HomeMy Public PortalAbout2023_05_23_Council_Agenda_Packet
TOWN OF LEESBURG
Town Hall, 25 West Market Street
AGENDA
Town Council Meeting
May 23, 2023
7:00 PM
Council Chamber
1. CALL TO ORDER
2. INVOCATION
a. Council Member Cummings
3. SALUTE TO THE FLAG
a. Council Member Bagdasarian
4. ROLL CALL
5. MINUTES
a. Work Session Minutes of May 8, 2023
b. Regular Session Minutes of May 9, 2023
6. ADOPTING THE MEETING AGENDA (AMENDMENTS AND DELETIONS)
7. CERTIFICATES OF RECOGNITION
8. PROCLAMATIONS
a. Relay for Life (Ron Petrella)
b. Wayne's Crossing Commemoration (Ken Bonner)
c. National Gun Violence Awareness Day (Melanie Srivisal)
d. Lesbian, Gay, Bisexual, Transgender, and Queer Pride Month (Cris Candice
Tuck)
e. Loudoun County Resolves
f. Nancy L. Ryan's 80th Birthday and 25th Senior Fitness Celebration
9. PRESENTATIONS
10. REGIONAL COMMISSION REPORTS
11. PETITIONERS
12. APPROVAL OF THE CONSENT AGENDA
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a. Market Street and King Street Intersection Improvements Project – Construction
Change Order
RESOLUTION
Authorizing the Town Manager to Execute Change Order No. 1 in the amount
of $311,488 for Construction of the Market Street and King Street Intersection
Improvements Project
b. Town Liability Insurance Award
RESOLUTION
Award Town Liability Insurance to Virginia Association of Counties Group
Self-Insurance Risk Pool
13. RESOLUTIONS / ORDINANCES / MOTIONS
14. PUBLIC HEARINGS
15. UNFINISHED BUSINESS
16. NEW BUSINESS
17. COUNCIL DISCLOSURES AND COMMENTS / ADDITIONS TO FUTURE
MEETINGS
18. MAYOR DISCLOSURES AND COMMENTS / ADDITIONS TO
FUTURE MEETINGS
19. TOWN MANAGER COMMENTS
20. CLOSED SESSION
a. Annexation with respect to the Joint Land Management Area (JLMA)
MOTION
I move pursuant to Va. Code Section § 2.2-3711(A)(8) and § 2.2-3711(A)(3) of
the Code of Virginia that the Leesburg Town Council convene in a closed
meeting for the purpose of consultation with legal counsel and briefings by staff
members regarding specific legal matters related to the annexation in the JLMA
where such consultation in open session would adversely affect the negotiating
or litigating posture of the Town.
MOTION
In accordance with Section § 2.2-3712 of the Code of Virginia, I move that
Council certify to the best of each member’s knowledge, only public business
matters lawfully exempted from open meeting requirements under Virginia
Freedom of Information Act and such public business matters for the purpose
identified in the motion by which the closed meeting was convened were heard,
discussed or considered in the meeting by Council. (ROLL CALL VOTE)
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21. ADJOURNMENT
ASSISTIVE LISTENING SYSTEM
Qualified individuals with a disability who require a reasonable accommodation to attend and/or participate
in this meeting should contact the Clerk of Council at eboeing@leesburgva.gov or 703-771-2733 to request the
accommodation. Three days advance notice is requested. Meetings are broadcast live on the Town’s local
government access cable TV channel (Comcast 67 and Verizon 35) and streamed live on the website at
www.leesburgva.gov/webcasts. All Town Council, Board and Commission meetings are recorded and can be
found on the Town’s Web site at www.leesburgva.gov.
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REGULARLY SCHEDULED COUNCIL MEETINGS
Citizens are invited to attend and participate in Town Council meetings. The petitioner’s portion of the meeting and
scheduled public hearings offer the public two opportunities to present its views to the Council during its meeting.
Petitioners
The petitioners’ portion of the Council agenda is the first item addressed by the Council following proclamations,
certificates of appreciation, regional commission reports and presentations. This part of the meeting gives individuals
the opportunity to address the Council on any matter not scheduled for a public hearing. Prior to the meeting, citizens
wishing to speak should sign up on the Town’s Web site at https://www.leesburgva.gov/government/mayor-
council/current-council-agenda by 4:00 p.m. the day of the meeting or on the signup sheet in the hallway outside of
the Council Chamber the night of the meeting. The Mayor will give anyone the opportunity to speak that did not get
a chance to sign up. Petitioners’ comments are limited to between three and five minutes at the Mayor’s discretion.
Public Hearings
Certain Town business items can only be conducted after the Town Council holds an advertised public hearing.
Certain major issues affecting the Town’s government can also be scheduled for public hearing at Council’s discretion.
Adoption of the Town budget, rezonings, special exceptions and amendments to the Town’s subdivision and zoning
ordinances all require a public hearing. Prior to the meeting, citizens wishing to speak at a public hearing may sign
up on the Town’s Web site at https://www.leesburgva.gov/government/mayor-council/current-council-agenda by
4:00 p.m. the day of the meeting or on the signup sheet in the hallway outside of the Council Chamber the night of
the meeting. The Mayor will give anyone the opportunity to speak who did not get a chance to sign up. Public hearing
comments should be limited to the topic of the public hearing and speakers will be given between three and five
minutes at the Mayor’s discretion. If you wish to speak at more than one public hearing, you must sign up for each
hearing separately.
Decorum
A person addressing the Council as a petitioner, or during a public hearing, should advance to the podium when
recognized by the Mayor and state and spell his or her name for the purpose of closed captioning. If comfortable
doing so, speakers should provide their address for the record. Persons should also indicate whether they are
representing anyone other than themselves. Decorum will be maintained. Statements, which are demeaning or
defamatory to members of the public, the staff or the Council, are inappropriate and out of order.
OTHER COUNCIL MEETINGS
Work Sessions
Council meets twice per month, or more often as necessary, to discuss items that are placed on the agenda at the desire
of the majority of Council present. Items are typically discussed at a meeting at least two weeks into the future but
items may be added in a shorter time frame in accordance with Council’s adopted rules and procedures.
Closed Sessions
Under certain circumstances, the Virginia Freedom of Information Act permits the Town Council to meet in a session
where the public is excluded. This may be a discussion of personnel matters, legal matters, the acquisition or sale of
property and other selected topics. The Council can only go into closed session to discuss topics specifically exempted
from the open meeting requirements and all closed sessions must be properly noticed and appropriate Code sections
cited as to the specific statutory authority to go into closed session. The notice must also include the general topics to
be discussed. Only those matters in the adopted motion to go into closed session can be discussed and members in
attendance must certify that only those topics were discussed when they return to an open session.
TOWN COUNCIL AGENDA MATERIALS
Council agenda materials are available to citizens by end of day Wednesday immediately preceding the set of Council
Meetings. Council agenda materials are posted to the Town Web site at
https://www.leesburgva.gov/government/mayor-council/current-council-agenda. Meeting agenda packets are
available for public inspection in the lobby of Town Hall on Wednesdays prior to the scheduled meeting. Council
agendas can also be viewed on the Town’s Web site at https://www.leesburgva.gov/government/mayor-
council/current-council-agenda.
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Council Work Session May 8, 2023
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Council Chamber, 25 West Market Street, Leesburg, Virginia, 7:00 p.m. Mayor Kelly Burk
presiding.
Council Members Present: Ara Bagdasarian, Todd Cimino-Johnson, Zach Cummings, Kari
Nacy, Vice Mayor Neil Steinberg, Patrick Wilt, and Mayor Kelly Burk.
Council Members Absent: None.
Staff Present: Town Manager Kaj Dentler, Town Attorney Christopher Spera, Deputy Town
Manager Keith, Leesburg Police Lieutenant Jason Allegra and Clerk of Council Eileen Boeing.
AGENDA ITEMS
a. Item for Discussion
a. 2023 Virginia General Assembly Legislative Wrap-Up
Mr. Markel reviewed the 2023 Virginia General Assembly. Items of interest to
Leesburg include:
License reciprocity from other states for water and wastewater operators;
Requirement to stop for pedestrians in crosswalks versus yielding;
Annual reporting requirement to the State on changes to some land use
issues;
Extension on moratorium for issuing City Charters until 2032;
Reduction of descriptions required for public hearing notices in printed
advertisements;
Formation of a group to study long-term rental regulations if the property
was managed by a realtor;
Authority to chief law enforcement officer to enact a local curfew up to 24
hours during a civil disturbance; and
Amending State Code requirements to include energy conservation measures
and electric vehicle charging stations for new or renovated buildings over
5,000 square feet.
Council and staff discussed the item. Mayor Burk requested the future work
session discussion on the Town’s 2024 Legislative Program begin sooner to allow
additional time to work with legislators. Staff agreed to move this item forward on the
schedule.
b. Legislative Advocacy for the Virginia General Assembly
Mr. Markel reviewed Council’s request to explore legislative support for specific
legislative issues, to assist with the development of the Town’s legislative program, follow
legislation that may have an impact on Leesburg or local government and/or hiring an
in-house Legislative Coordinator.
Council and staff discussed the item.
There was no consensus to move forward with this item.
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Item a.
Council Work Session May 8, 2023
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c. Review the Charter of Each Board and Commission
Mr. Dentler requested direction from Council regarding any desired changes to the
charter of the Town’s Boards and Commissions.
Council and staff discussed the item.
It was the consensus of Council to have a future Work Session discussion on the membership
requirements for each Board and Commission.
d. Proposed Amendment of the Noise Ordinance (Town Code Sec. 24-182(a)(5))
regarding Amplified Noise Permits
Mr. Spera reviewed the current noise ordinance and inconsistencies with the current
permit process and reviewed the following proposed amendments to the ordinance:
Extending the plainly audible standard to 100 feet;
Implement a list of best practices to manage noise and provide a “safe
harbor” to those who comply with the best practices; and
Balancing amplified sound and the impact to the community.
Council Member Bagdasarian presented some best practices to include along with a
noise permit to help permit holders minimize sound impacts to neighboring properties.
Council and staff discussed the item.
It was the consensus of Council to have a future Work Session discussion on potential
amendments to the noise ordinance that includes benchmarking ordinances from other jurisdictions,
looking at technologies available to help reduce the sound impacts to neighboring properties and
includes Police Department input.
b. Additions to Future Council Meetings
Council Member Cimino-Johnson requested a Work Session discussion on installing an
outdoor volleyball court to include input from the Parks and Recreation Advisory Commission
on potential locations.
It was the consensus of Council to add this item to a future work session for discussion.
Council Member Cimino-Johnson requested information on the cost for Council
Members to participate in same healthcare program offered to full-time employees at full cost to
Council Members.
It was the consensus of Council to receive an information memo for this item.
Council Member Cimino-Johnson requested a Work Session discussion for an aide or
dedicated office support to Council Members.
It was the consensus of Council to add this item to a future work session for discussion.
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Item a.
Council Work Session May 8, 2023
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Council Member Cummings requested a work session discussion on community
composting.
It was the consensus of Council to add this item to a future work session for discussion.
Council Member Cummings asked Mr. Dentler about the process for providing input
regarding the Zoning Ordinance amendment for the maximum number of rooms allowed for an
inn. Mr. Dentler noted that Planning and Zoning Director James David was working on the
proposed text amendment to present to the Planning Commission which includes Council
Member’s individual input but noted there was no majority direction given by Council when
discussed at the work session.
Council Member Wilt requested a work session discussion regarding the Liberty Street
Lot parking lot to allow for ingress and egress. It is currently limited to egress traffic only. Mr.
Dentler noted there were funds currently available to conduct a study. There were no objections
for staff to proceed with the study to be presented at a future work session; however, the impact
of the Liberty Lot Redevelopment proposal will be included as part of the discussion when
considering whether to proceed with the recommendations of the study.
It was the consensus of Council to add this item to a future work session discussion.
Mayor Burk requested a proclamation for Jewish American Heritage Month to be
proclaimed at the May 9, 2023, Council meeting.
It was the consensus of Council to add this item to the May 9, 2023, Council meeting.
c. Adjournment
On a motion by Vice Mayor Steinberg, seconded by Council Member Cummings, the meeting was
adjourned at 8:09 p.m.
Clerk of Council
2023_tcwsmin0508
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Item a.
Page 1|May 8, 2023
May 8, 2023 – Leesburg Town Council Work Session
(Note: This is a transcript prepared by a Town contractor based on the video of the meeting. It
may not be entirely accurate. For greater accuracy, we encourage you to review the video of
the meeting that is on the Town’s Web site – www.leesburgva.gov or refer to the approved
Council meeting minutes. Council meeting videos are retained for three calendar years after a
meeting per Library of Virginia Records Retention guidelines.)
Mayor Kelly Burk: Welcome to tonight's Town Council work session. Our first item on the agenda for
tonight is the 2023 Virginia General Assembly Legislative Wrap-up. Mr. Markel?
Keith Markel: Good evening, Mayor and Council. Thank you. I wanted to just spend a few minutes
here with you this evening to go through the outcomes of this year's General Assembly session for
2023. As you all know, there wasn't a whole lot of high expectations for being a real successful
productive General Assembly session this year. A few things were working against us and working
against the State. For one, it was a short session, so they just had fewer days to work with. They also
had no sponsored legislation from our local delegation for any of the items on the Town's legislative
program. It was a lame-duck session for many legislators with the new redistricting that will take effect
this year.
Many legislators are using this as a retirement year for them, so this would be the last session that
they were serving in. Many were being redistricted into new geographic areas. So, it made it
challenging for folks to sponsor significant legislation that would have controversy with it. Also, there's
just an increase in partisanship as noticed by VML staff as they pointed out. It's just harder to get
things done because there is less cooperation than in years past. There were, however, a few bills
that came through that do have some impact. Nothing hugely significant, but I'll just touch on a few
here for you this evening, legislation that has been signed into law that will take effect.
One thing that works in the Town's favor and for any locality that runs its own water and wastewater
operation, is a bill that allows utility operators from out-of-state, who have out-of-state licenses to also
be recognized within the Commonwealth of Virginia. That license reciprocity allows those operators,
in our case, many who might be in West Virginia or Maryland to come to Virginia without having to
take the Virginia test. As long as they're in good standing and meet some other qualifications or have
had their license for several years, they would be able to be recognized by the State regulatory
agencies to be operators.
When we have an increasingly challenged labor market to find qualified operators, this is a good thing
for folks like Leesburg. Pedestrian safety signs. Crosswalk signs now can require vehicles to stop, not
just yield for pedestrians. If you look around Town, we have yield for pedestrians and crosswalk. Little
change to the law here allows stop for pedestrians and crosswalk. Land use reporting has increased.
The Department of Housing and Community Development now requires localities that make changes
to their comprehensive plans, zoning ordinances, housing policies need to report that to them
annually for them to maintain those records.
No City Charters. This is something that's been pushed out year after year and done in multi-year
increments dating back to the '80s. This has now been pushed out to extending moratoriums on city
annexations and city charters being issued to at least 2032.
Public hearing notices saw a modest change there that reduces the amount of print that needs to go
into the ad so you don't have to give a full description of the actual item taking place, just property,
owner, and address, and date and time of the public hearing. Again, this is something that will still
need to be published in the printed newspaper, but less text needs to go into that ad. Short-Term
Rental Study. There was a bill introduced that would've proposed that any Airbnb or similar sort of
short-term rental property being managed by a realtor would not have to follow local regulations put in
place by a locality. This is a great concern to localities throughout Virginia.
VML brought this up as a major concern as part of its legislative program. This has now been sent to
a study committee to look at the impacts of what would happen if realtors were able to circumvent any
local regulatory authorities imposed on the short-term rental properties. Local curfews with lots of
limitations. The Chief law-enforcement officer can enact up to a 24-hour curfew during a civil
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Item a.
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disturbance. Anything over 24 hours would need to be approved by the local governing body. There
are many freedom of speech issues related with this one as well.
Energy Conservation and EV Charging Stations. This is an amendment to the Code that was adopted
last year or the year before that had localities over 100,000 population had to meet certain
environmental thresholds for new building construction. This now gets rid of that population
requirement. Any locality that's going to be building a new building over 5,000 square feet would have
to meet these new environmental standards, which is a good thing and things that the Town will be
looking at with our new Energy Manager on board. Wouldn't apply to the Police Department because
that was already approved and in the works. For future development projects, these are things that
we'll be looking at.
Looking ahead to 2024, this is very important. The Town will have all new representation next year
due to the redistricting and retirement. Delegate Gooditis, Delegate LaRock will not be representing.
Delegate Gooditis is retiring. Delegate LaRock is running for a Senate seat. Senator Boysko's district
has been realigned. She'll no longer represent Leesburg. Drastic changes there to our representation,
which means it's an important year for building relationships with whoever ends up being the Town's
representation in Richmond. Our legislative program discussions will kick off for the 2024 session on
July 24th at our work session in July. I'm happy to answer any questions you all may have on this.
Mayor Burk: Thank you for your presentation. The one thing that the legislators have asked us is to
bring our legislative program to them sooner. I see that we're on the calendar for-- When is it? July?
Keith Markel: Yes, the second work session in July.
Mayor Burk: Is there no way to move it closer up?
Keith Markel: We can, if you like, yes.
Mayor Burk: Because that seems like far away and then everybody goes away in August. Not me,
but everybody else does. If there was a way to move it up to an earlier session so that we could have
July to meet with them, that would be useful.
Keith Markel: The challenge with this coming year is that we won't know who our representatives will
be with the General Assembly. We know who's running in those races, but we won't have
confirmation on who will be representing the Town or their willingness to sponsor in the legislation
until we get into November.
Vice Mayor Neil Steinberg: We do have legislators though, who aren't representing Leesburg
directly who have expressed an interest to know what our agenda might be, because they too would
perhaps help us do that. There are several that we could get it to.
Mayor Burk: Thank you. Does anyone else have any questions? Mr. Steinberg.
Vice Mayor Steinberg: Minor one. For the pedestrian crossing, when you say stop rather than yield,
are you saying motorists are now required to come to a full stop at these crossings as opposed to just
looking to see if anybody's coming across and continuing on their way?
Keith Markel: It's just a semantic change. I shouldn't say it's semantics, but it's yield, was the former
term. Now it's stop. I think it gives a little more preference to the pedestrian and a little less to the
driver, so that vehicles need to stop when a pedestrian is in the crosswalk.
Vice Mayor Steinberg: If a pedestrian is in--
Keith Markel: Correct, not just yield to them.
Vice Mayor Steinberg: Okay, all right, thanks.
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Item a.
Page 3|May 8, 2023
Mayor Burk: Anyone else? All right, thank you very much. Okay, our next item is our Legislative
Advocacy for the Virginia General Assembly.
Keith Markel: All right, this discussion came out of your work session, your planning retreat in
January, where you all brought up the topic and wanted to discuss further the possibility of contracting
with an outside firm to provide advocacy or lobbyist support for your legislative program and support
and representation in Richmond. Just by way of a little background, currently the Town Council's
legislative program is supported by Town staff only. That's made up of the Deputy Town Manager, the
Town Attorney, the Public Information Officer, the former Public Information Officer.
We have this core team all in a very part-time capacity to work with you all to develop the program,
then to represent that and monitor activities in Richmond. We developed that, as you know, in the fall.
We'll try to move that back a little earlier this year, and then it's ready to go in January. We work in the
fall to try to get buy-in from the legislators to develop and push for those bills. The Town staff tracks
those bills, communicates with the legislators. Outside of that, the Virginia Municipal League provides
the tracking services and advocacy. You all get those briefings. We have Local Government Day in
Richmond in January or February.
VML is watching things closely in person and providing those calls to action when certain legislation is
coming through that is of high interest to local governments. That's how it's currently set up. You do
have several options if you wanted to go to that next level of providing additional support for the Town
of Leesburg, one of which would be to hire a lobbyist for a specific issue or task. This is something
probably in the ballpark of $20,000 if you had a specific bill or piece of legislation that you'd like them
to advocate for and shepherd through the process representing you in Richmond more specifically
and making the rounds.
You could also hire a lobbyist to develop the Town's legislative program or a strategy for the Town's
legislative program. It wouldn't be looking at specific legislation where they would be specifically
advocating on your behalf in Richmond, but this would be more global in developing that strategy.
Again, probably in the $20,000 range. You can also hire a firm to follow all legislation that may have
an impact on Leesburg or local government. This is similar to what Loudoun County does. Here you'd
be $50,000 and on up, so hundreds of thousands of dollars depending on the level of support and
advocacy you'd be looking at there.
The fourth option is to hire an in-house legislative coordinator, which would be a full-time position for
someone to just really focus on the legislative program and do your direct advocacy in Richmond.
Those are the four, to break down to give you a little sense of what the options are from staff
standpoint. Considerations for you. First you have to ask, does the Town have legislation that you
really want to see adopted? Something that's critical that you really see the investment being made to
really push for.
Does the Town want to take a more active role in the legislative policies in Richmond? Do you want to
play a more significant role there? Some of the larger localities in Virginia do. Then does the Town
want to significantly modify our current legislative program? If you see any major changes, major
revamps to that, it might be appropriate to bring in an outside firm to help think through that process
as well. With that, ready for discussion.
Mayor Burk: Okay, are there any questions on this? Mr. Bagdasarian, are you-- No, okay. You've
given us the options for legislative support. We've just talked about the fact that we don't know who is
going to be our next legislators. I'm not sure that this is the right year to do it. Because everything's up
in the air, and we're not sure where everything is at this point. From my point of view, I would think
that maybe this would be something we might want to look at next year, but I'm not sure this year. I
don't see anything on the horizon that's going to be a major thing to take down to Richmond.
Keith Markel: I would agree with you from the staff perspective that this I think, really, from our point
of view, will be a relationship-building year to build those relationships, to talk through the process,
educate the legislators on Leesburg, and what your legislative program looks like, as they get their
footing and understanding of how Richmond works and how the General Assembly functions. VML
doesn't hold high hopes for this year being a real big year for big legislation just because there are
going to be so many new faces.
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Item a.
Page 4|May 8, 2023
Keith Markel: New people, okay. Is there anyone-- Oh, yes, sir?
Council Member Zach Cummings: I'm sorry. I hit my button after you stopped talking. I don't agree
with everything that you just said about this coming year, and it's maybe not the time. My only
question is, Richmond is kind of its own world, just like DC is its own world when it comes to
legislation, and we don't know what we don't know. I don't know if maybe there's, again, maybe not
this year, maybe put in the future, an opportunity, maybe not to hire someone, but to at least engage
someone who knows Richmond to give us a lay of the land. If there is a path forward to needing
somebody there, or on retainer, to help us as a Town.
I agree that now it's probably not the right time. With all the changes happening, it's a lot more, we
need to wait and see what happens, but as we move forward maybe having a conversation with
someone a little bit more knowledgeable about the day-to-day inner workings of Richmond. If we
would find some value in having someone I think that's a good first conversation before we jump into
hiring either a firm or a lobbyist or creating a brand new position.
Mayor Burk: Mr. Cimino-Johnson.
Council Member Todd Cimino-Johnson: Yes, thank you. My question is, does staff feel one of
these options is something that they would like to see? I guess, how would that change how we
interact with Richmond at the moment because it sounds like it's a lot of people who have split
positions like you that are interacting?
Keith Markel: In the past, that's worked fine when we don't have a real aggressive legislative
program or specific legislation that you really want to see approved. The good news is, we may have
some friends in Richmond here in the coming year, depending on how the election turns out, and
folks that are going to be very familiar with Leesburg, which could be a very easy path for us to have
good relationships, or we may have folks that don't know a thing about Leesburg or very little.
That would be that relationship-building. I think the question really is, if you all have a piece of key
legislation that you want to see be successful, that's really where I think the value comes in in bringing
in an outside firm to help shepherd that policy through where it might, they just have the extra time
and the ability, and really just the presence of being able to be in Richmond day in day out to make
those early morning meetings, when they pop up at the last minute. Just having that presence there,
and people that are familiar as you say, really can be a benefit, if you have specific things in your
program that you really want to advocate for.
Council Member Cimino-Johnson: Right, I think Leesburg is unique. The size of our Town and what
we need and where we're located. I was looking at the list of counties today, and there's 133 counties
in Virginia. If Leesburg was a County, we would be number 38 of that. I think we have a little bit of a
different take on what we need. We all know that we're left out of a lot of things. It would be good to
have someone lobbying for us. Thank you.
Mayor Burk: Anyone else? All right, I don't see anybody interested in moving forward at this point.
Thank you very much. Appreciate the information. The next item is the review of the charter of each
board and commission. Mr. Dentler?
Kaj Dentler: No staff presentation. You had asked at your January retreat to have a discussion on the
charter of the boards and commissions. Mainly your focus was, is their purpose matching up with
what's your goals are? Are they accomplishing the things that you want them to accomplish? Are they
addressing the big items? There's no specific presentation beyond that. We do have on the board on
the screen for you the different Commissions if there's something you wanted to talk about
specifically, but that is it.
Mayor Burk: Okay, is there anything after having read this anybody want to talk about? Yes, sir.
Vice Mayor Steinberg: There does seem to be some confusion as to who's actually eligible to serve
on some of these commissions. I know what it says in the agenda packet in terms of either a Town
resident or a business owner and yet we know there are exceptions to that rule. Do we need to clarify
this for each and every commission? Are there differing regulations for different commissions?
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Item a.
Page 5|May 8, 2023
Kaj Dentler: In your packet, we provided a summary chart that tried to address that. This gives you
the membership and the compensation, but primarily the membership criteria of the different boards
and commissions that may help with some of your questions there.
Vice Mayor Steinberg: I'll go through that. All right, thanks. What you're saying is you don't feel that
at this point we really need to do any clarification of that?
Kaj Dentler: It's the boards and commissions belong to the Council, so there's no issues from our
end and it's up to Council if you wanted to change anything.
Mayor Burk: I was going to ask the very same question about the membership of each of the
different commissions. That's one thing that I was interested in looking at because there are some
that say that you have to live in the Town. Some say you can live in the Town or you can have a
business in the Town or you can be an employee in the Town. There's some differences within
different commissions. That's one thing I would like to see tightened up so that we have a better idea
of who can serve. Do we want people that work here, but don't live here to serve on a Town
commission? That would be where my focus would be.
Christopher Spera: Madam Mayor, most of those exceptions relate to technical skills, particular
technical skills. For example, if you need an architect or if you need someone who's an environmental
scientist or something like that. Generally, the rule of either being a Town resident or a business
owner applies across the board. Then there are some exceptions that are tailored to specific subject
matters. Now, if you don't want those, we can certainly revisit them, but generally those exceptions
are related to specific subject matter expertise. Eileen, as the Town Clerk, is the one who deals with
this on a day-to-day basis, and she reminded me that even with those other exceptions, there's still
the four resident requirement for any commissioner.
Mayor Burk: Four of the members of any commission have to be Leesburg residents.
Christopher Spera: Or business owners.
Mayor Burk: Or business owners.
Christopher Spera: Even when you have the technical requirement, you still have to meet that four
requirement.
Mayor Burk: Yes, but the four, they don't necessarily have to live in Town. It could be a business
owner in Town.
Christopher Spera: Correct.
Mayor Burk: They may be somebody that really doesn't-- somebody that lives in Florida and comes
out once a month to be on a commission because I have a business in Town and we had that
situation. That would be something I would like to look at. How would we move this forward? I guess
is my next question to you, to look at the requirements?
Christopher Spera: My suggestion would be to have a work session discussion specifically about
that. We could identify for you those specific exceptions and give you a snapshot, if you will, of the
current membership to see in what categories everybody falls. Then if you wanted to tighten it up,
obviously that would be a change to the Town Code and you could direct me to prepare that.
Mayor Burk: All right. Mr. Cimino-Johnson.
Council Member Cimino-Johnson: Thank you, Madam Mayor. My question is for the Town
Manager or staff about, have any of these boards or commissions ever come forward and said, "Hey,
we would like to expand into this or that, or this isn't useful anymore"?
Kaj Dentler: Can you maybe a little more specific, useful in the direction that they're given or the
membership or both?
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Item a.
Page 6|May 8, 2023
Council Member Cimino-Johnson: Both.
