Outfitters (includes Hunting, Fishing, Whitewater Rafting, Canoeing, Equestrian, Archery, Rifle/Pistol Ranges, Ski Facilities, and Ice and In-line Skating Rinks) Coverage Features The Hanover offers a suite of industry leading products for the Sports & Fitness niche including: Property Highlights include: The Hanover s Standard, Special, Select and Choice Property Broadening Endorsements providing over 40 important expanded or additional coverages Data Breach Coverage Emergency Event Management Business Income for Membership Values Money & Securities for Health Club Members and Guests Green Building Coverage 82

85 General Liability Highlights include: Fitness Facilities General Liability Broadening Endorsement provides 18 unique coverages such as Additional Insured status for club facility members Amateur Sports General Liability Broadening Endorsement provides 18 unique coverages such as Additional Insured for sub-contracted trainers and instructors Additional Supplement Payments Endorsement providing five valuable coverages Sexual Abuse and Molestation Coverage with option for innocent party defense Industry Niches Professional Liability Highlights include: Health & Fitness Professional Liability Amateur Sports Professional Liability Hospitality Services Errors & Omissions Law Enforcement Legal Liability Classifications Sports & Fitness Facilities CLASSIFICATIOn DESCrIPTIOn NAICS SIC CODE BOP CPP COMM Auto Umb WC Athletic Club Facilities, Physical Fitness C C C % Body Building Studios, Physical Fitness C C C % Dance Centers, Aerobic C C C % Fitness Centers C C C % Handball Club Facilities C C C % Health Club Facilities, Physical Fitness C C C % Physical Fitness Centers C C C % Racquetball Club Facilities C C C % Tennis Club Facilities C C C % Weight Training Centers C C C % Yoga Studios and Instruction C C C % 83

86 Industry Niches Classifications Sports & Fitness Instruction CLASSIFICATIOn DESCrIPTIOn NAICS SIC CODE BOP CPP COMM Auto Umb WC Aerobic Instruction, Camps, or Schools C C C % Badminton Instruction, Camps, or Schools C C C % Baseball Instruction, Camps, or Schools C C C % Basketball Instruction, Camps, or Schools C C C % Baton Instruction Camps, or Schools C C C % Boys Camps, Sports Instruction C C C % Camps, Sports Instruction C C C % Cheerleading Instruction, Camps, or Schools C C C % Dance Instruction, Camps, or Schools C C C % Field Hockey Instruction, Camps, or Schools C C C % Girls Camps, Sports Instruction C C C % Golf Instruction, Camps, or Schools C C C % Rowing Instruction, Camps, or Schools C C C % Soccer Instruction, Camps, or Schools C C C % Softball Instruction, Camps, or Schools C C C % Swimming Instruction C C C % Track and Field Instruction, Camps, or Schools C C C % Ultimate Frisbee Instruction, Camps, or Schools C C C % Volleyball Instruction, Camps, or Schools C C C % 84

87 Classifications Amateur Sports Teams and Leagues CLASSIFICATIOn DESCrIPTIOn NAICS SIC CODE BOP CPP COMM Auto Umb WC Badminton Amateur Sports Teams & Leagues C C C % Baseball Amateur Sports Teams & Leagues C C C % Basketball Amateur Sports Teams & Leagues C C C % Baton Amateur Sports Teams & Leagues C C C % Dance Amateur Sports Teams & Leagues C C C % Field Hockey Amateur Sports Teams & Leagues C C C % Flag Football Amateur Sports Teams & Leagues C C C % Golf Amateur Sports Teams & Leagues C C C % Rowing Amateur Sports Teams & Leagues C C C % Soccer Amateur Sports Teams & Leagues C C C % Softball Amateur Sports Teams & Leagues C C C % Swimming Amateur Sports Teams & Leagues C C C % Track & Field Amateur Sports Teams & Leagues C C C % Ultimate Frisbee Amateur Sports Teams & Leagues C C C % Volleyball Amateur Sports Teams & Leagues C C C % Industry Niches 85

88 86 Affinity

89 Affinity Programs Hanover Affinity creates customizable total account solutions for members of sponsored groups. An agency must be endorsed by a group or the group must be attached to an association. Additional Target Market characteristics include: Target Market Existing Affinity Group Program Homogenous classes Classes not in Hanover s Small Commercial Appetite (not green thumbs up) Ability to place a minimum of $500,000 of premium within 12 months and grow to > $1 million with 24 months Affinity Programs Desirable Risk Characteristics Multi-line program Agency has expertise in the class Agency has endorsement of association/group Program with track record of growth & profit Regional focus, as opposed to National Program Pre-qualifications Understand demographics of group: size of group, geography, size of accounts Complete program questionnaire Obtain and review of premium and loss data information Secure competitors forms Test quoting Examples of Existing Programs Convenience Stores with Gasoline Surveyors, Architects and Engineers Car Washes Dry Cleaners Auto Repair Janitorial Carpet Cleaners Venture Capitalists Franchised Restaurants (with limited cooking) Power Washers Portable Sanitation 87

90 Small Commercial Products Coverage to meet the changing needs of small business We recognize that when it comes to coverage for small businesses, one size does not fit all. This is why we offer many versions of our BOP coverage. It s why we offer a full contingent of broadening endorsements, too. Agents need options to fully answer client demand. And our regional strategy and local knowledge enables us to deliver coverages and options that are most relevant to your particular geography and risks. If you have questions, or require additional information regarding BOP coverages, please don t hesitate to call your Small Commercial Sales Manager or Small Commercial Underwriter. General Liability (Form ) Basic GL Coverages Bodily Injury Property Damage Personal & Advertising Injury Medical Expenses $5,000 limit (can be increased to $10,000) Supplementary Payment Bail Bonds (up to $2,500) Employee as Additional Insured Per Location Aggregate Newly Acquired Organizations Contractual Liability Host Liquor Non-Owned Watercraft (less than 51 ft. in length) Limited Worldwide Liability Expanded GL Coverages Automatically Included on All BOP Policies BOP Liability Special Broadening Endorsement (Form ) Bodily Injury Redefined (includes mental anguish, mental injury, shock, fright & death) Broad Form Property Damage Borrowed Equipment Customers Goods Use of Elevators Broad Form Personal & Advertising Injury (includes discrimination or humiliation that injures feelings or reputation if not intentional or directed and not related to employment) Additional Insured by Contract Agreement, or Permit (all programs except Contractors) Broad Form Vendors Product Recall (up to $25,000 per occurrence/ $50,000 aggregate; $500 deductible) Alienated Premises Incidental Malpractice (employed nurses, EMTs, & paramedics) Unintentional Failure to Disclose Hazards Unintentional Failure to Notify 88

91 Basic BOP Form (Form ) Building Limit Equipment Breakdown Up to Building Limit Expediting Expenses $50,000 Spoilage $50,000 Computer Equipment $50,000 Data Restoration $50,000 Mold (in most states) $15,000 Building Glass Building Signs Business Personal Property Equipment Breakdown Property of Others in Your Care, Custody, or Control (CCC) Tenant s Improvements & Betterments Tenant s Glass Included Included Limit Up to Business Personal Property (BPP) Limit Included Included Included Computer Equipment (EDP) Hardware & Software $35,000 (can be increased to $500,000) Virus & Hacking $10,000 Peak Season 25% of (BPP) Fur & Fur Garments Theft $10,000 Jewelry Theft $10,000 Business Income & Extra Expense Equipment Breakdown Limit Included Business Income & Extra Expense Actual Loss Sustained 12 months (can be excluded or changed to 3, 6, or 9 months) No ordinary payroll limitation Business Income from Dependent Properties $5,000 Computer Equipment (EDP) Extra Expense $5,000 Extended Time Period 30 days (can be increased up to 360 days) Utility Services Business Income $5,000 (overhead transmission lines is optional) Interruption of Computer Operations $10,000 Additional Coverages Limit Arson & Theft Reward $10,000 Civil Authority Collapse Actual Loss Sustained 3 weeks; 72-hour waiting period Included Commercial Tools & Small Equipment $5,000 (can be increased to $250,000) Debris Removal 25% up to $25,000 Deferred Payments $5,000 Employee Dishonesty (includes ERISA) $10,000 (can be increased to $100,000) Fences & Walls $2,500 Fine Arts $10,000 Fire Department Service Charge $10,000 Fire Extinguisher Systems Recharge $5,000 Forgery & Alteration $10,000 Installation Floater $5,000 Leasehold Interest (Tenants Only) $10,000 Money & Securities On-Premises $10,000 (can be increased to $25,000) Money & Securities Off-Premises $5,000 (can be increased to $10,000) Money Orders & Counterfeit Paper Currency $5,000 Ordinance or Law Coverage A Included Blanket Limit Coverage B & C $5,000 (can be increased to $2,000,000) Pollutant Clean-Up & Removal $25,000 Preservation of Property Included Salesperson s Samples $5,000 Tenant s Signs $5,000 Unauthorized Business Credit Card Use $5,000 Utility Services Direct Damage $10,000 (Includes Spoilage) Overhead transmission lines is optional Water Damage (Excludes Flood), Other Liquids, Powder, or Molten Material Damage Included Coverage Extensions Limit Accounts Receivables On-Premises $25,000 (can be increased to $250,000) Accounts Receivables Off-Premises $5,000 Garages, Storage Buildings, etc. $10,000 Inventory & Loss Appraisal $10,000 Key Replacement & Lock Repair $1,000 Newly Acquired or Constructed Property Building $1,000,000 Business Personal Property $500,000 Business Income $250,000 Outdoor Property $5,000 Any 1 Antenna $2,000 Any 1 Tree, Shrub, or Plant $1,000 Personal Effects $5,000 Personal Property in Transit $5,000 Personal Property Off-Premises $50,000 (can be increased to $100,000) Valuable Papers & Records On-Premises $25,000 (can be increased to $250,000) Valuable Papers & Records Off-Premises $5,000 89

