HomeMy WebLinkAboutAVI Systems Inc; 2019-02-21;AGREEMENT FOR CARLSBAD CITY LIBRARY'S TIGHTROPE
CAROUSEL CUSTOM CHANNEL DESIGN
AVI SYSTEMS, INC.
THIS AGREEMENT is made and entered into as of the ~9} :)t day of
.:=,.....£...""-ol....L..~~~~-' 2019, by and between the CITY OF CARLSBAD, a municipal
nd AVI Systems, Inc., an audio-visual company, ("Contractor").
RECITALS
City requires the professional services of an audio-visual company that is experienced in
audio visual integration and sound system design services. Contractor has the necessary
experience in providing these professional services, has submitted a proposal to City and has
affirmed its willingness and ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those services (the
"Services") that are defined in Exhibit "A", attached and incorporated by this reference in
accordance with the terms and conditions set forth in this Agreement.
2. TERM
This Agreement will be effective for a period of six (6) months from the date first above written.
3. COMPENSATION
The total fee payable for the Services to be performed shall not exceed four thousand, four
hundred thirty-four dollars ($4,434). No other compensation for the Services will be allowed
except for items covered by subsequent amendments to this Agreement. City reserves the right
to withhold a ten percent (10%) retention until City has accepted the work and/or the Services
specified in Exhibit "A."
4. PREVAILING WAGE RATES
Any construction, alteration, demolition, repair, and maintenance work, including work performed
during design and preconstruction such as inspection and land surveying work, cumulatively
exceeding $1,000 and performed under this Agreement are subject to state prevailing wage laws.
The general prevailing rate of wages, for each craft or type of worker needed to execute the
contract, shall be those as determined by the Director of Industrial Relations pursuant to the
Section 1770, 1773 and 1773.1 of the California Labor Code. Pursuant to Section 1773.2 of the
California Labor code, a current copy of applicable wage rates is on file in the office of the City
Engineer. Contractor shall not pay less than the said specified prevailing rates of wages to all
such workers employed by him or her in the execution of the Agreement. Contractor and any
subcontractors shall comply with Section 1776 of the California Labor Code, which generally
requires keeping accurate payroll records, verifying and certifying payroll records, and making
them available for inspection. Contractor shall require any subcontractors to comply with Section
1776.
City Attorney Approved Version 6/12/18
5. STATUS OF CONTRACTOR
Contractor will perform the Services as an independent contractor and in pursuit of Contractor's
independent calling, and not as an employee of City. Contractor will be under the control of City
only as to the results to be accomplished.
6. INDEMNIFICATION
Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees
and volunteers from and against all claims, damages, losses and expenses including attorneys
fees arising out of the performance of the work described herein caused by any negligence,
recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or
indirectly employed by any of them or anyone for whose acts any of them may be liable.
The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or
makes to or on behalf of an injured employee under the City's self-administered workers'
compensation is included as a loss, expense or cost for the purposes of this section, and that this
section will survive the expiration or early termination of this Agreement.
7. INSURANCE
Contractor will obtain and maintain policies of commercial general liability insurance, automobile
liability insurance, a combined policy of workers' compensation, employers liability insurance, and
professional liability insurance from an insurance company authorized to transact the business of
insurance in the State of California which has a current Best's Key Rating of not less than "A-:VII";
OR with a surplus line insurer on the State of California's List of Approved Surplus Line Insurers
(LASLI) with a rating in the latest Best's Key Rating Guide of at least "AX"; OR an alien non-
admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest
quarterly listings report, in an amount of not less than one million dollars ($1,000,000) each,
unless otherwise authorized and approved by the Risk Manager or the City Manager. Contractor
will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-
made coverage. The insurance will be in force during the life of this Agreement and will not be
canceled without thirty (30) days prior written notice to the City by certified mail. City will be named
as an additional insured on General Liability which shall provide primary coverage to the City. The
full limits available to the named insured shall also be available and applicable to the City as an
additional insured. Contractor will furnish certificates of insurance to the Contract Department,
with endorsements to City prior to City's execution of this Agreement.
8. NOTICES
The name of the persons who are authorized to give written notice or to receive written notice on
behalf of City and on behalf of Contractor under this Agreement.
For City
Name Jessica Padilla Bowen
Title Community Relations Manager
Department Library & Cultural Arts
City of Carlsbad
Address 1775 Dove Lane
Carlsbad, CA 92011
Phone No. 760-602-2024
2
For Contractor
Name David Bunting
Title AVP ---------------
Address 7270 Trade Street, Suite 201
San Diego, CA 92121-2384
Phone No. 858-653-4339
Email David.bunting@avisystemsinc.gov
City Attorney Approved Version 6/12/18
Each party will notify the other immediately of any changes of address that would require any
notice or delivery to be directed to another address.
9. CONFLICT OF INTEREST
Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the
requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report
investments or interests in all categories.
YesD No ■
10. COMPLIANCE WITH LAWS
Contractor will comply with all applicable local, state and federal laws and regulations prohibiting
discrimination and harassment and will obtain and maintain a City of Carlsbad Business License
for the term of this Agreement.
11. TERMINATION
City or Contractor may terminate this Agreement at any time after a discussion, and written notice
to the other party. City will pay Contractor's costs for services delivered up to the time of
termination, if the services have been delivered in accordance with the Agreement.
12. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees it may be subject to civil penalties for the filing of
false claims as set forth in the California False Claims Act, Government Code sections 12650, et
seq., and Carlsbad Municipal Code Sections 3.32.025, et seq. Contractor further acknowledges
that debarment by another jurisdiction is grounds for the City of Carlsbad to terminate this
Agreement.
13. JURISDICTIONS AND VENUE
Contractor agrees and stipulates that the proper venue and jurisdiction for resolution of any disputes
between the parties arising out of this Agreement is the State Superior Court, San Diego County,
California.
14. ASSIGNMENT
Contractor may assign neither this Agreement nor any part of it, nor any monies due or to become
due under it, without the prior written consent of City.
15. AMENDMENTS
This Agreement may be amended by mutual consent of City and Contractor. Any amendment will
be in writing, signed by both parties, with a statement of estimated changes in charges or time
schedule.
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City Attorney Approved Version 6/12/18
16. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on behalf of
Contractor each represent and warrant that they have the legal power, right and actual authority
to bind Contractor to the terms and conditions of this Agreement.
CONTRACTOR
By:
~a_~ 13 metrv
(sign here)
RANDI BOB, H I l1.FC)
(print name/title)
(sign here) '
b"" \~ ~""'"" ·-F, ~i , It vI~
(print name/tile)
CITY OF CARLSBAD, a municipal
corporation of the State of California
Library & Cultural Arts Director
ATTEST:
BARBARA ENGLESON
~t-'Lcity Clerk
If required by City, proper notarial acknowledgment of execution by contractor must be attached.
If a corporation, Agreement must be signed by one corporate officer from each of the following
two groups:
Group A.
