ST-7680 (Ed. 04-12) New policy look. Same quality. POLICYHOLDER NOTICE YOUR NEW BUSINESSOWNERS POLICY Thank you for renewing your insurance with Harleysville. Your business insurance for your garage operations has been renewed under a different policy form. Rest assured, while the appearance has changed, you still have comprehensive protection. The major features of this new policy are briefly summarized below. These coverages may or may not apply to you. Actual coverage depends upon many factors; i.e.: covered property; covered causes of loss; circumstances surrounding the loss; etc. No coverage is provided by this summary nor can it be construed to replace any provisions of your policy or endorsements. You should read your policy and review your Declarations Page for complete information on the coverage you are provided. If there is any conflict between the policy and this summary, THE PROVISIONS OF THE POLICY WILL PREVAIL. For the most part, your new policy provides coverage that is equal to or broader than your prior coverage. Your policy may have higher limits or other modifications that make it different from this summary. Coverage reductions, if any, are described after the Coverage Feature Summary. If you have any questions, or would like information on optional coverage and higher limits that may be available to you, please contact your agent. COVERAGE FEATURE SUMMARY StarAdvantages Businessowners COVERAGE FEATURE Accounts Receivable on-premises off-premises Additional Insureds - Liability Additional Insured status is extended to include: Lessors of Equipment Leased to a Named Insured Managers Or Lessors of Premises Leased to a Named Insured Aggregate Limits - Liability Animals Buildings Business Income and Extra Expense Business Income From Dependent Properties Aggregate liability limits are at 3 times the occurrence limit under Business Personal Property coverage Building covered property includes above and below ground storage tanks and associated piping, connections and electrical equipment Automatic 8% annual increase to the building limit (pro-rated for the period of coverage) Actual loss of Business Income (including rental income) Necessary Extra Expense Up to 12 months coverage duration (including ordinary payroll expense) No waiting period 30 days Business Income Extended Period of Indemnity Actual loss of Business Income up to $5,000 72 hour waiting period ST-7680 (Ed. 04-12) Includes copyrighted material of the Insurance Services Office with its permission Page 1 of 6
Business Personal Property Civil Authority Business Personal Property includes fuel in above and below ground storage tanks Actual loss of Business Income Necessary Extra Expense Up to 3 weeks coverage duration 72 hour waiting period applicable to Business Income Claim Data Collection Expenses Collapse - Property Computers Consequential Loss To Stock Contractual Liability Covered Causes Of Loss - Property Damage To Leased Property Damage To Premises Rented To You - Liability Damage To Rented Buildings Damage To Your Products Liability Debris Removal Expense Electronic Data - Property Employee Dishonesty Employee Tools under Business Personal Property for reduction in value caused by physical loss to other property on a blanket basis for oral and written contracts if the contract is an insured contract Risks of Direct Physical Loss or Damage $20,000 for loss or damage to leased property caused by motor vehicles, trailers, auto hoist collisions $100,000 $5,000 for contractually assumed damage to building rented to you For Garage operations only: Damage To Your Product is covered subject to a $250 deductible if it s caused by a defect existing in Your Products or any part of Your Products at the time it was transferred to another Up to 25% of the paid loss plus a $10,000 'additional' limit. (annual aggregate) for damage to electronic data destroyed or corrupted by a specified cause of loss, including computer viruses (annual aggregate) for actual loss of business income and necessary extra expense incurred due to the suspension of operations caused by an interruption in computer operations owing to destruction or corruption of electronic data by a specified cause of loss, including computer viruses including ERISA compliance language $5,000 with a $500 per item maximum limit ST-7680 (Ed. 04-12) Includes copyrighted material of the Insurance Services Office with its permission Page 2 of 6