Kaj Dentler: Well, I would say it maybe a few times over my long time here, yes, and that's probably
why you have some of the inconsistencies. If there's Airport Commission or Economic Development
Commission that maybe wanted to expand their membership to business owners, versus just
residents. Those have been reactions to that. Only a few over the years and certainly the Airport
Commission had the recent situation.
Mayor Burk: The Residential Traffic Commission occasionally, we asked them to look at something
that's not residential. It comes from us to them. They don't--
Kaj Dentler: Correct.
Mayor Burk: The only other one I could think of.
Council Member Cimino-Johnson: Okay, yes, I'm just thinking in terms of, not saying this is what I
would advocate for but maybe the Commission on Public Art said, "Hey, we would like to add
'entertainment' to that name." We expand that scope based on things that they would like to see or
include that's already happening in the Town but doesn't really have a board or commission attached
to it.
Mayor Burk: We must certainly consider that if someone brought that forward, but we're the ones that
determine what the commissions and boards are. If someone wanted to come forward they could do
that. It would be our decision at that point.
Council Member Cimino-Johnson: Right, Right, okay. Thank you.
Mayor Burk: Yes, Mr.
Vice Mayor Steinberg: I can't remember who brought this up as an item. Was it Council Member
Bagdasarian or was it you.
Mayor Burk: I think it was Council Member Cimino-Johnson.
Vice Mayor Steinberg: I forget who actually asked this to be on the—No, about this.
Council Member Kari Nacy: It was at our work session.
Mayor Burk: It was at our work session, but I think it was your issue.
Council Member Cimino-Johnson: Oh, yeah.
Vice Mayor Steinberg: Okay.
Mayor Burk: It was his issue.
Vice Mayor Steinberg: I just wanted to be sure we were covering any concerns that may have been.
Mayor Burk: Yes. I got it. [laughs] I would like to see if there are four people that would agree to have
a discussion at a work session on just the membership requirements of the different boards and
commissions. Mr. Bagdasarian, Ms. Nacy, everybody. [chuckles] Okay, Thank you. All right-
Council Member Ara Bagdasarian: I've got --
Mayor Burk: -the next one is the proposed amendment of--
Council Member Bagdasarian: -- one more comment. Yes.
Mayor Burk: We're done.
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Item a.
Page 7|May 8, 2023
Council Member Bagdasarian: We're done.
Mayor Burk: We're done. [chuckles]
Council Member Bagdasarian: No. We can't be done.
Mayor Burk: Yes, Mr. Bagdasarian.
Council Member Bagdasarian: Okay, No. I also think it's important that as the needs of the
community or the Town changes. This is not like this is your chance. If we don't modify things
currently, then that's it. I sent an email this afternoon. That might be something we want to consider
depending on the current landscape of things. The direction to the commissions come from the
Council.
Mayor Burk: Correct. Okay, proposed amendment to the noise ordinance of the noise ordinance. Mr.
Spera is doing this one.
Christopher Spera: I know that, Madam Mayor, this is your favorite topic.
Mayor Burk: It is my favorite topic. Excuse me while I go screaming from the room.
Christopher Spera: What were [crosstalk] but as was the case, the last time I brought something to
you related to the noise ordinance. What I'm trying to do is correct something very specific as
opposed to opening up the entire thing. The way that the current ordinance is drafted with respect to
holders of an amplified noise permit is, I'll say, less than clear. It seems you can interpret it to say that
even if you have a permit, you still have to be no louder than plainly audible from 50 feet. There are
competing interpretations. There are some permit holders who believe they can be as loud as they
want to be, within the hours of allowed amplified noise. It is not a model of clarity.
What I would like to do is amend this specific section of the noise ordinance so that we can make it
clear. Okay, here's the bundle of rights you get when you have a permit. Here's how loud you can be.
I don't think that a change in the hours is necessary, but I know that Lieutenant Allegra's here tonight
from the Police Department. I know that this is something that they deal with all the time and it's not
super clear and the businesses are confused, and it's not as clear as it could be. What we'd like to do
is make it a little more clear. Here's the bundle of rights you get. You get your permit.
Here's what the noise standard is. Here's how loud it can be when you're operating lawfully under
your permit. Then here's when that stops. Again, the hours that are already in there wouldn't be
changed. Then when you get a permit, we would also issue with the permit a best practices checklist.
What we would do is suggest to the permit holder that when you follow the best practices, that's going
to reduce the number of complaints you're going to get about your venue. It will also give you what I'm
referring to as a safe harbor when the Police show up so that basically you can say, "Okay, I did the
things on the checklist, and I'll turn it down, but don't cite me because I did the things you asked me to
do."
The idea is to try and encourage people to get permits, try and make a clear enforcement standard so
that we know how loud somebody can be when they have a permit, and give them some guidance as
to ways they can minimize their impact on the community. Our resident electric guitar player Mr.
Bagdasarian has been very helpful in helping me work through this. Particularly with the best
practices, he obviously as a musician has some ideas about things that can happen at a live music
event to minimize the impact on the community. Council Member Bagdasarian if you want to talk
about that for a minute.
Mayor Burk: Excuse me?
Christopher Spera: Yes.
Mayor Burk: I didn't hear your last-- What did you just say?
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Item a.
Page 8|May 8, 2023
Christopher Spera: I was going to ask Mr. Bagdasarian if he wanted to weigh in on our best
practices since he helped develop them. Is that okay?
Mayor Burk: You are doing that through the chair of the meeting?
Christopher Spera: Oh, my apologies.
Mayor Burk: Did you have a request?
Christopher Spera: Would it be all right if Mr. Bagdasarian went through the list of best practices?
Mayor Burk: Mr. Bagdasarian, would you like to say a few words?
Council Member Bagdasarian: Why yes, thank you.
Christopher Spera: Thank you, Madam Mayor. I appreciate that. I apologize for the oversight.
Council Member Bagdasarian: Thank you, yes. Like Mr. Spera mentioned, the objective here is to
provide clarification across the board in making sure that everyone's on the same page from the
venues to the residents and law enforcement. There is a level of clarity but provide that additional
guidance. Through a number of discussions with different artists that perform in downtown Leesburg
outdoors with amplified music and some of the venue managers, the recommendation was to create
these best practices, some guidelines that you can employ to keep the music at a level that fits within
the guidelines and preserves the viability of outdoor music in downtown Leesburg is that is certainly a
draw, but also is respectful of neighbors.
Some of the guidelines and best practices we identified was, number one, don't amplify drum kits.
Because just the sound of an acoustic drum kit is that at that level without being amplified, it sets the
overall balance with the PA system for guitars, vocals, everything else. Utilizing a decibel meter. Now,
this is something that I'd like Mr. Spera to also address, the fact that we don't have a decibel-based
system, but you can still utilize a decibel meter as far as a best practice. How are we at a certain level
or certain threshold that you can keep the levels at a certain place, pointing to speakers away from
residents, time management, checking your volume periodically, but the bottom line is being a good
neighbor communicating with neighbors, and that you're having amplified sound. Those are just some
of the guidelines.
Christopher Spera: And so we are clear, I'm not advocating moving to a decibel-based system.
Mayor Burk: That was exactly what I was just going to ask you. Because the Police previously came
to us and said "No, please don't do that."
Christopher Spera: I had a negative experience with doing that in Alexandria, where we went to a
decibel-based system. Made a decision to buy a limited number of decibel meters. They were not
enough to have one in every patrol car that might respond to a noise complaint. Ultimately, the
decibel meters ended up with the environmental staff who work nine to five. They were almost never
available for an evening noise complaint. Unless you're going to spend a bunch of money and put
decibel meters in every Police car and engage in the regular certification that any meter that's being
used for law enforcement, just like a radar gun has to have a certification on a regular cycle.
Typically, it's 90 days you have to have that certification, or else the results of the radar gun could be
thrown out the same thing with the decibel meter. It's a pretty labor-intensive thing and you have to
have a lot of them. Because you never know who on patrol is going to be responding to the noise
complaint. The decibel-based approach is not what we are advocating here for a Town and a Police
Department of our size. It's not super clear. We want to incentivize people to get permits, but we also
want to make the bundle of rights they get with the permit as clear as we can.
Acknowledging that, as Mr. Bagdasarian said, live music is an attraction for the Town, but it also has
an impact on the community and we want to balance that. We feel like a reasonable distance-based
standard that applies during the hours when amplified music is allowed, is the right way to go. That's
easier for law enforcement to apply and enforce. A set of best practices that's designed to minimize
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Item a.
Page 9|May 8, 2023
the impact on the community, and a rewrite of some of the more ambiguous portions of this to make it
clear who can do what, when. That is what we are looking for guidance on.
Mayor Burk: Having gone through this multiple times I will say that the best practices, most certainly
they're great, but if you don't have a manager or a band that's willing to honor those best practices,
you're still going to have problems with the noise. Why are you changing it from 50 feet to 100 feet?
Christopher Spera: Well, obviously it can be louder. We think that, when you hold a permit, the
music should be, without fear of citation, audible at a farther distance. We don't want to make it so
loud, 500 feet, that would be a lot. That would be be awfully loud. We're trying to pick a distance that
where the plainly audible standard gives the permit holder something beyond just the normal standard
of 50 feet, while at the same time not giving them carte blanche to be as loud as they want, which is
how some of these venues interpret our current ordinance.
Mayor Burk: I do agree with the drum kit not amplifying that. That most certainly would be a good
addition. Anybody else have any questions on this? Mr. Wilt.
Council Member Patrick Wilt: Yes. Thanks, Chris. In the ordinance, the standard of plainly audible,
can you describe what that is?
Christopher Spera: Right. Plainly audible is a distance based standard so that the words in music
are clear to the listener. In this case, it would be the, the law enforcement officer that responds that
the the words in music are clear, not muffled or dimmed in any way at whatever distance we said is
the standard.
Council Member Wilt: Okay.
Christopher Spera: I think we all have to acknowledge, the plainly audible standard is not super tight
and it can change over the course of an evening as atmospheric conditions change or temperatures
drop. All that can have an impact on how sound carries. It's not perfect, but it's one that any
responding officer can attempt to enforce as opposed to the whole decibel meter thing, which is
expensive and potentially subject to challenge if we don't go through the recertification and testing of
the meters.
Council Member Wilt: Okay, what I would assume it means just from the English dictionary is I can
hear the music from where I'm standing.
Christopher Spera: We have a definition, there's a definition of plainly audible, and it does speak to
being able to clearly hear something [crosstalk] as opposed to it being muffled.
Council Member Wilt: I'm just trying to calibrate to that standard, because I can think as the owner of
a venue, and I've had Frayed Knots play at our place half a dozen times. The venue is 216 feet in
length, with the stage at the extreme end of the property. At every single performance I can hear them
on the sidewalk, which is 216 feet away. I'm just wondering about 100 foot, plainly audible [crosstalk]
Christopher Spera: From the property line, not from the source.
Council Member Wilt: Not from the source?
Christopher Spera: From the property line. Yes, sir.
Council Member Wilt: Okay, that makes a difference in terms of where the placement of the stage is,
again but the sound will travel hundreds of feet.
Christopher Spera: Potentially, and that depends upon the surrounding buildings and atmospheric
conditions. It's not perfect. If you want to be super precise, you spend the money and you go to the
decibel meters, but again, that's very labor intensive, very expensive and it's not just a one-time
expense, because you've got the regular certification to enforce.
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Item a.
Page 10|May 8, 2023
Council Member Wilt: Okay. What's the citation?
Christopher Spera: It's a class 2 misdemeanor.
Council Member Wilt: Okay. Honestly, as a venue owner, this would probably-- I'd probably stop
hosting outdoor music at my venue, and I might anticipate that others would too.
Christopher Spera: Right. That's not what we're trying to do, but an ordinance is currently being
enforced for amplified music, it's supposed to be 50 feet. What we're trying to do is extend additional
regs, not--
Council Member Wilt: No, I understand.
Christopher Spera: Maybe 100 feet's not the right number. Maybe it's a different number.
Council Member Wilt: Yes. We had property, we had calls when we did host music. As it was
applied in those instances that we probably benefited from some of the confusion, because in the
cases the responding officer said, "Do you have a permit?" We'd say, "Yes." They go, "Have a good
night," and they departed. I think some of the confusion came up.
Christopher Spera: That's not the way that LPD is currently enforcing.
Council Member Wilt: Right. There was a change in enforcement where then I know the conflicting
ordinances became aware.
Christopher Spera: Right. I think the problem with the prior interpretation is that that view was, you
could be as loud as you wanted as long as you had a permit. That's probably not right either. There
should probably be some outside limit on, even if that interpretation were to be the one that was
applied, that's pretty tough on the community to just say there's no limit. Even if you have an amplified
noise, just because you got a permit, you'd be as loud as you want. That’s kind of tough.
Council Member Wilt: Right. I think this change clarifies it. I think it clarifies it in a manner, as I said,
as a venue owner, it clarifies it enough for me that I would stop outdoor music entirely.
Christopher Spera: I'm not sure that's the intent, so maybe the way in the further discussion of it,
maybe it's a different distance. I don't know the answer. I think that would be part of our process and
part of the noticing it up and having a public hearing and an investigation to-- Council Member
Bagdasarian done this on the spare time talking to some people, but I think we'd have the opportunity
as staff to reach out to folks and get a little more input from the affected members of the community.
Council Member Wilt: Thanks.
Mayor Burk: Mr. Bagdasarian.
Council Member Bagdasarian: Yes. Mr. [unintelligible], once again with the confusion, there was
an issue in November where there were different interpretations of what was allowable within the
permitted hour or permitted time, and what is allowable? Certainly, it would seem the only approach
would be, because I'm actually mapping out 100 feet from Black Walnut. You can barely get you down
to Auto Solutions from your property line, but the thing is maybe we do look at a revisiting the distance
if that's the approach if we're not going to move to a decibel base meter, because there needs to be
something a little bit more objective, because it's purely subjective currently.
The objective is not to tamper down the live music. We could do live music downtown and yes, I'm
one of the folks that are out there playing with my band outdoors, amplified live music, but there are
ways that we can do it at an approach that is beneficial to even the folks that are in attendance. You
don't want to have the music so loud, you can't even have a conversation. Maybe examining different
distances might be the approach if we don't move to a decibel base meter, which it does not sound
like we're going to do. Thanks.
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Item a.
Page 11|May 8, 2023
Mayor Burk: From experience, I'm going to tell you that's going to be problematic. Anyway, Ms. Nacy.
Council Member Nacy: Walk me through what happens. I own a business, I'm playing music.
Somebody calls and complains that my music is too loud. The Police Department shows up, and right
now they ask if I have a permit, and then how are they judging the 50 feet of sound?
Christopher Spera: They stand 50 feet from the property line, and if it's plainly audible, they go
inside and--
Council Member Nacy: Okay, so they use their feet and measure out 50 feet. If it's plainly audible,
it's in violation and they get shut down?
Christopher Spera: Typically, they--
Council Member Nacy: Or they're asked to turn it down?
Christopher Spera: They're asked to turn it down. If they don't comply, then there would be other
ramifications. Typically, my understanding and talking to Lieutenant Allegra and Captain Smith is that
typically there's not a lot of citations that the businesses tend to be generally cooperative, either
reducing the volume or ending the performance if there's an observation by the officer that it's too
loud.
Council Member Nacy: Yes. What if, let's say we change the distance, right? My business sits up on
a hill. The acoustics, the rain, whatever, the atmosphere that day carries the sound. I'm not even
playing that loudly, right? Carries the sound 700 feet away, somebody calls and complains. How can
you hold someone in violation of that?
Christopher Spera: That's really the idea of the best practices and the safe harbor, if you will, that
essentially, if you follow these suggestions, if you don't mic the drum kit and you've oriented your
speakers the proper way, and you've done periodic checks with a decibel meter to see how your
noise is projecting, and you've let your neighbors know in advance that you have a performance this
evening, and all the things that Mr. Bagdasarian alluded to in his list, then that would give you a safe
harbor from a citation.
Basically, we all have to acknowledge that the sound isn't hard to predict and due to the surrounding
buildings or the temperature or humidity or whatever it may be, the sound happens to be carrying a
certain way that evening. If you can show I complied with the best practices, you're not going to get
cited. It's going to be maybe you got to turn the volume down, maybe you got to do something else.
you're not going to be penalized with a class two misdemeanor.
Council Member Nacy: This just feels like such a slippery slope.
Christopher Spera: Yes, and that is why the noise ordinances, they're not easy.
Council Member Nacy: No one's ever going to be happy. There's never going to be 100% of the
community that's happy. There's never going to be 100% of the businesses that are happy. We
definitely have to find some happy medium. That doesn't take away from the fact that we've got
something downtown that we call our arts and cultural district. It just seems funny to me to say, here's
our arts and cultural district, but it's got to be like shh, shh. [laughs] It's got to be a very quiet arts and
cultural district. [laughs] I understand the conundrum, absolutely. I don't know that 100 feet is that
seems very, I don't know, short.
Christopher Spera: It was a placeholder.
Council Member Nacy: Yes. What would you say the distance of wall to wall in here is?
Christopher Spera: 50 feet?
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Item a.
Page 12|May 8, 2023
Council Member Nacy: That's crazy, right? Our current ordinance means the Mayor couldn't play her
guitar. If I lived there, I could be like, "Stop playing your guitar."
Christopher Spera: That's what our Code's currently drafted. It could be an acoustic guitar.
Council Member Nacy: Okay. I know I'm not really adding any helpful dialogue here.
Mayor Burk: I think the conflict comes with people that are on their balconies or in their backyards
and they don't want to listen to music. That's where the balance is. That's where it's most difficult.
We've had situations where I live behind the Safeway and I've heard music being played from
downtown. Now, it doesn't particularly bother me. I don't care. I think the people that were on King
Street, they went crazy and they couldn't use their balconies and their backyards. That became a
huge issue because we weren't considering their hearing from the public, what you'll find very
interesting.
Council Member Nacy: This has to go to a public hearing, right?
Christopher Spera: That's correct. This would be a change to the Code. It may be that maybe all you
want us to do is have the best practices and not do.
Council Member Nacy: I'm curious what, and I'm not talking about Loudoun County, I'm talking about
like other localities similar in size to us that have the same ordinance. I'd be curious to know what
some of those are.
Christopher Spera: Many of them went to-- so a little bit of a backstory in, I think it was 2014, the
State Supreme Court threw out the Virginia Beach Noise ordinance and because you had to have an
objective standard, so just being too loud, which is what a lot of noise ordinances said was not
enough. Many jurisdictions moved to decibel-based systems. Those that didn't did the plainly audible
from a distance. That's the benchmarking when you look around, I would say that more jurisdictions
went to decibel-based systems than to the other, but it's a function of cost and who's doing the
enforcing.
Council Member Nacy: Okay. Thank you. I'm not sure I love a hundred feet. I don't know.
Christopher Spera: It might not be the right answer. I think that we have to go through a process to
figure what the right answer is but to me, you should have more rights when you get a permit than
when you don't. Those rights should not be unlimited and I think that's the problem with the competing
interpretations. The more strict interpretation is that whether you have a permit or not, the 50-foot
standard applies. The more liberal interpretation is that I can be as loud as I want to be, as long as I'm
within the permit hours.
Council Member Nacy: I understand our officers need to be able to enforce something.
Christopher Spera: Right.
Council Member Nacy: That's the end goal that we all want, right? We don't want it to be a case
either where the officers are showing up and just saying, well, somebody complained and you're too
loud and we don't really know which ordinance to follow, so we're shutting you down.
Christopher Spera: We don't want to discourage something that makes the Town a vibrant and
desirable place to visit. While at the same time, we don't want to be too intrusive on the community,
and we certainly don't want to put our officers in this situation where they don't have a clear standard
for them to apply.
Council Member Nacy: Ok. Thank you.
Christopher Spera: Those are all the things we're trying to balance and--
Mayor Burk: Mr. Cimino-Johnson.
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Item a.
Page 13|May 8, 2023
Council Member Cimino-Johnson: Thank you, Madam Mayor. I was going to follow up with Council
Member Nacy, what she was saying about other localities. Could we see what other towns and cities
are doing, what their rules look like?
Christopher Spera: Sure. I had a survey prepared and so I'd be happy to share that with you.
Council Member Cimino-Johnson: Thank you.
Mayor Burk: Mr. Vice Mayor.
Vice Mayor Steinberg: Thank you. All right. First of all, I’m on. Yes. Good. This is certainly an
evolving situation and I suspect this is going to be an ongoing discussion for a while. The downtown is
an evolving place, and I would point out that unlike the Airport complaints we get, the residents in this
case, we're here first and we have to listen to them and try to make their lives as pleasant as possible
in an evolving situation. I don't see how we can ignore it and simply bow indifference to the
businesses and I'm not trying to create problems with businesses either. The questions become,
where's the compromise? It's an evolving situation with a changing demographic. Over a period of
time, perhaps this will become less of an issue, but we're going to keep talking about it. I would also
point out we seem to have an increasing number of venues, not fewer.
Somehow the venues seem to be working with the regulations we have now as onerous or not as
they may be. If we relax that a little bit, so be it. When we talk about a hundred feet from the property
line, and I would offer, I can think of very few venues that would be dealing with this problem that are
as large as this. Many of the venues are much smaller, which means their property lines are right
there. Oftentimes, while we might consider the sound moving in one direction, not a problem, they're
hard up against residences directly adjacent to the property line.
Oftentimes therein lies the rub and amplification notwithstanding, it's the low notes that oftentimes are
the biggest problem as opposed to the volume because they travel much further and they cause
windows to rattle and it can be a real issue. I'm curious to your Council Member Cimino-Johnson's
question about other localities. I sent-- not in jest either, I sent an email to the Council and several
members of the staff about portable trans, very light acoustic shells, which come in a variety of forms
and fashions and designs and go directly behind the band. Of course, then direct the sound in a very
specific direction. At least you are protecting property owners directly behind the stage, which is often
where the biggest problem comes.
Now, admittedly, it also tends to focus the sound a bit more [laughs]. In the other direction, maybe it
becomes a bit more of a problem, but perhaps in that direction, you're going to have less resistance. It
should also, by the way, provide a better listening experience for the audience, because then the
band doesn't have to be cranked up. You can still hear the sound pretty well and carry on a
conversation. I'm not trying to place undue burdens on businesses, but again, we have to come up
with compromises that work both for them and for the residents. If this is an option and it's one I would
like us to look at and see.
In certain situations, this is going to have to be a must because otherwise you're too close to the
residents in directly adjacent to the property, and there's no other way you're going to be able to deal
with the situation. We should at least be having that discussion, in my view. Ongoing, evolving, and
let's look at some technical technological options that might help us better deal with this situation.
Thanks.
Mayor Burk: What do you want from us tonight?
Christopher Spera: Based on the discussions on everyone's comments, I don't know that I heard
four folks who wanted me to undertake an amendment. It sounds like you need more information, you
want information on what other jurisdictions are doing, what other technologies might be available.
Mayor Burk: We like some input from the Police Officers also.
Christopher Spera: Sure. Put it on for an upcoming work session within the next month so I want to
let this.
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Item a.
Page 14|May 8, 2023
Mayor Burk: I have four people that want to continue this discussion in a work session.
Christopher Spera: With more specific information. Would that be helpful?
Mayor Burk: Everybody? Okay. Everybody. All right. Thank you.
Christopher Spera: We will simply continue under the current ordinance for now. Trust our officers
as they always do, to work with both the people who call and complain and the businesses, and trust
in their judgment in the near term. Then hopefully give them some more specific instructions once
you've had an opportunity to hear more from us.
Mayor Burk: Thank you.
Christopher Spera: All right, thank you.
Mayor Burk: Okay, that takes us to future Council meetings and agenda topics. Mr. Cimino-Johnson?
Council Member Cimino-Johnson: Yes. I have a couple of items I would like to add. First I would
like to have a discussion on building an outside volleyball court. I would like to first get a
recommendation for locations from the Parks and Rec Committee and Rich Williams.
Mayor Burk: Have you gone to the Parks and Rec Commission?
Council Member Cimino-Johnson: No, this is asking them. I've already gone to Rich. Yes. I sent
him a budget question about it.
Mayor Burk: I'm sorry, I misunderstood. What are you asking then? What are you asking?
Council Member Cimino-Johnson: I'm asking for the discussion on number one, building an outside
volleyball court, but before that, I would like it to go to Park's and Rec for locations.
Mayor Burk: All right. Are there four people that want to have a discussion on building an outdoor
volleyball rink and sending it to the Parks and Recs for locations?
Council Member Cimino-Johnson: The second item is under compensation and benefits. I would
like to have a future discussion on allowing Council Members purchasing benefits through the Town.
I'd like to know from staff the cost if the Council Member fully paid for the benefits. This would not be a
Town cost, but allowing simply the Council Member to opt into insurance, paying for it fully.
Mayor Burk: You are asking to find out how much it would cost for a Council Member to have
benefits as if they were an employee,
Council Member Cimino-Johnson: Not as if they were employed because they'd be paying the full
cost but they would be on the plan.
Mayor Burk: Mr. Dentler, does he need four votes for that to get that information?
Kaj Dentler: I think if Council isn't interested in it, it's wise that the majority would want that
information, but I certainly can. I don't know how much effort it'll take us. I don't think it'll be a lot.
Mayor Burk: Mr. Cimino-Johnson would like to get information on the cost of a Council Member
getting full-- how much it would cost a Council Member to get full benefits?
Council Member Cimino-Johnson: Yes.
Mayor Burk: Are there four people that are interested in doing that? Okay.
Council Member Cimino-Johnson: Yes. Because we would also have to actually pass it. We just it
just can't happen.
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Item a.
Page 15|May 8, 2023
Mayor Burk: This is just information.
Council Member Cimino-Johnson: Yes.
Mayor Burk: All right.
Council Member Cimino-Johnson: Finally, I'd like a discussion on an aide or dedicated office
support for Council Members.
Mayor Burk: Are there six people--aide for Council Members. All in favor of having a discussion
about aides for Council Members?
Council Member Cimino-Johnson: Yes, just a discussion. I'm not asking for a vote.
Mayor Burk: All right. Okay. Mr. Cummings?
Council Member Cummings: Yes. I wanted to see if we could do a work session to look into
community composting program for the Town of Leesburg, and I have some information I can forward
along to staff that I was sent by a Town resident.
Mayor Burk: Okay, so you want to have a discussion on community composting?
Council Member Cummings: Composting, yes.
Mayor Burk: Are there four people that would be interested in that discussion? All right. There are
four on that one. Anything else?
Council Member Cummings: I did have a question. The Council, a couple of weeks ago, a couple of
meetings ago, had talked about amending the Zoning Ordinance on hotels, and I don't know if staff
has sufficient direction from us to move forward or if we need to instruct them on what we're looking
for. I know I asked the question, and then I ignored the answer, so this is my fault.
Mayor Burk: I assume that James is working on it as we speak.
Kaj Dentler: James David, Planning Director, is working on the request or the direction that Council
gave. We are certainly aware of different individual Council Members' opinions of what the number of
rooms should be or should not be. Planning Commission will know that, but there is no majority
direction to do that. If you wish to have that, then you should let me know that accordingly. Otherwise,
they do know your individual opinion.
Council Member Cummings: That's fine. That's all. I want to make sure that they were moving
forward.
Mayor Burk: Right. Mr. Wilt.
Council Member Wilt: This is following a message I'd sent earlier based on Liberty Parking Lot with
a potential change to access the Liberty Lot from South Street, which is currently restricted to exit
only. I'd like to inquire if we have support for directing the staff to examine this work and then return it
to Council with details on a plan and cost to redesign the access point.
Mayor Burk: Are there four people that would be interested in the Liberty Lot parking discussion?
Vice Mayor Steinberg: Can I offer a comment first?
Mayor Burk: Sure.
Vice Mayor Steinberg: Renee offered her opinion in terms of the feasibility of that. I'm also
wondering, given that we're just getting into a conversation about what's going to happen at the
Liberty Lot, I'm wondering if a conversation about improving that access is timely, since we may
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Item a.
Page 16|May 8, 2023
spend the money to do it and then completely undo it in a relatively short period of time. Especially if
we go to remediate the dump. That's my only concern here.