Chairman,
President, or
Vice-President
Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
City Attorney Approved Version 6/12/18
4
EXHIBIT "A"
SCOPE OF SERVICES
A. SUMMARY:
The City has requested Contractor provide a Carousel Custom Channel Design for its in-house flat
screen display monitors running on the Tightrope system. The monitors display information about City of
Carlsbad Library & Cultural Arts services and programs and are located in each of the three library
facilities; Carlsbad City Library, Georgina Cole Library and Library Learning Center.
8. CUSTOM CHANNEL DESIGN:
To provide a new Carousel Custom Channel Design, Contractor will work with Tightrope and City to:
• Provide three (3) original custom design templates for City's staff to select from and three (3)
rounds of changes to the preferred design to present a final design template.
• Follow the style guidelines approved by the City, including approved fonts and colors.
• Program the new design template to display at all Carlsbad City Library locations hosting the
Tightrope system.
• Ensure that the design is compatible with the current version of Tightrope that the City is using.
C. PRODUCTS AND SERVICES COST DETAIL:
Model# Manufacturer Description
CAR-CHD-CUST Tightrope Carousel Custom Design Channel
Support
Shipping & Handling
Tax
Grand Total
Qty
1ea
Price
$4,115.00
N/C
N/C
$318.91
$4,433.91
City Attorney Approved Version 6/12/18
5
Client#· 1101881 AVISYS
ACORDTU CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/ODIYYYY)
3/27/2018
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW, THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the pollcy(lea) muat have ADDITIONAL INSURED provisions or be endorsed,
If SUBROGATION IS WAIVED, subject to the terms and conditions of the pollcy, certain pollclea may require an endoraement. A etatement on
this certificate does not confer any rights to the certificate holder In Heu of auch endoraement(e).
PRODUCl!ft mr· USI Insurance Services, LLC ~I: 701 989-7676 If~. Nol! 877 411-6097 4207 Boulder Ridge Road Suite 226 • lealey.bentzaual.com
Bismarck, ND 68503 IHSUftntlll Afl'OIIDIHG COVEIIAGE NAIC•
INSURER A: A-lpoclallr .. .-o-,..., 27164
INSURED INSURER ■: AVI Syatema, Inc. INSURERC: 8019 Bond Street
Lenexa, KS 66214 INSURl!R D :
INIURl!ft E:
INSUIIERF:
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVEBEENISSUED TOTHE INSURED NAMEOABOVE FORTHE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO VffCH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AU. THE TERMS,
EXCWSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOVVN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
l'\!',I' TYPa OP INSURANCE POLICY NUMBER ................ LIMIT9 ·----...
A X COMMIRCIAL GENUAL UAIIILITY 7110081910012 04/01/2018 04/01/2011 EACH OCCURRENCE ,1.000.000 -:] CLAIMs.MADE [jJ OCCUR ,_a, .... Tn-•ED I ,1.000.000 --r-~~11::11
MEDEXP,_ _ __,, ,10.000 --PERSONAL & MN INJURY ,1.000 000
OEKI. AGGREGATE LIMIT APPi.JES PER: GENERAL AGGREGATE 12.000,000 R P0LK)'( [jJ ~ar [I) LOC Pl'IODUCTS -COMPIOP AGO 12.000.000
OTHER: •
A AUTOMOBILE UA•ITY 7110081910012 !)4/01/2018 04/01/201& .............. , '~ UMh 11 000.000 -I X ANVAUTO llODILY INJURY (Pet petlCIII) I -.,OM..Y .---SCHEDULED --AUTOS BODILY INJUn' (Pet ICCNlnl) S
X =ONLY X NON-O'MfED ;.;;.,~!.,r-,~ s ,-.. -AUTOS ONLY
I
A ~ UMIIIIILLA LIAB ~~ 7110081910012 p410112018 04/01/2011 EACH OCCURRENCE ,10000.000
EXCESILIA■ a.AIMS-MADE AGGREGATE 110 000.000 /
fta\ I xi A I ,av
A WORKElll COMPENSATION 4060169160011 04/01/2018 04/01/2011 xi~ ..... ., I I~ AND EMPLOYERS' LIAIIUfY y / N 11 000.000 ~TiW"~CUTIVE[j] NIA E.L EACH .ACCIDENT
CM1ndatory In NH) E.L DISEASE • EA EMPI.OYEE s1000 000
~~=~ns>s:RATIONSbolow E.L DISEASE· POUCY LIMIT s1.000 000
A Technology E&O 7110081910012 04/01/2018 04/01/2011 Occurrence $3,000,000
Aggregate $3,000,000 ✓
DEIClllPTION OP OPERA TIONI I LOCATIONS I VEHICLES (ACORD 101, Addlllonal Ren111f11 Scbadule, IIIIIY be allachad If men 1paca la raqulNCIJ
Certificate Holder la Included aa an Additional lnaured re General Llablllty.
CERTIFICATE HOLDER CANCELLATION
City of Carlsbad SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE Will BE DELIVERED IN 1636 Faraday Avenue ACCORDANCE WITH THE POUCY PROVISIONS.
Carlsbad, CA 92008-7314
AUTHORIZED REPRESENTATIVE
'11-e£-a I \
C) 1988-2016 ACORD CORPORATION. All rights reserved.
ACORD 26 (2018/03) 1 of 1 The ACORD name and logo are registered marks of ACORD
#S22782211/M22768636 LKMZP
Payment Is limited to the lesser of the following amounts:
1. Necessary and actual expenses lncCJrred.
2. The maximum dally payment of $25 for any one day.
This coverage does not apply while there are spare or reserve •autos• available to you.
If 1oss" results from the total theft of the private passenger "auto", we will pay under 1h11 coverage only that
amount of your rental relmbWHment expenses which Is not already provided for under the PHYSICAL
DAMAGE COVERAGE Extension.
21. TOWING -COVERED AUTOS
Under SECTION 111-PHYSICAL DAMAGE COVERAGE, Coverage for Towing Is amended as follows:
a. This coverage applies to any covered "auto• for which a premium charge for towing and labor fa shown in
the Schedule or In the Declarations.
b. The limit II $100.
VCAZ010101 Includes copyrighted materfal of Insurance Sen,foes Olllce, Inc.
Copyright 2004, OneBncon Insurance Group LLC
PIIQefiaffj
b. The actual cash value; or
c. The cost of repairing or replacing It with other property of llke kind or quality.
The deducllble wlll be equal to the largest deductible applicable to any owned "auto" for that coverage. No
deductible applfes to "loss" caused by fire or llghlnfng.
Subject to the above llmlt, deductible and excess provisions, we wlll provide coverage equal to the broadest
coverage applicable to any covered "auto• you own.
We will also cover loss of use of the hired "auto" If the following conditions are met:
a. It results from an accident;
b. You are legally Hable; and
c. The 1811or Incurs an actual financial loss.
The most we wlll pay for this loss of use coverage Is $1,000 per "accldenr.