Equipment Breakdown Fire Department Service Charge Fire Extinguisher Equipment Recharge Expense Forgery Or Alteration Protection Fungi, Wet Rot, Dry Rot and Bacteria - Property Loss or damage to covered equipment which is caused by an accident (as defined in the Equipment Breakdown Coverage endorsement) is a Covered Cause of Loss Expediting Expenses - $100,000 Hazardous Substances - $100,000 Spoilage - $100,000 Data Restoration - $100,000 Business Income and Extra Expense from Off-Premises Utility Services Equipment Breakdown if the interruption exceeds 24 hours Jurisdictional Inspections Environmental, Safety and Efficiency Improvement 125% $15,000 aggregate limit including 30 days cumulative Time Element coverage (Not applicable in NY) Garagekeepers (Customer s Autos Coverage) Glass - Interior and Exterior Hired and Non-Owned Auto Liability $20,000 Comprehensive and Collision legal liability coverage subject to a deductible of $250 per auto and $500 per loss Host Liquor Liability, except this coverage does not apply in the states of Illinois and Vermont Not subject to liability aggregate limits Coverage is excess over any available primary insurance Incidental Medical Malpractice Key & Lock Replacement Medical Expense $1,500 at insured s premises when keys are lost or stolen per person Mobile Equipment Money & Securities Money Orders & Counterfeit Money Newly Acquired Or Constructed Property Newly Acquired Organizations - Liability Inside the Premises Outside the Premises Buildings - $1,000,000 for 60 days or until policy expiration Business Personal Property - $500,000 for 60 days or until policy expiration Covered for 180 days ST-7680 (Ed. 04-12) Includes copyrighted material of the Insurance Services Office with its permission Page 3 of 6
Non - Owned Watercraft Liability (less than 51 ) Ordinance Or Law Outdoor Property - Fences; Antennas; Signs; Trees, Shrubs and Plants Loss to Undamaged Portions of Buildings $50,000 Demolition Costs $50,000 Increased Cost of Construction. Trees, plants and shrubs are subject to a sub-limit of $500 per item and $5,000 per occurrence. Personal Effects Personal Injury and Advertising Liability Personal Property - Seasonal Increase Personal Property Of Others Personal Property Off - Premises Pollutant Clean-Up And Removal - Property Premises Boundary 25% at replacement cost (subject to the Business Personal Property limit of insurance) Within 1,000' of described buildings Preservation Of Property 30 days Property - Loss Payment Retaining Walls, Piers & Foundations Replacement Cost valuation unless the ACV option is chosen No coinsurance requirement under Building coverage Reward Coverage Spoilage Caused By Power Outage Supplemental Payments (Liability) \ Tenants Improvements and Betterments if there is an on or off-premises interruption of electrical power due to 'elemental' perils Defense of indemnitee included $2,500 for cost of bail bonds $500 loss of earnings under Business Personal Property coverage Utility Services - Time Element Valuable Papers on-premises off-premises subject to a 24 hour waiting period. This does not apply to Equipment Breakdown and there is no coverage for loss related to an interruption in utility service which causes loss or damage to electronic data. ST-7680 (Ed. 04-12) Includes copyrighted material of the Insurance Services Office with its permission Page 4 of 6
Waiver Of Transfer Of Rights Of Recovery Against Others To Us Water Back-Up and Sump Overflow World Wide Liability if required under a written contract, provided the suit is brought within the coverage territory IMPORTANT Property Limits of Insurance should be reviewed to ensure they are sufficient to fully rebuild or replace buildings and business personal property. For example, be certain to include the following values in the appropriate limit of insurance: Buildings - above and below ground storage tanks and associated piping, connections and electrical equipment Business Personal Property - fuel in above and below ground storage tanks, computer hardware and signs (not attached to buildings) Coverage for your Owned Automobiles must be written under a separate Commercial Automobile policy. Liability coverage does not apply to damages arising out of the ownership, maintenance, use of entrustment to others of any auto owned by or rented or loaned to any insured. SECTION I PROPERTY COVERAGE REDUCTIONS AND CLARIFICATIONS PROPERTY COVERAGE Deductible If the Property Deductible on your expiring policy was $100, it has been increased to $250. Employees Tools The per item limit of insurance is $500. Equipment Breakdown Coverage Endorsement - Utility Services - Time Element If this coverage was provided under your expiring policy, a waiting period (24 hours) is newly introduced. Hired Auto Physical Damage - If this coverage is provided, a $500 deductible applies. PROPERTY CONDITIONS Electronic Media and Records Limitation (Business Income) - $10,000 per policy aggregate. PROPERTY EXCLUSIONS We will not pay for loss or damage caused by or resulting from: o Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. o Errors or Omissions in programming, processing or storing electronic data; or, processing or copying valuable papers. o Installation, Testing, Repair of your computer system including electronic data. o Electrical Disturbance to electronic data. o Continuous or Repeated Seepage or Leakage of Water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more. Exclusion Of Loss Due To Virus Or Bacteria This endorsement excludes coverage under Section I Property (including business income) for loss or damage caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. ST-7680 (Ed. 04-12) Includes copyrighted material of the Insurance Services Office with its permission Page 5 of 6