92 BOP Broadening Endorsements Basic Form Form Special Form Deluxe Form Deluxe Bronze Form Deluxe Silver Form Deluxe Gold Form Deluxe Platinumw Form CoverAGE Limit Limit Limit Limit Limit Limit Limit Accounts Receivables $25,000 $25,000 $25,000 $25,000 blanket limit of $150,000 blanket limit of $250,000 blanket limit of $350,000 Advertising Expense to Regain Customers $2,500 $2,500 $2,500 Backup or Overflow of a Sewer, Drain, or Sump $25,000 Included up to property limit Included up to property limit Included up to property limit Brands and Labels Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Broad Form Water Damage $25,000 $100,000 $100,000 $100,000 $100,000 $100,000 Business Income and Extra Expense from Dependent Properties $5,000 $25,000 $100,000 $100,000 $50,000 $100,000 $100,000 Business Income Extension from Websites $10,000/ 7 days $50,000/ 7 days $50,000/ 7 days $50,000/ 7 days Claims Expense $25,000 $10,000 $10,000 $10,000 Computer Equipment $35,000 $35,000 $35,000 $35,000 blanket limit of $150,000 blanket limit of $250,000 blanket limit of $350,000 Computer Fraud and Funds Transfer Fraud $5,000 $10,000 $10,000 $10,000 Consequential Loss to Stock Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Contingent Transit Business Income and Extra Expense $100,000 $100,000 $100,000 $100,000 $100,000 Contractual Penalties $25,000 $25,000 $10,000 $25,000 $25,000 Debris Removal 25% of loss amount plus $25,000 25% of loss amount plus $25,000 25% of loss amount plus $25,000 25% of loss amount plus $25,000 blanket limit of $150,000 blanket limit of $250,000 blanket limit of $350,000 Employee Dishonesty Including ERISA $10,000 $10,000 $10,000 $10,000 $25,000 $25,000 $25,000 Expediting Expenses $25,000 $10,000 $25,000 $25,000 Extended Business Income 30 days 30 days 30 days 60 days 90 days 90 days 90 days Fine Arts $10,000 $25,000 $40,000 $40,000 $40,000 $40,000 $50,000 Fire Department Service Charge $10,000 $10,000 $10,000 $10,000 $25,000 $25,000 $25,000 Fire Extinguisher Systems Recharge $5,000 $5,000 $5,000 $5,000 Included up to property limit Included up to property limit Included up to property limit Forgery and Alteration $10,000 $25,000 $50,000 $50,000 $50,000 $50,000 $50,000 90

93 Basic Form Form Special Form Deluxe Form Deluxe Bronze Form Deluxe Silver Form Deluxe Gold Form Deluxe Platinumw Form CoverAGE Limit Limit Limit Limit Limit Limit Limit Foundations and Underground Pipes $250,000 $250,000 $250,000 $250,000 $250,000 Garages, Storage Buildings, and Other Appurtenant Structures $25,000 $25,000 $50,000 $50,000 Hired Auto Physical Damage $30,000 $30,000 $50,000 $50,000 $50,000 Inflation Guard Business Personal Property 4% Interruption of Computer Operations $10,000 policy aggregate $10,000 policy aggregate $10,000 policy aggregate $10,000 policy aggregate $15,000 policy aggregate $25,000 policy aggregate $50,000 policy aggregate Key Replacement and Lock Repair $1,000 $1,000 $1,000 $1,000 $2,500 $2,500 $5,000 Laptop Computer Coverage Worldwide $5,000 $10,000 $25,000 $25,000 Lessor s Lease Cancellation $10,000 $10,000 $10,000 Lessor s Tenant Move Expenses $10,000/ 60 days $10,000/ 60 days $10,000/ 60 days Marring and Scratching Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Included up to personal property limit Money and Securities Outside the Premises $5,000 can be increased to $25,000 $5,000 can be increased to $25,000 $5,000 can be increased to $25,000 $10,000 can be increased to $25,000 $5,000 can be increased to $25,000 $5,000 can be increased to $25,000 $5,000 can be increased to $25,000 Money Orders and Counterfeit Paper Currency $5,000 $5,000 $5,000 $5,000 $25,000 $25,000 $25,000 Newly Acquired or Constructed Property 60 days 60 days 60 days 90 days 180 days 180 days 180 days Newly Acquired Business Income $250,000 $250,000 $250,000 $250,000 $500,000 $500,000 $500,000 Ordinance or Law Demolition Cost and Increased Cost of Construction (coverage B&C) Ordinance or Law Increased Period of Restoration Ordinance or Law Tenant s Improvement Extension Ordinance or Law Undamaged Portion of Building $5,000 $5,000 $5,000 $25,000 $25,000 $25,000 $50,000 $10,000 $10,000 $10,000 $10,000 $25,000 $25,000 $25,000 Included up to building limit Included up to building limit Included up to building limit Included up to building limit Included up to building limit Included up to building limit Included up to building limit Outdoor Property $5,000 $5,000 $25,000 $25,000 $25,000 $25,000 $25,000 Personal Effects $5,000 $10,000 $25,000 $25,000 $25,000 $50,000 $75,000 Personal Property In Transit $5,000 $20,000 $50,000 $50,000 $25,000 $25,000 $25,000 91

94 BOP Broadening Endorsements (continued) Basic Form Form Special Form Deluxe Form Deluxe Bronze Form Deluxe Silver Form Deluxe Gold Form Deluxe Platinumw Form CoverAGE Limit Limit Limit Limit Limit Limit Limit Personal Property of Others property limit as ACV, Replacement Cost when there is a contract property limit as ACV, Replacement Cost when there is a contract property limit as ACV, Replacement Cost when there is a contract property limit as ACV, Replacement Cost when there is a contract property limit as replacement cost; Additional coverage provided in blanket limit of $150,000 property limit as replacement cost; Additional coverage provided in blanket limit of $250,000 property limit as replacement cost; Additional coverage provided in blanket limit of $350,000 Personal Property Off-Premises $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Precious Metal Theft Payment Changes $25,000 $25,000 $25,000 $25,000 Preservation of Property Expense $25,000 $25,000 $25,000 $25,000 Retaining Walls Covered Building Property $2,500 $2,500 $2,500 property limit $2,500 $2,500 $2,500 Salesperson s Samples $5,000 $5,000 $25,000 $25,000 $10,000 $25,000 $25,000 Soft Cost $10,000 $10,000 $10,000 $10,000 Spoilage $5,000 $25,000 $25,000 $25,000 Temporary Relocation of Property $25,000 $50,000 $50,000 $50,000 Tenant Building Insurance When Lease Requires You Provide Insurance Tenant Business Personal Property Insurance When Lease Requires You Provide Insurance $20,000 $25,000 $25,000 $20,000 $25,000 $25,000 Tenant Signs $5,000 $10,000 $20,000 $20,000 $20,000 $20,000 $20,000 Transit Business Income and Extra Expense $100,000 $50,000 $50,000 $50,000 $50,000 Unauthorized Business Credit Card Use $5,000 $5,000 $5,000 $5,000 $5,000 $10,000 $10,000 Utility Services Business Income (Overhead Transmission Lines coverage may be purchased) $5,000 $10,000 $25,000 $25,000 $25,000 $25,000 $50,000 Utility Services Direct Damage (Overhead Transmission Lines coverage may be purchased) $10,000 can be increased up to $50,000 $25,000 can be increased up to $50,000 $50,000 $25,000 can be increased up to $50,000 $25,000 can be increased up to $50,000 $25,000 can be increased up to $50,000 $25,000 can be increased up to $50,000 Valuable Papers and Records $25,000 on prem; $5,000 off premium $25,000 on prem; $5,000 off premium $25,000 on prem; $5,000 off premium $25,000 on prem; $5,000 off premium blanket limit of $150,000 blanket limit of $250,000 blanket limit of $350,000 Virus and Hacking Coverage $10,000 policy aggregate $10,000 policy aggregate $10,000 policy aggregate $10,000 policy aggregate $10,000 policy aggregate $25,000 policy aggregate $50,000 policy aggregate 92 Worldwide Property Off-Premises $20,000 $45,000 $25,000 $25,000 $40,000 $50,000