18. LEASE GAP COVERAGE
_Under paragraph C. Limit of Insurance -of SECTION Ill -PHYSICAL DAMAGE COVERAGE, the following
ls added:
If a covered "auto" Is leased, we will also pay the difference between the actual calh value of a covered "au-
to" at the time of "loss• and the remaining balance on your leae If the fallowing concfltlons are met
•· The "auto" has a long tenn lease and Is covered on this policy.
b. The lusor Is added as an Additional Insured In a written lease agreement.
c. You are legally obligated for the remaining balance.
We will not pay for any amounls rapr9Nl1llng mccees wear and tear chargaB; addltlonal mileage charges; taxes;
overdue payments; penallles, H...a or charges l8l&.ltlng 1iom ovenu paymaa; orleaee tennlnallon f9es.
17. LIABILITY COVERAGE EXTENSIONS-SUPPLEMENTARY PAYMENTS
Under SECTION II -UABIUTY COVERAGE, the Coverage Extension for Supplementary Payments Is re-
vised 81 follows:
a. The llmlt for the cost of ball bonds Is amended to $3,500.
b. The llmlt for reasonable expenses Incurred by the "Insured" Is amended to $500 a day.
18. NEWLY FORMED OR ACQUIRED ORGANIZATIONS
a. The Who Is An Insured provillion ll1der SECTION 11-LIABILITY COVERAGE Is amended to Include 81
an "Insured" any organization that la formed or acquired by you and over which you maintain ma]ortty
ownerlhfp.
b. Paragraph a. of this provision 18. does not apply to any organization:
1. That Is a Joint venture or partnership;
2. That Is an insured" under any other policy;
3. That has exhausted Ila Limit of Insurance under any other poUcy; or
4. 180 days or more after Its acquisition or fonnatlon by you, unless you have given us notice of the ac-
quisition or fonnatlon.
c. Paragraph a. of this provision 18. does not apply to "bodily 1'1ury" or "property damage" that results from
an "aceldent" that ocaJrred before you fonned or acquired the organization.
19. PHYSICAL DAMAGE -TRANSPORTATION EXPENSES COVERAGE
Under SECTION Ill -PHYSICAL DAM.AGE Coverage Extensions, the llmlt for Traneportatlon ExpanNS Is
amended to $75 per day and the maxlmun Is amended to $2,250.
20, RENTAL REIMBURSEMENT
We wHI pay for rantal relmblnement expenses lnaJned by )'OU for the rental cl.,. "auto" of the private passenger
type becaU8e d "loss" to a "covered auto• of the private passenger type. Payment applies In adclllon to the other-
wise appllcable amount of each coverage )'OU have on a "covenld auto". No dedudlbles apply to this coverage.
We will pay those expenses Incurred during the policy period beginning 24 hours after the "loss" and ending,
regardleas of the policy's expiration, six (6) days after the "loss".
Page4of5 lncludel copyrighted matertal or 1111urance Services Olllce, Inc.
Copyright 2004, OneBellCXln lnluiance Gnlup LLC
VCA20101 Ot
d. The following definition Is added to the DEFINmONS section of the policy:
•executive officer" means a person holding any of the officer positions created by your charter, consti-
tution, by-laws or any slmllar govemlng document
a. The Other Insurance Condition, under Section IV -BUSINESS AUTO CONDITIONS, does not apply
to the provisions of this Drive Other Car endorsement. There Is no •other lnsuranc:e• appllcable to this en-
dorsement
10. DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS
Under SECTION IV -BUSINESS AUTO CONDfflONS -the Duties In The Event Of Accident, Clalm, SUit
Or Lou Condition Is amended as follows:
The requirements that you must
•· Notify us of an •acc1denr, clalm, •ault" or •1011"; and
b. Send ua documenta concerning a clalm or •suir,
apply only when such •acc1ctenr, dalm, •,uir or •1on" Is known to:
•· You, If you are an Individual;
b. A partner, If you are a partnership;
c. An executive officer of the corporation or lnaurance manager, If you are a corporation; or
d. A manager, If you are a lmlled llablllty company.
11. EMPLOYEES AS INSUREDS
The Who la An lnaured provision under SECTION II -LIABILITY COVERAGE la changed by adding the fol-
lowing:
Any •employee• of yours while ualng a covered •auto• you don't own, hire or borrow In your bUllneu or
your personal affall"I. Thia coverage Is excess over any other coNecllble Insurance.
12. EMPLOYEE HIRED AUTOS
The following II added to the Who Is An Insured Provision:
An •employee• of youra Is an "Insured" whffe operating an "auto" hired or rented under a contact or agreement
In thal "employee••• name, with your pennlulon, while performing duties relaled to the conduct of your bual-
neu.
For purpoaea of this coverage grant, paragraph &.b. of the Other Insurance Condition In the Bualneas Auto
Coverage Form Is replaced by the followlng:
b. For Hired Auto Phyllcal Damage Coverage, the followlng are deemed to be covered •autos" you own:
1. Any covered "auto• you lease, hire, rent or borrow; and
2. Any covered •auto• hired or rented by your •employee" under a contrad In thal Individual •employ-
ee••• name, with yoll' pennl88lon, whlle performing duties related to the conduct of your buslnes1.
HoMver, any "auto• thal la teased, hired, ranted or borrowed with a driver Is not a covered •auto•.
This coverage la exceaa over eny other collectlble Insurance.
13. FELLOW EMPLOYEE EXCLUSION
The FeRow Emplo)'H exclualon under SECTION II -LIABILITY COVERAGE does not apply If the "bodily In-
jury" results from the use of a covered •auto" you own or hire. This coverage la excesa over any other Insur-
ance.
14. GLASS REPAIR-WAIVl!R OF DEDUCTIBLE
Under paragraph D. -Deductlble -of SEC110N DI -PHYSICAL DAMAGE COVERAGE, the following 11
added:
No deductible applies to gla11 damage If the gla11 la repaired rather than replaced.
11. HIRED AUTO-PHYSICAL DAMAGE COVERAGE
If hired "autos" .. covered ·au1os· under SECllON n -UABIUTY COVERAGE llld If Comprehensive, Speci-
fied Cauaea of Loa, or Colllalon coverages are provided Lnder thla pollcy for any -.uto" you own, then
SECTION II-PHYSICAL DAMAGE COVERAGE II extended to .. la. you hn, subject to the folkM1ng llmlt
The most we will pay for io11• to any hired "auto• Is the lesaer of:
a. $76,000 for "autoa• of the private pa188ng« type and $50,000 for all other "autos";
VCAZOt 01 ot lndudel copyrtglud material of lnturanc11 Ser.1c8I Offloe, Inc.