Mayor Burk: That most certainly can be part of the discussion. Does that satisfy you, or do you need
to amend?
Vice Mayor Steinberg: No.
Mayor Burk: Okay, so in the discussion, you'll also talk about the implications of doing it now when
we're also looking at changing the whole Liberty Lot dynamic.
Kaj Dentler: The discussion will be for Renee to bring forward the scope of work to evaluate, or are
you providing me the funds to go ahead and do this study?
Mayor Burk: No. He's asking for an examination, right? Correct.
Kaj Dentler: I just want to clarify what I'm being asked to do because--
Council Member Wilt: Based on our previous communication, Kaj, you said you can cover the
proposal to examine for the scope of work, which I was a topographic survey, conceptual layouts, and
a third item. That no initial funds were necessary.
Kaj Dentler: We have funding, we have enough sufficient funding in our studies account, so to speak,
a line item that we can cover the funding. We don't need any additional funds. That's not the issue.
What I wanted to make sure is Council wants us to go ahead and do the work and then report back on
the funding.
Or do you want to talk about the work before we actually do the study? I have the funds. Do you want
me to do the work now or do you want to talk about it before we do the work?
Council Member Wilt: My proposal was do the work as proposed and return with the results of that
with the conceptual layout and the survey work correct.
Kaj Dentler: You and I are on the same page. I just didn't want to make sure Council knew that, but
I'm fine with that.
Mayor Burk: I'm going to re-ask people to- Yes, go ahead.
Council Member Cummings: I'm sorry. I just have a question. This is a study about, I just want to
make sure I'm clear cause I know I've read your, the email, but this is a study about expanding the
access on what road--South Street to and from the Liberty Street Lot. I agree with what the Vice
Mayor mentioned about this could all change.
Is it the staff's opinion that going, expanding that access is a needed way to open it, the two-way
traffic? Or could we, is there another easier, much less expensive option like we do at some of the old
roads here in Loudoun County where there's a one-lane bridge where you just yield to anybody
coming and going? I saw the number and it seems like an exorbitant amount of money for a study to
expand an ingress-egress when, I mean, folks could potentially just navigate this on their own.
Kaj Dentler: Correct, to some extent. But you do have the hill and it's a blind spot. The Traffic
Engineer is going to be a little leery of just making that call without some further analysis, meaning
that the risk then goes to the Town should there be accidents. There may be cheaper ways to get
there and I'm happy to explore that. They are not comfortable just making the change themselves and
putting the risk on the Town.
Council Member Cummings: We could just all take a day and stand at the top and be flaggers.
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Item a.
Page 17|May 8, 2023
Mayor Burk: All right then I'm going to have to ask the question again because I think I want to make
sure everybody understands and I'm going to ask you to explain it. We are voting on paying for a
study,
Kaj Dentler: Correct. Council Member Wilt has requested direction to be given to the Town Manager
to expend, I believe $13,000, I believe is the number off the top of my head, to evaluate the egress
and ingress, into Liberty Lot off of South King Street to make it accessible. Currently, you can only exit
down the hill. You cannot go up the hill to enter.
Mayor Burk: Now, Mr. Steinberg asked that the discussion also include that a consideration that
there's a dynamic that there, the partnership that may change that whole thing may take away the
whole--
Kaj Dentler: That is true, that there could be future development, whether the current proposal or a
future proposal, but that right now is an unknown not only of what and when. This particular potential
improvement is more an immediate improvement. We recognize that yes, there could be a change,
but when we can evaluate what has been proposed possibly, but that may just slow us down as I
think what we're trying to find is there a simple solution to improve the ability for people to enter and
exit that part of Liberty Lot onto South Street safely and at the least amount of costs. The longer we
look into a full proposed development or something else, it will take longer. I can't say it'll cost more,
it'll just take longer. I think we can balance out that we know there may be something just really more I
think ultimately a Council decision of whether or not you want to do this and approve that or not
versus what--
Mayor Burk: Are they four votes to do what he said? [laughs] Okay, so there was Mr. Cimino-
Johnson, Ms. Nacy, Mr. Bagdasarian. Did you vote for it? Okay, then Mr. Wilt. Okay, is that it Mr.Wilt?
Council Member Wilt: Yes, thank you.
Mayor Burk: Mr. Bagdasarian?
Council Member Bagdasarian: Nothing, thank you.
Mayor Burk: Ms. Nacy?
Council Member Nacy: Nothing.
Mayor Burk: Mr. Steinberg?
Vice Mayor Steinberg: I have nothing. Thanks.
Mayor Burk: Okay. I have one thing, one request. I would like to add a motion to tomorrow's meeting
for Jewish American History Month. I would need four votes for that to put it on the agenda for
tomorrow. If you saw it, it's already in the packet, so there's no major work involved in it. All right,
everyone who's good on that one. All right? That's it, can I get everybody? We got everybody. All in
favor, is there a motion to adjourn?
Vice Mayor Steinberg: So moved.
Mayor Burk: Motion to adjourn second?
Council Member Cummings: Second.
Mayor Burk: Second by Mr. Cummings. All in favor?
[crosstalk] Aye.
Mayor Burk: Opposed? All right.
24
Item a.
COUNCIL MEETING May 9, 2023
1 | P a g e
Council Chamber, 25 West Market Street, 7:00 p.m. Mayor Kelly Burk presiding.
Council Members Present: Ara Bagdasarian, Todd Cimino-Johnson, Zach Cummings,
Kari Nacy, Vice Mayor Neil Steinberg, Patrick Wilt and Mayor Kelly Burk.
Council Members Absent: None.
Staff Present: Town Manager Kaj Dentler, Deputy Town Attorney Christine Newton,
Deputy Town Manager Keith Markel, Director of Utilities Amy Wyks, Director of
Economic Development Russell Seymour, Director of Parks and Recreation Rich Williams,
Director of Public Works and Capital Projects Renee LaFollette, Airport Director Scott
Coffman, Interim Police Chief Vanessa Grigsby, Senior Engineer Christine Roe, Senior
Engineer Karin Franklin, Police Officer Matt Wolfe and Clerk of Council Eileen Boeing.
AGENDA ITEMS
1. CALL TO ORDER
2. INVOCATION was given by Reverend Alice King, Unitarian Universalist Church of
Loudoun.
3. SALUTE TO THE FLAG was led by Vice Mayor Steinberg.
4. ROLL CALL
a. All Council Members present.
5. MINUTES
a. Work Session Minutes of April 24, 2023
MOTION 2023-096
On a motion by Council Member Nacy, seconded by Council Member Bagdasarian, the
April 24, 2023, Work Session minutes were moved for approval.
The motion was approved by the following vote:
Aye: Bagdasarian, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk
Nay: None
Vote: 6-0-1 (Cimino-Johnson abstain)
b. Regular Session Minutes of April 25, 2023
MOTION 2023-097
On a motion by Council Member Cummings, seconded by Council Member Nacy, the
April 25, 2023, Regular Session minutes were moved for approval.
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Item b.
COUNCIL MEETING May 9, 2023
2 | P a g e
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
6. ADOPTING THE MEETING AGENDA
MOTION 2023-098
On a motion by Council Member Nacy, seconded by Council Member Cummings, the meeting
agenda was moved for approval.
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and
Mayor Burk
Nay: None
Vote: 7-0
7. CERTIFICATES OF RECOGNITION
a. None.
8. PRESENTATION OF PROCLAMATIONS
a. Bike to Work Day
Council Member Cimino Johnson read the proclamation for Bike to Work
Day. Mayor Burk presented it to Mr. Matt Shaffer from Bike Loudoun. Mr. Shaffer
made a few remarks.
b. National Skilled Nursing Care Week
Council Member Wilt read the proclamation for National Skilled Nursing
Care Week.
c. Kids to Parks Day
Council Member Bagdasarian read the proclamation for Kids to Parks Day.
Mayor Burk presented it to Parks and Recreation Department Director Rich
Williams, who made a few remarks.
d. National Police Week
Council Member Nacy read the proclamation for National Police Week.
Mayor Burk presented it to Interim Police Chief Vanessa Grigsby and Valor Award
recipient Officer Matthew Wolfe. Chief Grigsby made a few remarks.
e. National Public Works Week
Council Member Cummings read the proclamation for National Public Works
Week. Mayor Burk presented it to Public Works and Capital Projects Department
Director Renee LaFollette, who made a few remarks.
26
Item b.
COUNCIL MEETING May 9, 2023
3 | P a g e
f. Nancy L. Ryan 80th Birthday and 25th Senior Fitness Celebration
MOTION 2023-099
On a motion by Mayor Burk, seconded by Vice Mayor Steinberg, the following was
proposed:
I move to approve the Nancy L. Ryan 80th Birthday and 25th Senior Fitness Celebration
Proclamation to be presented at the May 23, 2023, Town Council Meeting.
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
g. Jewish American Heritage Month
MOTION 2023-100
On a motion by Vice Mayor Steinberg, seconded by Council Member Nacy, the
following was proposed:
I move to approve the proclamation for Jewish American Heritage Month to be presented at
the May 9, 2023, Town Council Meeting.
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
Vice Mayor Steinberg read the proclamation for Jewish American Heritage
Month. Mayor Burk presented it to Rabbi Neil Tow, who made a few remarks.
9. PRESENTATIONS
a. None.
10. REGIONAL COMMISSION REPORTS
a. None.
11. PETITIONERS
The Petitioner's Section opened at 7:21 p.m.
There were no petitioners wishing to address Council.
The Petitioner's Section closed at 7:22 p.m.
27
Item b.
COUNCIL MEETING May 9, 2023
4 | P a g e
12. APPROVAL OF THE CONSENT AGENDA
MOTION 2023-101
On a motion by Vice Mayor Steinberg, seconded by Council Member Cummings, the following
consent agenda was proposed:
a. Define the Downtown Footprint for Marketing Purposes
RESOLUTION 2023-072
Geographically Defining Downtown Leesburg for Marketing Purposes
b. Replacement of Thickener Sludge Pumps at the Water Pollution Control Facility
RESOLUTION 2023-073
Approving a Task Order for the Replacement of Two Thickener Sludge Pumps at the
Water Pollution Control Facility to WGK Construction in the amount of $214,631
The Consent Agenda was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
13. RESOLUTIONS /ORDINANCES / MOTIONS
a. Airport North Apron Paving – Hangars C&D Rehabilitation Project
Ms. Karin Franklin and Mr. Scott Coffman presented Council with the scope
of the project and funding sources provided by a combination of Town funds and
grant funds from the Virginia Department of Aviation to rehabilitate pavement at the
Airport that is in poor to serious condition. Council and staff discussed the project.
MOTION 2023-102
On a motion by Vice Mayor Steinberg, seconded by Council Member Cummings, the
following was proposed:
RESOLUTION 2023-074
Authorize Grant Execution in the amount of $1,640,000 and Authorize Award of
Contract to Eurovia Atlantic Coast, LLC dba Virginia Paving Company in the amount
of $1,918,843 for Construction of the Airport North Apron Paving – Hangars C & D
Rehabilitation Project
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
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Item b.
COUNCIL MEETING May 9, 2023
5 | P a g e
b. Police Station Expansion Project – Construction Administration Change
Order No. 8 and
c. Police Station Expansion Project – Construction Contract Award
Ms. Christine Roe presented Council with the proposed construction contract
award to Hoar Construction for the Police Station expansion project and the need for
a change order to allow Dewberry to do the construction administration. Council and
staff discussed the project.
MOTION 2023-103
On a motion by Council Member Nacy, seconded by Council Member Cummings, the
following was proposed:
RESOLUTION 2023-076
Award a Construction Contract in the amount of $17,882,733 to Hoar Construction,
LLC for the Police Station Expansion Project and Authorize the Town Manager to Sign
the Contract
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
MOTION 2023-104
On a motion by Council Member Nacy, seconded by Council Member Cimino-Johnson,
the following was proposed:
RESOLUTION 2023-075
Approve Change Order No. 8 to the Dewberry Design Contract for the Police Station
Expansion Project for Construction Administration Services in the amount of $500,985
and Authorize the Town Manager to Execute the Change Order
The motion was approved by the following vote:
Aye: Bagdasarian, Cimino-Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt
and Mayor Burk
Nay: None
Vote: 7-0
14. PUBLIC HEARINGS
a. None.
15. UNFINISHED BUSINESS
a. None.
16. NEW BUSINESS
a. None.
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Item b.
COUNCIL MEETING May 9, 2023
6 | P a g e
17. COUNCIL DISCLOSURES AND COMMENTS / ADDITIONS TO FUTURE
MEETINGS
Council Member Cimino-Johnson shared his concerns regarding Stanley Martin and
the amenities that were promised to the residents of Tuscarora Village.
Council Member Cummings disclosed he met with Mr. Kim Hart, Mr. Brian Cullen
and Mr. Andy Shuckra regarding a rezoning application in the Oaklawn area.
Council Member Bagdasarian disclosed he met with Mr. Kim Hart and Mr. Andy
Shuckra regarding a project at Oaklawn and with residents of Potomac Station regarding the
Hamblet project.
Council Member Nacy disclosed she met with Mr. Kim Hart, Mr. Eric Delong and
Mr. Andy Shuckra about the Oaklawn rezoning.
18. MAYOR DISCLOSURES AND COMMENTS / ADDITIONS TO
FUTURE MEETINGS
Mayor Burk disclosed she attended a Life with Cancer Event hosted by Mr. Taylor
Chess with Peterson. Mayor Burk reported the County held a meeting on the future of the
Westpark property where the residents heard the County’s plans for the project. Mayor Burk
attended the Valor awards and congratulated the officers who received the award but also
thanked the whole department for what they do for Leesburg. Mayor Burk said VDOT held
a meeting on the proposed design for the Battlefield Parkway and Route 7 overpass and that
the project should be coming before Council in the next few months. Mayor Burk attended
the Visit Loudoun awards and noted that the Town’s Parks and Recreation Department won
an award for the marketing of the Flower and Garden Show. Mayor Burk said she and Vice
Mayor Steinberg met with the new Sustainability Manager and were pleased to hear her
ideas for Leesburg. Mayor Burk said she and Vice Mayor Steinberg met with a few Leesburg
businesses having trouble with a zoning requirement in the Hub Zone that was resolved with
the help of Town staff. Mayor Burk accompanied Supervisor Umstattd to recognize Dolce &
Ciabatta Bakery and The Restock Store during Small Business Week. Mayor Burk and
members of the Tree Commission attended a tree planning event at Catoctin Elementary
School. Mayor Burk attended the Leesburg Small Business Awards held at ION and
congratulated the businesses who were nominated and won. Mayor Burk thanked the
Economic Development staff for coordinating the event. Mayor Burk attended the
dedication of the new marker at Union Cemetery denoting the reinterment of the bodies
there from the old pauper’s field. Mayor Burk thanked those involved in the project. Mayor
Burk thanked the Loudoun County Caregivers for their breakfast get-together. She thanked
the organization’s volunteers for helping people with everything from transportation, to
helping them pay their bills, money management, and medical assistance. Mayor Burk noted
she had to miss the Latino Festival this year but heard it was fabulous event and regrettably
had to miss it. Mayor Burk asked everyone to remember those who have gone before us.
30
Item b.
COUNCIL MEETING May 9, 2023
7 | P a g e
19. TOWN MANAGER COMMENTS
Mr. Dentler noted the staff at the Thomas Balch Library are now utilizing the log
cabin on Loudoun Street vacated by the Economic Development Department to process
documents. Staff is inviting members of the public to see those documents during First
Friday events. Mr. Dentler reported that the Town’s contractor will be performing structural
work on the Town garage that will severely impact the number of spaces available beginning
the evening of May 14 and continuing into the early part of the following week. He added
staff was authorized to take advantage of telecommuting opportunities to reduce the impact
on the garage parking demand but that Town Hall would be appropriately staffed and
encouraged everyone to plan accordingly.
20. CLOSED SESSION
a. None.
21. ADJOURNMENT
On a motion by Vice Mayor Steinberg, seconded by Council Member Nacy, the meeting was
adjourned at 7:47 p.m.
__________________________
Kelly Burk, Mayor
Town of Leesburg
ATTEST:
_______________________
Clerk of Council
2023_tcmin0509
31
Item b.
Page 1|May 9, 2023
May 9, 2023 – Leesburg Town Council Meeting
(Note: This is a transcript prepared by a Town contractor based on the video of the meeting. It
may not be entirely accurate. For greater accuracy, we encourage you to review the video of
the meeting that is on the Town’s Web site – www.leesburgva.gov or refer to the approved
Council meeting minutes. Council meeting videos are retained for three calendar years after a
meeting per Library of Virginia Records Retention guidelines.)
Mayor Kelly Burk: I would like to call today's May 9th, 2023 meeting of the Leesburg Town Council. If
anybody in the room needs hearing assistance, please see the Clerk. Council, we have a guest for
our invocation tonight, Reverend Alice King from the Unitarian Universalist Church of Loudoun, and
the salute to the flag will be followed by Vice Mayor Steinberg. Reverend, very nice to see you tonight.
Alice King: Thank you for having me. Thank you for asking me, Todd. Let's just take a moment to
breathe together, to be in silence, to let go of anything that does not serve us and the good of the
people, to acknowledge the earth that nurtures us and sustains life, and a moment to acknowledge
the original inhabitants of this land.
Let us pray now to that which is known by many names and is yet beyond naming, which some call
God. May we be of use in service of others. May the presence of love be with this Council in their
work. May they know our appreciation for their service. May they have the wisdom to create what is
essential for the common good. May they keep within their hearts a love for the cause of human
welfare and a dedication to enrich the lives of all. Guide them in their labor to maintain and strengthen
public life as they remain good stewards of the gift of life. Blessed be, and amen.
Mayor Burk: Thank you. Vice Mayor?
Vice Mayor Neil Steinberg: I pledge allegiance to the flag of the United States of America—
All: --and to the republic for which it stands, one nation under God, indivisible, with liberty and justice
for all.
Mayor Burk: Thank you. Roll call. Let the record reflect all members of Council are present. I have
one set of minutes. The work session minutes from April 24th. Do I have a motion?
Council Member Kari Nacy: So moved.
Mayor Burk: Moved by Councilwoman Nacy. Second?
Council Member Ara Bagdasarian: Second.
Mayor Burk: Seconded by Council Member Bagdasarian. All in favor indicate by saying aye.
Members: Aye.
Mayor Burk: Opposed? Abstain?
Council Member Todd Cimino-Johnson: Abstain.
Mayor Burk: All right. Regular Session minutes of April 25th, 2023. Have a motion?
Council Member Zach Cummings: So moved.
Mayor Burk: Moved by Mr. Cummings. Second?
Council Member Nacy: Second.
Mayor Burk: Seconded by Council Member Nacy. All in favor indicate by saying aye.
32
Item b.
Page 2|May 9, 2023
Members: Aye.
Mayor Burk: Opposed? That passes 7-0. I need a motion to adopt the meeting agenda.
Councilwoman Nacy moved it. Is there a second?
Council Member Cummings: Second.
Mayor Burk: Seconded by Council Member Cummings. Is there any item that anybody would like
amended or deleted? Okay, all in favor say aye.
Members: Aye.
Mayor Burk: Opposed? That passes 7-0, okay, we have various proclamations and each of you have
one to read. If you could send it down the aisle back to me so I can present it. The first one is the Bike
to Work Day.
Council Member Cimino-Johnson: Proclamation. Bike to Work Day. Whereas this year, Friday, May
19th is Bike to Work Day. Whereas Bike to Work Day is an event open to riders of all levels from first-
time riders to the most experienced cyclists, and, Whereas the event's goal was to bring attention to
the numerous cycling benefits for riders and for the environment. And, whereas cycling helps with
stress reduction, cardiovascular health and weight management and whereas bicycling to work
contributes to air pollution reduction and decreases automobile traffic congestion, and, whereas there
will be over 100 pitstops located throughout the Washington Metropolitan Area, and, whereas
Leesburg residents can join the event at the Raflo Park pitstop by the W&OD Trail.
Therefore proclaimed that the Mayor and Council of the Town of Leesburg, Virginia recognize May
19th, 2023 is Bike to Work Day and encourage residents to join one of the convoys, bike alone or find
a riding partner to participate in this fun event. Proclaimed this 9th of May 2023.
Mayor Burk: All right, thank you. The next one is National Skilled Nursing Care Week.
Council Member Patrick Wilt: Whereas National Skilled Nursing Care Week is celebrated every
year in May starting on Mother's Day. It is a time to honor residents and staff in skilled nursing care
centers nationwide, and, whereas we honor and respect elders and citizens of any age, with physical
or intellectual disabilities, who reside in skilled nursing facilities in Leesburg and throughout Virginia,
and, whereas skilled nursing care centers throughout our area are observing National Skilled Nursing
Care Week using the 2023 theme of cultivating kindness, and, whereas we urge everyone to visit or
call a loved one, family member or friend residing in a care setting to offer a kind word. Therefore
proclaimed that the Mayor and Council of the Town of Leesburg in Virginia recognize the week of May
14th through the 20th. 2023 as National Skilled Nursing Care Week, residents are urged to recognize
and support the vital services provided by our skilled nurses. Proclaimed this 9th day of May 2023.
Mayor Burk: Thank you, Kids to Park Day.
Council Member Bagdasarian: Yes, whereas May 20th, 2023, the 13th Kids to Park Day organized
and launched by the National Park Trust every third Saturday in May. Whereas Kids to Park Day
empowers kids and encourages families to get outdoors and visit local parks, public lands and waters.
Whereas we should encourage children to lead an active lifestyle to combat issues of childhood
obesity, diabetes, hypertension and hypercholesterolemia. Whereas the studies show that spending
time in nature and playing outdoors increases children's happiness and attention spans while
lessening anxiety and whereas Kids to Park Day broadens children's appreciation for nature and
outdoors, and whereas Kids to Park Day recognizes the importance of responsible recreation while
enjoying the benefits of the outdoors.
Therefore proclaimed that the Mayor and the Council of the Town Leesburg in Virginia recognize May
20th, 2023 as Kids to Park Day and encourage all residents to celebrate by taking the children in their
lives to one of the Town's parks in our County, State and National parks. Proclaimed this 19th day of
May 2023.
Mayor Burk: Thank you and could you gentlemen--thank you. The National Police Week.
33
Item b.
Page 3|May 9, 2023
Council Member Nacy: National Police Week, May 14th through May 20th, 2023. Whereas in 1962,
President Kennedy proclaimed May 15th as National Peace Officers Memorial Day and the week on
which that date falls as National Police Week, and whereas members of the Town's law enforcement
agency work tirelessly to protect and serve Leesburg residents, enforce the law and keep its
neighborhoods, schools, businesses, and families safe, and whereas it is important that all citizens
acknowledge and understand their Police Department's duties and responsibilities, and that members
of the Leesburg Police Department recognize their duty to serve the people by safeguarding life and
property and protecting against violence and disorder, and whereas everyone must reflect on the
commitment and bravery of our local State and other public sector police as they ensure our safety
and wellbeing through their devotion to maintaining peace and security in our communities. Therefore
proclaimed that the Mayor and Council of the Town of Leesburg in Virginia recognized May 14th
through the 20th 2023 as National Police Week and we extend our congratulations to Phillip Braven,
Michael DaRin, Justin Dudley, Patrick Kidd, Steven Meyer.
Council Member Bagdasarian: Kyle Wagner.
Council Member Nacy: Kyle Wagner, sorry, I lost my place. [chuckles] Steven Winkler and Matthew
Wolfe who were recognized at the 2023 Valor Awards Ceremony for their outstanding service and
courage. The Town appreciates the vital services that every Leesburg Police Department Officer
performs and their exemplary dedication to our community. Proclaimed this 9th day of May 2023.
Mayor Burk: Thank you. National Public Works Week.
Council Member Cummings: Proclamation, national Public Works Week, May 21st through the 27th,
2023. Whereas the Public Works Service provided in our community is integral to our everyday lives
and is essential in protecting and enhancing our human environment, and whereas the support of an
informed and understanding citizenry is vital to the efficient operation of Public Works systems and
programs, and whereas the 2023 National Public Works Week theme is connecting the world through
Public Works, which as the American Public Works Association states, Public Works connects us all
through infrastructure and service, enhancing the quality of life for the communities these
professionals serve, and whereas the Town of Leesburg Public Works Department performs essential
services such as equipment maintenance, construction drawing reviews, transportation, infrastructure
upkeep, stormwater management, public buildings, brush and leaf collection, refuse and recycling
collection, street maintenance, and snow removal, and whereas these critical facilities and services
could not be provided without the dedicated efforts of the Public Works professionals, engineers,
managers, and employees.
Therefore proclaimed that the Mayor and Council of the Town of Leesburg in Virginia hereby
recognize May 21st through May 27th, 2023 as National Public Works Week, and pay tribute to the
public works professionals for their substantial contributions and dedication to everyone's quality of
life, any time of day in any type of weather. Proclaimed, excuse me, this 9th day of May, 2023.
Mayor Burk: Thank you very much. Now I need a motion. I'll move to the proclamation for Nancy L.
Ryan's 80th birthday and her 25th senior fitness celebration to be presented on May 23rd, 2023 Town
Council meeting.
Vice Mayor Steinberg: So moved.
Mayor Burk: Okay.
Vice Mayor Steinberg: Second.
Mayor Burk: Second, [chuckles] Okay. Vice Mayor Steinberg. Second. All in favor?
Members: Aye.
Mayor Burk: Opposed? That passes 7-0. The next one I need a motion for and this is for Jewish
American Heritage Month.
Vice Mayor Steinberg: So moved. You need It read?
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Mayor Burk: Yes, please.
Vice Mayor Steinberg: Okay. I move to approve the proclamation for Jewish American Heritage
Month be presented at the May 9th, 2023 Town Council meeting.
Mayor Burk: Is there a second?
Council Member Nacy: Second.
Mayor Burk: Council Member Nacy. All in favor indicate by saying.
Members: Aye.
Mayor Burk: Opposed? Would you read it, Mr. Steinberg?
Vice Mayor Steinberg: Proclamation. Jewish American Heritage Month. Whereas, Jewish American
Heritage Month originated in 1980 with a resolution passed by Congress proclaiming April 21st to the
28th, 1980 as Jewish Heritage Week, and whereas in April of 2006 former President George W. Bush
proclaimed May as Jewish American Heritage month, and whereas the Town of Leesburg Council
recognizes the Jewish American community's rich heritage and the numerous contributions to
Leesburg and Loudoun County, and whereas Jewish Americans have served our nation for over 369
years in government, medicine, art, literature, education, and the military among many other fields,
and whereas we must all learn about the history, culture, accomplishments, and rich diversity of the
Jewish American community, and whereas we welcome Rabbi Neil Tow, excuse me, Tow to accept
the proclamation on behalf of the Leesburg Jewish American community. Therefore proclaimed this
9th day of May 2023 that the Mayor and Town Council celebrate Jewish American Heritage Month and
call on Leesburg residents to stand against anti-Semitism or any type of discrimination against others
in our community.
Mayor Burk: Thank you very much. I will bring these down and we will present them. Thank you. The
first one we're going to present is the Bike to Work Day, and Mike Shaffer is accepting this one. Matt,
sorry. Matt, tell us why is it important to bike to work? Because I hear you do it often.
Matt Shaffer: I think it overall is a great benefit to the community health benefits. It keeps people
together, keeps people healthy, was really what it's all about. Getting on that bike reducing traffic
congestion. These are the little things that you can make on a personal level that actually can make a
big difference in your community.
Mayor Burk: As I say, you do often ride your bike to work?
Matt Shaffer: I bike to work every day that I am in the office. From Lincoln to Leesburg.
Mayor Burk: Well, that's phenomenal. How do you get there?
Matt Shaffer: W&OD Trail.
Mayor Burk: Oh, there we go, [laughs]. All right. Well, thank you very much for accepting this
proclamation, and thanks for taking the bike as opposed to getting in that car.
Matt Shaffer: It's an honor and a privilege to accept this.
Mayor Burk: Thank you. Thank you very much.
Matt Shaffer: Thank you.
[claps]
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Mayor Burk: The next one is Rich Williams will be accepting for proclamations for Kids to Park Day.