95 BOP Industry-Specific Broadening Endorsements Architects & Engineers Deluxe Silver Architects & Engineers Deluxe Gold Architects & Engineers Deluxe Platinum Architects & Engineers Endorsements (Form ) (Form ) (Form ) CoverAGE Limit Limit Limit Accounts Receivable Off-Premises or In Transit Accounts Receivable On-Premises Backup or Overflow of a Sewer, Drain, or Sump Brands and Labels blanket limit of $150,000 blanket limit of $150,000 Included up to property limits Included up to personal property limits blanket limit of $350,000 blanket limit of $350,000 Included up to property limits Included up to personal property limits $250,000 $250,000 $25,000 Included up to personal property limits Business Income and Extra Expense from Dependent Properties $50,000/7 days $50,000/7 days $50,000 Business Income Billable Hours Option $25,000 $25,000 $25,000 Business Income Extension from Websites $50,000/7 days $50,000/7 days $50,000/7 days Civil Authority 4 weeks; 24-hour waiting period 4 weeks; 24-hour waiting period 4 weeks; 24-hour waiting period Claims Expense $10,000 $10,000 $10,000 Computer Equipment blanket limit of $150,000 blanket limit of $350,000 Included up to personal property limits Computer Equipment In Transit or Off Premises $100,000 Computer Equipment Newly Acquired or Constructed Property $100,000 Computer Fraud and Funds Transfer Fraud $10,000 $10,000 $10,000 Consequential Loss to Stock Included up to personal property limits Included up to personal property limits Included up to personal property limits Contractual Penalties $25,000 $25,000 $25,000 Covered Property-Amended Building Definition Included Debris Removal blanket limit of $150,000 blanket limit of $350,000 25% of loss amount plus $25,000 Employee Dishonesty Including ERISA $25,000 $25,000 $25,000 Expediting Expenses $25,000 $25,000 $25,000 Extended Business Income 90 days 90 days 90 days Fine Arts $50,000 $50,000 $100,000 Fire Department Service Charge $25,000 $25,000 $25,000 Fire Extinguisher Recharge $25,000 $25,000 $25,000 Forgery and Alteration $50,000 $50,000 $25,000 Garages, Storage Buildings, and Other Appurtenant Structures $50,000 $50,000 $50,000 Hired Auto Physical Damage $50,000 $50,000 $50,000 Identity Theft Expense Reimbursement $15,000 Interruption of Computer Operations $100,000 policy aggregate $100,000 policy aggregate $500,000 policy aggregate Interruption of Computer Operations Off-Premises $25,000/$50,000 Laptop Computer Coverage Worldwide $10,000 $10,000 $10,000 Marring and Scratching Included up to personal property limits Included up to personal property limits Included up to personal property limits Money and Securities Inside the Premises $25,000 $25,000 $25,000 Money and Securities Outside the Premises $5,000 $5,000 $25,000 Money Orders and Counterfeit Paper Currency $25,000 $25,000 $25,000 Newly Acquired or Constructed Property 180 days 180 days 180 days Newly Acquired Business Income $500,000 $500,000 $500,000 93

96 Architects & Engineers Deluxe Silver Architects & Engineers Deluxe Gold Architects & Engineers Deluxe Platinum Architects & Engineers Endorsements (continued) (Form ) (Form ) (Form ) CoverAGE Limit Limit Limit Non-Owned Detached Trailers $5,000 Ordinance or Law Demolition Cost and Increased Cost of Construction $25,000 $25,000 $25,000 Ordinance or Law Increased Period of Restoration $50,000 $50,000 $50,000 Ordinance or Law Tenant s Improvement Extension $25,000 $25,000 Included Ordinance or Law Undamaged Portion of Building Included up to building limit Included up to building limit Included up to building limit Outdoor Property $25,000 $25,000 $25,000 Personal Effects $25,000 $75,000 $25,000 Personal Property In Transit $25,000 $25,000 Included up to personal property limits Personal Property Off-Premises $50,000 $50,000 $50,000 Precious Metal Theft Payment Changes $25,000 $25,000 $25,000 Preservation of Property 90 days 90 days 90 days Preservation of Property Expense $25,000 $25,000 $25,000 Salesperson s Samples $25,000 $25,000 $25,000 Spoilage blanket limit of $150,000 blanket limit of $350,000 Temporary Relocation of Property $50,000 $50,000 $25,000 Tenant Building Insurance When Lease Requires You Provide Insurance Tenant Business Personal Property Insurance When Lease Requires You Provide Insurance Tenant Signs $25,000 $25,000 $25,000 $25,000 $25,000 $20,000 $20,000 Included up to personal property limits Transit Business Income and Extra Expense $50,000 $50,000 $50,000 Utility Services Business Income (Overhead Transmission Lines coverage may be purchased) Utility Services Direct Damage (Overhead Transmission Lines coverage may be purchased) Valuable Papers and Records Off-Premises or In Transit Valuable Papers and Records On-Premises Virus and Hacking Coverage $25,000 $50,000 $25,000 $25,000 $25,000 $25,000 blanket limit of $150,000 blanket limit of $150,000 $50,000 policy aggregate blanket limit of $350,000 blanket limit of $350,000 $50,000 policy aggregate $100,000 $100,000 $100,000 policy aggregate Worldwide Property Off-Premises $50,000 $50,000 $50, Liability Coverages Additional Insured by Contract, Agreement, or Permit Amended Included Additional Insured by Contract, Agreement, or Permit Primary and Non-contributory Optional Optional Included Aggregate Limit of Insurance (Per Project) Optional Optional Included Broadened Damage to Premises Rented to You $300,000; can be $300,000; can be increased to $1 million increased to $1 million Included Limits of Insurance Medical Expenses Optional Optional $10,000 Newly Acquired or Formed Organizations $300,000; can be increased to $1 million $300,000; can be increased to $1 million 180 days Non-owned Watercraft 51 feet 51 feet 75 feet Transfer of Rights of Recovery Against Others to Us Included Who is an Insured Unnamed Joint Venture Included

97 Medical Office Deluxe Medical Office Deluxe Gold Medical Offices Endorsements (Form ) (Form ) CoverAGE Limit Limit Brands and Labels Included up to personal property limits Included up to personal property limits Business Income Billable Hours Loss Settlement Option Per Diem; 15 days Per Diem; 15 days Business Income (Loss of) and Extra Expense from Dependent Properties $25,000 $50,000 Business Income Extension from Websites $50,000/7 days Claims Expenses $7,500 $10,000 Computer Fraud $10,000 Consequential Loss to Stock Included up to personal property limits Included up to personal property limits Employee Dishonesty Including ERISA $25,000 $25,000 Extended Business Income 360 days Fine Arts $25,000 $25,000 Fire Department Service Charge $25,000 Fire Extinguisher Systems Recharge Included Forgery and Alteration $25,000 $25,000 Garages, Storage Buildings, and Other Appurtenant Structures $25,000 Laptop Computer Coverage Worldwide $10,000 $25,000 Medical Hazardous Waste and Radioactive Contamination Cleanup $25,000 $25,000 Money Orders and Counterfeit Paper Currency $25,000 $25,000 Newly Acquired or Constructed Property 180 days Newly Acquired or Constructed Property Business Income $500,000 Off Premises Physician s and Dentist s Tools and Equipment $15,000 $25,000 Ordinance or Law Demolition Cost and Increased Cost of Construction $50,000 Ordinance or Law Tenant s Improvement Extension $25,000 Ordinance or Law Undamaged Portion of Building Included up to building limit Included up to building limit Outdoor Property $25,000 $25,000 Personal Effects $10,000 $25,000 Personal Property In Transit $25,000 $25,000 Precious Metal Theft Payment Changes $25,000 Preservation of Property 45 days Tenant Building Insurance When Lease Requires You to Provide Insurance $20,000 $25,000 Tenant Business Personal Property Insurance When Agreement Requires You to Provide Insurance $20,000 $25,000 Tenant Signs $20,000 $20,000 Utility Services Business Income (Overhead Transmission Lines coverage may be purchased) $25,000 $25,000 Utility Services Direct Damage (Overhead Transmission Lines coverage may be purchased) $25,000 $25,000 Blanket Coverages Limit of Insurance: $250,000 for coverages below Accounts Receivables Included Included Backup or Overflow of a Sewer, Drain, or Sump Included Included Computer Equipment Included Included Debris Removal Included Included Spoilage Included Included Valuable Papers and Records Included Included 95