Copyright 2004, OneBeacon IIIIUl'IIICII Onlup LLC
Page3of6
8. BROAD FORM NAMED INSURED
L The Who Is All Insured provision under SECTION II -LIABILITY COVERAGE la amended to Include
the foffowfng:
Any organization which la a legally Incorporated entity In which you own a ftnanclal lntel9Bt of more than
50% of the voting llfock on the etrec:live date of this Coverage Form wlll be a Named Insured lmtll the 18011
day or the end of the policy period whichever comas first, provided there Is no other 1lmllar lnlll'Bn08 avail-
able to that organization.
b. Paragraph L of this provision e. does not apply to "bodily Injury" or "property damage• for which an 1n-
sured" la also an •msured" under any other automobile poficy or would be an •insured" under such a poli-
cy, but for lta termination or the exhaustion of ltl Limit of ln1urance.
7. COMMUNICATIONS EQUIPMENT
L The exclullon for elecbonlc equipment under Exclu1lons of SECTION Ill -PHYSICAL DAMAGE
COVERAGE does not apply to loll of any permanently Installed, non-removable cornmunfcaffons equip.
ment designed for use as a:
1. Citizen's band radio;
2. Two-way mobile radio or telephone;
3. Scanning monitor receiver; or
4. GPS Navigation System,
Including Its antenna and other accnaoriea.
b. No Deductible applies to this addlllonal coverage.
c. The most we wlll pay for this coverage Is $5,000 per occurrence.
8. DIMINUTION IN VALUE
The •diminution In value• exc:lualon under SECTION 111-PHYSICAL DAMAGE COVERAGE, B. Exclu■lons
does not apply If the covered -.uto• la a private pa88811ger -■uto" and Is lea■ed, rented, hired or borrowlld
without a driver for a period of 30 days or less and Is used In the conduct of the ln■urad'1 bullneaa. The molt
we wtll pay tor"loel• arising out of an "accident' ls the leaser of $7,600 or 20% of the actual cash value of the
"auto" as determined by Kelley Blue Book or other Independent valuation BOUrCes.
9. DRIVE OTHER CAR-EXECUTIVE OFFICERS
a. The Who Is All ln■uNd provision wtder SECTION 11-LIABILITY COVERAGE Is amended to Include:
If you are designated In the Dedaratlons as:
1. An lndMdual; you and your spouse.
2. A partnenlhlp; your partners and their spouses.
3. An organizltlon other than an lndlvldual or a partnership; your "execuUve officers" and their spou••·
b. SECTION II -LIABILITY COVERAGE and SECTION Ill -PHYSICAL DAMAGE COVERAGE are ex-
tended to Include "autos• you doni own, hire, lease or borrow whUe In the care, custody or control of an
-insured" Hated In 9.L This does not Include any "auto":
1. Owned by a,y "Insured" listed In 9.L, or any member of their household, Including any such "auto"
that Is owned but not Insured;
2. Used by an "lnaure~ Hated In 9.a. whDe working In the busfness of seHlng, aervtdng, repairing or
parking autos; or
3. Insured under another policy of Insurance.
If Medical Payments, Unlnllll"8d/Underlnsured Motorist, Personal Injury Protecllon or other compulsory
coverages required by the governing jurtadlcllon are covered on this policy, then ln■ureds Dated In I.a.
above and famDy members residing In the same households are "Insureds" whlle:
1. Occupying as a passenger; or
2. A pedealrlan when struck by,
any "auto" you do not own, hire, lease or borrow, except any •auto• owned by that "Insured" Hated In 8.a,
their family members or an -auto" Insured under any other policy.
c. The limits and deductibles applicable to this provision will be the largest applicable to any owned "auto•
for the specfflc Insurance.
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Copyright 2004, OneBeacon lnsur1nce Group LLC
VCA20101 OI
Policy Number: 7110081910012 . .
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
@VANTAGE FOR AUTOMOBILE
This endorsement modifies lnlurance provided under the followlng:
BUSINESS AUTO COVERAGE FORM
The following schedule Hits the coverage extenlfons provided by this endorlemail Refer to the lndlvldual provi-
sions to determine the extent of your coverage.
SCHEDULE OF COVERAGE EXTEN810NS
1. Addlllonlll lnllnd By Contract 12. Employee Hired Au1DI
2. Airbag Dlacharge 13. Fellow Employee Exclllllon
3. Auto Theft Reward 14. Gius Repair-Waiver of Deducllble
4. Blanket waiver of SubRJgatlon 11. Hired Auto Phyalcal Damage Coverage
I. Bodlly lnjuty Redetlned -Mental Anguish 18. Leue Gap Coverage
8. Broad Form Named Insured 17. Llablllty Coverage-Supplemenlary Payments
7. Comm1S11cationa Equipment 18. Newly Formed or Acquired Organlmtlona
8. Diminution In Value 18. Phyalcal Damage -Transportallon Expenses
I. Drive Ohlr Car-Executive Offlca111 20. Rental Reimbursement -Prtvate Passenger
10. Dut1e1 In The Event of Accident, Clam, Sult or Loa Vehicles
11. Em· Asll'IIUf8dl 21. Towlna-AnvCovenldAuto
1. ADDITIONAL INSURED BY CONTRACT
The Who 18 An lnuNCI prvvlslon lltder SECTION II -LIABILITY COVERAGE Is amended to Include as an
addltlonal "Insured" any person or organization with whom you agreed In a wrlttet, w1bw, .aten agreement
or permit. to provide lnlurance such n Is afforded under this Covenlge Form. SUch peraon or organization Is
an "lnlunld" only with rNpect to llabllly for "bodily l,tury" or •property damage• caused. In whole or In part by
your m~. operalon or uee of your covered ■.utoe•.
VVlth rnpect to the Insurance afforded to these addltlonal insurec1s•, Ihle Insurance does not apply:
a. Unleu the written contract or agreement has been executed or the permit has been Issued prior to the
"bodlly Injury" or •property damage•;
b. To any per10n or organization Included as an "Insured• by endorsement or In the Declarations; or
c. To any lessor of ■.utos• when their contract or agreement with you for such leased •auto• erid1.
2. AIRBAG DISCHARGE
If you purchased phyalcal damage coverage for a COV8l'8d •auto" under this poky, wa wlll pay to 1'88et or re-
place an airbag that accldentally dlacharges without the vehicle being Involved In an accident. No deductible
applies to this addltlonal coverage. However, this coverage only applies If the airbag 11 not covered under a
manufac:IUrer's warranty and you did not Intentionally cause the airbag to dlschafge.
3. AUTO T1EFT REWARD
We wlll pay up to a $2,000 reward In the event of a covered Iola, for Information INdlng to the arrelt and
convlcllon of anyone stealing a covered •auto•. A reward wlll not be paid to you. a fllmlly member, employee
or any public offlclal while performing their duty.
4. BLANKET WAIVER OF SUBROGATION
The Transfer Of Rights of Recovery Agalnet Othera To U. condition under SECTION IV -BUSINESS
AUTO CONDITIONS, paragraph A. LOSS CONDITIONS ls replaced by the followlng:
We wlD waive any right of NCOvery we may have agalnlt any person or organization becauee of paymenta we
make for Injury or damage arising out of the operation of a covered •auto" when you have 88Nned llablllty for
such •bodffy Injury" or •property damage• under an •tnaured conbact", provided the contract Is In writing and
executed prior to the •bodlly Injury' or ■property damage•.