Rich is our Director of Parks and Rec. I bet you have some information about some activities you're
planning.
Rich Williams: Absolutely, Mayor Burk. Okay. In recognition of Kids in the Park Day, the Town will be
conducting a officially called the Ida Lee Park Discovery Walk, which will be held on the weekend of
May 19th through the 21st. With that, families can go online to the Parks and Recreation website,
download a map and take that map out into Ida Lee Park and answer 15 questions about different
locations within the park and perform 15 physical activities, and then return that map to the park. The
first hundred kids that turn those maps in completed will be eligible to receive Kids in the Park Day
sunglasses.
Mayor Burk: Sunglasses? Is this limited to kids? I have some Council Members who may be
interested. [chuckles]
Rich Williams: You can give it a try. I think we can make something happen for them.
Mayor Burk: Well, thank you. I think that's very exciting. That scavenger hunt, what are some of the
things they'll be looking for?
Rich Williams: They'll be simple questions like, there's a plaque on May Hill, what's the animal
depicted on that plaque? Really, it's to get the kids to move around different areas of the park and
take a look.
Mayor Burk: Okay. Sounds like a lot of fun.
Rich Williams: Thank you very much.
Mayor Burk: Thank you.
[claps]
Mayor Burk: The next one is the proclamation for National Police Week. We have multiple ones here.
Our Interim Chief is accepting this but you're going to take it for all of the officers and give them out for
us.
Vanessa Grigsby: Sure.
Mayor Burk: Is that right? Oh, good. [laughs] Would you like a few words about it? We're very
excited.
Vanessa Grigsby: I would, we're lucky enough to have Matt Wolfe here with us tonight. He was
actually one of the Valor Award recipients. I'm sure Matt would agree with me when I say that we're
very fortunate to be members of the Leesburg Police Department, to have such a supportive Mayor,
our Council and Town colleagues, and our phenomenal Leesburg community. On behalf of all the
Valor Award recipients, thank you.
Mayor Burk: Thank you. Would you like to say anything? Are you sure? You don't want to tell us
about your phenomenal award?
Matt Wolfe: No.
Mayor Burk: [laughs] Could we get a picture with you? Thank you very much.
[applause]
Mayor Burk: The next one we have is National Public Works Week, and this is the Director of Public
Works Renee LaFollette. I always say the last name wrong. Say it for me.
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Renee LaFollette: LaFollette.
Mayor Burk: LaFollette. We've only worked together how many years, [laughs] 22. Okay. [laughs],
sorry. You can mess up Burk anytime you want.
Renee LaFollette: Okay. Thanks. Actually, yes, okay.
[laughter]
Thank you, Mayor and Council for recognizing our Public Works Department here in Town of
Leesburg. We do provide the essential services. We're the everything and the kitchen sink because
we installed them in the buildings. We are doing a joint Public Works Week Utilities Open House,
touch a truck event on May 20th between 9:00 and noon at the Utility Maintenance Building. We
encourage the public to come out and see what both of our departments do and see some of the
equipment that we use to maintain the Town.
Mayor Burk: They have amazing equipment out there that the kids love and it's really worth the time
to come out and see it. Thank you very much. What's the date again?
Renee LaFollette: May 20th, 9:00 AM to noon at the Utility Maintenance Facility.
Mayor Burk: Where is that located?
Renee LaFollette: On Russell Branch Parkway.
Mayor Burk: Look for the mural.
Renee LaFollette: Yes.
Mayor Burk: Okay. [laughs]
Renee LaFollette: Well, not the mural. Two buildings down the mural.
Mayor Burk: Oh, okay. All right.
[laughter]
In that area.
Renee LaFollette: Yes, thank you.
Mayor Burk: Thank you.
[applause]
Our next proclamation is for Jewish American Heritage Month. This is Rabbi Tow is going to be
accepting this today.
Neil Tow: Thank you.
Mayor Burk: Well, thank you. This is really a very important issue for us and we're very honored and
delighted to be able to give this to you today. I wondered if you would say a few words and what it
means to the community.
Neil Tow: Yes. Thank you so much. Thank you, everyone. Thank you for being here. We're very
grateful to Delegate a former Speaker of the Virginia Legislature, Eileen Filler-Corn for forwarding
legislation to officially make May Jewish American Heritage Month in the State of Virginia. Jewish
presence in Virginia goes back to at least the end of the 16th century. I would specifically like to
mention one of the early pioneer families of Leesburg, Jewish families of Leesburg, Joseph and
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Fannie Raflo who came here in the early 1900s. We honor them even as we honor the growing and
diverse Jewish community in Leesburg and beyond in the Commonwealth. Thank you so much for
supporting this.
Mayor Burk: Thank you. Thank you for choosing Leesburg. We appreciate it. [laughs] All right. Thank
you.
[applause]
All right. Our next form of action is our presentations. Anybody have any regional reports? All right.
Petitioners. Our petitioner section. One of the first orders of business is to hear from the public. All
members of the public are welcome to address the Council on any item, matter or issue. Please by
yourself and if comfortable doing so, give your address for the taped record. Any public speaker will
be requested to state their name and spell it for the purpose of closed captioning. you observe a
three-minute time limit. The green light in front of you will turn yellow when you have one minute
remaining and your time has expired. And we have Hailey Celeste Castello here to speak. Is Hailey
here?
Eileen Boeing: She signed up online.
Mayor Burk: Is there anybody in the audience that would like to speak that didn't sign up?
[laughter]
Seeing that there's nobody, I will close the petitioner's section. We have two items on the Consent
Agenda. A is Define the Downtown Footprint for the Marketing Purposes. B is Replacement of the
Thickener Sludge Pumps at the Water Pollution Control Facility. May I have a motion?
Vice Mayor Steinberg: So moved.
Mayor Burk: Second?
Council Member Cummings: Second.
Mayor Burk: Item that anybody wishes [unintelligible] in favor indicate by saying aye.
Members: Aye.
Mayor Burk: Opposed? That passes 7-0. Our first resolution is for the Airport North Apron Paving -
Hangars C & D Rehabilitation Project. [unintelligible]
Karin Franklin: That would be me.
Mayor Burk: Okay.
Karin Franklin: Uh oh. Eileen, I forget. Do I push this? Okay. Sorry about that. It's been a little bit. I'm
Karin Franklin. I'm one of the Senior Engineers in the Public Works Capital Projects Department. I'm
just going to tell you a little bit about the Airport North Apron Paving - Hangars C & D Construction
Contract. In the latest 2022 Virginia Department of Aviation Pavement Report, it was identified that
the pavement in this area was poor to serious condition, needed to be paved immediately. It's 20 plus
years old and it just really needs to be paved. One of the things that this project started out as Apron
C and D and got expanded to A through D when we got this report results. We're going to use Full
Depth Reclamation using this machine. It recycles the old asphalt and base to create a new cement
base. It's faster. We don't have to haul a lot of material offsite. It's lower cost than the full replacement,
and it's a longer life than an overlay project.
We did get three bids. Virginia Paving was our low bidder at 1.9 and change. We do plan on starting
the construction as soon as we can, probably in July, and finishing in the fall. This project is funded
with Department of Aviation funding at 80% with the Town putting in 20%. Just a quick budget
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overview, we do have 2.5 million budgeted for construction. Between the inspection services and the
bid itself, we believe we have about 490K available for contingency if needed, and we don't plan on
having any expenditures until FY24.
Your motions are two-part. What I wanted to note on these motions is that the first item we're
authorizing the Town Manager to execute the grant agreement once we receive it. It's going to the
Board for the Department of Aviation at the end of this month, around the 25th, and we'll get the award
a couple of days later and we want to be able to go ahead and get it executed immediately so that we
can then award the construction contract. Both of these items we're waiting on the grant, but as soon
as we get the grant, then we can move forward immediately into the construction. That's it.
Mayor Burk: Thank you. I appreciate it. I do have one question. What is the amount that the Town
will be paying?
Karin Franklin: I would have to do the math on that. I think the grant is 1.6 million from DOAV for the
construction. That would leave us with the remaining, what is it? About 400--
Scott Coffman 400 and something.
Karin Franklin: 400 and something thousand.
Mayor Burk: We okay, to cost the Town about 400,000?
Scott Coffman Yes, that's correct. I can send you the exact number, but it's just over 400,000, or
20% of the construction contract.
Mayor Burk: Questions?
Council Member Cummings: One quick question on the project. I know with the Airport Commission
there was some conversation about issues with hangers and airplanes and getting in and out. Has
there been any more resolution to that? Are we still looking at being pretty shut down for a couple of
months?
Scott Coffman That's a great question, Mr. Cummings. The reason we're coming to you in advance
of getting the grant is so that we're ready to start the ground running in July when the new fiscal year
starts. That will give us a chance to move some of these aircraft that'll be impacted by the paving and
the construction over to the new facility before it fully opens and reduce the impact on the users at the
Airport. If we waited, then we'd be missing out on opening up the new facility and rental revenues
from that.
Council Member Wilt: I just wanted to understand.
Karin Franklin: Okay.
Council Member Wilt: CIP 2.68 [inaudible].
Karin Franklin: Right.
Council Member Wilt: I understand that's represented. The project Town's money will be 400,000
[inaudible] number representing the total [inaudible] that money. [inaudible] doing any better?
Okay. Do you want me to repeat that? I'm not sure.
Karin Franklin: Would you please?
Council Member Wilt: Okay. The 2.68 million is what's represented as the CIP budget. I just want to
reconcile, we're saying the Town will be paying 400,000 of this 1.6 million from a state grant, so
what's the 2.68 million representing?
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Karin Franklin: Sorry, 2.6 is the total cost of the project. 80% is going to be covered by the grant.
20% is going to be covered by the Town. When we were doing the math, we were doing the math on
the construction portion, but we're also receiving grant funds for the design and engineering.
Council Member Wilt: Okay. In paving's bid is 1.92 million. The project cost is 2.7 million.
Karin Franklin: We have money in the budget right now for contingency that we may or may not
need. The cost of the project is between 2.2 and 2.6, depending on how much contingency we wind
up spending.
Council Member Wilt: Okay, that's what I wanted to get clear. State funding will be 80% of what
number? 1.9 or 2.7?
Karin Franklin: If we need to use some contingency, we have the ability to go back to DOAV and get
money for that change order potentially.
Council Member Wilt: It's more we'll be spending if we use the full contingency, the 2.7, the Town's
cost will actually be 540,000, not 400,000, right?
Karin Franklin: Correct.
Council Member Wilt: Okay.
Karin Franklin: Or whatever the math comes out to. We'd have to look at the budget, but--
Council Member Wilt: Okay. That representation, that math makes more sense to me.
Karin Franklin: Okay. Sure.
Council Member Wilt: Thank you.
Mayor Burk: Mr. Bagdasarian? Are you? Right.
Vice Mayor Steinberg: I'll make a motion Madam Mayor. I move to approve the proposed resolution
to one, Authorize the Town Manager to Execute a Grant Agreement with the Virginia Department of
Aviation, DOAV. The amount of $1,640,000 for Grant Eligible Construction and Engineering Costs,
and two, Award the Construction Contract for the Airport North Apron Paving - Hangars C & D
Rehabilitation Project to Eurovia Atlantic Coast LLC doing business as Virginia Paving Company in
the amount of $1,918,843 after Virginia Department of Aviation Grant Agreement Execution.
Council Member Cummings: Second.
Mayor Burk: Seconded by Council Member Cummings. All in favor, indicate by saying aye.
Members: Aye.
Mayor Burk: Opposed? The hangars look great. [laughs] Thank you. Right. The Police Expansion
Project.
Christine Roe: Good. Thank you. Good evening, Madam Mayor and Members of the Council. I'm
Christine Roe. I'm a Senior Engineer with Capital Projects and Public Works, and I'll be presenting the
Leesburg Police Station Expansion Project to you tonight. These are just a couple of views,
renderings of the new Police Station and a general plan markup showing you what we are planning.
We're planning an expansion of the main building and an expansion of the parking lot.
The expansion building is around 14,500 square feet for the addition the existing building is currently
around 21,000 square feet. The addition to the main building will have the ability to be expanded in
the future with an approximately 9,000 square foot second story expansion that would be built on top
of the existing edition-- or the existing at the time edition.
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We are also proposing to fix the HVAC in the support building, add 50 additional parking spaces. Our
construction schedule is to start in late fall of this year. That will be dependent on when the contractor
can procure materials. That date may be a little bit flexible depending on that. Once construction
starts, it will take approximately two years to complete. Construction would likely complete slightly
before that, and then we would close out within that two-year period. Bidding selection, we started a
request for qualifications process early this year.
During that process, we had 15 contractors submit qualification packages. Of those, we qualified 10 of
those contractors. We went out to bid in February. Only those 10 pre-qualified contractors could bid
on the project. Of those, we received five bids, and out of those five bids, Hoar Construction came in
as the lowest responsible bidder. The amount for that was $17,882,733. Hoar Construction is a
national construction contractor that has been operating in the Mid-Atlantic since 2014. They've also
recently constructed the Vienna Police Headquarters, which was done by our architect on the project,
Dewberry. That building is a multi-story building. It's a new build. It's quite large. They demolished the
existing building and redeveloped on the existing site. That project was completed very recently and it
was on schedule, on budget.
This is a general project and budget overview. This shows how that construction bid from Hoar fits
into our overall budget for the project. With the $17,882,733, we're in good shape and we're within
budget for the project. We have a couple of estimated figures still. With this bid, we're still able to fit in
contingency so that we expect to be within budget. The first item for proposed legislation is the
construction contract award, which is the approval of the Hoar Construction contract. Then the second
part of legislation is the approval of the change order to allow Dewberry to do the construction
administration for the project. This is dependent on the approval of the construction contract award.
Any questions?
Mayor Burk: Thank you. Does anybody have any question on [unintelligible]?
Vice Mayor Steinberg: Kind of have one question, actually. Ten contractors are pre-qualified, but
only five chose to submit bids. Why is that? Is it because the 10 who qualified didn't necessarily have
all of the specs on the project before they were going to bid, or what causes bidders to drop out?
Christine Roe: They had that information. A few of the bidders decided to drop out just because their
construction schedules wouldn't allow for it, or they didn't have the time to put together the bids, or
didn't think they would be able to be competitive in the environment.
Vice Mayor Steinberg: Thanks.
Mayor Burk: [unintelligible].
Council Member Nacy: Maybe it'll make me not sneeze. The first one. I move to approve the
proposed resolution to Award a Construction Contract in the amount of $17,882,733 to Hoar
Construction LLC for the Police Station Expansion Project and Authorize the Town Manager to sign
the contract.
Mayor Burk: All in favor?
Vice Mayor Steinberg: Second first.
Mayor Burk: I’m sorry. See, you did such a good job that I was going to give you the whole credit.
Councilwoman Nacy.
Mayor Burk: Cummings? All in favor, indicate by saying aye.
Members: Aye.
Mayor Burk: Opposed? 7-0. The motion for the Construction Administrative Change order
[unintelligible].
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Council Member Nacy: Part two. I move to approve the proposed resolution to Approve Change
Order Number Eight to the Dewberry Design Contract for the Police Station Expansion Project in the
amount of $500,985 for Construction Administration Services and Authorize the Town Manager to
execute this change order, pending award of the construction contract.
Mayor Burk: [unintelligible] All in favor [unintelligible] aye.
Members: Aye.
Mayor Burk: Opposed? [unintelligible] zero. We have no public hearing, [unintelligible] Council
meetings, and agenda topics. Council Member Cimino-Johnson, do you want to start?
Council Member Cimino-Johnson: Thank you, Madam Mayor. I do not have future meeting items. I
do not have disclosures, but I do have some comments. I'm speaking out about a topic that is
important to Leesburg, but most importantly, the residents of Tuscarora village. The issue of honesty
and transparency in the building industry is appalling. Specifically, I want to address the situation with
Stanley Martin and their lack of honesty regarding building amenities at Tuscarora Village.
For over three years now, the residents of Tuscarora Village have been waiting patiently for the
promised amenities to be built. However, we have recently been told that we will have to wait five
more years. This is simply unacceptable. People have invested their hard-earned money into these
properties with the expectation of enjoying the amenities that were promised them.
The residents are also paying HOA fees that include paying for amenities that we do not receive. The
fact that Stanley Martin has not been honest about their timeline for these amenities is troubling. It is
unfair to keep people waiting for so long only to find out that they have to wait even longer. It is not
ethical to give false hope and promise to people who have trusted, invested in a community.
Honesty and transparency are essential in any business, but especially in the building industry.
People rely on builders to provide them with quality homes and amenities. When they don't live up to
their promises, it creates a feeling of betrayal and disappointment. It is time for Stanley Martin to take
responsibility for their actions and be honest with their clients. Start building amenities today at
Tuscarora Village and stop with the lies and excuses.
The Town of Leesburg is not stopping you from building these. We need to hold Stanley Martin
accountable for their lack of honesty and transparency. We cannot continue to let them get away with
promising one thing and delivering nothing. People deserve to know the truth and they deserve to
receive what was promised to them. I will continue to speak out on this issue from the dais until
Stanley Martin builds the promised amenities. Thank you.
Mayor Burk: [unintelligible]
Council Member Cummings: No comments. Just a quick disclosure on May 2nd, I had a meeting
with Kim Hart, Brian Cullen, and Andy Shuckra on a rezoning application in the Oaklawn area.
Mayor Burk: [unintelligible]
Council Member Bagdasarian: A couple of disclosures. I also met with the folks at Oaklawn
regarding the project. I also met with residents at Potomac Station regarding the Hamblet project, so.
Council Member Nacy: I just have one disclosure as well. I met with Kim Hart, Eric Delong, and
Andy Shuckra, about the Oaklawn rezoning app on May 5th.
Mayor Burk: I just have a couple of things. On May 26th, the County held a meeting on the future of
the Westpark property in Leesburg. The residents heard that the County will be soon will be hiring a
design team for the park. This will be a passive park that will not have athletic fields. It will have
passive trails and paths within it. In the summer, the County Parks and Rec Department will share the
proposed design to the public and take comments from the public.
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As soon as I know the date, I will post it on social media as I'm positive the County will also. May 27th,
I want to congratulate our brave officers who received their Valor Awards. While it was a truly
wonderful to learn of the courageous and lifesaving actions our officers were recognized for, and it
was very well deserved, I have no doubt that the Leesburg Police work with the community to help
residents every day to be safe and secure here in Leesburg.
Thanks to all the employees of the department that make Leesburg such a safe place to call home.
Also, on that day, VDOT held a meeting on the proposed design for Battlefield and Route 7 overpass.
Many people were there and the design involved two roundabouts, a bike path, and ped path. It'll be
coming before Council in the next few months. Generally, the public was in favor of it, but there were
a few that didn't feel there was a need for it at all.
On the 28th, Visit Loudoun held their award ceremony. It was a high-energy event. Our Parks and Rec
Department won one of the awards for the marketing of the Flower and Garden Show. On May 1st,
Mr. Steinberg and I met with our new Sustainability Manager. It was great to hear her views on
sustainability and what it's going to mean to Leesburg. This is very exciting to have her on board.
On the 1st, Vice Mayor Steinberg and I met with the Leesburg businesses that was having trouble with
a zoning requirement in the Hub zone. Mr. David and Mr. Watkins were able to assist the business
and resolve their issue. It's always wonderful when you learn of a problem and the staff can work to
find a solution. I appreciate both Mr. David and Mr. Watkin's efforts. I accompanied Supervisor
Umstattd on May 2nd to recognize two small businesses during small business week that are doing
very well. Dolce & Ciabatta Bakery started on Catoctin Circle, and it has expanded to Fort Evans.
Wonderful locations, excellent product. It's a great bakery and it's wonderful to see them expanding
and growing. The Restock Store, it was great to see them. You probably have remembered that they
were robbed two weeks in a row. It took a lot for them to reopen again. They were very discouraged,
but they were so restored and supported by the community that they felt they had no choice but to
come back and they're very glad they did.
On May 3rd, I joined the members of the Tree Commission, Phil Marshall and John [unintelligible] at
Catoctin Elementary School to plant a tree. If you've ever seen Phil Marshall talk to kids, what a thrill it
is. He is just unbelievable. The 4th graders joined us and Mr. Marshall entertained and educated the
students about trees and how to plant them. On the 3rd, the Leesburg Small Business Awards were
held at ION. I want to congratulate every business that was nominated and won, and I want to thank
the Economic Development staff for such a good job. It was really a very, a wonderful event.
May 4th, the Town dedicated the Pauper’s Field. We reinterred bones that were buried in the poor
people cemetery years and years ago. It was a lovely memorial. Too many individuals deserve to be
recognized for their efforts. Most certainly the people that are buried there deserve to be recognized
and to be remembered. I thank all the people in the Town, the Balch Library people that really
organized this and pushed. It took them five years but we got a beautiful memorial over on Union
Cemetery. I want to thank the Loudoun County Caregivers for their breakfast get-together. This was
an amazing organization that helps people with everything from transportation to helping them pay
their bills and to money management, to medical assistance. They are an amazingly dedicated group
of people and I want to thank the staff and all the volunteers.
May 6th I attended, and this is my disclosure, Life with Cancer event with Taylor Chess from Peterson.
This was a wonderful event that raises thousands and thousands of dollars to help cancer patients
and their families. I did miss the Latino Festival this year, but I heard that it was fabulous and I do
send my regrets that I was not able to make it. I ask all of us to remember that those who have gone
before us.
Kaj Dentler: Two quick comments. First, I'd like to recognize the Balch Library and Library staff if you
had the chance on First Friday, the Balch Library has begun to use the log cabin since Economic
Development has vacated that site. We've begun to repurpose the use of the log cabin by allowing the
Balch Library to use it for processing of their documents. Then on First Fridays, they are beginning to
open the log cabin up and allow the public to see some of the documents and try to increase their
profile within the community.
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We had very successful launch on First Friday. 25 to 30 people actually went in and looked at the
documents, so we're very hopeful. Lastly our Town garage late Sunday night this week through early
next week, the competition for parking spaces will be fierce. It will be first come, first serve. Our
contractor has to go to work on the beam that goes to the ramp that rises from Loudoun Street up to
the second level. So that level will not be accessible. The basement and the two street levels will be
available, but our parking will be extremely limited. We will reduce our staffing here in Town Hall.
Anyone who's able to work remote but still have a very skeleton shift here, we will do that to reduce
the workload and they will be open and first come, first serve. Please plan accordingly. If you're
coming into Town garage during the early part of next week.
Mayor Burk: Is there a motion to adjourn?
Vice Mayor Steinberg: So moved.
Council Member Nacy: Second.
Members: Aye.
Mayor Burk: Done.
44
Item b.
PROCLAMATION
American Cancer Society’s Loudoun County Relay for Life
June 3, 2023
WHEREAS, Relay for Life is the signature activity of the American Cancer Society
and celebrates cancer survivors and caregivers, remembers loved ones lost to the disease, and
empowers individuals and communities to fight back against cancer; and
WHEREAS, money raised during Relay for Life supports the American Cancer
Society’s mission of saving lives, celebrating lives, and leading the fight for a world without
cancer; and
WHEREAS, this year’s Loudoun County Relay for Life will be held on June 3, 2023,
at the Village at Leesburg; and
WHEREAS, through the funds raised from the Relay for Life movement, the
American Cancer Society can invest in cancer research and provide free information and
support for people facing the disease; and
WHEREAS, the American Cancer Society also educates people on how to reduce the
risk of cancer or detect it early when it is easier to treat.
THEREFORE, PROCLAIMED, that the Mayor and Council of the Town of Leesburg
in Virginia hereby recognize Loudoun County Relay for Life volunteers, organizers, and
participants and encourage Leesburg residents to support the event.
PROCLAIMED this 23rd day of May 2023.
2023/012022/07
____________________________________
Kelly Burk, Mayor
____________________________________
Neil Steinberg, Vice Mayor
____________________________________
Ara H. Bagdasarian
____________________________________
Todd Cimino-Johnson
____________________________________
Zach Cummings
____________________________________
Kari Nacy
____________________________________
Patrick Wilt
45
Item a.
PROCLAMATION
Commemoration of Wayne’s Crossing
WHEREAS, General George Washington ordered Brigadier General Anthony Wayne
and his brigade of Pennsylvania troops into Virginia in the spring 1781 to reinforce Major
General Marquis de Lafayette’s army during the Virginia campaign of the Revolutionary War;
and
WHEREAS, General Wayne crossed the Potomac River with his brigade of 700 troops
on May 31, 1781, at Noland’s Landing in Loudoun County and marched through Leesburg
on June 3, 1781; and
WHEREAS, General Wayne’s troops provided critical reinforcements for Lafayette’s
army in Virginia, which had been in retreat from the larger British army of General Charles
Cornwallis before his arrival; and
WHEREAS, General Wayne, leading the advance forces of Lafayette's army and
augmented by 200 Virginia riflemen, engaged Cornwallis at the Battle of Green Spring on July
6, 1781, in the largest infantry engagement to occur in Virginia during the war, resulting in the
withdrawal of Cornwallis and his army across the James River into Yorktown where the war
ended a few months later; and
WHEREAS, Wayne’s Crossing was a significant Revolutionary War event in
Loudoun County’s history, as commemorated by a historical marker at Lucketts Community
Park about 3 miles from where General Wayne’s army crossed the Potomac River; and
THEREFORE, PROCLAIMED, that the Mayor and Town Council hereby recognize
the Sons of the American Revolution and the Daughters of the American Revolution for
commemorating June 3, 2023, as Wayne’s Crossing Day in Leesburg, Virginia.
PROCLAIMED this 23rd day of May 2023.
2023/012022/07
____________________________________
Kelly Burk, Mayor
____________________________________
Neil Steinberg, Vice Mayor
____________________________________
Ara H. Bagdasarian
____________________________________
Todd Cimino-Johnson
____________________________________
Zach Cummings
____________________________________
Kari Nacy
____________________________________
Patrick Wilt
46
Item b.
PROCLAMATION
National Gun Violence Awareness Day
June 2, 2023
WHEREAS, this year the National Gun Violence Awareness Day will honor and
remember gun violence victims and survivors on June 2; and
WHEREAS, more than 120 Americans are killed daily by gun violence, along with
more than 200 who are shot and wounded, and an average of 17,000 gun-related homicides
occur every year; and
WHEREAS, Americans are 26 times more likely to die by gun homicide than residents
in other high-income countries; and
WHEREAS, the increase in gun violence and fatal shootings calls for more efforts and
resources to be directed toward gun violence prevention; and
WHEREAS, by wearing orange on June 2, 2023, Americans will raise gun violence
awareness and commemorate the lives of those lost; and
WHEREAS, everyone must commit to reducing gun violence, pledge to do everything
possible to keep firearms out of the wrong hands and encourage responsible gun ownership
for everyone’s safety.
THEREFORE, PROCLAIMED, that the Mayor and Council of the Town of Leesburg
in Virginia recognize the first Friday in June to be National Gun Violence Awareness Day and
in support will light the Town parking garage orange during June.
PROCLAIMED this 23rd day of May 2023.
2023/012022/07
____________________________________
Kelly Burk, Mayor
____________________________________
Neil Steinberg, Vice Mayor
____________________________________
Ara H. Bagdasarian
____________________________________
Todd Cimino-Johnson
____________________________________
Zach Cummings
____________________________________
Kari Nacy
____________________________________
Patrick Wilt
47
Item c.
PROCLAMATION
Lesbian, Gay, Bisexual, Transgender, and Queer Pride Month
WHEREAS, Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ) Pride Month
is celebrated each year in June; and
WHEREAS, Pride Month honors the 1969 Stonewall Uprising, which is considered
the catalyst of the Lesbian, Gay, Bisexual, Transgender, and Queer-identified (LGBTQ+)
rights movement in the United States; and
WHEREAS, every June communities across the Nation celebrate the contributions of
LGBTQ+ people; and
WHEREAS, Pride Month commemorates individuals who have fought to secure
equality, who have experienced discrimination, and who have historically been
disenfranchised of rights afforded to other Americans; and
WHEREAS, the Town of Leesburg remains committed to protecting the rights of the
LGBTQ+ community and invites everyone to respect, honor, and celebrate its diverse
community, and to continue building a culture of inclusiveness and acceptance.