98 Technology Deluxe Technology Deluxe Gold Technology Endorsements (Form ) (Form ) CoverAGE Limit Limit Brands and Labels Included Included Business Income and Extra Expense from Dependent Properties $100,000 $100,000 Business Income Billable Hours Option $10,000 $10,000 Business Income Extension from Websites $50,000/7 days Claims Expense $10,000 $10,000 Computer Equipment In Transit or Off-Premises $50,000 $75,000 Computer Fraud and Funds Transfer Fraud $10,000 $10,000 Consequential Loss to Stock Included Contractual Penalties $25,000 $25,000 Employee Dishonesty Including ERISA $50,000 $50,000 Expediting Expenses $25,000 Extended Business Income 90 days 90 days Fine Arts $40,000 $40,000 Fire Department Service Charge $25,000 Fire Extinguisher Recharge $25,000 Forgery and Alteration $50,000 $50,000 Foundations and Underground Pipes $250,000 $250,000 Garages, Storage Buildings, and Other Appurtenant Structures $50,000 Hired Auto Physical Damage $30,000 $50,000 Installation $10,000 Laptop Computer Coverage Worldwide $25,000 Limited Building Coverage Tenant Obligation $10,000 $10,000 Newly Acquired or Constructed Property Business Income and Extra Expense $500,000 $500,000 Ordinance or Law Demolition Cost and Increased Cost of Construction $25,000 Ordinance or Law (Tenant s Improvement Extension) $50,000 $50,000 Ordinance or Law Increased Period of Restoration $50,000 Outdoor Property $25,000 $25,000 Personal Effects $25,000 $35,000 Personal Property In Transit $50,000 $50,000 Precious Metal Theft Payment Changes $25,000 Preservation of Property 45 days Salesperson s Samples $25,000 Limited Building Coverage Tenant Obligations $10,000 $10,000 Tenant Business Personal Property Insurance When Lease Requires You Provide Insurance $20,000 $20,000 Tenant Sign $20,000 $20,000 Unnamed Locations Personal Property and Computer Equipment Unnamed Locations Business Income and Extra Expense $5,000 per occurrence $25,000 policy aggregate $10,000 per occurrence $50,000 policy aggregate $10,000 per occurrence $25,000 policy aggregate $10,000 per occurrence $50,000 policy aggregate Utility Services Direct Damage $50,000 $50,000 Utility Services Business Income $25,000 $50,000 Worldwide Property Off-Premises $45,000 $45,000 Blanket Coverages Limit of Insurance: $250,000 and below coverages Accounts Receivable Included Included Backup or Overflow of a Sewer, Drain, or Sump Included Included Computer Equipment Included Included Debris Removal Included Included Valuable Papers and Records Included Included 96

99 Accountant Broadening Endorsement (Form ) CoverAGE LIMIT Accounts Receivables Off-Premises or In Transit $250,000 Accounts Receivables On-Premises $250,000 Brands & Labels Included Business Income & Extra Expense Billable Hours $10,000 Loss Settlement Option Business Income & Extra Expense from Dependent Properties $100,000 Claims Expense $10,000 Computer Fraud & Funds Transfer Fraud $10,000 Contractual Penalties $25,000 Computer Equipment In Transit/Off-Premises $50,000 Employee Dishonesty Included ERISA $50,000 Extended Business Income 90 days Fine Arts $40,000 Forgery & Alteration $50,000 Foundations & Underground Pipes $250,000 Hired Auto Physical Damage $30,000 Limited Building Coverage Tenant Obligation $10,000 Newly Acquired or Constructed Property Business Income & Extra Expense $500,000 Ordinance or Law (Tenant s Improvement Extension) $50,000 Outdoor Property $25,000 Personal Effects $25,000 Personal Property in Transit $50,000 Property Damage Legal Liability (Fire Legal) $1,000,000 Tenant Business Personal Property Insurance When Agreement Requires You Provide Insurance $20,000 Tenant Sign $20,000 Utility Services Direct Damage $50,000 Utility Services Business Income $25,000 Valuable Papers and Records Off-Premises or In Transit $100,000 Valuable Papers and Records On-Premises $100,000 Worldwide Laptop Computer Coverage $10,000 Worldwide Property Off-Premises $45,000 Contractors Broadening Endorsement (Form ) CoverAGE LIMIT Commercial Tools & Contractors Equipment $50,000 Installation Floater $25,000 Rental Reimbursement $10,000 Dental Office Broadening Endorsement (Form ) CoverAGE Business Personal Property Automatic Increase LIMIT 2% quarterly Dental Delay $25,000 Loss Settlement Option Per Diem Personal Property in Transit $10,000 Property Damage Legal Liability $300,000 Distributor Pac Plus Endorsement (Form ) CoverAGE LIMIT Broad Form Water Damage $25,000 Business Income & Extra Expense from Dependent Properties $50,000 Contingent Transit Business Income & Extra Expense $50,000 Employee Dishonesty (includes ERISA) $25,000 Fences & Walls $20,000 Forklifts $10,000 Ordinance or Law $100,000 Personal Property in Transit $20,000 Salesperson s Samples $25,000 Transit Business Income & Extra Expense $50,000 Utility Services Direct Damage Property Limits of Insurance Utility Services Business Income $25,000 Dry Cleaners & Laundry Customers Coverage Limited (Form ) CoverAGE LIMIT Customer s Goods at Replacement Cost $250,000 Florist Broadening Endorsement (Form ) CoverAGE Money & Securities LIMIT Increased 25% around major holidays Garage Program Broadening Endorsement (Form ) CoverAGE LIMIT Arson & Theft Reward $30,000 Broad Form Water Damage $25,000 Business Income & Extra Expense from Dependent Properties $100,000 Commercial Tools & Small Equipment $50,000 Contingent Transit Business Income & Extra Expense $100,000 Contractual Penalties $25,000 Employee Dishonesty (includes ERISA) $50,000 Forgery & Alteration $25,000 Foundations & Underground Pipes $250,000 Money & Securities $25,000 Personal Property In-Transit $25,000 Property Off-Premises $100,000 Salesperson s Samples $25,000 Transit Business Income & Extra Expense $100,000 Utility Services Direct Damage $25,000 Utility Services Business Income $10,000 97

100 Law Office Broadening Endorsement (Form ) CoverAGE Brands and Labels LIMIT Included Broad Form Water Damage $100,000 Business Income & Extra Expense from Dependent Properties $100,000 Claims Expense $10,000 Consequential Loss to Stock Included Contingent Transit Business Income & Extra Expense $100,000 Contractual Penalties $25,000 Employee Dishonesty (Includes ERISA) $50,000 Extended Business Income 90 days Fine Arts $40,000 Forgery & Alteration $50,000 Foundations and Underground Pipes $250,000 Hired Auto Physical Damage $30,000 Library Coverage $50,000 Loss Settlement Option Marring and Scratching Per Diem Included Money Orders & Counterfeit Paper Currency $25,000 Ordinance or Law (Tenant s Improvement Extension) $25,000 Outdoor Property $25,000 Personal Effects $25,000 Personal Property in Transit $50,000 Practice Interruption Utility Services Direct Damage $50,000 Business Income $25,000 Property Damage Legal Liability (Fire Legal) $1,000,000 Salesperson s Samples $25,000 Tenant Building Insurance When Lease Requires You Provide Insurance $20,000 Tenant Business Personal Property Insurance When Agreement Requires You Provide Insurance $20,000 Tenant Sign $20,000 Transit Business Income and Extra Expense $100,000 Worldwide Laptop Computer Coverage $10,000 Worldwide Property Off-Premises $45,000 Blanket Limit of Insurance: $250,000 Accounts Receivables In Blanket $250,000 Backup or Overflow of a Sewer, Drain, or Sump In Blanket $250,000 Computer Equipment In Blanket $250,000 Debris Removal In Blanket $250,000 Spoilage In Blanket $250,000 Valuable Papers & Records In Blanket $250,000 Veterinarians & Kennel & Groomers Extra Coverage Endorsement (Form ) Automatically included Broad Form Water Damage Business Personal Property Automatic Increase Expanded Building Definition Interior Building Damage by Animals Included 2% quarterly Included Included Personal Property in Transit $10,000 Uncollectible Charges $250/$2,500 Utility Services Business Income $15,000 Pet Services Broadening Endorsement (Form ) Optional CoverAGE Brands and Labels LIMIT Included Business Income and Extra Expense from Dependent Properties $100,000 Claims Expense $10,000 Computer Fraud and Funds Transfer Fraud $10,000 Consequential Loss to Stock Included Contingent Transit Business Income and Extra Expense $100,000 Contractual Penalties $25,000 Disposal of Animals $1,000 each animal $5,000 per occurrence Employee Dishonesty Including ERISA $50,000 Fences and Walls $10,000 Fine Arts $40,000 Forgery and Alteration $50,000 Foundations and Underground Pipes $250,000 Hired Auto Physical Damage $30,000 Laptop Computer Coverage Worldwide $10,000 Marring and Scratching Included Medical Hazardous Waste and Radioactive Contamination Clean Up $10,000 Money Orders and Counterfeit Paper Currency $25,000 Outdoor Property $25,000 Personal Effects $25,000 Personal Property In Transit $50,000 Preservation of Property Animal Extension $5,000 Salesperson s Samples $25,000 Spoilage $25,000 Tenant Sign $20,000 Transit Business Income and Extra Expense $100,000 Utility Services Direct Damage $50,000 Utility Services Business Income $25,000 Valuable Papers and Records Veterinary Records Extension $5,000 Veterinarian s Tools $10,000 Worldwide Property Off-Premises $45,000 Limited availability in Michigan. CoverAGE LIMIT Advertising Expense $250/$500 Animal Floater per animal $2,500/$25,000 per occurrence 98