&. BODILY INJURY REDEFINED -MENTAL ANGUISH
The definition of "bodily Injury" under SECTION V -DEFINmONs 11 replaced by the followlng:
-Sodlly Injury" means bodUy Injury, slcknell, or dllease IUltalned by a pel'IOII, Inducing mental anguish
or death resulting from any of theae at any time.
VCA2010109 lnc:ludel copyrighted mlderlll of ln11.nnoe SeMc:ee Olllce, Inc.
Copyright 2004, OneBeacon l11111ranca Group LLC
E-INSURED
Page 1 of&
. Policy.Number: 7110081910012 /
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
KANSAS @VANTAGE FOR GENERAL LIABILITY
TECHNOLOGY COMPANIES
This endorlement moclfies kiluranca provided under the follcw.1ng:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
The following schedule Dsts the coverage extensions provided by this endorsement. Refer to the Individual
provtslon1 to determine the extent of your coverage.
SCHEDULE OF COVERAGE EXTENSIONS
1. Addltlonal ll'IIUred • Broad Form Vendors 8. Coverage Tentto,y-Worldwlde
2. Additional ln1ured -by COnlract, Agl'98fflent or 9. Duties In Event of 0cc11Tence, Claim or Sult
Permit relating to: 10. Expected or Intended Injury (PD)
o Work performed by you 11. Incidental Medical Malpractice
o Premlau you own, rent, lease or occupy 12. Medical Payments
o Equipment you lease 13. Mobile Equipment Redatlned
3. Aggn1gate Limit Per Location 14. Newly Acquired or Fonned Organizations
4. Blanket Walvw of Subrogation 11. Non-Owned Aircraft
5. Bodlly Injury Redefined-Mental Anguish 11. Non-Owned Watercraft
8. Broadened Named Insured 17. Peraonal and Advel1fslng Injury
7. Broadened Property Damage 18. Product Recal Expense
o Borrowad Equipment 11. SUpplementary Payments lnaeased Umlfs
o cu110m .. • Goods
o UH of Elevators
1. ADDITIONAL INSURED· BROAD FORM VENDORS
Section II -Who Is An lnauntd II amended to Include as an addltlonal Insured any pwaon(a) or organlzallan(a)
(ndelrad to below u vendor) with whom )'OU agreed In a written contract or agn,ement to pn,vlde !nuance, but
only wllh respect to •badly Injury" or •property damage• arising out of "your' products" which are dlstrlbul8d or sold
In the regular COll'M cl the vendor's bullneu, subject to the folkM4ng eddlllonal exclusions:
a. This provision 1 • does not apply to:
(1) "Bodily Injury' or •property damage· for which the vendor Is obligated to pay damages by reason of the
wumption of llablllty In a contract or es,eernent. This exclusion does not apply to lablty for damages
that the vendor would have In the abHnce cl the contract or agreement;
(2) Any mcprass or mplled agreement not aulhortzad by you;
(3) Any phyllcal or chemical change In the product made ln1enllonaUy by the vendor;
(4) Repackaging. except when unpacked solely for the purpose of lnspecllon. dem01 w11a11ot,. l81111ng or the
subllltullon of parlS ooder fnltrucUonl from the manuraclw'8r, and then repackaged In the orlglnal
container;
(5) Any faUIA to make such lnspecllons, adjusbnents, tas1s or servicing as the vendor has agreed to make
or nonnally undertak• to make In the uaual courae cl bualnele, In c:c11neclion with the dllllrlbutlon or Nie
of the procu:ts;
(I) DemOnSballon, lnslllallon, l8t'Vlclng or repair operations, except such operations performed at the
vendor's premlHI In connection wllh the sale of the product;
(7) Products which, after dllllrlbUtlon or Nie by you, have been labeled or relabeled or U88d as a container,
part or Ingredient of any other thing or substance by or for the vendor; or
(8) "Bodlly Injury" or "property damage• artslng out of the sole negllgence cl the vendor for Ill own acts or
omissions or those of Ila employeea or anyone else acting on Ila behalf. However, 1h11 exduslon doel not
apply to:
VCG 7411<81113 Includes cop~ted maflllfal of Insurance Servlcu Office, Inc.
Copyright, oneaeacan lnaurance Gruup LlC
E-INSURED
Page 1 of8
(a) The a,ccepClons contained In SU:,paragraphs 4. or a.; or
(b) SUch Inspections, adjustments, teats or servfclng as the vendor has agreed to make or normally
undertakes to make In the usual course of business, In connection with the dlstrfbulion or sale of the
products.
(9) Any vendor, person or o,ganfzatlon If the •products-completed operations hazard"' la excluded either by
the provisions of the Coverage Form or by endorlemenl
b. Thia Insurance does not apply to any Insured person or uganlzallon, from whom you have acquired such
producls, or any lns,edlent, part or container, entering Into, accompanying or containing IUCh producls.
2. ADDmONAL INSURED-CONTRACT, AGREEMENT OR PERMIT
a. Section II -Who Is An lneured la amended to Include as an additional fnlured any person(s) or
organlzatlon(s) \\1th whom you agrHd In a written contract, wrltlan agraernent or permit to provide lnlllBl1Ce
IUCh 81 ls afforded under this Coverage Part
1. with 1'81pect to llablnty far •bodlly biury", •property damage• or •persona1 and advertlling ~ caused,
In whole or In part, by your acts or omissions or the acll or omlsalons of thole acting on yow behalf:
(a) In the performance of ■your work" for the additional fnawed(I) at the loc:atlon designated In the
contract, agreement or pennlt; or
(b) In the maintenance, operation or UN cl equipment leased to you by such person(•) or
organlzatlon(s), or
(c) In conneclfon wllh pnimf1e9 you own, rant, lease or occupy.
2. with r9lp8Ct to Uablllty for •bodily "1Jury" or ·property damage• caused, In 'M10le or In part. by your acts or
omlAlons or the acll or omllllons of those acling on your behalf and occuntng after:
(a) All work on the project (other than service, maintenance or repairs) to be performed by or on behalf
of the addHlonal Insured at the site of the covered operations has been complel8d; or
(b) Thal portion cl ")'Our work" out cl which the Injury or damage arises has been put to Its lnt8nded
use by any pcnon or organl1.8llon olher than another conlractor or ux:onlractor engaged In
perfonnkv operallons for a prfnclpal as part of the eame project.