THEREFORE, PROCLAIMED, that the Mayor and Council of the Town of Leesburg
in Virginia hereby proclaim June 2023 as LGBTQ Pride Month and embrace LGBTQ+ people
and recognize their contributions.
PROCLAIMED this 23rd day of May 2023.
2023/012022/07
____________________________________
Kelly Burk, Mayor
____________________________________
Neil Steinberg, Vice Mayor
____________________________________
Ara H. Bagdasarian
____________________________________
Todd Cimino-Johnson
____________________________________
Zach Cummings
____________________________________
Kari Nacy
____________________________________
Patrick Wilt
48
Item d.
PROCLAMATION
249th Commemoration of the Loudoun County Resolves
WHEREAS, in June 1774, Leesburg and Loudoun freeholders met at the County
Courthouse lawn to discuss the protection of people’s rights and liberties in North America;
and
WHEREAS, at this meeting Loudoun County residents discussed the best way to
support their fellow Bostonians from the oppression and tyranny of the Act of the British
Parliament; and
WHEREAS, participants of the meeting drew up the Resolutions which were sent to
the Continental Congress in Philadelphia as well as to London; and
WHEREAS, these resolutions resolved that freemen should not be submitted to taxes
other than those enacted by representatives of their own choosing; and
WHEREAS, it is absolutely repugnant to the fundamental laws of justice to punish
persons without a trial; and
WHEREAS, enforcing the Act of Parliament by military power would lead to civil
war in support of the suffering brethren of Boston and any oppressed part of North America.
THEREFORE, PROCLAIMED, that the Mayor and Council of the Town of Leesburg
in Virginia hereby recognize the Sergeant Major John Champe Chapter of the Virginia Sons of
the American Revolution for its efforts towards commemorating the 249 years in remembrance
of this important event in the County’s history.
PROCLAIMED this 23rd day of May 2023.
2023/012022/07
____________________________________
Kelly Burk, Mayor
____________________________________
Neil Steinberg, Vice Mayor
____________________________________
Ara H. Bagdasarian
____________________________________
Todd Cimino-Johnson
____________________________________
Zach Cummings
____________________________________
Kari Nacy
____________________________________
Patrick Wilt
49
Item e.
PROCLAMATION
Nancy L. Ryan
80th Birthday & 25th Senior Fitness Celebration
WHEREAS, Ida Lee Park Recreation Center Senior Fitness Instructor Nancy L. Ryan
is nearing her 25th year of instruction for the Leesburg Department of Parks and Recreation;
and
WHEREAS, Nancy L. Ryan sets a fitness example for all as she nears her 80th birthday
on August 7, 2023; and
WHEREAS, she has been a Certified Fitness Instructor for almost 40 years by the
Athletic and Fitness Association of America, the American Council on Exercise, and the
IDEA Health and Fitness Association; and
WHEREAS, she is a personal fitness trainer and holds a master’s degree in Exercise
Science from George Washington University; and
WHEREAS, she takes special pride and devotion in assisting senior citizen fitness class
students of the Town of Leesburg and beyond, with their recovery from illness and
replacement challenges; and
WHEREAS, she still finds time to be the family matriarch for her extended family.
THEREFORE, PROCLAIMED, that the Mayor and Town Council hereby present
this Proclamation to Nancy L. Ryan for her dedication to her students as a fitness professional
and congratulate her for her example as a senior citizen on her 80th birthday.
PROCLAIMED this 23rd day of May 2023.
2023/012022/07
____________________________________
Kelly Burk, Mayor
____________________________________
Neil Steinberg, Vice Mayor
____________________________________
Ara H. Bagdasarian
____________________________________
Todd Cimino-Johnson
____________________________________
Zach Cummings
____________________________________
Kari Nacy
____________________________________
Patrick Wilt
50
Item f.
Council Meeting Date: May 23, 2023
TOWN OF LEESBURG
TOWN COUNCIL MEETING
Subject: Market Street and King Street Intersection Improvements Project – Construction Change
Order
Staff Contact: Renée M. LaFollette, P.E., Director, Public Works & Capital Projects
Octavia Andrew, Chief Procurement Officer
Cole Fazenbaker, Management & Budget Officer
Council Action Requested: Authorize the Town Manager to execute a change order in the amount
of $311,488 for the installation of a power conduit system to provide power feed for the four (4)
streetlights at the intersection of Market Street and King Street as well as five (5) future West
Market Street streetlights, two (2) future West Loudoun Street streetlights, and electric vehicle
charging stations to be located in the parking garage. The power conduit system for the streetlights
and electric vehicle charging stations was not included in the original contract for the Market Street
and King Street Intersection Improvements project.
Staff Recommendation: Authorize the Town Manager to execute a change order in the amount
of $311,488 for the installation of a power conduit system to provide power feed for the four (4)
streetlights at the intersection of Market Street and King Street as well as five (5) future W. Market
Street streetlights, two (2) W. Loudoun Street streetlights, and electric vehicle charging stations to
be located in the parking garage.
Commission Recommendation: Not applicable.
Fiscal Impact: No additional funding is required. Funding for the change order in the amount of
$311,488 is comprised of:
$135,488 from the Downtown Streetlights project in the Capital Projects Fund,
$71,000 from the Public Works & Capital Projects operating budget in General Fund, and
$105,000 from the Market Street and King Street Intersection project in the Capital
Projects Fund.
This funding for electrical conduit work that was previously included as a part of the Downtown
Street Lights and the Market & King Intersection projects and is being transferred to the King and
Market Streets Intersection Improvement Project. By combining the electrical and conduit
installation portions of these three projects, the Town will minimize the impact on Lassiter Way,
reduce costs, and only dig once.
The original construction contract for the Market Street and King Street Intersection Improvements
project was awarded to Madigan Construction Incorporated in the amount of $1,692,775.00 on
January 10, 2023 per Town Resolution No. 2023-015. See Attachment #2.
51
Item a.
Market Street and King Street Intersection Improvements Project – Construction Change Order
May 23, 2023
Page 2
Work Plan Impact: This project is part of the current work plan for the Department of Public Works
and Capital Projects. The project will begin five weeks earlier than anticipated to allow for the
installation of the conduit and power equipment. The intersection work will begin as scheduled
after the July 4th holiday. The full project is scheduled to start in early June 2023 and be completed
by the end of October 2023.
Town Plan Impact: The Market Street/King Street Intersection Improvements project will meet
multiple principals and goals in the Legacy Leesburg Town Plan through the following strategies:
(1) Strategy 4.5.1 – Begin an Intersection Improvement Program by improving the Market Street
and King Street Intersection,
(2) Strategy 5.2.3 – Minimize outdoor Commercial Lighting Consistent with Public Safety
Requirements to Reduce Glare and Impacts on Night Sky by using full cutoff streetlights,
and
(3) Strategy 5.3.3 – Conserve Energy in Town Facilities, in Vehicles, and in Annual Operations
by using LED fixtures to reduce power demand.
Executive Summary: After bidding the project, staff determined that it would be advantageous to
combine the streetlight power system for the Market Street and King Street Intersection with the
future Market Street streetlights and electric vehicle charging infrastructure. The power location was
determined by staff working closely with Dominion Energy. The location for the meters and power
boxes will be located against the parking garage accessed from Lassiter Way. This out of the way
location will avoid having to locate the power cabinet in the public sidewalk and will enhance the
downtown streetscape. This change order includes installation of all the needed conduit, meters,
and cabinet to serve the streetlights for the Market Street and King Street intersection, seven (7)
streetlights for the upcoming Downtown Streetlights project for streetlights on West Market and
West Loudoun Street, and the power for the future electric vehicle charging stations in the parking
garage.
Background: The Market Street and King Street Intersection improvements project will replace the
existing stormwater inlets located at each corner of the intersection with new inlets set away from
the corners to reduce inlet damage from large vehicles that require costly and timely repairs by the
Public Works & Capital Projects (PW&CP) Department. The pedestrian signals will be updated to
audible pedestrian signals and the improvements will also include replacement of the 50-year-old
streetlights with the new Town owned decorative streetlights including a new light on the northeast
corner nearest the Courthouse. The power to these lights and the existing signal pole was included
with the original bid and as the plans were further developed for the Downtown Streetlight Project
and the electric vehicle pilot program was authorized by Council, staff determined that it would be
advantageous to install the necessary conduit in Lassiter Way with the Market Street and King
Street Intersection project since staff was already working in Lassiter Way as part of that project.
52
Item a.
Market Street and King Street Intersection Improvements Project – Construction Change Order
May 23, 2023
Page 3
The change order funding will be covered by the following projects and operational budgets:
Description Cost
Downtown Streetlights Project (Capital Projects Fund) $135,488
EV Charging Stations (PW&CP Operating Budget in General Fund) $71,000
Market Street and King Street Intersection Project (Capital Projects Fund) $105,000
Total Change Order Cost $311,488
This change order is over the $200,000 and according to the Town’s Procurement Policy, Town
Council must authorize the Town Manager to sign the contract.
Proposed Legislation:
RESOLUTION
Authorizing the Town Manager to Execute Change Order No. 1 in the amount of $311,488 for
Construction of the Market Street and King Street Intersection Improvements Project
Draft Motions:
1. I move to approve the proposed Resolution that authorizes the Town Manager to execute a
change order in the amount of $311,488 for the Market Street and King Street Intersection
Improvements project.
2. I move to deny the proposed resolution that authorizes the Town Manager to execute a change
order in the amount of $311,488 for the Market Street and King Street Intersection Improvements
project.
OR
3. I move an alternate motion.
Attachments:
1. Draft Resolution
2. Resolution 2023-015 (January 10, 2023)
3. Fiscal Year 2023-2028 Capital Improvements Program project sheet
2023/01
53
Item a.
PRESENTED: May 23, 2023
RESOLUTION NO. 2023- ADOPTED: ____________
A RESOLUTION : AUTHORIZING THE TOWN MANAGER TO EXECUTE
CHANGE ORDER NO. 1 IN THE AMOUNT OF $311,488 FOR
CONSTRUCTION OF THE MARKET STREET AND KING
STREET INTERSECTION IMPROVEMENTS PROJECT
WHEREAS, the Market Street and King Street Intersection Improvements project is a
funded capital project; and
WHEREAS, the construction contract for the Market Street and King Street
Intersection Improvements project was awarded to Madigan Construction Incorporated in the
amount of $1,692,775 on January 10, 2023 per resolution No. 2023-015; and
WHEREAS, Change Order No. 1 for the recommended power feed conduit system and
required cabinets exceeds the Town Manager’s signature authority of $200,000; and
WHEREAS, staff has determined that it would be more efficient and cost effective to
combine the electrical wiring for the future Town Garage electric vehicle charging project and
a portion of the downtown streetlight program with this intersection project to reduce cost and
construction impact on the downtown; and
WHEREAS, Town Procurement Policies and Procedures Manual require that change
orders that exceed the Town Manager’s signature authority of $200,000 be approved by Town
Council; and
WHEREAS, the Director of Public Works and Capital Projects recommends approval
of the contract change order; and
WHEREAS, no additional funding is needed.
THEREFORE, RESOLVED, by the Council of the Town of Leesburg in Virginia as
follows:
54
Item a.
A RESOLUTION: AUTHORIZING THE TOWN MANAGER TO EXECUTE
CHANGE ORDER NO. 1 IN THE AMOUNT OF $311,488 FOR
CONSTRUCTION OF THE MARKET STREET AND KING
STREET INTERSECTION IMPROVEMENTS PROJECT
-2-
2022/11
1. The Town Manger is authorized to execute a change order in the amount of $311,488
with Madigan Construction Incorporated.
PASSED this 23rd day of May, 2023.
______________________________
Kelly Burk, Mayor
Town of Leesburg
ATTEST:
______________________________
Clerk of Council
55
Item a.
56
Item a.
57
Item a.
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Item a.
Council Meeting Date: May 23, 2023
TOWN OF LEESBURG
TOWN COUNCIL MEETING
Subject: Town Liability Insurance Award
Staff Contact: Clark Case, Director of Finance and Administrative Services
Octavia Andrew, Chief Procurement Officer
Council Action Requested: Award the Town’s liability insurance to the Virginia Association of
Counties Group Self-Insurance Risk Pool (VAcorp) in the amount of $770,055.
Staff Recommendation: Award the Town’s liability insurance to the Virginia Association of
Counties Group Self-Insurance Risk Pool (VAcorp) in the amount of $770,055. Town staff intend
to renew insurance policies annually unless the Town decides not to renew and requests proposals.
VAcorp’s proposal is the best value proposal (and the lowest cost proposal) to the Town providing
automobile insurance, general liability insurance, property damage insurance, information
technology insurance, line of duty act insurance, crime insurance, law enforcement legal liability
insurance, environmental liability insurance, workers’ compensation and employer’s liability
insurance, employment practices liability insurance, public officials (management) liability
insurance, cyber security insurance, and umbrella/excess liability insurance.
VAcorp was created by local governmental entities and has provided insurance policies (coverage)
for the past 30 years. VAcorp currently provides insurance coverage to over 550 participating
entities.
Commission Recommendation: Not applicable.
Fiscal Impact: No additional funding is needed. Sufficient funding is included in the Adopted Fiscal
Year 2024 Budget.
Work Plan Impact: None. This is part of the work plan for the Department of Finance and
Administrative Services.
Town Plan Impact: Not applicable.
Executive Summary: The Town requires various insurance policies (coverage) to manage risks
associated with the various Town operations and responsibilities. Such insurance coverage includes
automobile, general liability, property damage, information technology, line of duty act, crime, law
enforcement legal liability, environmental liability, workers’ compensation and employer’s liability,
employment practices liability, public officials (management) liability, cyber security, and
umbrella/excess liability.
59
Item b.
Town Liability Insurance Award
May 23, 2023
Page 2
The Town periodically conducts a public solicitation process to ensure the Town is receiving the
most cost-effective coverage. The Town just completed a review of proposals and Virginia
Association of Counties Group Self-Insurance Risk Pool (VAcorp) provided the most cost effective
and lowest cost proposal.
Background: Town staff intend to renew insurance policies annually, unless the Town determines
not to renew in which case a Request for Proposals is issued, and the coverage is awarded to the
most cost-effective provider based upon their proposal.
Proposals were received, in response to a solicitation for Town Liability Insurance, from the
following entities:
Virginia Association of Counties Group Self-Insurance Risk Pool $815,919
Virginia Risk Sharing Association (VRSA) $895,732
Subsequent proposal clarifications regarding pricing were obtained from both entities, resulting in a
revised price proposal from VAcorp in the amount of $770,055 and a revised price proposal from
VRSA in the amount of $919,530. The proposal from VAcorp was determined by a panel of Town
staff reviewers to be the best value (and lowest cost) proposal for required insurance coverages.
The selection committee, consisting of representatives from Human Resources, Information
Technology, Finance, and Procurement, evaluated the proposals received against the advertised
criteria in accordance with the Town’s Procurement Policy. After considering the proposals
received, and subsequent proposal clarifications, the selection committee recommends awarding the
Town’s liability insurance to the Virginia Association of Counties Group Self-Insurance Risk Pool.
Proposed Legislation:
RESOLUTION
Award Town Liability Insurance to Virginia Association of Counties Group Self-Insurance Risk
Pool
Draft Motions:
1. I move to approve the proposed Resolution to award the Town’s liability insurance to the
Virginia Association of Counties Group Self-Insurance Risk Pool.
2. I move to deny the proposed Resolution to award the Town’s liability insurance to the Virginia
Association of Counties Group Self-Insurance Risk Pool.
OR
3. I move an alternate motion.
Attachment: Insurance Award Resolution
60
Item b.
PRESENTED: May 23, 2023
RESOLUTION NO. 2023- ADOPTED: ____________
A RESOLUTION : AWARD TOWN LIABILITY INSURANCE TO VIRGINIA
ASSOCIATION OF COUNTIES GROUP SELF-INSURANCE
RISK POOL
WHEREAS, the Town had not solicited its insurance coverage in over ten years and
Town staff decided competing the coverage would benefit the Town; and
WHEREAS, two proposals were received in response to a solicitation for Town
Liability Insurance; and
WHEREAS, all proposals were evaluated by a selection committee in accordance with
the requirements of the Town’s Procurement Policy and the laws for a Request for Proposal;
and
WHEREAS, the Virginia Association of Counties Group Self-Insurance Risk Pool’s
(VAcorp’s) proposal was selected by the Town’s selection committee as the best-value (and
lowest cost) to provide required insurance coverages in the amount of $770,055 for the first
year; and
WHEREAS, the award of the Town’s liability insurance is for one (1) year, renewable
annually for one (1) year periods unless the Town determines not to renew; and
WHEREAS, Council approval of the award is necessary as the amount exceeds the
Town Manager’s signature authority of $200,000; and
WHEREAS, the Chief Procurement Officer and the Director of Finance and
Administrative Services recommend awarding the Town’s liability insurance to Virginia
Association of Counties Group Self-Insurance Risk Pool (VAcorp).
61
Item b.
A RESOLUTION: AWARD TOWN LIABILITY INSURANCE TO VIRGINIA
ASSOCIATION OF COUNTIES GROUP SELF-INSURANCE RISK
POOL
-2-
2023/01
THEREFORE, RESOLVED, by the Council of the Town of Leesburg in Virginia as
follows:
1. The Town Manager is hereby authorized to purchase Town liability insurance
policies in a form approved by the Town Attorney from Virginia Association of
Counties Group Self-Insurance Risk Pool (VAcorp) in the amount of $770,055.
PASSED this 23rd day of May 2023.
______________________________
Kelly Burk, Mayor
Town of Leesburg
ATTEST:
______________________________
Clerk of Council
62
Item b.
Town of Leesburg
Package coverages, terms, conditions, and exclusions are only briefly outlined. For complete provisions, please refer to the coverage contract.
For additional information, please contact: Member Services at (844) 986-2705 or info@riskprograms.com
Self Insurance Proposal
March 8, 2023
Reponse to Request for Proposal:
Town Liability Insurance
(# 100161-FY23-36)
1
Revision 4/19/2023
63
Item b.
Table of Contents Page
SECTION 1 – EXECUTIVE SUMMARY 3
SECTION 2 – EXPERIENCE AND HISTORY 6
SECTION 3 – SCOPE OF SERVICES 7
SECTION 4 – PROPOSAL 10
SECTION 5 – RFP EXCEPTIONS 30
SECTION 6 ‐ PROPOSAL RESPONSE FORMS,31
AUDITED FINANCIAL STATEMENT, AND
SPECIMEN COVERAGE CONTRACT
2 64
Item b.
SECTION 1 – EXECUTIVE SUMMARY
VAcorp History
Virginia Association of Counties Group Self‐Insurance Risk Pool (VAcorp) was created by local
governmental entities seeking an alternative to the available insurance markets. Now in its 30th year, the
pool has grown from 12 members to over 550 participating entities paying nearly $100,000,000 in
premium contribution. In July 2013, VAcorp merged with VSBA Property & Casualty and Workers’
Compensation Pools. VAcorp current Balance Sheet, as of 12/31/22:
3 65
Item b.
Management Structure
The town’s project team includes the following experienced professionals:
Chris Carey, Administrator ‐ Chris is VAcorp administrator and has been involved with the pool since
inception. He is authorized to conduct negotiations on behalf of the pool. He has over 25 years’ experience
working exclusively with self‐insured programs designed for public entities. He has an Insurance and Risk
Management degree from the University of South Carolina.
Stephanie Heintzleman, Director of Member Services ‐ Stephanie will be the point of contact for member
services. She has over 30 years’ experience in Virginia local government, including nearly 20 years as
Charlotte County Assistant Administrator. She will provide guidance on all coverages and services.
Steve Rawlings, Director of Operations ‐ Steve has primary responsibility over the claims handling
operations. He has nearly 17 years’ experience in local government and schools self‐insurance and provides
direct assistance in creating strategies to bring claims to resolution.
Ken Justice, Claims Manager ‐ Ken has over 30 years of claims experience. With a Finance degree from
Radford University, he manages our team of workers’ compensation and property and casualty claims
specialists.
Chris Ballard, Risk Control Manager – Chris leads the team that provides staff trainings, facility assessments,
safety programs, and claims review meetings. He has an Occupational Safety and Health degree from
Murray State University and has over 10 years’ risk control experience.
Service Team ‐ The town will be assigned a Service Team to assist with all aspects of the service program.
Please see next page describing the team members’ roles.
4 66
Item b.
Carrie Gilbert | Key Account Specialist
Carrie handles anything related to your VAcorp coverages and services. She will assist or guide you to the appropriate individual. She is backed by the support of your entire Service Team. She has a bachelor’s degree from Emory & Henry College, ARM designation, and has both Property & Casualty and Life & Health Insurance Agent licenses.
Mike Rezac | Risk Control Consultant
Mike presents training programs, facility assessments, safety audits, and leads claims review meetings. He earned a bachelor’s degree from Grove City College. He began his career as a risk consultant with Federated Insurance where he assessed the exposures of commercial accounts and developed plans to control their risk.
Dawn Simpkins | Workers’ Compensation Specialist
Dawn handles your workers’ compensation claims. She has over 30 years of insurance industry experience and earned her Associated in Claims designation from the Insurance Institute of America. She graduated from Central Texas College.
Kelly Alexander | Property & Casualty Specialist
Kelly handles your property and casualty claims. Before joining the VAcorp team, she worked as a Claims Representative, a Paralegal and an Insurance Regulatory Specialist. She has over 16 years of experience handling property and bodily injury claims, including those in litigation. Kelly graduated from Fairmont State College.
Shane Quinley | Litigation Specialist
Shane handles all litigated property and casualty claims. He has more than ten years’ claims handling experience. Shane received his bachelor’s degree from Bluefield College in Management and Leadership.
5 67
Item b.
SECTION 2 – EXPERIENCE AND HISTORY
Established in 1993, VAcorp is a member‐owned group self‐insurance risk pool that is the leading provider
of coverage and risk management services for Virginia public entities. With its office in Roanoke, VAcorp
has a staff of over 130 insurance professionals specializing in tailoring coverages and services based on the
needs of over 550 public entities.
VAcorp works diligently to understand each member's needs and provide a comprehensive range of
customizable coverages and risk management services at affordable and stable rates. VAcorp has
experience working with public entities of all sizes and scopes. With this extensive experience, VAcorp has
the risk management skills and experience required by Town of Leesburg. No other provider in the
Commonwealth can boast this level of public entity experience.
VAcorp has developed a program that is specifically designed for public entities. We are skilled with
providing risk management advice to appropriate staff and are available for consultation on coverage
matters, as needed. Specialized Risk Control Consultants will work with your staff to focus directly on the
claims experience of the town. In addition, VAcorp provides defense coverage for non‐monetary claims,
including EEOC, FOIA, and Office of Civil Rights complaints. Our team provides access to legal counsel to
review coverage questions, insurance language of contracts, leases, and agreements.
In addition to a highly experienced staff, VAcorp has developed state of the art web‐based technology to
enhance its service offerings. VAcorp in‐house Information Systems development team has created
interfacing tools to allow ease of connectivity through a secure portal for online claims reporting and
viewing claim details, financials, and adjuster notes on demand.
VAcorp stands ready to meet or exceed the risk management needs of the Town of Leesburg year after
year.
6 68
Item b.
SECTION 3 – SCOPE OF SERVICES
Risk Control Approach and Services
Chris Ballard and his team of Risk Control Consultants currently oversee risk management services for over
550 member public entities This team conducts site specific safety training for over 10,000 employees each
year.
Our approach to safety is collaborative and targeted to control the exposures that drive your claims. We
partner with you to design action plans by analyzing your claims and loss trends in great detail, which allows
our staff to target risk areas and helps drive down claims. Our team provides management training, assists
with the formation of safety teams, provides safety training, and assists with the implementation of
behavioral‐based safety programs that create a positive safety culture.
Unlike traditional pre‐packaged risk management programs of training and auditing, VAcorp combines the
elements of discovery, analysis, planning, implementation, ongoing monitoring, measuring, and reviewing
to develop practical, results‐oriented strategies for accomplishing the town’s safe work‐place objectives.
We partner with you and your team to design an action plan. We enhance your ability to work safely by
educating the leadership team, supervisors, and employees and developing the necessary skills to maintain
and improve safety performance. Our goal is to assist you to save money and reinvest those achieved
savings back into your budget.
We build these relationships by:
Transferring our knowledge and skills to your staff so you can develop a true safety culture in each
department
Providing site‐based training for management, supervisors, and employees
Assisting with the creation of risk management objectives
Developing procedures, manuals and instructions, and documenting processes that are targeted
at reducing losses
Providing current safety information and recommending approaches associated with best
practices, efficient methods, and appropriate OSHA standards
Promoting, explaining, and championing safety changes to management and employees
Working with site‐based Safety Committees to drive approved safety programs
Information and Resource Materials
We will provide project/safety management training, program/status reports, information, guidance, and
direction as needed to implement your program and achieve your goals. These services will include:
Attend meetings to review current safety activities
Attend claims review meetings with key personnel and staff leaders
Provide staff training on coverage and risk management topics, as needed
Provide Department Head and Supervisor training sessions to discuss claims experience and safety
program development
Facilitate Safety Committee meetings, as needed
Provide in‐service training
Assist with the development of training programs and manuals
7 69
Item b.
Review loss data for trends and significant exposures
Types and Frequency of Reports
In assessing the historical claims, we reference your claims reports to create graphical analysis of historical
experience. This provides a good indication of the number of claims and severity of claims to expect and
develop targets to reduce claims. In addition, ad hoc reports are available via secure web portal.
Claims Handling
VAcorp has been providing claims and risk control services since 1993. Our team of Claim Specialists and
Risk Control Consultants has an average of 15 years of claims experience. We receive claims via online (or
other) submission, investigate, review for liability, coverage, and adjudicate the claims on an ongoing basis.
Then, we evaluate your claims to determine a best course of action for future risk avoidance.
Receive Claim
Claims are received via online entry, (or fax, call, email, etc.)
Claims Associates mark up the claim for entry and identify applicable Specialist/Adjuster
assignment; information sent to Claim Support Team
Support Team enters claim into risk management system, RiskMaster, links related documents
in electronic imaging, and sends the town an email confirming claim assignment
Adjuster receives assignment and has access to all related documents uploaded to the
electronic imaging file
Adjuster begins investigation
Investigation
Adjuster will initiate contact with the town, claimant, and applicable witnesses; adjuster will
work with your designated staff and legal counsel, as needed throughout the investigation
Adjuster will provide written notification of any claim rising to reinsurance notification level,
whether that is value based or event‐type based
Adjuster will obtain necessary statements, photographs, copies of procedures/policies, if
applicable, and any other related materials and documentation
All aspects of the investigation are documented in the adjuster notes section of RiskMaster,
which are available online for your review; all physical documents received are scanned and
stored in an electronic imaging folder linked to the specific claim
Adjuster will use all information to create a position of liability
Liability Determination
Adjuster reviews all investigative information, documents, coverage terms, and related data to
develop a position on liability
Select cases based on merit are presented to counsel for review and legal interpretation
Adjuster determines position of liability for the town; adjuster will continually interact with
Claims Manager, as needed, for the duration of the open claim.
8 70
Item b.
Authorization
Liability Established/Payment Recommended:
Adjuster shall provide written recommendation of payment to the town
o Adjuster will include claim facts as requested
o Adjuster will include value of recommended payment
o File will be documented with the town’s response
Adjuster will issue letter and release to claimant
Upon receipt of signed release, Adjuster will release payment, document file, and close claim
No Liability Established or No Payment Recommended:
Adjuster assembles denial letter and evaluation, including applicable supportive materials for
Claims Manager review
Claims Manager reviews decision
Denial approved
Claims Manager signs and forwards to Director of Operations for approval
Denial not approved
Adjuster receives instructions for further investigation or request for additional steps
Adjuster receives documented approval for denial Adjuster, documents file and makes
recommendation to the town
Upon receipt of approval from the town, Adjuster documents file, and issues denial letter to
claimant
WEBSITE CAPABILITIES
VAcorp online website features include:
Claim Reporting – print, view, or export claims reports by coverage type
View Claim Details – view adjuster notes on each claim
Vehicle, Property, Salary Schedules – add, modify, or delete property, equipment, and autos
eRiskHub – Cyber Risk web‐based resource guide, including self‐assessment tools
Certificates of Insurance – request for prompt delivery
Media – live webinars, recorded and available, along with presentation slides
Risk Control – library of safety videos, training presentations, sample forms and policies
Reports – ad hoc and automatic customized reporting capabilities
9 71
Item b.