101 Optional Coverages Employment Practices Liability (EPLI)* (Form ) Automatically included in BOP with opt-out option: $25,000 with $5,000 deductible Other available options: $100,000 with $5,000 deductible $100,000 with $10,000 deductible $250,000 with $10,000 deductible $250,000 with $25,000 deductible Provides coverage on a claims made basis and includes defense within limits (where available by state) Miscellaneous Professional Liability Coverage (MPL)* (Form ) Available for most Consultants Office classes, plus additional select Office and Service classes More affordable than separate, stand-alone MPL policy Standard limits of $100,000 and $250,000. Higher limits up to $1 million available on referral. Provides coverage on a claims made basis and includes defense within limits (where available by state) Employee Benefits Liability (Form ) From $25,000 per occurrence/$75,000 aggregate up to $1 million per occurrence/$3 million aggregate $1,000 deductible Claims-made option available Hired & Non-Owned Auto Liability (Form BP0404) Matches GL occurrence limit Liability (Form ) Mini Difference In Conditions (DIC)** (Form ) Overhead Transmission Lines (Forms BP0456 & BP0457) Spoilage (Form BP0415) Limits up to $50,000 Utility Services/Increased Limits** (Forms BP0456 & BP0457) Condominium Association Directors & Officers Liability (Form ) Barbers & Beauticians Professional Liability (Forms BP0801 & ) Funeral Directors Professional Liability (Form BP0802) Kennel & Groomers Professional Liability (Form ) Optical & Hearing Aid Establishments Professional Liability (Automatically included in BOP Policy; Form BP0803) Veterinarians Professional Liability (Form BP0805) Additional Insured Endorsements Available Earthquake** (Form PB 1003) Printers Errors & Omissions (E&O) Liability (Form ) Garage Keepers Liability (Form ) *Not available in all states. **Contact your Small Commercial Sales Manager or Underwriter for a quote. 99

102 Workers Compensation Broadening Endorsement* CoverAGE Voluntary Workers Compensation Employers Liability Stop-Gap Coverage Repatriating Employees Unintentional Failure to Disclose Hazards Loss of Earnings Other States Insurance Transfer of Your Rights and Duties DESCrIPTIOn We will provide Voluntary Workers Compensation benefits to employees such as those traveling on business who may not otherwise be covered by state WC laws. (Available by separate endorsement in California.) Where allowed by state law, Stop-Gap coverage is automatically provided in North Dakota, Ohio, Washington, and Wyoming We will pay the additional expenses to repatriate an employee to the United States because of bodily injury We will not deny coverage if you unintentionally fail to disclose all existing hazards at the inception date of the policy We will pay Loss of Earnings as part of any claim, proceeding, or suit we defend The notification period for adding work in a new state not listed on the policy is extended to 60 days The notification period to cover your legal representative as insured after your death is extended to 60 days * Not available in CT, FL, MA, MN, NJ, TN, TX, WI. 100

103 Commercial Auto Broadening Endorsement CoverAGE Cancellation Employee Hired Auto Broadening Named Insured Employees as Insureds Supplemental Payments Fellow Employee Exclusion Exception Sign Coverage Expense of Returning a Stolen Vehicle DESCrIPTIOn Extended to 60 days, except non-payment of premium (not available for Ohio, Pennsylvania, and Massachusetts) Amends Symbol 8 to include autos that employees hire at the Insured s direction for the purposes of conducting business Automatic coverage until the end of the policy period for newly acquired organizations where the Insured has controlling interest Any employee is an Insured while using a covered auto not owned, hired, or borrowed for business or personal affairs Bail bonds are increased to $2,500 and Insured s loss of earnings are increased to $500 For bodily injury arising from the use of a covered auto that the business owns or hires Up to $2,000 for signs, murals, and paintings on vehicles We will pay for the expense of returning a stolen covered auto to you Glass Breakage Deductible Waives the deductible, if the glass is repaired instead of replaced (not available in Massachusetts) Transportation Expense Temporary transportation expenses of $50 a day, up to $1,500, when the Insured s covered private passenger auto is stolen Hired Auto Physical Damage Included for a limit of $50,000 Audio, Visual and Data Electronic Equipment Rental Reimbursement & Material Transfer Expense Airbag Coverage Auto Loan Physical Damage Extension Auto Lease Physical Damage Extension Knowledge of an Accident Blanket Waiver of Subrogation Unintentional Failure to Disclose Information Hired Auto Worldwide Coverage Bodily Injury Redefined Up to $500 for permanently installed audio, visual, or data electronic equipment Coverage for rental reimbursement expense for up to 60 days and a limit of $3,000. Coverage is also included for the expense to remove and transfer the Insured s equipment and material from the covered auto, which was involved in the loss Provides coverage for the accidental discharge of the airbag Provides coverage for the difference between the actual cash value on a vehicle, and the outstanding principle loan balance Provides lease gap coverage Clarifies that knowledge of an accident, claim, suit, or loss will be considered knowledge by the Insured if reported to an individual named Insured, partner, executive officer or an employee designated by you to give us such a notice Clarifies that the Insured can waive our rights of recovery from others prior to a loss Unintentional failure to disclose information will not prejudice the Insured s rights under the Commercial Auto Form Worldwide hired auto coverage for 30 days Bodily injury is redefined to include mental anguish resulting from bodily injury Pricing and Availability Varies by state and number of vehicles ADDITIOnAL options available Auto Theft Reward Auto theft reward limit of $2,000 Commercial Auto New Products Broadened Towing and Labor Towing limits of $50, $100, and $250. Apply to private passenger and other vehicle types 101

104 CPP Broadening Endorsements Broadening Endorsement Property Extender Form Property Special Broadening Endorsement Form Select Advantage Property Broadening Endorsement Form Choice Advantage Property Broadening Endorsement Form Accounts Receivable CoverAGE Limit Limit Limit Limit $25,000 Blanket Blanket Blanket Additional Covered Property Included Included Included Included Backup of Sewers and Drains/Sewer Backup $100,000 Included Included Included Brands and Labels Included Included Included Included Business income and EE from Dependent Properties $10,000 $100,000 $50,000 $100,000 Business Income and Extra Expenses Blanket Catastrophe Allowance Coverage $25,000 $50,000 Change in Temperature, Electrical Injury, and Contamination by Refrigerant Claims Expenses/Inventory & Loss Appraisal Consequential Loss to Stock $25,000 $50,000 $5,000 Included Blanket Included $25,000 $50,000 Blanket Blanket Transit Business Income and Extra Expense $100,000 $25,000 $25,000 Contract Penalties $25,000 $50,000 Contractual Penalties $25,000 Debris Removal Deferred Payments Denial of Access to Premises E-Commerce Coverage Electronic Vandalism Direct Damage to Computer Equipment and Interruption of Computer Operations (Electronic VMM includes Denial of Service) Electronic Data Processing Equipment Employee Dishonesty Including ERISA Compliance/ Employee Theft Including ERISA $25,000 $25,000 $25,000 Blanket 25% of loss or $50,000 additional Blanket BI limit $5,000 annual aggregate Blanket 25% of loss or $250,000 additional Blanket BI limit $10,000 annual aggregate Blanket $10,000 $50,000 $10,000 $25,000 Employees Tools and Work Clothing $5,000 $10,000 Expediting Expenses $25,000 $50,000 Extended Coverage on Property within 1000 ft. Included Included Included Included Extra Expense Fine Arts Fire Department Service Charge Fire Protection Equipment Recharge $25,000 $10,000 $5,000 Included Blanket Blanket Blanket Included $50,000 $100,000 Blanket Blanket Blanket Blanket Blanket Blanket Blanket $250,000 Blanket $500,

105 Broadening Endorsement Property Extender Form Property Special Broadening Endorsement Form Select Advantage Property Broadening Endorsement Form Choice Advantage Property Broadening Endorsement Form Food Contamination Coverage CoverAGE Limit Limit Limit Limit $10,000 including $3,000 advertising expense $25,000 including $3,000 advertising expense Forgery and Alteration $25,000 $10,000 $25,000 Foundations and Underground Pipes $250,000 $250,000 $250,000 $250,000 Inflation Guard Building/Building Limit Inflation Guard Included Included Included Included Key Replacement and Lock Repair $5,000 $10,000 Lease Cancellation Coverage $10,000 $25,000 Marring and Scratching Included Included Included Money & Securities $5,000 $25,000 $10,000 $25,000 Money Orders and Counterfeit Paper Currency $10,000 $25,000 Movement of Property Newly Acquired Locations Business Income and Extra Expense $50, days Newly Acquired or Constructed Property Buildings $1,000, days Newly Acquired Personal Property $500, days Ordinance or Law Outdoor Property (Signs, Fences, etc.) Outdoor Property (Trees, Shrubs, Plants, Fences, Radio, TV Antennas, & Satellite Dishes ) Personal Effects Personal Effects and Property of Others Coverage A Included, B&C Blanket $50,000 Included Included $10,000 Blanket $250, days $1,000, days $500, days Coverage A Included, B&C Blanket $50,000 Blanket Included Blanket $100, days $1,000, days $500, days Coverage A Included, B&C Blanket $250,000 Building Blanket Blanket Blanket $100, days $2,000, days $1,000, days Coverage A Included, B&C Blanket $500,000 Building Blanket Blanket Blanket Personal Property In Transit/Property In Transit $25,000 $50,000 $25,000 $50,000 Pollutant Cleanup and Removal $25,000 $25,000 $100,000 Preservation of Property Included Included Included Preservation of Property Expense $25,000 $50,000 Property Off Premises $25,000 $100,000 $25,000 $50,000 Prototypes Included Included Research & Development Documentation Blanket Blanket Reward Arson, Theft, Vandalism/Arson & Theft Reward $5,000 $30,000 $25,000 $50,000 Salesperson s Samples $10,000 $25,000 $10,000 $25,000 Seasonal Increase Business Personal Property Included Included Included Included Blanket $250,000 Blanket $500,