This Insurance applies on a primary or primary and non-contrtbutory balls If that Is reqlired In writing by the
contract, agraement or permit.
b. The lnsuance provided to the additional Insured herein Is Umlted. This IOSllW1C8 does not apply:
1. UrHSS
(a) the wl1tlen contract, agreement or permit la cum,ntly In effect or becomes effecllve di.ring the term of
this policy; and
(b) the conlract or agreement was executed or permit Issued pr1or to the •bodny Injury", •property
damage•, or •pnonat and advertising lnjwy";
2. To any penson or organlzallon Included as an lnstnd under the Additional lnswed -Broad Form Vendors
provision of this endoraement;
3. To any person or organization ilcluded 81 an lnsl.l'ed by an endorsement Issued by us and made part of
this Coverage Part;
4. To any person or organization If the •bodily lr1ury", •property damage•, or •persona1 and advertising
Injury" arises out of the rendering of or failure to render any professional archltectural, engineering or
surveying services by or for )'OU Including:
(a) The preparing, approving, or falRng to prepare or approve, maps, shop drawings, opinions, reports,
surveys, fteld orders, change orders or drawings and apeclftcatlonl; or
(b) supervisory, Inspection, architectural or engineering activllles.
6. Toany:
(a) Lessor of ecµpment after the equipment lease terminates or expires; or
VCG 741 KS 1113 Includes copyrighted matedal Of Insurance Services Olllce, Inc. Page2of8
Copyright, OneBeacon lnluranca Group LLC
(b) Owners or other Interests from whom land has been leased; or
(c) Managers or lessors of premises If:
(1) The ·occum,nce• takes place after you cease to be a tenant In that preml .. ; or
(2) The •bodily Injury", •property damage•, "peraonal and advertising Injury" arlle9 out of structural
&Iterations, new conatructlon or demolition operations performed by or on behalf of the manager
or lessor.
c. Limb of Insurance appllcable to the addlllonal Insured are those specified In the contract. agreement or
permit or In the Declarations of this policy, whichever Is less, and flx the most we \\ti pay regardless of the
number of:
1. Insureds;
2. Claims made or •suits" brought; or
3. Peraona or organizations making clalrns or brfnglng •slits•.
These Umlts of Insurance are Inclusive of and not In addition to the Limits of Insurance lhOWn In the
Oeclarallons.
3. AGGREGATE LIMIT PER LOCATION
a. Under Section IN -Umlta of Insurance, the General Aggregate Limit applies separately to each of your
"locations" owned by or rented or leased to you.
b. Under Section V -o.tlnltlona, the following definition Is added:
·Location• means premlsel lnvolvlng the same or COMactlng lots, or premises whole connection Is
Interrupted only by a met, roadway, waterway or tight-of-way of a railroad.
•· BLANKET WAIVER OF SUBROGATION
8ectlon IV -Trandtr of Rights of Recovery Against Others to Us Condition Is amended to add the
folowlng:
We wll waive f111Y right of recovery we may have against any person or organlzallon because of peyrnenls we
make for lnju'y or damage ar1lklg out d your ongoing operations done under a wrlllen contract or agreement with
that person or organization and Included In "your work"' or lhe •proc1uctH0mp1etec1 operallona hazard". This
W8MN' apples only to pet'IOnl or organizations with whom you have a wrlltlln contrac:t. axec:ullKI prior to the
"bodily Injury" or •property damage•, 1hat requires you to waive your JiWds of recovery.
S. BODILY INJURY REDEFINED -MENTAL ANGUISH
Under 8Ktlon V, the definition of "bodUy Injury" Is replaced by the following:
•Bodfly Injury" mea,s bodily Injury, sickness, or dl18818 sua1alned by a person, Including mental anguish or
death resulting from any of these at any time.
I. BROADENED NAMED INSURED
Section II • Who la An lnauNCI is amended to Include as an Insured the following:
Any organization which la a legally Incorporated entity In which you own a financial Interest of more than 50
percent of the voting stock on the effecllve date of this endorsement wlU be a Named Insured until the 180th
day or the end of the pollcy period, whichever comes first, provided there la no other slmRar Insurance
available to that organization.
The Insurance afforded herein does not apply to any entity which Is also an Insured under another policy or
would be an Insured under such policy but for Its tennlnatlon or the e>Chaustton of Ila llmlta of Insurance.
VCG 741 KS 1113 lncluda copyrighted ma1arial of lrmurance SefVlcea Ollloe, Inc. Page3of8
Copyright. OneBeacon l11111rance Group LLC
7. BROADENED PROPERTY DAMAGE -BORROWED EQUIPMENT, CUSTOMERS' GOODS AND USE OF
ELEVATORS
The Insurance for "property damage• llablllty Is subject to the following:
a. The Damage To Property exclusion under Section I Coverage A Is amended as follows:
1. The exclusion for pereonal property In the care, custody or control of the Insured does not apply to
"property damage" to equipment you borrow whUe at a job slle and provided ll ls not being used by
anyone to perform operations at the time of loss.
2. The exclusions for
(a) Property loaned to you;
(b) Personal property In the care, custody or control of the Insured; and
(c) That partfaJlar part of any property that must be restored, repaired or replaced because -your
work" was lncomtdly perfonned on ll
do not apply to "property damage" to "customers' goods" while on your premises nor do they apply to
•property damage" arising from the use of elevators at premises you own, rent. lease or occupy.
SUbJed to the Each Occurrence Limit, the most we wlU pay for •property damage" to "Customers'
Goods" Is $35,000 per "occurrence".
b. Under Section V -Definitions, the following definition la added:
"Customers' Goods" means goods of your customer on your premllN for the purpose of being:
1. Repaired; or
2. UHd In your manufacturing process.
c. The Insurance afforded by this provision Is excess over any oth• valid and collecllble property Insurance
(Including any deductible) avaDable to the Insured wheth« such Insurance 19 primary, excess, contingent
or on any other basis. Any payments by us wlll follow the Other Insurance -Excess provisions In the
COMMERCIAL GENERAL LIABILITY CONDITIONS.
8. COVERAGE TERRITORY -WORLDWIDE
The definition of "coverage terrltory" Is replaced by the following:
"Cowrage terrttory" means anywhere provided the Insured'& responsibility to pay damages must be
detennlned In a settlement we agree to or In a •sutr on the merits brought within the United States of
America (Including lls tenttortes and possessions), Puerto Rico or Canada.
9. DUTIES IN THE EVENT OF OCCURRENCE, OFFENSE, CLAIM OR SUIT
Section IV -Dudes In The Event Of Occumtnce, Claim or Sult Is amended by adding the following
paragraphs:
a. The requirements that you must
1. notify 1a of an "occurrence· offense, clalm or "suit" and
2. send 1a docunents concemlng a clam or •sur
apply only when such "accident" claim, •suit" or ·1oss• ls kn<Mfl to:
1. You, If you are an lndlvlul;
2. A partner, If you are a partnership;
3. An exec::utlve otllcer rA the corporallon or lnsLrBnce manager, If you era a corporation; or
4. A manager, If you are a llmlled llablllty company.
b. The requirement that yc,u must notify us as 800n as practicable of an •occurrence• or an offense that may
result In a clalm does not apply If you report an •oca,rrence• to your workers compensation ~surer which
later develops Into a llabllity claim for which coverage Is provided by this policy. However, •• soon as you
have deftnlle knowledge that the particular "occurrence" Is a llablllty claim rather than a workers
compensation claim, you must comply with the Duties In The Event Of Occurrence, Offenu, Claim Or
Sult Condition.