Contribution Summary Form
Coverage Deductible Contribution
Property : Special Form; Replacement Cost (or statedotherwise); No Coinsurance; Blanket SeeSchedule $118,909
Inland Marine : Replacement Cost if Scheduled, otherwiseActual Cash Value SeeSchedule $1,526
Equipment Breakdown $1,000 $13,308
General Liability : $2,000,000 Combined Single Limit;Occurrence Form; No Annual Aggregate; Non-Audited None $60,588
Law Enforcement Liability : $2,000,000 Limit None Included
Public Officials Liability : $1,000,000 Limit Each Wrongful Act None $37,658
Automobile : $2,000,000 Liability for Owned Autos; CoverageLevel per Schedule; Automatic Coverage for Additions; Non-Audited
SeeSchedule $97,337
Crime : Blanket $500,000 Faithful Performance; In/Out Robbery;Counterfeit; Forgery; Computer Fraud; Telephone Toll Fraud$25,000 sublimit $250 $1,250
Excess Liability : Refer to the proposal page for limitinformation. Underlying limits must be exhausted before excessliability is available for losses.None $44,644
Environmental Liability : $1,000,000 Limit $25,000 Included
Security Risk Management Program:None Included
Cyber Risk : $5,000,000 Limit None $35,000
Workers' Compensation None $376,415
Line of Duty Act Coverage None $28,658
Grand Total Annual Contribution $815,293
Dual Program Discount, (savings included above, if applicable)($16,633)
Total Contribution Due $815,293
In order to be eligible for VAcorp membership, the following coverages must be selected: Property
(where applicable), General Liability, Business Auto (where applicable), and Crime.
To be eligible for LODA coverage, Workers’ Compensation coverage must be in effect.
Any additions or deletions made after the proposal and initial billing effective up to andincluding July 1st will result in an endorsement and contribution adjustment.
Quarterly installment payment terms available for Workers’ Compensation and LODA coverages
only.
Town of Leesburg
SECTION 4 – PROPOSAL
10
$36,353
$770,055
$770,055
$355,412
($15,357)
VAcorp will provide renewal estimate by December 15th each year for budgeting purposes.
72
Item b.
Welcome to VAcorp
You’re choosing the best protection
Our goal has always been to provide the most comprehensive coverage possible for public entities. We believe in being
agile and responsive to meet the needs of membership, and that innovative spirit has driven us to develop coverages
that in many cases is not available anywhere else in the marketplace. We cater our coverages specifically to Virginia’s
local government entities and school divisions, and that narrow focus has propelled us to the dominant position in our
market. More public entities choose VAcorp over any other provider because they demand the highest level of
protection to safeguard their organizations.
Coverage advantages
Property
•Broad form, all risks•No pool aggregate
•Guaranteed replacement cost
•Pollution liability coverage for first and third
party clean up•No pool limit for named windstorms•No pool limit on business interruption
•No pool limit on extra expense
•Includes vehicular bridges
•Includes underground property•Includes piers, wharves, and docks
Liability
•General Liability minimum of $2,000,000 per
occurrence limit•No annual aggregate
•No mandatory deductibles or caps
•No member cost-sharing
•Broad legal defense coverage•Public Officials Liability includes FOIA, EEOC, OCR,
and COIA claims
•Back and front pay included
Cyber Liability
•Comprehensive Cyber Risk program
•No deductible
•No sublimits•No pool aggregate with $1 mil limit or greater
•Includes regulatory liability coverage
•Designated breach coach on cyber incidents
•Public relations and notification guidance
•Proactive scanning of public-facing domains•Training available
Security Risk Management
•Coverage for “active shooter” events
•Includes weapons assault coverage
•Includes public relations response
•Includes staff counseling
•Includes threat response expense extension
Workers’ Compensation
•Automatic 5% dual program credit when Workers’
Compensation coverage added
•Case Management services provided by nursingprofessionals•Nurse triage and claims reporting service assures
prompt processing
•Medical Bill Review provides savings across
multiple medical provider networks to ensure costeffective treatment•First Fill prescription program to save employee
“out of pocket” expense
11 73
Item b.
You’re choosing specialized servicing
As owners of the program, our members want more than a traditional insurance policy. Not only do we tailor our
coverage to our members, but we also provide services to meet the specific needs of each member. We employ staff who have walked in your shoes in former roles and understand the unique challenges your organization faces . Our
expert Risk Control Team works directly with our members providing employee training, performing safety audits, or
consulting on relevant risk management topics in order to help prevent claims from occurring. It’s all part of our
commitment to address your need for protection holistically.
Service advantages
Risk Control
•Facility safety assessments
•Certified Playground Safety Inspectors (CPSI)
•Risk management policy creation and consultation•In person and web-based employee training –safety,
liability, human resource, cyber security, and more
•Claims analysis
•Safety committee assistance and participation
•Up to 14 hours of CE-credits for law enforcement•Hot topic workshops presented at various
conferences across Virginia
Member Portal
•Intuitive, user-friendly design
•Claims reporting with instantaneous claim number
•Risk management tools and templates•Downloadable employee training presentations and
webinars
•Customizable loss reports
•Claim viewer giving access to claim summaries,
financials, and adjuster notes•Property and vehicle schedule editing tool
•Certificates of insurance request feature
•Cyber eRiskHub
•Safety Source streaming library with over 1000 videos
Other Services
•Property valuations provided at no charge
•Investigations unit available for claim analysis and
surveillance
•AskHR provides guidance on human resource
questions•GatherGuard makes it simple to acquire short-term
event coverage for facility users
•Contract and lease review to ensure adequate
protection
•Safelite Auto Glass direct billing for quick and painlessglass replacement; with a deductible waiver on glass
repairs
For decades, VAcorp has been
a leader in creating innovative,
member-centric solutions to
the unique challenges faced by
Virginia’s public sector entities
and school divisions. As a pool
participant, you can take
advantage of VAcorp’s vast
array of membership benefits.
12 74
Item b.
Property
VAcorp provides members with the most extensive propertycoverage available.Property coverage is Special Form; all perils are covered exceptthose specifically excluded.
Buildings and Contents
Total Building Values $ 182,155,972
Total Contents Values $ 64,291,880
Business Income / Extra Expense ($100,000 Automatic or as scheduled)$ 2,000,000
Coverage Includes: (no additional charge)*
Back-up of Sewers & Drains: $10,000,000 LimitDebris Removal: $25,000,000 Pool LimitPollutant Clean-up and Removal: $500,000 Pool LimitNewly Acquired Property: $25,000,000 Limit (up to 120 Days)When timely reported, covered until renewal at no additional charge if under $500,000 invalue;additional charge for new values above $500,000Property in Transit: $5,000,000 Pool LimitUtility Services Time Element: $5,000,000 Pool LimitBuilding Ordinance/Increased Cost of Construction/Demolition: up to $20,000,000 Pool LimitEarthquake, Volcanic Eruption, Landslide, and Mine Subsidence: up to $100,000,000 PoolLimitFlood (if outside the 100 year flood plain): up to $100,000,000 Pool LimitArchitect & Engineering fees for plans, specifications, and supervision included uponreplacementError in Reporting ProvisionImprovements and Betterments to buildings leased by the memberSigns, fences, light poles, antenna, masts, and towers; retaining walls are covered within1,000 feetof the premises provided their values are included in the schedule
*Does not apply to properties valued at Actual Cash Value (ACV)
Optional Coverage Available:
Builders’ Risk during building construction (Optional - must be reported)
Perils Covered
Special Form; specifically drafted for public entities; all perils are covered except thosespecifically excluded.Flood (if outside the 100 year flood plain) and Earthquake are included.
13 75
Item b.
Valuation
Building & Contents – Replacement Cost, except vacant property at Actual Cash Value orstated otherwiseBusiness Income - Actual Loss Sustained
Other Terms
Blanket LimitNo CoinsuranceVacant Buildings must be reported. If vacant building becomes occupied, please notify VAcorp to ensure proper coverage
is in place.
Deductibles (Per Occurrence)
$5,000 Building & Contents$25,000 Flood$25,000 Earthquake
Definitions
Replacement Cost (RC): The cost to repair, rebuild, or replace, at the same site, lost,damaged, or destroyed property, with other property of comparable size, material, and quality;or the applicable Limit of Coverage.Actual Cash Value (ACV): The cost to repair, rebuild, or replace lost or damaged property, atthe time and place of the loss, with other property of comparable size, material and quality,less allowance for physical deterioration, depreciation, obsolescence, and depletion.Functional Replacement Cost: The cost of repairing or replacing damaged or stolenproperty with the same kind or quality; or comparable new property as of the time of loss; orapplicable Limit of Coverage.Vacant: A building that does not contain adequate Covered Property to conduct customarybusiness operations.
14 76
Item b.
Inland Marine
Inland Marine is property coverage for movable or specialized typesof property and equipment.Electronic Data Processing (EDP) covers direct physical loss tomember-owned computer equipment, phone systems, fax machines,printers, and copiers.
Inland Marine
Total Inland Marine Value (Per Schedule)$ 2,261,170
Computers / Electronic Data Processing (EDP)
Hardware (Per Schedule)Included
Software (Per Schedule)Included
Perils Covered
Special Form; specifically drafted for public entities; all perils are covered, except thosespecifically excluded.Electronic Data Processing (EDP) includes electrical and mechanical breakdown.
Valuation
Inland Marine – Replacement Cost if scheduled, otherwise Actual Cash Value except:Electronic Data Processing (EDP) - Functional Replacement Cost, if scheduled at 100%replacement values - otherwise Actual Cash Value.
Deductible
$5,000 except $500 Trailers
Definitions
Replacement Cost (RC): The cost to repair, rebuild, or replace, at the same site, lost,damaged, or destroyed property, with other property of comparable size, material, and quality;or the applicable Limit of Coverage.Actual Cash Value (ACV): The cost to repair, rebuild, or replace lost or damaged property, atthe time and place of the loss, with other property of comparable size, material and quality,less allowance for physical deterioration, depreciation, obsolescence, and depletion.Functional Replacement Cost: The cost of repairing or replacing damaged or stolenproperty with the same kind or quality; or comparable new property as of the time of loss; orapplicable Limit of Coverage.
15
VAcorp automatically provides the following at no additional cost: - Fine Arts at $10,000,000 Limit
- Valuable Papers at $100,000 Limit - Property in Transit at $5,000,000 Limit
77
Item b.
Equipment Breakdown
Equipment Breakdown is a comprehensive coverage for direct damage to covered equipment.Examples of covered equipment include: air conditioning and refrigeration equipment, boilers andpressure vessels (air tanks, hot water tanks, cookers, and furnaces), communication systems,and electrical equipment (compressors, fans, system motors).Coverage includes the expense of inspections and certification of boilers and air compressors asrequired by the Department of Labor and Industry.
Limits
$100,000,000 Limit Per Breakdown; includes Property Damage, Business Income and ExtraExpense$1,000,000 Newly Acquired Property (up to 90 Days)$1,000,000 Demolition (Coverage B)$250,000 Hazardous Substance$1,000,000 Increased Cost of Construction (Coverage C)$1,000,000 Expediting Expenses$1,000,000 Service Interruption$250,000 Spoilage Damage$100,000 Electronic Data or Media Damage
Coverage
Property losses ranging from air conditioning equipment and HVAC systems to electrical equipment,including system motors, compressors, refrigeration equipment, fans, switchboards, coils, pipes,and air conditioning vessels.
Deductibles
$1,000 Per Occurrence24 Hours Business Income Loss
16 78
Item b.
General Liability
VAcorp general liability coverage provides the broadest protectionfor public entities in Virginia.VAcorp coverage provides protection from claims or suits forpersonal injury or property damage.Defense costs are provided for certain excluded acts.Excess limits available.
Basis of Contribution
Net Operating Expense $ 39,247,509
Limits
$2,000,000 Combined Single Limit for Bodily Injury and Property Damage - Each OccurrenceNo Annual Aggregate
Additional Coverages
Contractual Liability for Covered ContractsPersonal Injury and Advertising LiabilityBroad Form Property Damage LiabilityIncidental Medical MalpracticeLimited Worldwide LiabilityOwned Watercraft under 51 FeetProducts/Completed OperationsVolunteers included as Covered Persons (Volunteer Fire and Rescue are excluded)Punitive Damages Covered in Most CasesEmployee Benefits LiabilityDrone Liability
Sublimits
$500,000 Fire Legal Liability - Real Property$100,000 Care, Custody, and Control of Others’ Property$10,000 Premises Medical Payments (Per Person)$10,000 Premises Medical Payments (Per Occurrence)
Deductible
None
17
***Includes No Fault Property Damage Endorsement, $25,000 Limit
VAcorp will administer the No Fault claim at no charge and will invoice Town of Leesburg upon conclusion
of the claim.**
79
Item b.
Law Enforcement Liability
VAcorp Law Enforcement Liability provides protection fromallegations arising from police operations.
Limit
$2,000,000 Personal Injury, Property Damage, or Wrongful Act – Per Occurrence
Coverage
Follows Coverage Contract for Liability Coverage
Additional Coverages
Bodily Injury/Property Damage with respects to Police OperationsPersonal Injury LiabilityBroad Form Property Damage LiabilityLimited Worldwide LiabilityPunitive Damages Covered in Most CasesVolunteers included as Covered Persons (Volunteer Fire and Rescue are excluded)Punitive Damages Covered in Most CasesContractual Liability for Covered Contracts
Deductible
None
18 80
Item b.
Public Officials Liability
Public Officials Liability provides protection against allegations ofwrongful acts, such as sexual harassment and employmentpractices.Defense costs are provided for certain excluded wrongful acts.
Limits
$1,000,000 Each Wrongful Act
Policy Form
Occurrence
Coverages
Governing body and staff , including employed Town Attorney considered covered personsSpecial Enforcement Officers not under the control of Sheriff considered covered personsEmployment PracticesSexual HarassmentDefense cost in addition to coverage limits
$100,000 Defense Limit Provided for the Following Excluded Coverages:
Fraud and DishonestyProfit and GainViolation of StatuteFailure to Maintain InsuranceBreach of Fiduciary DutyBreach of Contract, other than Failure to Pay
Deductible
None
19 81
Item b.
Business Automobile
VAcorp coverage includes hired and non-owned vehicles.Automatic coverage for newly acquired vehicles at no additionalcharge.Excess limits available.
Basis of Contribution
Number of Vehicles 161
Liability
Limits
$2,000,000 Liability Limit For Owned and Hired Autos - Bodily Injury and Property Damage -Each Occurrence$10,000 Medical Payments (Per Person)$1,000,000 Non-Owned Auto Liability (excess over any other collectible insurance)Statutory Uninsured Motorist (Per Person)Statutory Uninsured Motorist (Per Accident)Statutory Uninsured Motorist (Property Damage)$1,000,000 Garage Liability$100,000 GaragekeepersNo Annual Aggregate
Additional Coverages
Out of State No Fault Coverage provided at the basic minimum limits required by state lawNewly acquired vehicles covered until renewal at no additional chargeUnlimited Physical Damage for all owned vehicles; deductible will applyReplacement cost coverage can be provided on any vehicle with a replacement cost value inexcess of $50,000
Must be reported at 100% of replacement cost valueAdditional charge will apply
Physical Damage
Deductibles
$250 Comprehensive (ACV)$500 Collision (ACV)$250 Hired Car Physical Damage Comprehensive (up to $50,000)$500 Hired Car Physical Damage Collision (up to $50,000)$1,000 Garagekeepers
***Includes No Fault Property Damage Endorsement, $25,000 Limit***
20 82
Item b.
Crime
Crime provides protection from loss of money and securities, as wellas, forgery and fraud.State-required faithful performance bonds for covered persons areincluded.Coverage is for covered crimes committed by employees andvolunteers.Constitutional Officers are included for excess over VaRISK only, upto the Limit provided.
Limits
$500,000 Per Occurrence$25,000 Telephone Toll Fraud
Coverage Forms
Employee TheftFaithful Performance / Employee DishonestyBlanket Position Bond
Constitutional Officers are included for excess over VaRISK only, up to the LimitprovidedLoss Inside and Outside the PremisesMoney Orders and Counterfeit Paper CurrencyDepositors ForgeryComputer FraudFunds Transfer Fraud
Deductible
$250 Per Occurrence
21 83
Item b.
Excess Liability
Excess liability provides additional limits over and above the underlying limits for those coveragesfor which excess limits are purchased.Underlying limits must be exhausted before excess liability is available for losses.
Limits
Excess Automobile Liability
$9,000,000 Limit
Excess General Liability
$9,000,000 Limit
Excess Law Enforcement Liability
$9,000,000 Limit
Excess Public Officials Liability
$10,000,000 Limit
*Does not include Non-Owned Automobile Liability, Garage Liability, and Uninsured/Underinsured
Motorists Coverage
22
Please note Excess Liability applies over Employer's Liability limits.
84
Item b.
Environmental Liability
VAcorp provides members with liability protection for first and third party environmental liabilities.Coverage for third party cleanup involving above ground pollution exposures is included.
Limits
$1,000,000 Each Incident and Aggregate - Per Member $2,000,000 Pool Aggregate
Coverages
Third Party Clean-up for above ground pollution exposures, such as:
Water & Sewer OperationsTransfer StationsSpraying of Pesticides and HerbicidesGolf CoursesAbove Ground Storage Tanks
Exclusions *
Underground Storage TanksLandfills
* VAcorp will place coverage for these excluded exposures through a commercial carrier, ifrequested.
Deductible
$25,000 Per Occurrence
23
VAcorp Environmental Liability coverage is Occurrence based.
85
Item b.
Security Risk Management Program
VAcorp Security Risk Management Program covers nearly all persons while on member property or participating in member-sponsored activities from acts of violence, threats, disappearance, abduction, hijacking, and other events.There is no deductible for this coverage.Coverage includes counseling for students and staff during and after a covered event.
Limits
$1,000,000 for Assault with a Weapon$1,000,000 for Ransom, Legal Liability, Business Interruption, Temporary Security$1,000,000 for Negotiators, Public Relations, Counseling FeesVarious Sublimits apply
Covered Persons
Town Council Members, Administrators, Employees, Students, Parents, Family Members, Volunteers, and Alumni while on premises or attending or participating in an activity organized by the town.
Covered Events
Assault with a weapon involving three or more people resulting in death or serious injury and regional media coverageDisappearance of an insured person from campus, school activity, or study-abroad programExtortion ThreatsHijackingHostage TakingAbduction of a child from school premisesEmergency Political EvacuationThreats to:
Kill or injure covered personsDamage School propertyDisrupt computer systemsReveal confidential information about covered persons
Coverages Provided
Legal LiabilityLoss of RevenueFees and expense of expert crisis response consultants deployed within 24 hours worldwideCosts of increased temporary security measuresConsultant costs and expenses for investigation into disappearance of a covered personCosts to evacuate covered persons to a place of safety due to political instability overseasDeath or Dismemberment BenefitAdditional covered expenses include
Psychiatric and Medical CareLegal AdviceReward MoniesTravel and AccommodationSalary of victim’s family and replacement staffRest and RehabilitationAll other reasonable and necessary expenses
Deductible
None
24 86
Item b.
Cyber Risk
VAcorp members are covered for online privacy matters (includingidentity theft), losses due to network security breaches (includinghacking and viruses), copyright infringement, and online slander orlibel, among other issues.
Limits
$5,000,000 Per Occurrence and Aggregate - Per Member
25
VVAcorp Cyber Risk coverage is claims-made. The retroactive date is 7/1/2013.
87
Item b.
Coverages
Network Security, Privacy, and Data Breach Liability
Liability for unauthorized access to the computer network, including personal identifyinginformation such as social security numbers, credit card numbers, etc.Liability for transmission of a computer virus
Multimedia Liability
Copyright/trademark infringement, invasion of privacy, plagiarism, libel and slander throughwebsite or social media
Regulatory Liability
Liability, including defense costs, resulting from a claim by an official regulatory agency orgovernmental body as a result of a security breach or privacy breach or breach of privacyregulationsIncludes civil and/or administrative penalties or fines imposed by an official regulatory agencyor governmental body
Data Breach Incident Response
Expenses paid to third party service providers arising from a data breach for legal services,notification expenses, fraud monitoring and resolution services, call center services, publicrelations services, and computer forensic services.
Data Restoration
Costs to restore, compile or replace dataReasonable and necessary costs and expenses to determine scope of breachCosts paid to restore, compile or replace data to a third party as a result of a network securitybreach or cyber extortion event
Cyber Extortion
Reimbursement of reasonable costs and expenses resulting from request for money to avoiddamage, destruction, corruption or introduction of a computer virus, a malicious code or denialof service
Social Engineering Fraud
Covers financial loss relating to a social engineering event whereby an employee is instructedto move funds to another bank fraudulently
PCI DSS Fines
Covers PCI contractual costs and regulatory fines following a security or privacy event
Deductible
None
26 88
Item b.
Workers’ Compensation
VAcorp provides the most affordable and responsive Workers’Compensation coverage available.VAcorp provides leading medical bill review and case managementservices to ensure cost effective treatment and return to work forinjured employees.In addition, telephonic nurse triage claim reporting service and firstfill prescription drug card included.
Coverages
Workers’ Compensation coverage is provided in accordance with and limited to the VirginiaWorkers’ Compensation Act and Employer's Liability.
Employers’ Liability
Bodily Injury by Accident $1,000,000
Bodily Injury by Disease (Per Person)$1,000,000
Bodily Injury by Disease (Per Accident)$1,000,000
Classification Group Code Payroll Rate
(Per $100
Payroll)
Contribution
Street Construction &Drivers 5506 $2,173,200 $4.13 $89,753.16
Aircraft Operations 7403 $313,746 $2.30 $7,216.16
Waterworks andDrivers 7520 $3,453,634 $2.09 $72,180.95
Sewage Disposal &Drivers 7580 $1,810,238 $1.73 $31,317.12
Police Officers &Drivers 7720 $9,166,672 $3.28 $300,666.84
Auto Service or Repair 8380 $563,121 $1.63 $9,178.87
Auto Storage Garage 8392 $68,016 $1.22 $829.80
Clerical 8810 $10,885,587 $0.07 $7,619.91
Attorney - AllEmployees 8820 $476,431 $0.07 $333.50
Building Operated byOwner 9015 $385,987 $1.34 $5,172.23
Park NOC - All 9102 $4,216,137 $1.73 $72,939.17
Municipal EmployeesNOC 9410 $1,013,154 $1.69 $17,122.30
Total Payroll:$34,525,923
27
Please see attached rate revision.
89
Item b.
Manual Contribution $614,330.01
Experience Modification 0.81
Modified Contribution $497,607.31
Premium Discount ($79,368.37)
Scheduled Debit/Credit ($41,823.89)
Total Estimated Annual Contribution $376,415
Workers’ Compensation Coverage is available only if Property & Casualty coverage is in placethrough VAcorp.
The classifications and codes shown are established by the National Council on CompensationInsurance (NCCI) and arethe same as those used by insurance companies in Virginia.
Rates have been filed with the State Corporation Commission and are subject to approval.
Workers’ Compensation Coverage Contribution is payable in equal quarterly installments.
Subject to Audit and Annual Adjustment
Workers' Compensation Coverage for Out of State Staff:
28
Please see
attached
rate revision.
90
Item b.
Workers’ Compensation
VAcorp provides the most affordable and responsive Workers’
Compensation coverage available.
VAcorp provides leading medical bill review and case management
services to ensure cost effective treatment and return to work for
injured employees.
In addition, telephonic nurse triage claim reporting service and first
fill prescription drug card included.
Coverages
Workers’ Compensation coverage is provided in accordance with and limited to the Virginia
Workers’ Compensation Act and Employer's Liability.
Employers’ Liability
Bodily Injury by Accident $1,000,000
Bodily Injury by Disease (Per Person)$1,000,000
Bodily Injury by Disease (Per Accident)$1,000,000
Classification Group Code Payroll
Rate
(Per $100
Payroll)
Contribution
Street Construction &
Drivers 5506 $2,173,200 $3.64 $79,104.48
Aircraft Operations 7403 $313,746 $1.93 $6,055.30
Waterworks and
Drivers 7520 $3,453,634 $1.80 $62,165.41
Sewage Disposal &
Drivers 7580 $1,810,238 $1.54 $27,877.67
Police Officers &
Drivers 7720 $9,166,672 $3.28 $300,666.84
Auto Service or Repair 8380 $563,121 $1.44 $8,108.94
Auto Storage Garage 8392 $68,016 $1.13 $768.58
Clerical 8810 $10,885,587 $0.07 $7,619.91
Attorney - All
Employees 8820 $476,431 $0.05 $238.22
Building Operated by
Owner 9015 $385,987 $1.19 $4,593.25
Park NOC - All 9102 $4,216,137 $1.56 $65,771.74
Municipal Employees
NOC 9410 $1,013,154 $1.55 $15,703.89
Total Payroll:$34,525,923
Manual Contribution $578,674.22
Experience Modification 0.81
Modified Contribution $468,726.11
Premium Discount ($73,824.36)
Scheduled Debit/Credit ($39,490.18)
Total Estimated Annual Contribution $355,412
- Revised 4/19/2023
Workers' Compensation reserves will be reviewed with the Town of Leesburg prior to the calculation of experience modification.28.5 91
Item b.
Line of Duty Act
Line of Duty Act (LODA) coverage provides state approved disability
or death benefits for career and volunteer public safety officers who
are injured or killed while performing their duties.
Basis of Contribution
Number of Covered Paid Employees:89
Coverages
VAcorp will pay on your behalf all Line of Duty Act (LODA) claims approved by the State and which
fall within one of the following categories:
New LODA claims that occur between 7/1/2023 and 7/1/2024.
Past Liabilities, which is for ongoing costs associated with known LODA claims that were
assigned to your entity before opting out of the state fund. This amount is based on health
insurance information known at the time of this renewal and is subject to audit.
Benefits
All benefits paid are subject to approval by the State and may include:
Death Benefit of $100,000 ($25,000 for presumptive causes if within 5 years after retirement)
Continuation of Health Insurance coverage for:
Officer (in case of Permanent Disability)
Spouse (in case of Officer Death or Permanent Disability)
Children (in case of Officer Death or Permanent Disability) to age 26
Line of Duty Act Coverage for Eligible Staff & Volunteers Annual Contribution
Claims Occurring 7/1/2023 and 7/1/2024
89 Paid Staff Paid Staff at $ 322.00 $ 28,658
0 Volunteers Volunteers at $ 106.00 $ 0
Experience Adjustment 1.00
Modified LODA Contribution $ 28,658
Past Liabilities of Known Claims Before Opting Out of State Fund
89 Paid Staff Paid Staff at $ 0.00 $ 0
Total LODA Contribution Including Past Claims $ 28,658
Line of Duty Act Coverage is available only if Workers’ Compensation coverage is in place.
Contribution is payable in equal quarterly installments.
29
1) Claims prior to 7/1/2012 are eligible for the Trust in which the financial responsibility is Town of Leesburg.2) VAcorp assumes financial responsibility for any claim occurring 7/1/2023 or after.
3) The prior carrier is responsible for claims occurring from 7/1/2012 through 6/30/2023.92
Item b.
SECTION 5 –RFP EXCEPTIONS
Please refer to proposal response forms for any applicable exceptions.
VAcorp can obtain handling of the Master Pollution Policy with Ironshore through Broker of
Record letter transfer.
Approval of 7/1/2023 Coverage Contract is pending so 7/1/2022 version is attached as
specimen. VAcorp will provide updated contract if awarded interview.
30 93
Item b.
SECTION 6 –PROPOSAL RESPONSE FORMS, AUDITED FINANCIAL
STATEMENT, AND SPECIMEN COVERAGE CONTRACT
31 94
Item b.