SECTION II LIABILITY COVERAGE REDUCTIONS AND CLARIFICATIONS LIABILITY COVERAGE Additional Insured Designated Person or Organization Additional Insured Grantor of Franchise Additional Insured Lessor of Leased Equipment (written contracts only) Additional Insured Managers or Lessors of Premises (written contracts only) If any of these coverages are provided, there is additional insured coverage for the described person or organization ONLY if the bodily injury, property damage or personal and advertising injury is caused in whole or in part by your acts or omissions or the acts or omissions of those working on your behalf. There is NO coverage for bodily injury, property damage or personal and advertising injury caused entirely by any negligence that is not attributable to you or those acting on your behalf. This may be a reduction in coverage in states where you are contractually permitted to hold harmless an additional insured for that additional insured's sole negligence or in states where courts have enabled coverage for the sole negligence of the additional insured. Athletic Activities Exclusion - The Athletic Activities Exclusion has been revised to more clearly express what types of athletic activities are excluded with respect to Medical Expenses Coverage. Medical expenses are not intended to be provided to a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. This may be considered a reduction in coverage. Auto and Mobile Equipment - The definitions of "mobile equipment" and "auto" have been revised so that a land vehicle which is subject to compulsory or financial responsibility laws or other motor vehicles insurance laws or registration laws is not covered for its over-the-road exposures. However, the operation of machinery or equipment that is attached to, or part of, such a vehicle will still be covered by your policy. If you wish to obtain coverage for land vehicles subject to compulsory or financial responsibility laws, or other motor vehicle insurance laws, you should consider a Commercial Automobile policy. Broad Form Insured (Hired Auto and Nonowned Auto Liability) If this coverage is provided under your policy, the coverage afforded by such insurance ends at the next occurring anniversary date of the beginning of the policy period or the end of the policy period, whichever is earlier, unless coverage is otherwise terminated earlier. Garagekeepers Physical Damage (Customer s Auto Coverage) If the Deductible on your expiring policy was $100, it has been increased to $250. Damage to Premises Rented to You - The Aggregate Limits provision has been revised to state that the limit for Damage to Premises Rented to You is subject to both the per occurrence limits of insurance policy provisions and the aggregate limits of insurance policy provisions. LIABILITY CONDITIONS There is no Premium Audit requirement, however, any changes in exposure must be reported to the company within 90 days. LIABILITY EXCLUSIONS Distribution Of Material In Violation Of Statutes Liability coverage does not apply to damages arising directly or indirectly out of any action or omission that violates or is alleged to violate any statute, ordinance or regulation that prohibits or limits the sending, transmitting, communication or distribution of material or information including the TCPA or CAN-SPAM Act of 2003. Exclusion - Tobacco Health Hazards - If this endorsement is attached to your policy, liability coverage does not apply to any injury or damage arising from the use of tobacco products. Ice and snow removal performed for others using an owned auto is not covered. Refer to the Aircraft, Auto Or Watercraft exclusion. Exclusion Asbestos, Silica, Silica-Relate Dust or Talc If this endorsement is attached to the policy, liability coverage does not apply to any injury or damage arising from asbestos, silica, silica-related dust or talc. Fungi Or Bacteria Exclusion (Liability) If this endorsement is attached to the policy, liability coverage does not apply to any injury or damage arising from fungi or bacteria on or within a building or structure. Liquor Liability This exclusion applies to those in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. Professional Services There is no liability coverage for any injury or damage arising from the rendering or failure to render any professional service. ST-7680 (Ed. 04-12) Includes copyrighted material of the Insurance Services Office with its permission Page 6 of 6