VCG 74'1 KS 1113 lncludea copyrighted material of Insurance Services Office, Inc. Page4of8
Copyright, OneBe■con ln1urance Group LLC
10. EXPECTED OR INTENDED INJURY (PROPERTY DAMAGE)
The Expected Or Intended lnJury e>IClualon under Coverage A Bodlly Injury and Property Damage is
replaced by:
"Bodily Injury" or •property damage• expected or Intended from the standpoint of the Insured. This exclusion
does not apply to "bodily Injury" or •property damage• resultlng from the use of raaaonable force to protect
persons or property.
11. INCIDENTAL MALPRACTICE -EMPLOYED PHYSICIANS, NURSES, EMT'S AND PARAMEDICS
•· Under Section II • Who Is An lnsurad, the paragraph that excludes an employee or volunteer worker a
Insured for •bocflly Injury" or "personal and advertising injury" artling out of his or her providing or falllng to
provide profesalonal health can1 aervlces does not apply to a physician, dantll~ nurae, emergency
medical technician or paramedic employed by you If you are not engaged In the business or occupallon of
providing medical, paramedlcal, surgical, denta~ x-ray or nundng services.
b. The Insurance afforded by thll provlllon Is excess over any other valld and coHecllble Insurance whether
such Insurance fl primary, excess, contingent or on any other balls. Any payments by us wllf foDow Che
other Insurance -Excell Insurance provlalons In the COMMERCIAL GENERAL LIABILITY
CONDmONS.
12. MEDICAL PAYMENTS• INCREASED UMrTS AND TIME PERIOD
In the Insuring Agreement ll'tder Coverage C Medlcal Payments, the requirement that expenses 819 lnaned and
reported to us v.4thln one )'981' of the dale of Iha accident Is changed to ttne yen.
a. The Medical Expense Unit Is $15,000 per person or the amooot shown In Iha Declaratlonl es Iha Medlcai
Expense Limit, whichever Is greater.
b. This provision 12. does not apply ff Coverage C • Medical Payn19nta Is olherwlse excluded either by lhe
provisions of Iha Coverage Form or by endorsement.
13. MOBILE EQUIPMENT -SELF.PROPELLED SNOW REMOVAL, ROAD MAINTENANCE AND STREET'
CLEANING EQUIPMENT
The follOIJlng Is added to the ·moblle ... lpmenl" dellnftlon:
Vehicles maintained primarily for purposes other than the transportation of peraons or cargo that 819 llelf.
propelled vehicles of less than 1,000 pounds gross vehlcle weight YAth the followlng types of perma,en11y
attached equipment wlD be considered •moblle equlpmert":
•· Snow ramoval;
b. Road maintenance, but not construcllon or resllfaclng; or
c. street clearing.
14. NEWLY FORMED OR ACQUIRED ORGANIZATIONS
Under Section II -Who le An Insured, Iha time period 0mltatlon for newly acquired or formed organizations Is
replaced by:
Coverage under this provision Is afforded only untll the end of the cum,nt poUcy period.
11. NON-0WNED AIRCRAFT
The Aln:raft, Auto Or Watercraft exclusion u,der Coverage A Bodlly Injury And Property Damage LlabUlty
does not apply to an alraaft that II:
1 Hired, chartered or loaned YAth a paid craw; and
2 Not owned by any Insured.
VCG 741 KS 1113 lncludel copyrighted malBlfal of lmiuranoe Servlcea Olllce, Inc.
Copydght, OneBeacon Insurance Group LLC
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L The lnslOll09 afforded by this provision 1&. ls excess OVflf any other valid and collectible Insurance
(Including any deductible or Self lnsued Retention) available to the Insured, whether such lnsL1'8nC8 ls
prima,y, excess, contingent or an any other basis. Any payments by us wi11 follow the Other Insurance -
Excess Insurance provisions In the COMMERCIAL GENERAL LIABILITY CONDmONs.
16. NON-OWNED WATERCRAFT
a. 8ectlon 11-Who II An lmuNCI Is amended to Include as an Insured for any watercraft that Is 00V8l'8d by this
policy, any person who, with )'Our elCpl88l8d or Implied consent. either uses or Is responsible for the use of a
watercraft. However, no person or orgarizatlan Is an lnsU'8d with respect to:
1. •Bodily Injury" to a co-•employee" of the person operating the wall,n:raft; or
2. •property danage• to property owned by, rented to, in the charge of or occupied by you or the employer
of any person who Is an lflU'ed lllder'thls provlllon.
b. In the exception to the Aircraft, AullO OrWaten:raft exduslon under Coverage A Bodlly Injury And
Pn,perty Damage U■blllty, the llmltallon on the lenglh of a wateraaft la lncnased to 55 feel
c. The !nuance affon:led by this provision 18. II e>a11 over any other valid and collecllble Insurance
~ncludlng any dedudlJle or Self inlll'ed Retention) available to the Insured, whether IUCh lnuance Is
pr1mary, excess, contingent or on any other basis. Any paymenlB by us wDI follow the 0ther Insurance -
Excell Insurance provialonl In the COMMERCIAL GENERAL LIABILITY CONDmONs.
17. PERSONAL AND ADVERTISING INJURY
The following excluelons under the definition of "personal and advertising Injury" are amended as follows:
a. lnsureda In Media Type Bualn ....
•Personal and advertising Injury" committed by an Insured whose buslnes1 ls:
(1) Advertising, broadcasting, publishing ortelec:astlng; or
(2) Designing or developing content of websites for others.
However, this exclusion don not apply to paragraphs 14 •·• b. and c. of •personal and advertising lnj~
under the Definltlona Secllon.
For the purposes of this exclualon, the placing of frames, borders or links, or advertising, for you Is not by
Itself, considered the bLmlnesa of advertising, broadcasting, publishing or telecasting.
b. Electronlc Chatn,onw Or Bulletin Boards
•Personal and advertising Injury" arising out of an electronic chatroom or bulletin board the Insured
hosts, owns, or maintains for others.
18. PRODUCT ~CALL EXPENSE
With reaped to this Provision 18., the Recall Of Products, Work Or Impaired Property exclusion under
Coverage A Bodily Injury And Pn,perty Damage UabUlty Is deleted.
L The following 11 added to Section Ill -Umlta Of Insurance section:
1. The Umlts of Insurance shown In the Product Recall Schedule and rules below fix the most we will
pay regardless of the number of
(a) Insureds;
(b) •covered recalls• Initiated; or
(c) Number of •your proctucts• recalled.
2. The Product Recall Aggregate Umlt Is the most we will reimburse you for the sum of all •product
recall expenses• Incurred for all •covered recans• Initiated during the poffcy period.