106 CPP Broadening Endorsements (continued) Broadening Endorsement Property Extender Form Property Special Broadening Endorsement Form Select Advantage Property Broadening Endorsement Form Choice Advantage Property Broadening Endorsement Form CoverAGE Limit Limit Limit Limit Soft Costs Coverage $10,000 $25,000 Temporary Relocation of Property $50, days $100, days Tenant Glass $5,000 $10,000 Tenant Relocation Expense coverage $10,000 $25,000 Theft Damage to Building Included Transit Business Income and Extra Expense $100,000 $25,000 $25,000 Underground Water Seepage $25,000 Utility Services Direct Damage Business Income Valuable Papers and Records Water Damage, Other Liquids, Powder or Molten Materials Damage $50,000 $50,000 $25,000 $50,000 $50,000 Blanket $10,000 $10,000 Blanket $25,000 $25,000 Blanket $25,000 Windblown Debris (Theft) $2,500 $2,500 Worldwide Property Off-Premises $45,000 Blanket $250,000 Blanket $500,000 Commercial Package Policy General Liability Broadening Endorsement CoverAGE Limit CoverAGE Limit Additional Insured Broad Form Vendors Additional Insured by Contract, Agreement, or Permit Included Included Newly Acquired or Formed Organizations Covered until end or policy period Non-owned Watercraft Included 51 ft. Aggregate Limit per Location Included Personal Injury Broad Form Included Alienated Premises Bodily Injury Redefined Included Included Product Recall Expense Each Occurrence Limit Aggregate Limit $25,000 $50,000 Broad Form Property Damage Borrowed Equipment, Customers Goods, & Use of Elevators Included Property Damage Legal Liability (Fire, Lightning, Explosion, Smoke, or Leakage Damage) $500,000 Extended Property Damage Incidental Malpractice (employed nurses, EMTs, & paramedics) Knowledge of Occurrence Liberalization Clause Included Included Included Included Medical Payments Increased Limit $10,000 Supplementary Payments Increased Limits Bail Bonds Loss of Earnings Unintentional Failure to Disclose Hazards Unintentional Failure to Notify $2,500 $300 Included Included Mobile Equipment Redefined Included 104

107 Index A Aerobic Instruction, Camps or Schools 84 Accounting & Bookkeeping Offices 40 Actuarial Services Offices 40 Acupuncturists Offices 40 Advertising Services 60 Affinity Programs 86 Allergists Offices 40 Analytical Laboratory Instrument Mfg. 68 Answering Service 60 Appliance (Household) Repair & Maintenance 60 Appliance (Household) Stores 52 Appliance Wholesalers 74 Arboreta & Botanical Gardens 60 Architectural Services Offices 40 Art Galleries 60 Art & Craft Supply Stores 52 Art, Craft, & Hobby Supply Wholesalers 74 Art, Picture, & Poster Stores 52 Athletic Club Facilities, Physical Fitness 83 Athletic Footwear Stores 52 Attorneys Offices 40 Audio & Video Equip. Mfg. 68 Audiologists Offices 40 Auditors Offices 40 Auto Air Conditioning Repair 30 Auto Guidelines 10 Auto Appraisers Offices 40 Auto Brakes, Shocks, Struts, & Alignment Repair 30 Auto Electrical Repair 30 Auto Exhaust System Repair 30 Auto Glass Replacement Shops 30 Auto New Parts & Accessories Wholesalers 74 Auto Parts & Accessories Stores 52 Auto Repair General 30 Auto Transmission Repair 30 Auto Tune-Up & Emissions Testing 30 Automobile, Bus, and Truck Parts Mfg. Not Operating Parts 34 B Badminton Amateur Sports Teams and Leagues 85 Badminton Instruction, Camps, or Schools 84 Bagel Shops 60 Baked Goods & Canned Food Wholesalers 74 Bakeries Baking on Premises 52 Bakeries No Baking on Premises 52 Bakeries Commercial 34 Balloon Shops 52 Bank Holding Companies Offices 40 Barber Shops 48 Baseball Amateur Sports Teams and Leagues 85 Baseball Instruction, Camps, or Schools 84 Basketball Amateur Sports Teams and Leagues 85 Basketball Instruction, Camps, or Schools 84 Bath, Chinaware, & Glassware Shops 52 Baton Amateur Sports Teams and Leagues 85 Baton Instruction, Camps, or Schools 84 Bearing Mfg. 34 Beauty & Cosmetics Supply Wholesalers 74 Beauty Salons 48 Bed and Breakfast Inns 60 Bedding Stores 52 Beer and Ale Wholesalers 74 Beverage Stores Beer & Wine 52 Beverage Stores Soft Drinks 52 Body Building Studios, Physical Fitness 83 Book & Magazine Stores For Profit 52 Book, Magazine, & Newspaper Wholesalers 74 Bookbinding For Profit 60 BOP Eligibility Guidelines

108 Bottled Water Distributors 74 Bottled Water Mfg. 34 Bottled Water Stores 52 Boys Camps, Sports Instruction 84 Bricklaying & Tuckpointing 26 Bridal Shops 52 Broadening Endorsements 90 Building Inspection Services 60 Burrito/Taco Shops 60 Butcher Shops 52 C Cable Laying for Computer Networks 26 Cable TV Equip. Mfg. 68 Cable TV Installation 26 Camera & Photo Equip. (Except Lenses) Mfg. 68 Camera & Photo Equip. Stores 52 Camera & Photo Equip. Wholesalers 74 Camps, Sports Instruction 84 Candle Shops 52 Candy & Confectionery Stores 52 Candy & Confectionery Wholesalers 74 Candy, Chocolate, & Confectionery Mfg. 34 Canned & Dried Milk Wholesalers 74 Canned Fruits & Vegetables Mfg. 34 Canned Fruit & Vegetable Wholesalers 74 Canned Meat, Seafood, & Poultry Wholesalers 74 Canned Specialties Mfg. 34 Cardiologists Offices 40 Carpentry Contractors Residential 26 Carpet & Upholstery Cleaning Services 60 Carpet Laying & Removal 26 Caskets & Coffins Wholesalers 74 Caterers 60 Cell Phone Stores 52 Certified Public Accountants (CPA) Offices 40 Cheerleading Instruction, Camps, or Schools 84 Cheese Shops 52 Chewing Gum Mfg. 34 Chimney Construction & Maintenance 26 China & Glassware Wholesalers 74 China, Ceramic, & Pottery Stores 52 Chiropractors Offices 40 Chocolate and Cocoa Products Mfg. 34 Church Supply Stores 53 Churches and Other Houses of Worship 82 Clock Stores 53 Clothing Men & Boys Wholesalers 74 Clothing & Accessories Women, Children, & Infants Wholesalers 74 Clothing Accessories Stores 53 Clothing Stores Children & Infants 53 Clothing Stores Family 53 Clothing Stores Men s 53 Clothing Stores Other 53 Clothing Stores Women s 53 Clothing or Wearing Apparel Distributors 74 Clubs Civil, Social and Fraternal 60 Coffee & Tea Mfg. 34 Coffee & Tea Stores 53 Coffee Bars or Cafes 60 Collectibles: New Merchandise Only 53 Commercial Artists Offices 40 Commercial Auto Guidelines 10 Communication Equip. Repair & Maintenance 60 Communications Equip. Installation 26 Computer Consultants 69 Computer Equip. & Software Stores 53 Computer Equip. & Software Wholesalers 68 Computer Facilities Management 69 Computer Mfg. 68 Computer Peripheral Equip. Mfg. 68 Computer Related Services Low Hazard 69 Computer Related Services Medium Hazard 69 Computer Related Services High Hazard 70 Computer Repair and Maintenance 70 Computer Storage Device Mfg. 68 Computer System Integrators 70 Computer Terminal Mfg. 68 Computer Training 70 Concrete Contractors 26 Condominium Program Guidelines 20 Condo Association (Commercial) Garage Occupancy 23 Condo Association (Commercial) Manufacturing Occupancy 23 Condo Association (Commercial) Office Occupancy Including Contractors 23 Condo Association (Commercial) Retail/Wholesale Occupancy 23 Christmas Stores