OFFEROR SUBMISSION FORM
RFP NO 100420-FY23-34
SECTION I – COMPANY IDENTIFICATION AND OWNERSHIP DISCLOSURE
Company
Address
Contact Person Title
Telephone No. Fax No. Email
Organized under the laws of the State of
Principal place of business at
Federal Id Number Registered Agent
State Corp. Commission Registration No. (attach Certificate of Good Standing)
List the names and addresses of all persons having ownership of 3% or more in the company:
Name Address
The Town of Leesburg requests, as a matter of policy, that any consultant or firm receiving a contract
of award resulting from a formal solicitation issued by the Town shall make certification as specified
below. Receipt of such certification, shall be a prerequisite to the award of contract and payment
thereof.
SECTION II – EMPLOYEES NOT TO BENEFIT - I (we) hereby certify that if the contract is
awarded to our firm, partnership, or corporation, that no employee of the Town of Leesburg, or
members of his/her immediate family, including spouse, parents or children has received or been
promised, directly or indirectly, any financial benefit, by way of fee, commission, finder’s fee,
political contribution or any similar form of remuneration on account of the act of awarding and/or
executing this contract.
SECTION III – CONFLICTS OF INTEREST - This solicitation is subject to the provisions of VA
Code Ann. Section 2.1-639.2 et seq., the State and Local Government Conflict of Interests Act.
The Supplier [ ] is [ ] is not aware of any information bearing on the
existence of any potential organizational conflict of interest. Suppliers must
select one or the other (not both) by inserting a checkmark ( ) or the letter
“X”.
SECTION IV – COLLUSION - I certify that this offer is made without prior understanding,
agreement, or connection with any corporation, firm, or person submitting an offer for the same
services, materials, supplies, or equipment and is in all respects fair and without collusion or fraud.
I understand collusive bidding is a violation of the State and federal law and can result in fines, prison
sentences, and civil damage awards. I hereby certify that the responses to the above representations,
certifications, and other statements are accurate and complete. I agree to abide by all conditions of
this RFP and certify that I am authorized to sign for my company.
Signature Date
Name (Printed) Title
OFFEROR MUST RETURN THIS FORM WITH THEIR PROPOSAL
Virginia Association of Counties Group Self-Insurance Risk Pool (VAcorp)1819 Electric Road, Suite C, Roanoke, VA 24018
(844) 986-2705
Virginia
Virginia
54-1670202
877-212-8599
x
3/1/2023
Stephanie Heintzleman
Stephanie Heintzleman
Member Services Director
Member Services Director
sheintzleman@riskprograms.com
Risk Management Programs, Inc.
V0014
Member Owned
Stephanie Heintzleman
32 95
Item b.
33 96
Item b.
COMPLIANCE CERTIFICATION FORM
RFP NO. 100161-FY23-36
By signing below, Offeror hereby certifies that Offer shall comply with the following requirements
during the term of the insurance policy(ies) period, including any renewals:
1.Laws and Regulations. The Offeror’s attention is directed to the fact that all applicable
Commonwealth of Virginia laws, municipal ordinances and the rules and regulations of all
authorities having jurisdiction shall apply throughout, and they will be considered to be
included in the insurance policy(ies) the same as though herein written out it full.
2.License Requirement. All firms doing business for the Town are required to be licensed
in accordance with the Town’s “Business, Professional, and Occupational Licensing
(BPOL) Tax” Ordinance. Wholesale and retail merchants without a business location in
Leesburg, VA are exempt from this requirement. Questions concerning the BPOL Tax
should be directed to the Department of Finance, telephone 703-771-2723.
3.Town Employees. No employee of the Town shall be admitted to any share or part of this
agreement or to any benefit that may arise there from.
4.Payment to Subcontractors. Within seven (7) days after receipt of amounts paid by the
Town for work performed by a subcontractor under the agreement, the Offeror shall either:
a) pay the subcontractor for the proportionate share of the total payment received from the
Town attributable to the work performed by the subcontractor under the agreement; or b)
notify the Town and subcontractor, in writing, of his intention to withhold all or a part of
the subcontractor's payment and the reason for non-payment. The Offeror shall pay interest
to the subcontractor on all amounts owed that remain unpaid beyond the seven (7) day
period except for amounts withheld as allowed in item b. Unless otherwise provided under
the terms of the agreement, interest shall accrue at the rate of one percent (1%) per month.
The Offeror shall include in each of its subcontracts a provision requiring each
subcontractor to include or otherwise be subject to the same payment and interest
requirements as set forth above with respect to each lower-tier subcontractor. The
Offeror’s obligation to pay an interest charge to a subcontractor pursuant to this provision
may not be construed to be an obligation of the Town.
5.Audit. The Offeror shall retain all books, records, and other documents relative to the
agreement for five (5) years after final payment, or until audited by the Town, whichever is
sooner. The Town, its authorized agents, and/or auditors shall have full access to and the right
to examine any of said materials during said period.
6.Exemption from Taxes. Pursuant to Va. Code § 58.1-609.1, the Town is exempt from
Virginia State Sales or Use Taxes and Federal Excise Tax, therefore the Contractor shall
not charge the Town for Virginia State Sales or Use Taxes or Federal Excise Tax on the
finished goods or products provided under the agreement. However, this exemption does
not apply to the Offeror, and the Offeror shall be responsible for the payment of any sales,
use, or excise tax it incurs in providing the goods required by the agreement, including, but
34 97
Item b.
not limited to, taxes on materials purchased by the Offeror for incorporation in or use on a
project. Nothing in this section shall prohibit the Offeror from including its own sales tax
expense in connection with the agreement in its agreement price.
7.Authority to Transact Business in Virginia. An Offeror organized as a stock or nonstock
corporation, limited liability company, business trust, or limited partnership or registered
as a registered limited liability partnership shall be authorized to transact business in the
Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title
50 of the Code of Virginia or as otherwise required by law. Any business entity described
herein that enters into an Agreement with the Town pursuant to the Virginia Public
Procurement Act 2.2-4300 et seq. shall not allow its existence to lapse or its certificate of
authority or registration to transact business in the Commonwealth, if so required under
Title 13.1 or Title 50 of the Code of Virginia, to be revoked or cancelled at any time during
the term of the Agreement. The Town may void any agreement with a business entity if
the business entity fails to remain in compliance with the provisions of this section.
8.Notice of Required Disability Legislation Compliance. The Town is required to comply
with state and federal disability legislation: The Rehabilitation Act of 1973 Section 504,
The Americans with Disabilities Act (ADA) for 1990 Title II and The Virginians with
Disabilities Act of 1990. Specifically, the Town may not, through its contractual and/or
financial arrangements, directly or indirectly avoid compliance with Title II of the
Americans with Disabilities Act, Public Law 101-336, which prohibits discrimination on
the basis of disability by public entities. Subtitle A protects qualified individuals with
disability from discrimination on the basis of disability in the services, programs, or
activities of all State and local governments. It extends the prohibition of discrimination in
federally assisted programs established by the Rehabilitation Act of 1973 Section 504 to
all activities of State and local governments, including those that do not receive Federal
financial assistance, and incorporates specific prohibitions of discrimination on the basis
of disability in Titles I, III, and V of the Americans with Disabilities Act. The Virginians
with Disabilities Act of 1990 follows the Rehabilitation Act of 1973 Section 504.
9.Immigration Reform and Control Act of 1986. By issuing an insurance policy(ies), the
Offeror certifies that it does not and will not during the performance of services violate the
provisions of the Federal Immigration Reform and Control Act of 1986, which prohibits
employment of illegal aliens.
10.Ethics in Public Contracting. The provisions contained in Sections 2.2 4367 through 2.2
4377 of the Virginia Public Procurement Act as set forth in the 1950 Code of Virginia, as
amended, shall be applicable to all agreements entered into by the Town. A copy of these
provisions may be obtained from the Town upon request.
The above-stated provisions supplement, but do not supersede, other provisions of law
including, but not limited to, the Virginia State and Local Government Conflict of Interests
Act (§ 2.2-3100 et seq.), the Virginia Governmental Frauds Act (§ 18.2 498.1 et seq.) and
Articles 2 and 3 of Chapter 10 of Title 18.2. The provisions apply notwithstanding the fact
that the conduct described may not constitute a violation of the Virginia State and Local
Government Conflict of Interests Act.
35 98
Item b.
11.Employment Discrimination by Contractors Prohibited.
A. During the performance of services, the Offeror agrees as follows:
1.The Offeror will not discriminate against any employee or applicant for
employment because of race, religion, color, sex, national origin, age,
disability, status as a service disabled veteran, or any other basis prohibited by
state law relating to discrimination in employment, except where there is a bona
fide occupational qualification reasonably necessary to the normal operation of
the Offeror. The Offeror agrees to post in conspicuous places, available to
employees and applicants for employment, notices setting forth the provisions
of this nondiscrimination clause.
2.The Offeror, in all solicitations or advertisements for employees placed by or
on behalf of the Offeror, shall state that such Offeror is an equal opportunity
employer.
3.Notices, advertisements and solicitations placed in accordance with federal law,
rule or regulation shall be deemed sufficient to meet this requirement.
B. The Offeror will include the provisions of the foregoing paragraphs, 1, 2, and 3 in every
subcontract or purchase order of over $10,000, so that the provisions will be binding
upon each subcontractor or vendor.
12.Drug-free Workplace. During the performance of services, the Offeror agrees to (i)
provide a drug-free workplace for the contractor’s employees; (ii) post in conspicuous
places, available to employees and applicants for employment, a statement notifying
employees that the unlawful manufacture, sale, distribution, dispensation, possession, or
use of a controlled substance or marijuana is prohibited in the contractor’s workplace and
specifying the actions that will be taken against employees for violations of such
prohibition; (iii) state in all solicitations or advertisements for employees placed by or on
behalf of the contractor that the contractor maintains a drug-free workplace; and (iv)
include the provisions of the foregoing clauses in every subcontract or purchase order of
over $10,000, so that the provisions will be binding upon each subcontractor or vendor.
For the purpose of this section, “drug-free workplace” means a site for the performance of
work done in connection with a specific contract awarded to a contractor in accordance
with this chapter, the employees of whom are prohibited from engaging in the unlawful
manufacture, sale, distribution, dispensation, possession, or use of a controlled substance
or marijuana during the performance of services.
13.Insurance. Offeror shall secure at its own expense general liability insurance in an amount
not less than $5,000,000 solely contained in a Commercial General Liability Policy or in
combination with an Umbrella or Excess Policy. Included shall be coverage for Bodily
Injury and Property Damage resulting from the operations, products, and completed
operations of the Offeror.
36 99
Item b.
Offeror shall also carry automobile insurance in an amount not less than $1,000,000 solely
contained in a Commercial Auto Policy or in combination with an Umbrella or Excess
Policy. Contractor shall also carry Workers Compensation insurance, which meets
statutory requirements. In addition, the Town, at its sole discretion, may require additional
insurance coverage as deemed appropriate by the Town. If the Town determines that
additional insurance coverage is required, Offeror shall obtain and provide such additional
coverage and the Town will compensate Offeror for such additional coverage.
Offeror shall also protect the Town from claims resulting from alleged cyber events. The
limits of the liability shall not be less than $2,000,000 solely contained in a Commercial
Policy or in combination with an Umbrella or Excess Policy.
Offeror shall carry Professional Liability Insurance for any errors or omissions in the
services it provides to the Town in an amount not less than $5,000,000 and with a
deductible no greater than $500,000.
The above-mentioned coverage shall be placed with an insurance carrier licensed to do
business in the Commonwealth of Virginia. The carrier must have an AM Best Rating of
A or better. A Certificate of Insurance identifying coverage and naming the Town of
Leesburg as an additional insured and shall be furnished to the Town. The Town shall not
be named as an additional insured on the Workers’ Compensation and Professional
Liability policies. Liability coverage shall contain wording prohibiting cancellation of
coverage, failure to renew, or reduction in limit without the insurer first giving 30 days’
prior written notice of such action to the Town.
Offeror (Firm) Name Virginia Association of Counties Group Self-Insurance Risk Pool (VAcorp)
Signature _________________________________________________________
Name (Printed) Stephanie Heintzleman
Title Member Services Director Date 3/1/2023
OFFEROR MUST RETURN THIS FORM WITH THEIR PROPOSAL
Stephanie Heintzleman
37 100
Item b.
ACKNOWLEDGEMENT OF ADDENDA
Offeror acknowledges receipt of the following ADDENDA, which have been considered in the
preparation of this proposal:
No. ____________ Dated: ________________________________
No. ____________ Dated: ________________________________
No. ____________ Dated: ________________________________
No. ____________ Dated: ________________________________
No. ____________ Dated: ________________________________
1 February 10, 2023
38 101
Item b.
REFERENCE FORM
QUALIFICATIONS: Offeror must have the capability and capacity in all respects to fully
satisfy the contractual requirements. Provide at least five (5) accounts, preferably governmental,
that your firm has provided similar goods and/or services to in the past five (5) years.
(Please print or type)
1.FIRM NAME: ___________________________________________________________
ADDRESS:
CONTACT PERSON: _________________________ TITLE:
PHONE NO: ___________________ EMAIL ADDRESS: _____________________
SCOPE OF SERVICES PROVIDED: ________________________________________
_______________________________________________________________________
2. FIRM NAME: ___________________________________________________________
ADDRESS:
CONTACT PERSON: _________________________ TITLE:
PHONE NO: ___________________ EMAIL ADDRESS: _____________________
SCOPE OF SERVICES PROVIDED: ________________________________________
_______________________________________________________________________
3. FIRM NAME: ___________________________________________________________
ADDRESS:
CONTACT PERSON: _________________________ TITLE:
PHONE NO: ___________________ EMAIL ADDRESS: _____________________
SCOPE OF SERVICES PROVIDED: ________________________________________
_______________________________________________________________________
4. FIRM NAME: ___________________________________________________________
ADDRESS:
CONTACT PERSON: _________________________ TITLE:
PHONE NO: ___________________ EMAIL ADDRESS: _____________________
SCOPE OF SERVICES PROVIDED: ________________________________________
_______________________________________________________________________
5. FIRM NAME: ___________________________________________________________
ADDRESS:
CONTACT PERSON: _________________________ TITLE:
PHONE NO: ___________________ EMAIL ADDRESS: _____________________
SCOPE OF SERVICES PROVIDED: ________________________________________
_______________________________________________________________________
6.FIRM NAME: ___________________________________________________________
ADDRESS:
CONTACT PERSON: _________________________ TITLE:
PHONE NO: ___________________ EMAIL ADDRESS: _____________________
SCOPE OF SERVICES PROVIDED: ________________________________________
_______________________________________________________________________
Loudoun County
1 Harrison Street SE, 4th Fl MSC, 41A, Leesburg, VA 20177
HR Manager, Risk & LeaveRebekah Bofinger
(571)258-3053 rebekah.bofinger@loudoun.gov
Property and casualty and workers’ compensation coverage program, joined in 1998
Arlington County2100 Clarendon Blvd., Suite 511, Arlington, VA 22201
Tere Elkins Risk Manager
telkins@arlingtonva.us(703)228-4421
Property and casualty and workers’ compensation coverage program, joined in 2008
Culpeper County
302 North Main Street, Culpeper, VA 22701
Valerie Lamb Finance Director
VLamb@culpepercounty.gov(540)727-3427
Property and casualty and workers’ compensation coverage program, joined in 2009
Fauquier County
320 Hospital Drive, Ste 34, Warrenton, VA 20186
Carrie Horvath Risk Manager
(540)422-8310 carrie.horvath@fauquiercounty.gov
Property and casualty and workers’ compensation coverage program, joined in 2010
James City County
Sharon McCarthy, CPA Director of Financial & Management Services101 Mounts Bay Road, Bldg F, Williamsburg, VA 23187
757-253-6633 Sharon.McCarthy@jamescitycountyva.gov
Property and casualty and workers’ compensation coverage program; joined in 2007
Town of Christiansburg
100 E. Main Street, Christiansburg, VA 24073
Deanna Cox Deputy Director of Finance
(540)382-9519 dcox@christiansburg.org
Property and casualty and workers’ compensation coverage program, joined in 2017
39 102
Item b.
PRICING FORM
RFP NO. 100161-FY23-36
TOWN LIABILITY INSURANCE
Item Description of Service Annual Premium
1 Automobile Insurance (7/1/2023 – 7/1/2024) $_________________
2 Crime Insurance (7/1/2023 – 7/1/2024) $_________________
3 Cyber Liability Insurance (7/1/2023 – 7/1/2024) $_________________
4 Employment Practices Liability Insurance (7/1/2023 – 7/1/2024) $_________________
5 Environmental Liability Insurance (7/1/2023 – 7/1/2024) $_________________
6 General Liability Insurance (7/1/2023 – 7/1/2024) $_________________
7 Law Enforcement Legal Liability Insurance (7/1/2023 – 7/1/2024) $_________________
8 Line of Duty Act (LODA) Insurance (7/1/2023 – 7/1/2024) $_________________
9 Public Officials (Management) Liability (7/1/2023 – 7/1/2024) $_________________
10 Property Damage (7/1/2023 – 7/1/2024) $_________________
11 Umbrella Liability/Excess Liability (7/1/2023 – 7/1/2024) $_________________
12 Workers’ Compensation & Employer’s Liability (7/1/2023 – 7/1/2024) 377,041______$______
TOTAL PROPOSED PRICE: 815,919______$_ __________
Instructions to Offerors:
Complete all items or your proposal may not be considered. Subject to terms and conditions contained in the Request for Proposal.
Offeror guarantees product or services offered will meet or exceed specifications identified in this Request for Proposal, subject to
all conditions stated herein.
Proposed prices are all inclusive, including (but not limited to), labor, supervision, overhead, equipment, materials, permits,
licenses, profit (fee), etc.
Signature: ____________________________
Name (Print): _________________________
Title: ________________________________
Date: ________________________________
97,337
1,250
35,000
Included w/Public Officials
Included
13,308 Equipment Breakdown
60,588
Included
28,658
37,658
120,435 Property/Inland Marine
44,644
Stephanie Heintzleman
Member Services Director
3/1/2023
Stephanie Heintzleman
40 103
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
AUTOMOBILE INSURANCE
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE LIMIT DEDUCTIBLE
Bodily Injury & Property Damage Combined Single Limit
Uninsured Motorist/Underinsured Motorist
Owned Auto Physical Damage:
Comprehensive
Collision
Non-owned/Hired Auto Physical Damage:
Comprehensive
Collision
Garage Liability
Garagekeepers
Comprehensive
Collision
No Fault Coverage
TERMS AND CONDITIONS
Will there be an additional charge for vehicles added during
the policy term?
Composite Rate quoted per Vehicle
Catastrophic Physical Damage quoted with limit of $50,000
and $5,000 deductible
Hired Auto Specified as Covered Autos you Own
Pollution Liability - Broadened Coverage for Covered Autos
Policy Territory: Anywhere in the World for Hired and Non-
owned autos
Employees as Insured (CA 99-33)
Fellow Employee Injury
Automobile Hired By Employees Endorsement
Definition of Employee includes leased worker & temporary
worker
Preservation of Governmental Immunity – NC
Notice of Loss Amended to include wording specified
Waiver of Subrogation Rights in Favor of Our Employees
Loss payable clause
Volunteers as Additional Insured
Amended Definition of Insured as specified
Rental Reimbursement coverage included
Value of Mobile Radios, etc. covered
Physical Damage coverage for damage to employee’s or
volunteer’s auto when responding to an emergency
Coverage for Commandeered Autos
VAcorp
$2,000,000 None
Statutory
Actual Cash Value $250
Actual Cash Value $500
$50,000 $250
$50,000 $500
$1,000,000 None
$100,000 $1,000
$100,000 $1,000
$25,000
Addition effective July 1st - additional charge appliesAddition effective after July 1st - no charge applies
No
Yes, $200 Day/30 Days/$600 Maximum
Included
Included
Included
Included
Included
$500,000 included under Inland Marine
United States (incl its territories and possessions) and Puerto Rico
Included
Excluded
Excluded
No
Included
Included
No
Not Applicable
Included
Included
41 104
Item b.
Are there any exclusions other than the Standard ISO
exclusions? If so, please list each exclusion in the
“REMARKS” section of this form.
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Ninety-Day Notice of Cancellation and Nonrenewal
Knowledge of Occurrence
Unintentional Errors and Omissions
Notice of Occurrence (Loss)
Blanket Additional Insureds
Definition of Bodily Injury
Composite Rate:
Liability
Physical Damage
Premium
REMARKS
Included
Included
Included
Included
Included
Included
Not Applicable
Not Applicable
$97,337
Included
42 105
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
CRIME INSURANCE
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE LIMITS DEDUCTIBLE
Employee Dishonesty (including Faithful Performance of Duty)
Forgery or Alteration
Inside the Premises
Outside the Premises
Money Orders and Counterfeit Money
Computer Fraud
Funds Transfer Fraud
Social Engineering Fraud
TERMS AND CONDITIONS
Correct Named Insured Wording?
Newly Acquired Plans Covered for 90 Days
Worldwide Territory
Period of Discovery Extended to 3 Years
Expanded Definition of “Premises” (1000 feet)
Coverage for Retired Employees
Coverage for Volunteer Workers & Part-time Employees
Coverage for Independent Contractors
Coverage for Leased Employees
Coverage for Non-compensated Officers
Terminated Employees Covered for 90 Days
Forgery or Alteration includes credit, debit, or charge card
forgery
Newly Acquired Premises to 90 Days
All Compensated & Non-Compensated Board of Council
Members
Faithful Performance Insuring Agreement
Are there any exclusions other than the Standard ISO
exclusions? If so, please list each exclusion in the “REMARKS”
section of this form.
VAcorp
$500,000 $250$500,000 $250$500,000 $250$500,000 $250
$500,000 $250
$500,000 $250
$500,000 $250
1 Year
first 30 days immediately after termination of service
Included
Included
Included
Included
Included
Yes
United States (incl its territories and possessions) and Puerto Rico
No Reporting Requirement
Yes
Included
Excluded
Included
No Reporting Requirement
Included under Cyber Liability
43 106
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
CRIME INSURANCE (continued)
Please state your company’s position on each item by signifying below:
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Unintentional Errors & Omissions
Notice of Cancellation and Nonrenewal
Premium
REMARKS
VAcorp
Not Applicable
IncludedIncluded
IncludedIncluded
$1,250
44 107
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
CYBER LIABILITY
Please state your company’s position on each item by signifying below:
RISK COVERED
RESPONSE/LIMIT/
RETENTION
POLICY AGGREGATE:
Third Party Liability Coverages:
Network Security and Privacy Liability
Regulatory Investigations, Fines and Penalties
Media Liability
PCI DSS Assessment Expenses
Breach Management Expenses
General Data Protection Regulation (GRPR) Costs
First Party Coverages:
Business Interruption
Contingent Business Interruption
System Failure
Social Engineering & Cyber Crime
Reputational Harm Expense
Cyber Extortion
Breach Response and Remediation Expenses
Criminal Reward Expenses
Bricking Costs
Utility Fraud Attack
Ransom Event
TERMS AND CONDITIONS
Pay on behalf of insuring agreement
Defense costs outside the policy limit
Credit Monitoring Expense Included
Duty to Defend
Worldwide Territory
Terrorism included
Extended Reporting Period – Please indicated response below regarding the
ERP:
Number of months available and additional cost?
Number of days-notice required?
Is ERP available regardless of whether insurer cancels/nonrenews or the
insured cancels?
Have you included specimen forms?
VAcorp
$5,000,000
$5,000,000
Included in Limit
Same as Stated Above
Yes
Yes
Yes
Yes
Yes, if suit brought within U.S., its territories or possessions, or Canada
None
Yes, refer to language
Yes
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
Same as Stated Above
45 108
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
CYBER LIABILITY (continued)
Please state your company’s position on each item by signifying below:
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
90 Day Notice of Cancellation, Nonrenewal or Material Change
Unintentional Errors and Omissions
Notice of Occurrence (Loss)
Premium-$5,000,000
REMARKS
VAcorp
Not Applicable
Included
Included
Included
Included
Included
$35,000
VAcorp provides: - Cyber liability coverage with zero deductible - Breach Coach Attorney guidance on each event
- Ransomware/Public Relations event response coverage, no sublimit - Social Engineering/Fraudulent Instruction event coverage, no sublimit - Proactive scanning of public facing website - No pooled aggregate for purchase of $1,000,000 limit or greater - Access to eRiskHub online cyber solutions
- Claims handled by Specialists familiar with Cyber Security trends
46 109
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
EMPLOYMENT PRACTICES LIABILITY
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
Each Wrongful Act
Policy Aggregate
Defense Costs
RETAINED LIMITS
Each Wrongful Act
TERMS AND CONDITIONS
Retroactive Date
Right and Duty to Defend
Pay on Behalf of Insuring Agreement
Retained Limit should include Defense Costs
Trustees included as Insureds
Consent to Settle Clause (detail provisions)
Punitive Damages Included
Correct Named Insured wording provided?
Definition of “Insured Event” as requested?
Defense provided for intentional injury if the insurer has an
obligation to indemnify
Actions of one will not impute to others
Defense provided even if the claim is not seeking damages
Deductible/retention applies only once for multiple claims
involving the same act
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Unintentional Errors & Omissions
Extended Notice of Cancellation and Nonrenewal
Premium
REMARKS
VAcorp
$1,000,000$1,000,000
Outside Policy Limits
None
Not Applicable (Occurrence)
Yes
Yes
Yes, if legally liable
Yes
IncludedIncluded
Included
Included
Included w/Public Officials Liability
Not Applicable
Defense Costs Outside Policy Limits
No
No
$100,000 Sublimit Provided - Refer to Supplemental Payments
Yes
No
Yes
Yes, except non-employment related sexual harrassment
47 110
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: _______________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
ENVIRONMENTAL LIABILITY
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
Each Wrongful Act
Policy Aggregate
DEDUCTIBLE
Each Wrongful Act
TERMS & CONDITIONS
Retroactive Date used?
Third Party Liability (Property Damage & Bodily Injury) at scheduled locations?
First Party cleanup as scheduled locations?
Third Party liability from operations?
Pollution Release from Transported Cargo carried by covered autos?
Waste water treatment facilities included?
Coverage on a primary basis?
Deductible will apply once to all claims arising out of one occurrence?
Occurrence or Claims Made Form?
Full Prior Acts Coverage?
Any location owned, managed, maintained, rented, operated or occupied by
the Town of Leesburg
Tanks at Airport included?
Defense/Supplementary payments in addition to the policy limits?
Pay on Behalf of?
Duty to Defend?
RECAP
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors & Omissions
90 Day Notice of Cancellation and Nonrenewal
Amended Definition of Bodily Injury
Premium
REMARKS:
VAcorp
$1,000,000
$2,000,000
$25,000
Not Applicable
Occurrence
Yes, if town owned & above ground
Included
Included
Included
Included
Included
Included
Included
Yes
No
Yes
No
Yes, excluding landfills and UST's
Yes
Yes
Yes
Yes
Yes
Yes
Yes, excluding landfills and UST's
48 111
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
GENERAL LIABILITY COVERAGE
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE LIMIT DEDUCTIBLE
Each Occurrence
Personal or Advertising Injury - Any One Person or
Organization
Products/Completed Operations – Any One Occurrence
Damage to Premises Rented to You – Any One Premises
Medical Expense - Each Person
Employee Benefits:
Per Occurrence
Kidnap & Ransom
No Fault Coverage
TERM AND CONDITIONS
Blanket Contractual
Pollution Coverage from a Hostile Fire
Independent Contractors
Contractual Liability Exclusion Amended for Personal Injury
Fellow Employee Injury Coverage
Amended Definition of Bodily Injury
Cross Suits Liability Covered
Worldwide Coverage
Blanket Waiver of Subrogation Rights as required by Written
Contract
Watercraft, Non-owned Up to 51 Feet
VAcorp
$2,000,000 None
$2,000,000 None
$2,000,000 None
$500,000 None
$10,000 None
$25,000
$2,000,000 None
Included under Security Risk Management Coverage
Yes
Yes
Yes, if suit brought within U.S., its territories or possessions, or Canada
Included
Excluded
No
Included
Included
Included
Included
None
49 112
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
GENERAL LIABILITY COVERAGE (continued)
Please state your company’s position on each item by signifying below:
TERM AND CONDITIONS… continued
Host Liquor Liability
Defense/Supplementary Payment in Addition to Limits of
Liability
Lessors of Leased Equipment
Volunteers
Managers or Lessors of Leased Equipment
Bodily Injury and Property Damage for Pesticide/Herbicide
Application
Property Damage Cover for Explosion, Collapse and
Underground Operations
Incidental Medical Malpractice
Law Enforcement Departments, Jails and Other Facilities
Waiver of Governmental Immunity
Injuries to Spectators Participating or Attending Athletic
Events
Deletion of E-commerce, Websites or Email Exclusions
Correct Definition of Named Insured?