3. Subject to 2. above, the Each Product Recall Umlt Is the most we wlll reimburse you for the sum of
all •proctuct recall expenses• arising out of any one •covered recall• for the same defac:t or
deficiency.
VC8 74& KS 1113 lnclJdea oopyrlghted material of lnauranoe Services Offlce, Inc. Page6of8
Copyright, OneBeacon Insurance Gruup U.C
4. Subject to 3. above, we Vt111 pay only the amount of •product recall expenses• tn excess of the dedudlble
amount shown In the Product Recall Schedule.
Products Recall Schedule
Product Recall Aggregate Umlt
Each Product Recall Umlt
Each Product Recal Deductible $1,000
Llmltl of Insurance
$50,000
$25,000
If any linlts and dedudlble other than those above are 1ho\M'I In
the Declarallonl • the Products Recall Expense Umlta, the
amounts shown In the Declaratlona wiB replace the Lbnlta of
Insurance and deductible provided for this coverage.
The. Limits of Insurance for 1h11 coverage apply separately to each consecutive an,..al period and to any
remaining period of INS than 12 months, starting with the beglmlng of the policy period shown In the
Declaralfons, unl811 the policy period la extended aft• Issuance for an additional pertod of less than 12
months. In that cae, the additional period will be deemed part of the last preceding period for the
purpoHI of determining lhe Umitl of Insurance.
b. The following 11 added to the Dutlft In The Event Of Occurrence, on.nae, Clalm Or SUit provision
under Section IV • Condition•:
You must see to It that the following are done In the event of an actual or anticipated •coverec1 recar
that may result In •proctuct recall expense•:
1. Give us prompt notice of any discovery or nottfk;aUon that ■your producr must be withdrawn or
recalled. Include a deecrlption of •your product" and the reason for the withdrawal or recall;
2. Cease any further release, shipment, consignment or any other method of distribution of like or
1lmllar products until It has been determined that all such products are free from derect8 that could
be a c:aUH of loa under this Insurance;
3. As oftlan •maybe reasonably required, permit us ID Inspect "your product" that demOlllllalel the need
for the •covered recalr and permit us to examine your books and records. Also pennlt us to take
damaged and undamaged samples of "your products• for Inspection, tNUng and analysis; and
pennlt us to make copies from your books and records;
4. Sand us a algned, sworn, prOOf of loas containing the Information we requested to settle the claim.
You must do this within 80 days after our request. We will supply you with the neceasary fonns; and
I. Pennlt us to examine any Insured under oath, while not In the presence of any other Insured and at
such times as may reasonably be required, about any matter relating to this Insurance or your clalm,
lncludq an Insured'• books and records. In the event of an examination, an Insured', answers must
bealgned.
c. The following definitions are added to the Definitions Section:
1. •covered recall" means a recall made necessary because the Insured or • government body has
determined that• known or suspected defect, deficiency, Inadequacy or dangerous condition In
"your product" has resulted In or will result In "bodily Injury" or •property damage•.
2. "Product Recall Expense" means:
(a) The foDowlng neceuary and reasonable expenses you Incur exclusively for the purpose of
nalllng •your pn,duct":
(1) For communications, Including raclo or television amouncementa or printed advertfaemenlll
lncludlng stalfonery, envelopes and postage;
(2) For shipping the recalled products from any purchaser, distributor or user to the place or
places designated by you;
VCG 741 KS 1113 Includes capyr1ght8d matellal of lneurance Servicet Olllce, Inc. Page7of8
Copyright, OneBeacon lneurance GRIUP LLC
(3) For remuneration paid to your regular •employees• for necessary overtime;
(4) For hiring additional persons, other than your regular "employees•;
(6) Incurred by •employees•, Including transportation and accommodations;
(6) To rent addltlonal warehouse or storage space; or
(7) For disposal of "your products•, but only to the extent that specific methods of destruction
other than those employed for trash discarding or disposal are required to avoid "bodily
Injury" or "property damage" as a result of such disposal, but
·proc:tuct recan expenses· does not Include coslB of regaining yow-market share, goodwlJI, revenue or
profit
(b) "Product Recall Expense" does not Include any expenses '81Ulllng from:
(1) Falue d any product to accomplish Ill Intended p.,pose;
(2) Breach of wanantlee d filneu, quality, durability or perfonnanr.e;
(3) Loa of a.8tomer approval, or any cost lnmred to regain Qllfomer approval;
(4) Redistribution or replacemerd of "you' product" which has been recaled by like procb:ls or
substitutes;
(I) Caprice or Y.t1lm d the Insured;
(6) A condition likely to cause loss of which any lnstnd knew or had reason to know at the
Inception d this lnac.nnce; and
(7) Recall rA "your products" that have no known or suspected defect solely because a known or
suspected defect In another of•your products• has been fowld
19. SUPPLEMENTARY PAYMENTS• INCREASED LIMITS
Under Section 1-Coverag•, Supplementary Payments -Coverag• A and B, paragraphs 1.b. and 1.d. are
replaced by the following:
b. Up to $2,500 for cost rA ball bonds required because d accidents or traffic law vlolatfons artslng out of the
use of any vehicle to which the Bodlly Injury Llabllty Coverage applies. We do not have to furnish these
bonds.
d. All reasonable expenses Incurred by the Insured at ow-request to assist us In the Investigation or
defanse d the clalm or "lull", Including actual Iola of earnings ~ to $500 a day because of line off from
work.
VCQ 74& KS 1113 Includes copy~hted materlal of lnaurance Servklu Ollk:e, Inc. Page8of8
Copyright, OneBeacon lnaurance Gioup LLC
'>I • ' ..
WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT -CALIFORNIA
This endorsement changes the policy to which it is attached effective on the inception date of the policy unless a
different date is indicated below.
(The following "attached clause" need be completed only when this endorsement is issued subsequent to
preparation of the policy.)
This endorsement, effective on Apr i 1 01, 2 O 18 at 12:01 AM. standard time, forms a part of
(DATE)
Policy No. 406-01-69-15-0011
ofthe Atlantic Specialty Insurance Company
(NAME OF INSURANCE COMPANY)
issued to AVI SYSTEMS, INC.
Premium (if any) $
Endorsement No.
Authorized Representative
We have the right to recover our payments from anyone liable for an Injury covered by this policy. We will not
enforce our right against the person or organization named in the Schedule. (This agreement applies only to the
extent that you perform work under a written contract that requires you to obtain this agreement from us.)
You must maintain payroll records accurately segregating the remuneration of your employees while engaged in
the work described in the Schedule.
The additional premium for this endorsement shall be 2 • oo % of the California workers' compensation premium
otherwise due on such remuneration.
Schedule
Person or Organization Job Description
ALL PERSONS OR ORGANIZATIONS ON FILE WITH
THE INSURED
WC 252 (04 84) Copyright 1984, OneBeacon Insurance Group LLC
E-INSURED