109 Condo Association (Commercial) Service Occupancy 23 Condo Association (Commercial) Shopping Center 23 Condo Association (Residential) 23 Consultants Offices Advertising 40 Consultants Offices Audio/Visual 40 Consultants Offices Business/Management 40 Consultants Offices Communications/Media/ Public Relations 40 Consultants Offices Compensation & Benefits 40 Consultants Offices Educational 41 Consultants Offices Event Planning 41 Consultants Offices Executive Coaching 41 Consultants Offices Financial 41 Consultants Offices Graphic Design 41 Consultants Offices Health Care 41 Consultants Offices Human Resources 41 Consultants Offices Image 41 Consultants Offices Market Research 41 Consultants Offices Procurement 41 Consultants Offices Project Management 41 Consultants Offices Recruiting 41 Consultants Offices Sales & Marketing 42 Consultants Offices Strategic Planning 42 Consultants Offices Training & Development 42 Contractors Guidelines 24 Convenience Stores No Gas 53 Convenience Stores With Gas 53 Cookies and Crackers Mfg. 34 Cookie Shops 53 Copy Shops 60 Court Reporting and Stenotype Services 60 Cosmetic, Beauty Supplies, & Perfume Stores 53 Craft Brewers 34 Creamery Butter Mfg. 34 Cremation Services see Funeral Homes 48 Custom Computer Programming 70 Cutlery & Flatware (Except Precious) Mfg. 34 Cutlery & Flatware Stores 53 D Dairy, Eggs, & Ice Cream Stores 53 Dairy Products Wholesalers 74 Dance Amateur Sports Teams and Leagues 85 Dance & Figure Skating Apparel Stores 53 Dance Centers, Aerobic 83 Dance Instruction, Camps, or Schools 84 Data Processing Services 70 Day Spas, see Beauty Salons 48 Decorating Consulting Services (Interior) 42 Delicatessens 53 Dental Hygienists Offices 42 Dental Laboratories 60 Dentists Offices 42 Department Stores 53 Dermatologists Offices 42 Dieticians Offices 42 Doctors Offices see Physicians 43 Document Preparation Services 60 Door & Window Installation 26 Doughnut Shops 60 Drafting Services Offices 42 Drapery Stores 54 Drapery Wholesalers 74 Dried & Dehydrated Food Mfg. 34 Dried Fruits and Vegetables Mfg. 34 Drug Stores 54 Dry Cleaning & Laundry Pickup Stores 60 Dry Cleaning & Laundry Services 61 Dry, Condensed Dairy Products 34 Dry Pasta Mfg. 34 Drywall, Acoustical, & Insulation Contractors 26 DVD & Video Stores 54 E Ear, Nose, & Throat Offices 42 Electrical Construction Materials Wholesalers 74 Electrical Contractors 26 Electrical Equipment Distributors 75 Electronic Component Mfg. 68 Electronic Parts & Equip. Wholesalers 68 Electronics (Consumer) Distributors 75 Electronics (Consumer) Installation & Repair 26 Electronics (Consumer) Stores 54 Endocrinologists Offices 42 Engineering Services Offices 42 Equipment, Fixtures or Supplies for Bars, Hotels, Offices, Restaurants or Stores Distributors 75 Eyeglass Stores

110 F G Fabric Distributors 75 Fabric Stores 54 Fastener, Button, Needle, & Pin Mfg. 34 Fence Construction Contractors 26 Fence Dealers 75 Fiber Optic Cable Installation 26 Field Hockey Amateur Sports Teams and Leagues 85 Field Hockey Instruction, Camps, or Schools 84 Film Processing 61 Financial Planners Offices 42 Fish & Seafood Markets 54 Fitness Centers 83 Flag & Banner Shops 54 Flag Football Amateur Sports Teams and Leagues 85 Flavor Extracts and Syrups Mfg. 34 Floor Covering Stores 54 Floor Coverings Wholesalers 75 Floor Laying Contractors 26 Florists 54 Flour Mixes and Dough Preparation 34 Flower (Artificial) Stores 54 Flower (Artificial) Wholesalers 75 Flower, Nursery, Stock, & Florists Supplies Wholesalers 75 Food Preparation (not otherwise classified) 34 Food Stores (Misc.) 54 Footwear Wholesalers 75 Formal Wear & Costume Rental 61 Framing Shops 54 Fresco Contractors 26 Frozen Bakery Products Mfg. 34 Frozen Fruits & Vegetables Mfg. 34 Frozen Yogurt Shops 61 Fruit & Vegetable Markets 54 Funeral Homes 48 Fur Garment and Pelts Distributors 75 Furniture (Metal Household) Mfg. 34 Furniture (Outdoor) Stores 54 Furniture Stores 54 Furniture/Fixture (Office) Installation 26 Garage Guidelines 28 Gasoline Station Self-Service 61 Gastroenterologists Offices 42 General Contractors 26 General Merchandise Stores 54 General Practitioners Offices 42 Geriatric Specialists Offices 42 Gift, Candle, Novelty, & Souvenir Wholesalers 75 Gift, Greeting Card, Novelty, & Souvenir Stores 54 Girls Camps, Sports Instruction 84 Glass & Glazing Contractors 26 Glass Dealers 75 Golf Amateur Sports Teams and Leagues 85 Golf Instruction, Camps, or Schools 84 Gourmet Food Stores 54 Grading of Land 26 Graphic Design Services Offices 42 Groceries and Related Products Wholesalers 75 Groceries (Non-Perishable) Wholesalers 75 Grocery Stores 54 Gutter & Downspout Installation 26 Gynecologists Offices 42 H Hair Salons 48 Handbags & Purses (Women s) Mfg. 34 Handball Club Facilities 83 Hardware Stores 55 Hardware Wholesalers & Tool Distributors 75 Hat Stores 55 Health & Personal Care Stores 55 Health Club Facilities, Physical Fitness 83 Health Food Supplement Stores 55 Health Practitioners Offices 42 Hearing Aid Stores 48 Heating & A/C Contractors 26 Heating & A/C Equip. Wholesalers 75 Hematologists Offices 42 Hobby Supply Stores 55 Holding Companies Offices Other Than Bank 42 Home Appliance Installation 26 Home Entertainment Equip. Mfg. 68 Home Furnishings Stores

111 Home Furnishings Wholesalers 75 Home Theater Installation 26 Hotels & Motels < 4 Stories 61 I Ice Cream and Frozen Desserts Mfg. 34 Ice Cream Shops 61 Ice Distribution 75 Industry Niche Guidelines 78 Information Technology Staffing 70 Ink Cartridge Refill Shops 61 Insurance Adjusters Offices 42 Insurance Agencies & Brokerages 42 Internet Service Providers 71 Internists Offices 43 J Janitorial Services 27 Janitorial Supplies Wholesalers 75 Jewelry Stores 55 Jewelry Wholesalers 75 Juice Bars 61 K Kennels (Boarding) 48 Key Cutting 61 Kitchen Accessories Stores 55 Kitchen Accessories Wholesalers 76 Kitchen Utensil, Pot, & Pan Mfg. 35 Knives & Scissors Stores 55 L Lamps & Lighting Fixtures Stores 55 Lamps & Lighting Fixtures Wholesalers 76 Lamp Shade Mfg. 35 Landscape Architectural Offices 43 Landscaping Services 27 Laundries & Dry Cleaners (Coin-Operated) 61 Lawn & Garden Equip. Stores 55 Lawn Care 27 Lawyers Offices 43 Leather Goods (Personal) Mfg. 35 Leather Goods Stores 55 Lessor s Risk Only Guidelines 18 Lessor s Risk Only Non-Residential Bldgs. (Contractors) 27 Lessor s Risk Only Non-Residential Bldgs. (Garage) 30 Lessor s Risk Only Non-Residential Bldgs. (Manufacturing) 35 Lessor s Risk Only Non-Residential Bldgs. (Offices) 43 Lessor s Risk Only Non-Residential Bldgs. (Retail) 55 Lessor s Risk Only Non-Residential Bldgs. (Services) 61 Lessor s Risk Only Non-Residential Bldgs. (Wholesalers) 76 Libraries 61 Light Bulb Mfg. 35 Lighting Fixture Mfg. 35 Lighting Installation 27 Linens Bed & Bath Wholesalers 76 Lingerie Stores 55 Liquor Stores 55 Locksmiths 61 Luggage & Leather Goods Wholesalers 76 Luggage Mfg. 35 Luggage Stores 55 M Machine Shops 35 Mantel Work 27 Manufacturing Program Guidelines 32 Masonry & Stone Contractors 27 Maternity Shops 55 Measuring and/or Controlling Device Mfg. 68 Meat & Poultry Markets 55 Medical Laboratories 61 Metal Container (Light Gauge) Mfg. 35 Metal Dealers or Distributors 76 Metal Foil Mfg. 35 Metal Goods Mfg. 35 Metal Goods Mfg. Stamping 35 Metal Pattern/Plate Work Mfg. 35 Metal Springs (Light Gauge) Wire Good Mfg. 35 Metal Work Decorative or Artistic 35 Milk Mfg. 35 Mortgage Brokers Offices 43 Museums 61 Music & CD Stores 55 Music & CD Wholesalers 76 Musical Instrument Tuning & Repair 61 Musical Instrument Wholesalers 76 Musical Instruments & Supplies Stores

112 N Nail or Spike Mfg. 35 Nail Salons 48 Natural, Processed Cheese Mfg. 35 Needles, Pins, or Tacks Mfg. 35 Nephrologists Offices 43 Netting Made on Net Machines 35 Neurologists Offices 43 Newspaper & Magazine Shops 56 Notaries Offices 43 Nursery & Garden Centers 56 Nuts Salted or Roasted Wholesalers 76 Nuts & Bolts Mfg. Turned Product & Screw 35 Nuts Shops 56 O Obstetricians Offices 43 Occupational Therapists Offices 43 Office Administrative Services 62 Office Equip. (Precision) Repair & Maintenance 62 Office Equip. Rental & Leasing 62 Office Equip. Wholesalers 76 Office Furniture Wholesalers 76 Office Furniture (Except Wood) Mfg. 35 Office Machinery Mfg. 35 Office Program Guidelines 38 Office Supplies & Stationery Stores 56 Office Supplies & Stationery Wholesalers 76 Oncologists Offices 43 Ophthalmologists Offices 43 Optical Goods Stores 48 Optical Instruments & Lens Mfg. 68 Optometrists, see Ophthalmologist 43 Oral Surgeons Offices 43 Orthodontists Offices 43 Orthopedic Surgeons Offices 43 Osteopaths Offices 43 Other Communications Services 71 P Packaged Frozen Foods Wholesalers 76 Packaged Software Development 70 Packaging Services 62 Paint & Wall Coverings Wholesalers 76 Paint & Wallpaper Stores 56 Painting Contractors Exterior 27 Painting Contractors Interior 27 Paper Products Distributors 76 Paper & Paper Products Wholesalers 76 Party Goods Stores 56 Paving Driveway & Sidewalk 27 Pediatricians Offices 43 Pen & Mechanical Pencil Mfg. 35 Pet & Pet Supplies Stores 56 Pet Daycare 48 Pet Grooming 48 Pet Motels/Hotels 48 Pet Training 48 Photo Engraving 62 Photo Studios Portrait 62 Photofinishing 62 Photographic Supplies Mfg. 36 Photography (Commercial) 62 Physical Fitness Centers 83 Physical Therapists Offices 43 Physicians Offices 43 Piano & Organ Stores 56 Piano Tuning 62 Pickled Fruits and Vegetables Mfg. 36 Picture Frames Wholesalers 76 Piece Goods & Notions Wholesalers 76 Piece Goods, Sewing, & Needlework Stores 56 Pipe and Pipe Fittings 36 Pipes or Tubes Mfg. Metal 36 Pipes or Tubes Mfg. Plastic 36 Pizza Parlors & Delis 62 Plant Maintenance Interior 27 Plastering or Stucco 27 Plastic or Rubber Goods Mfg. Household 36 Plastic or Rubber Goods Mfg. Other Than Household 36 Plastic or Rubber Supply Goods Distributors 76 Plastics Materials Wholesalers 77 Plumbing & Heating Equip. Wholesalers 77 Plumbing Contractors 27 Plumbing Fixture, Fitting, & Trim Mfg. 36 Plumbing Fixtures Mfg. 36 Podiatrists Offices 43 Popcorn & Chips Wholesalers

113 Popcorn Shops 56 Precision Turned Products 36 Pretzel Shops 56 Primary Care Physicians Offices 43 Printed Circuit Assembly 69 Printing & Bookbinding Supply Wholesalers 77 Printing Books 62 Printing Business Forms 62 Printing Commercial 62 Printing Commercial Flexographic 62 Printing Commercial Gravure 62 Printing Commercial Silk Screen 62 Printing Digital 62 Printing Lithography 62 Printing Prepress Services 62 Printing Quick Printing 62 Printing Support Activities 62 Professional Equip. Wholesalers 77 Professionals Guidelines 46 Professional/Trade Organizations 43 Psychiatrists Offices 43 Psychologists Offices 43 Publishers Book 62 Publishers Greeting Cards 62 Publishers Magazine 63 Publishers Newspaper 63 Publishers Software 63 Pulmonologists Offices 44 R Racquetball Club Facilities 83 Radio/TV Broadcasting, & Wireless Comm. Equip. Mfg. 69 Radio Broadcasting Stations 63 Real Estate Agents & Brokers Offices 44 Real Estate Appraisers Offices 44 Records and Document Shredding Services 80 Records and Document Storage Services 80 Recording Studios 63 Refreshment Stands 63 Refrigeration Equip. (Commercial) Wholesalers 77 Refrigeration System (Commercial) Installation & Repair 27 Religious Articles & Church Supplies Wholesalers 77 Restaurant & Other Commercial Equip. Wholesalers 77 Restaurants Alcohol < 30% 63 Restaurants No Alcohol 63 Restaurants Operated by Concessionaires 63 Retail Equip. Wholesalers 77 Retail Guidelines 50 Rowing Amateur Sports Teams and Leagues 85 Rowing Instruction, Camps, or Schools 84 S Sandwich Shops 63 School Supplies Stores 56 School Supplies Wholesalers 77 Scrapbooking Stores 56 Semiconductor Design No Mfg. 69 Service Establishment Equip. Wholesalers 77 Service Guidelines 58 Sewing Machine (Household) Mfg. 36 Sewing Machine Stores 56 Sheet Metal Work Mfg. 36 Sheet Metal Work Outside 27 Shoe & Leather Goods Repair 63 Shoe Stores 56 Shoe Wholesalers 77 Shopping Centers Full-Cooking Restaurants (between 20% & 40% of total area) 56 Shopping Centers Full-Cooking Restaurants (up to 20% of total area) 56 Shopping Centers No Full-Cooking Restaurants 56 Siding Installation 27 Sign (Electric) Mfg. 36 Sign Lettering 27 Smoothie Bars 63 Snack Foods Mfg. 36 Soccer Amateur Sports Teams and Leagues 85 Soccer Instruction, Camps, or Schools 84 Softball Amateur Sports Teams and Leagues 85 Softball Instruction, Camps, or Schools 84 Software Research & Development 70 Solar Energy Installation & Repair 27 Sound Equip. Installation 27 Sound Equip. Mfg. 69 Specialty Food Stores 56 Speech Therapists Offices 44 Spice Shops 56 Sports Apparel & Accessories Stores 56 Stamp & Marking Device Mfg. 36 Steel Wool or Wire Wool Mfg. 36 Stockbrokers Offices

114 Sunglass Stores 57 Surgeons Offices 44 Surveying/Mapping Services Offices 44 Swimming Amateur Sports Teams and Leagues 85 Swimming Instruction 84 T Tailors & Seamstresses 63 Tax Preparation Services Offices 44 Taxidermists 63 Technology Guidelines 66 Telecommunication Equipment Distributors 77 Telecommunication Service Providers 71 Telemarketing Offices 44 Telephone Apparatus Mfg. 69 Telephone Equip. Installation 27 Tennis Club Facilities 83 Ticket Agencies 44 Tie Shops 57 Tile, Marble, Terrazzo, & Mosaic Contractors 27 Tire Dealers (Retail) 30 Title Abstract & Settlement Offices 44 Tool & Die Mfg. 36 Tool Mfg. Accessories 36 Tool Mfg. Hand Type, Not Powered 36 Townhouse Association 23 Toy Distributors 77 Track and Field Amateur Sports Teams and Leagues 85 Track and Field Instruction, Camps, or Schools 84 Training Cosmetology 63 Training Professional & Mgmt. Development 63 Training Secretarial 63 Translation and Interpretation Services 63 Travel Agencies 44 V Vacuum Cleaner Sales & Service 57 Vending Machine Wholesalers 77 Veterinary Services 48 Video & DVD Rental 63 Video Game Stores 57 Videographers 64 Volleyball Amateur Sports Teams and Leagues 85 Volleyball Instruction, Camps, or Schools 84 W Wall Covering Contractors 27 Watch & Clock Wholesalers 77 Watch Stores 57 Watch, Clock, & Parts Mfg. 36 Web Search Portals 70 Website Design 70 Weight Training Centers 83 Wholesale Program Guidelines 72 Wig & Toupee Stores 57 Window & Door (Metal) Mfg. 36 Window Treatment Installation 64 Window Treatment Stores 57 Wine and Liquor Wholesalers 77 Wines or Brandy Mfg. 36 Wire Cloth Mfg. 36 Wire Rope or Cable Mfg. Metal 36 Workers Compensation Guidelines 9 Y Yarn Stores 57 Yoga Studios and Instruction 83 Trophy Stores 57 T-Shirt Stores 57 U Ultimate Frisbee Amateur Sports Teams and Leagues 85 Ultimate Frisbee Instruction, Camps, or Schools 84 Uniform Stores 57 Urologists Offices

115 A solid commitment to you & your clients! We do everything in our power to eliminate distance between ourselves, our agents, and your clients. As an A rated company with local knowledge, we fully understand your needs and respond quickly with practical and flexible products designed to meet or exceed your expectations. If you have any questions or need additional information regarding our products, contact your Small Commercial Sales Manager or Small Commercial Underwriter. Find more help online. Visit our corporate website at or visit our password-protected agency portal (The Agency Place) at 113

116 The Hanover Insurance Company 440 Lincoln Street, Worcester, MA Citizens Insurance Company of America 645 West Grand River Avenue, Howell, MI This material offers a brief description of coverages and programs and is provided for informational purposes only. Actual coverages may vary by state. Options and credits are not available in all states. For exact terms, conditions, exclusions, and limitations, please contact The Hanover branch office nearest to you. Policies are underwritten by one or more of the following: Allmerica Financial Alliance Insurance Company, Allmerica Financial Benefit Insurance Company, Citizens Insurance Company of America, Citizens Insurance Company of Illinois, Citizens Insurance Company of the Midwest, Citizens Insurance Company of Ohio, The Hanover Insurance Company, The Hanover New Jersey Insurance Company, and/or Massachusetts Bay Insurance Company. Florida: Policies in the state of Florida are underwritten by The Hanover Insurance Company, Massachusetts Bay Insurance Company, The Hanover American Insurance Company, and/or Allmerica Financial Benefit Insurance Company. Avenues, The Hanover Insurance Group with Eagle icon, and Our policy is performance are trademarks of The Hanover Insurance Group, Inc. All other trademarks are the property of their respective owners (1/11)