Coverage included for personal property in the care, custody
or control of the Insured
Are there any exclusions other than the Standard ISO
exclusions? If so, please list each exclusion in the
“REMARKS” section of this form.
VAcorp
Included
Included
Included
Included
Included except individuals licensed to practice medicine
Yes
Included
Spectators IncludedParticipants Excluded - Medical Expense
Included
Excluded
Refer to Environmental Liability Coverage
Defense Outside Policy Limits
Included
No
50 113
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
GENERAL LIABILITY COVERAGE (continued)
Please state your company’s position on each item by signifying below:
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad From Named Insured
Ninety-Day Notice of Cancellation and Nonrenewal
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors and Omissions
Blanket Additional Insureds
Definition of Bodily Injury
Premium
REMARKS
VAcorp
Not Applicable
Included
Included
Included
Included
Included
Included
Included
$60,588
51 114
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
LAW ENFORCEMENT LEGAL LIABILITY
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
Each Occurrence
DEDUCTIBLE
Each Occurrence
TERMS AND CONDITIONS
Correct named insured wording?
Coverage on a primary basis
Occurrence Form
Acts committed to protect life or property or in the pursuit of
official duties
Vicarious liability of Entity Officials
Injury of an individual in the custody of law enforcement
officers and failure to provide adequate police protection
Include personal injury, bodily injury, and property damages
Authorized moonlighting by police officers covered
Building, fire and zoning code inspectors
Include Canine and Equine Exposures
No “on duty” limitations
Loss of or damage to property in our care, custody or control
Pay on behalf of basis
Duty to Defend
Defense costs outside of policy limits
Premises coverage for jail and holding facilities
Dispatch and 911 Emergency Services
Loss or damage to confiscated property
Allow right of decision on the use of sovereign immunity to be
ours
24-hour coverage for police officers
Definition of personal injury as specified? If not, please list
your exceptions to the criteria.
Pollution coverage for sudden and accidental occurrences
Include defense for injunctive or declaratory relief type claims.
Please state sublimit, if any.
Include strikes, riots, or civil commotion
VAcorp
$2,000,000
None
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Included under Environmental Liability Coverage
Included
Included
Included
$100,000 Supplemental Payments - refer to Public Officials Liability Coverage
Included
Yes
Yes, if considered Code Enforcement
No Limitations
Yes, up to $100,000 sublimit
Yes
Yes
No
No
Yes
Yes
Yes
52 115
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
LAW ENFORCEMENT LEGAL LIABILITY (continued)
Please state your company’s position on each item by signifying below:
TERMS AND CONDITIONS… continued
Prevailing party’s legal expenses
Punitive or Exemplary Damages covered
Line of Duty Death Benefits - included
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors & Omissions
Extended Notice of Cancellation or Nonrenewal
Premium
REMARKS
VAcorp
Included under Line of Duty Act
Not Applicable
Included
Included
Included
Included
Included
Included
Yes, if legally liable
If Awarded by Court
53 116
Item b.
TOWN OF LEESBURG
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: _______________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
LINE OF DUTY ACT (LODA)
Please state your company’s position on each item by signifying below:
TERMS AND CONDITIONS
Will you cover LODA claims reported before 7/1/2012?
Will you cover LODA claims unknown to the town as of
7/1/2012?
If a possible LODA claim occurred but was not reported to
those who report the claim to the DOA, would the claim be an
“unknown” LODA claim?
Please provide details on how you classify paid and volunteer
personnel?
Will you pay all administrative expenses related to the LODA
claim? (Intent is to be sure you will be responsible for paying
and costs for fees is included in your pricing)
Will you notify the DOA annually the Town is in your program?
Will you pay the LODA claim and related expenses within the
required 30 days?
RECAP
Premium
REMARKS
VAcorp
$28,658
For claims before 7/1/2012, financial liabilities can be carried in the VAcorp LODA Trust
No
No
Yes
Yes
Yes
Paid staff are submitted by FTE. Volunteers in LODA-covered position with the Town should only be counted as Paid personnel under LODA
VAcorp created a LODA trust to benefit members with LODA claims that occurred prior to 2012. The financial liabilities
associated with the Town’s past liability claim can be carried here. If the town has LODA-covered volunteers that also work for the town in a LODA-covered position, the town only needs to count these persons once, as a paid staff.
54 117
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
PUBLIC OFFICIALS (MANAGEMENT) LIABILITY
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
Each Occurrence
DEDUCTIBLE
Each Occurrence
TERMS AND CONDITIONS
Correct named insured wording?
Coverage on a primary basis
Insured versus Insured
Service performed under a mutual-aid/assistance agreement
Building, fire and zoning code inspectors
Attorney, engineer, and emergency medical
technicians/paramedics/hazardous materials technicians or
other professional who is an entity employee while acting
within the scope of his professional duties for the entity
Pay on behalf of basis
Duty to Defend
Coverage included for Airport Commission and any other
commission, board or authority under Town control
Defense costs outside of policy limits and deductible
Allow the right of decision on the use of sovereign immunity
to be Town of Leesburg’s
Include defense for injunctive or declaratory relief type claims.
Please state sublimit, if any.
Include strikes, riots, or civil commotion
Prevailing party’s legal expenses
Punitive or exemplary damages if allowed by law
Entity’s services (garbage, etc.)
Hiring, firing, discrimination, alleged civil rights violations, and
antitrust actions
Officials and employees serving on outside boards at entity’s
request
Zoning disputes
VAcorp
$1,000,000
None
Yes
Yes
Included
Included
Yes
Yes
Yes
$100,000 Supplemental Payment
Yes, if legally liable
Included
covered while under direction and control of the town
No
If Awarded by Court
Yes
Yes
Yes
No
Yes
Yes, $100,000 sublimit provided - Supplemental Payments
55 118
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
PUBLIC OFFICIALS (MANAGEMENT) LIABILITY (continued)
Please state your company’s position on each item by signifying below:
TERMS AND CONDITIONS… continued
Use of eminent domain
Personal injury
Fiduciary liability regarding self-insurance funds
Failure or omission to effect and maintain insurance
Bond issues or tax collections
“Employee” includes volunteers
Consent to Settle Requirements (detail specifics)
RECAP
Insurance Company A.M. Best Rating
If quoting through a pool or self-insured group, have you
included the latest financial information available?
Specimen policy and endorsements included?
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors & Omissions
Extended Notice of Cancellation or Nonrenewal
Premium
REMARKS
VAcorp
Yes
Not Applicable
Yes
Included
Included
Included
Included
Included
Yes, $100,000 sublimit provided - Supplemental Payments
Excluded
Town can settle claim/suit or incur any related expense only with consent of the Pool
Excluded
Excluded
covered under General Liability
$37,658
56 119
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
PROPERTY DAMAGE including Equipment Breakdown
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
Blanket Real & Personal Property
Equipment Breakdown Limit – Maximum any one Accident
Accounts Receivable
Ammonia Contamination
Business Income
Canines
Claims Preparation Expense
Consequential Damage
Contractors Equipment & Miscellaneous Property Items
Debris Removal
Earthquake Annual Aggregate
Electronic Data Processing Data and Media
Errors & Omissions – any one Occurrence
Expediting Expense
Extra Expense
Fine Arts
Flood Annual Aggregate
Guard Rails
Hazardous Substances
Miscellaneous Unnamed Locations
Newly Acquired Property (Real & Personal)
Ordinance or Law – including Loss to Undamaged Portion of
Buildings, Demolition Cost and Increased Cost of Construction
Outdoor Property
Outdoor Property – trees, shrubs and plants (per occurrence)
Personal Effects of Officers and Employees
Property in Transit
Sewer Back-Up
Spoilage
Unscheduled Property
Utility Services Interruption (Water Supply, Communication
Supply, Power Supply including Overhead Transmission Lines)
Valuable Papers
Water Damage
VAcorp
$100,000,000
$182,155,972 Real; $64,291,880 Personal Property
$2,000,000
Included w/Business Income
$100,000,000
$100,000,000
$100,000
$10,000,000
$100,000
$15,000 Per Canine
$100,000
$5,000,000
$25,000,000
$10,000,000
Included
Included
$5,000,000
$25,000,000
$20,000,000
Included
Included
$1,000,000
$2,261,170 ($5,000,000 Property Transit is automatically included)
$100,000
Included
$250,000
$5,000,000
$10,000,000
Included
Included under Outdoor Property
Yes, if used in town business
$500,000 Contractor's Equipment
57 120
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
PROPERTY DAMAGE including Equipment Breakdown (continued)
Please state your company’s position on each item by signifying below:
DEDUCTIBLE
Property Damage including Business Income
Flood
Earthquake
Equipment Breakdown
Canines
TERMS AND CONDITIONS
Replacement Cost Improvements & Betterments
Replacement Cost valuation to include new of unlike kind and
quality
Replacement Cost to rebuild property at another location
Agreed Value Clause Direct Damage
Joint Loss Agreement with Boiler & Machinery carrier
Property of Others valued at Replacement Cost
Full Coverage for any properties which may become vacant or
unoccupied
Separate extra expense limit as specified with no monthly
limitation
Subject to engineering recommendations
Automatic coverage on newly acquired Real or Personal
Property (No. of days)
Include separate terrorism quote
Covered Property as broad as ISO “All Risk” Form
Full Collapse Coverage
Flood coverage to include seepage of water, sewer back-up,
mudslide and other water damage
Radioactive contamination
Claim preparation expense coverage
Building ordinance to include:
Loss to undamaged portion of building
Demolition cost of undamaged portion
Increased cost of construction
Off premises power interruption of power or other utility to
include overhead transmission lines
Pollution exclusion deleted for accidental vehicular pollution or
accidental spill on or off premises
VAcorp
$1,000
$25,000
$25,000
$5,000
$1,000
Terrorism Included
Included
Included w/Business Income
Included
Actual Cash Value Basis, unless agreed in writing
None
120 Days
Included
Included under Environmental Liability Coverage
Included
Yes
Excluded
Included
Included
Special Form; covered unless specifically excluded
Yes
No
Yes
$5,000,000
58 121
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
PROPERTY DAMAGE including Equipment Breakdown (continued)
Please state your company’s position on each item by signifying below:
TERMS AND CONDITIONS… continued
Spoilage of perishable goods resulting from mechanical
breakdown
Spoilage of perishable goods resulting from power failure
originating on or off premises
Mechanical and electrical breakdown
Zone restrictions for Flood or Earthquake
Are there any exclusions other than the Standard ISO
exclusions? If so, please list each exclusion in the “REMARKS”
section of this form.
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors & Omissions
Ninety Day Notice of Cancellation or Nonrenewal
Premium
REMARKS
VAcorp
Not Applicable
Included
Included
Included
Included
Included
$13,308
Flood - Excluded Zones Prefixed A or V
Included
Included
Included
59 122
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
UMBRELLA LIABILITY/EXCESS LIABILITY
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
Umbrella
General Aggregate
Products/Completed Operations – Aggregate Limit
Personal & Advertising – Per Occurrence
Each Occurrence
Crisis Management Service Expenses
Self-Insured Retention
Excess Errors & Omissions Liability
Total Limit
Deductible
RETAINED LIMITS
Self-Insured Retention
TERM AND CONDITIONS
Follow form underlying insurance
Flat base premium, not subject to audit
Pay on behalf
Blanket Contractual
Broad Form Property Damage
Pollution Coverage for Products/Completed Operations
Pollution Coverage from a Hostile Fire
Pollution Autos, Pollutants Released, etc.
Fellow Employee Injury Coverage
Silent on Punitive Damage
Separation of Insured
Coverage for sexual harassment and misconduct
Employment Practices and Discrimination
Vicarious Liability of the Town for alleged sexual abuse
committed by an employee or other
Notice of Loss Amended to include wording specified
Worldwide Coverage
Follow Form Additional Insured
Incidental Malpractice
Watercraft and Aircraft Follow Form
First Dollar Defense
VAcorp
$9,000,000 Excess Automobile, General Liability, and Law EnforcementLiability / No Annual Aggregate Applies
$10,000,000 Limit/Annual Aggregate - Excess Public Officials Liability
Not Applicable
None
Included w/General Liability
Included w/General Liability
See Above
See Above - Included w/Public Officials Liability
None / Underlying Limits
None / Underlying Limits
Yes, per VAcorp Coverage Contract
Yes
Yes
Yes
Yes
Excluded
Excluded
Excluded
Included
No
Included
Included
Included
Yes, if suit brought within U.S., its territories or possessions, or Canada
Yes
Included
Yes
Yes
Included
60 123
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: __________________________ TOWN OF LEESBURG
COMPANY: ____________________ PROPOSAL RESPONSE FORM
UMBRELLA LIABILITY/EXCESS LIABILITY (continued)
Please state your company’s position on each item by signifying below:
TERM AND CONDITIONS… continued
Supplementary Payments to Include Prejudgement Interest
Defense/Supplementary Payment in Addition to Limits of
Liability
Cross Suits covered
Waiver of Right to Recovery from others
Follow Form to Eliminate any Inconsistencies
Internet use and website publication
Are there any exclusions other than the Standard ISO
exclusions? If so, please list each exclusion in the “REMARKS”
section of this form.
RECAP
Insurance Company A.M. Best Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors and Omissions
Ninety Day Notice of Cancellation and Nonrenewal
Blanket Additional Insureds
Definition of Bodily Injury
Premium
REMARKS
VAcorp
Not Applicable
Included
Included
Included
Included
Included
Included
Included
$44,644
Included
Yes
Yes
Yes, per VAcorp Coverage Contract
Yes
Included
61 124
Item b.
THIS MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL
AGENT: _______________________ TOWN OF LEESBURG
COMPANY: _______________________ PROPOSAL RESPONSE FORM
WORKERS’ COMPENSATION & EMPLOYER’S LIABILITY
Please state your company’s position on each item by signifying below:
LIMITS OF INSURANCE
COVERAGE A – Workers’ Compensation Statutory
COVERAGE B – Employers’ Liability
Bodily Injury by Accident $ Each Accident
Bodily Injury by Disease $ Policy Limit
Bodily Injury by Disease $ Each Employee
States to be included:
Other States Coverage:
“All states except monopolistic states and those listed in
item 3A”
Yes No
TERMS AND CONDITIONS
Broad Form Named Insured endorsement?
Voluntary Compensation endorsement?
Applicable to any employee or volunteer not subject to
a workers’ compensation law?
Includes benefits of the “state of hire or state of injury”?
Provide Employers’ Liability coverage for elected officials acting
within scope of their duties
Any reporting restrictions on time for occupational disease
claims?
RECAP
Insurance Company A.M. Best Rating
Insurance Company Standard & Poor’s Rating
Have you included the mandatory wording for the following:
Broad Form Named Insured
Knowledge of Occurrence
Notice of Occurrence (Loss)
Unintentional Errors & Omissions
Notice of Cancellation and Nonrenewal (90 days)
Premium computation including rates and payroll
information included
Experience modification used in calculation
Premium
REMARKS
VAcorp
1,000,000
1,000,000
1,000,000
Yes
Not Applicable
Not Applicable
Included
Included
Included
Included
Included
Included in Proposal
0.81
$377,041
X
Yes
If resolution passed by governing body recognizing asemployees for purposes of Virginia Workers' Compensation Act
per Virginia Workers' Compensation Act
Virginia
62 125
Item b.
VIRGINIA ASSOCIATION OF COUNTIES
GROUP SELF-INSURANCE RISK POOL
AUDITED FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
63 126
Item b.
Contents
Audited Financial Statements
Certification Report ....................................................................................................................... Page 1
Independent Auditor’s Report ...................................................................................................... 2 - 3
Management’s Discussion and Analysis - Unaudited .................................................................. 4 - 7
Balance Sheets .............................................................................................................................. 8
Statements of Revenues, Expenses and Changes in Members’ Equity ........................................ 9
Statements of Cash Flows ............................................................................................................. 10
Notes to Financial Statements ...................................................................................................... 11 - 37
Supplementary Financial Information
Independent Auditor’s Report on Supplementary Financial Information .................................... 38
Statement of Members’ Account by Fiscal Year - All Lines - Unaudited.................................... 39 - 40
Statement of Members’ Account by Fiscal Year - Casualty - Unaudited..................................... 41 - 42
Statement of Members’ Account by Fiscal Year - Property - Unaudited ..................................... 43 - 44
Statement of Members’ Account by Fiscal Year - Automotive - Unaudited ............................... 45 - 46
Statement of Members’ Account by Fiscal Year - Surety and Fidelity - Unaudited .................... 47 - 48
Statement of Members’ Account by Fiscal Year - Umbrella and Excess - Unaudited ................. 49 - 50
Statement of Members’ Account by Fiscal Year - Public Officials - Unaudited ......................... 51 - 52
Statement of Members’ Account by Fiscal Year - Line of Duty - Unaudited .............................. 53 - 54
Statement of Members’ Account by Fiscal Year - Other - Unaudited ......................................... 55 - 56
Statement of Members’ Account by Fiscal Year - Workers’ Compensation - Unaudited ........... 57 - 58
Statement of Revenues and Expenses - Unaudited ....................................................................... 59 - 60
Statement of Claims Paid - Unaudited .......................................................................................... 61
Required Supplementary Information
Schedule of Revenue and Reserve Development - Unaudited ..................................................... 62 - 64
Schedules of Claims Liabilities by Type of Contract - Unaudited ............................................... 65 - 66
64 127
Item b.
65 128
Item b.
300 Arboretum Place, Suite 660, Richmond, Virginia 23236 Tel: 804-560-0560 Fax: 804-560-0553 hhjcpa.com
- 2 -
INDEPENDENT AUDITOR’S REPORT
Members’ Supervisory Board
Virginia Association of Counties Group Self-Insurance Risk Pool
Roanoke, Virginia
Opinion
We have audited the accompanying financial statements of Virginia Association of Counties Group Self-
Insurance Risk Pool, which comprise the balance sheets as of June 30, 2022 and 2021, and the related statements
of revenues, expenses and changes in members’ equity, and cash flows for the years then ended, and the related
notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Virginia Association of Counties Group Self-Insurance Risvk Pool as of June 30, 2022 and 2021, and
the results of its operations and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of Virginia
Association of Counties Group Self-Insurance Risk Pool and to meet our other ethical responsibilities in
accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about Virginia Association of Counties Group Self-
Insurance Risk Pool’s ability to continue as a going concern within one year after the date that the financial
statements are available to be issued.
66 129
Item b.
- 3 -
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of Virginia Association of Counties Group Self-Insurance Risk Pool’s internal control. Accordingly, no
such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about Virginia Association of Counties Group Self-Insurance Risk Pool’s ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control related matters that we
identified during the audit.
Richmond, Virginia
December 22, 2022
67 130
Item b.
Management’s Discussion and Analysis - Unaudited
Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Introduction
This section of the Virginia Association of Counties Group Self-Insurance Risk Pool’s (the “Pool”) annual
financial report presents a discussion and analysis of the financial performance of the Pool during the fiscal years
ended June 30, 2022 and 2021. Please read it in conjunction with your review of the Pool’s basic financial
statements. The following tables summarize the financial position and results of operations of the Pool for the
fiscal years ended June 30, 2022, 2021 and 2020.
Overview of the Financial Statements
The Pool’s financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America for state and local governmental entities. The primary purpose of the Pool is to make
available a long-term, stable source of cost-effective insurance protection for its members. The Pool provides,
among other things, general liability, automobile liability, automobile physical damage and workers’
compensation insurance coverage to participating members. These financial statements are presented using the
economic resources measurement focus and the accrual basis of accounting. The basic financial statements are as
follows:
Balance Sheet: This statement presents information reflecting the Pool’s assets, liabilities and members’
equity. Members’ equity represents the amount that total assets exceed total liabilities. The balance sheet is
categorized as current and noncurrent assets and liabilities. For purposes of the financial statements, current
assets and liabilities are those assets and liabilities with immediate liquidity or which are collectible or due
within twelve months of the statement date.
Statement of Revenues, Expenses and Changes in Members’ Equity: This statement reflects the operating
revenues and expenses, as well as nonoperating revenues and expenses during the fiscal year. The major
sources of operating revenues are premium and brokered products income. The major sources of operating
expenses include claims, reinsurance, general and administrative, and other costs associated with the
operations of the Pool. Nonoperating revenues and expenses include investment income, rental income, and
other miscellaneous revenues and expenses. The change in members’ equity is similar to net income or loss
for any other insurance company.
Statement of Cash Flows: The statement of cash flows is presented on the direct method of reporting that
reflects cash flows from operating, financing, and investing activities. Cash collections and payments are
reflected in this statement to arrive at the net increase or decrease in cash for the twelve-month period.
Notes to Financial Statements: The notes to the financial statements provide additional information that is
essential to a full understanding of the data provided in the basic financial statements. The notes to the
financial statements can be found following the statement of cash flows.
- 4 -
68 131
Item b.
Management’s Discussion and Analysis - Unaudited - Continued
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
The financial position of the Pool is summarized as follows:
2022 2021 2020
Current assets 52,106,482$ 43,323,971$ 41,602,887$
Noncurrent assets 92,295,832 100,215,845 83,603,161
144,402,314$ 143,539,816$ 125,206,048$
Current liabilities 34,735,290$ 30,767,758$ 29,527,982$
Noncurrent liabilities 62,001,527 58,726,389 58,163,978
96,736,817 89,494,147 87,691,960
Unrestricted 35,188,597 47,439,988 28,775,088
Contingency reserve 7,226,900 6,355,681 8,489,000
Board restricted fund 5,000,000
Restricted equity 250,000 250,000 250,000
Members' Equity 47,665,497 54,045,669 37,514,088
Total Liabilities and Members' Equity 144,402,314$ 143,539,816$ 125,206,048$
June 30,
Total Liabilities
Total Assets
Comments:
Total assets increased by approximately $862,000 as of June 30, 2022 in comparison to June 30, 2021 due
primarily to the investing of excess premiums received over cash payments for losses, reinsurance and other
expenses. Total assets increased by approximately $18,334,000 as of June 30, 2021 in comparison to June 30,
2020, due primarily to the investing of excess premiums received over cash payments for losses, reinsurance
and other expenses.
Total liabilities increased by approximately $7,243,000 as of June 30, 2022 in comparison to June 30, 2021.
Claims reserves, including IBNR’s, increased by approximately $3,675,000; however, no individual events
were responsible for any significant portion of the change. Total liabilities increased by approximately
$1,802,000 as of June 30, 2021 in comparison to June 30, 2020. Claims reserves, including IBNR’s, increased
by approximately $1,462,000; however, no individual events were responsible for any significant portion of
the change.
Members’ equity consists of unrestricted equity, contingency reserves, board restricted funds and restricted
equity. During the years ended June 30, 2022 and 2021, the Pool did not declare dividends.
- 5 -
69 132
Item b.
Management’s Discussion and Analysis - Unaudited - Continued
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Revenues, expenses, and changes in members’ equity for the years ended June 30, 2022, 2021, and 2020 and are
summarized as follows:
2022 2021 2020
Operating revenues 98,362,021$ 92,944,171$ 87,253,678$
Operating expenses
Losses incurred 51,652,440 37,524,551 52,185,338
Reinsurance premiums 18,429,268 18,907,202 18,649,326
Other operating expenses 27,044,751 21,310,514 19,832,498
97,126,459 77,742,267 90,667,162
1,235,562 15,201,904 (3,413,484)
Nonoperating revenues and expenses
Investment income (loss)(7,615,734) 107,261 7,605,949
Other nonoperating revenues (expenses)- 1,222,416 (73,159)
(7,615,734) 1,329,677 7,532,790
Change in members’ equity (6,380,172) 16,531,581 4,119,306
Members’ equity at beginning of year 54,045,669 37,514,088 33,394,782
Members’ equity at end of year 47,665,497$ 54,045,669$ 37,514,088$
Total Operating Expenses
Operating Income (Loss)
Year Ended June 30,
Comments:
Operating revenues increased by approximately $5,418,000 for the year June 30, 2022 in comparison to June
30, 2021. Operating revenues increased by approximately $5,690,000 for the year ended June 30, 2021 in
comparison to June 30, 2020. The Pool’s consistent increase in operating revenues is a result of continued
growth and retention of Pool membership.
The Pool’s loss ratio, which is derived as the ratio of claim expenses to premiums earned, was 59%, 43%, and
64%, for the years ended June 30, 2022, 2021, and 2020, respectively. As represented above, the Pool
continues to experience and maintain favorable claims development.
- 6 -
70 133
Item b.
Management’s Discussion and Analysis - Unaudited - Continued
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Comments - Continued:
Reinsurance premiums decreased by approximately $478,000 during the year ended June 30, 2022 in
comparison to June 30, 2021. These premiums decreased primarily as a result of the rates charged by the
excess reinsurance carrier for the amounts of coverage obtained by the Pool. Reinsurance premiums increased
by approximately $258,000 during the year ended June 30, 2021 in comparison to June 30, 2020. These
premiums increased primarily as a result of the rates charged by the excess reinsurance carrier for the amounts
of coverage obtained by the Pool.
Other operating expenses, including service agent’s fees, brokered products, and general and administrative
expenses, increased by approximately $5,734,000 during the year ended June 30, 2022 in comparison to June
30, 2021, primarily driven by an increase in brokered products. Other operating expenses, including service
agent’s fees, brokered products, and general and administrative expenses, increased by approximately
$1,478,000 during the year ended June 30, 2021 in comparison to June 30, 2020.
Investment income decreased by approximately $7,723,000 during the year ended June 30, 2022 in
comparison to June 30, 2021 primarily as a result of the market yielding lower returns on investments.
Investment income decreased by approximately $7,499,000 during the year ended June 30, 2021 in
comparison to June 30, 2020 primarily as a result of the market yielding lower returns on investments.
Investment income includes interest and dividends, net realized gains and losses from sales and maturities of
investments, and the net increase or decrease in the fair value of investments during the year.
Contacting the Pool’s Financial Management
Questions concerning this report or requests for additional information should be directed to Chris Carey,
Administrator, Risk Management Programs, Inc., 1819 Electric Road, Suite C, Roanoke, VA 24018, telephone
number (540) 345-8500.
- 7 -
71 134
Item b.
Balance Sheets Virginia Association of Counties Group Self-Insurance Risk Pool
2022 2021
Assets
Current Assets
Cash and cash equivalents 34,098,809$ 28,674,364$
Investments - fixed income securities 7,514,100 8,913,009
Investments - equity securities 4,164,654
Premiums receivable 3,298,256 1,508,637
Other accounts receivable 1,601,022 3,099,851
Receivable from reinsurer 741,791 405,469
Accrued interest receivable 687,850 722,641
Total Current Assets 52,106,482 43,323,971
Noncurrent Assets
Investments - fixed income securities 91,055,832 98,915,845
Deposit with service agent 1,240,000 1,300,000
Total Noncurrent Assets 92,295,832 100,215,845
144,402,314$ 143,539,816$
Liabilities and Members' Equity
Current Liabilities
Claims reserve 5,800,000$ 6,000,000$
IBNR reserve 16,100,000 15,500,000
Unearned income 6,798,421 4,659,959
Accounts payable and other liabilities 5,366,383 3,025,798
Premiums refundable 670,486 1,582,001
Total Current Liabilities 34,735,290 30,767,758
Noncurrent Liabilities
IBNR reserve 45,754,705 42,425,532
Claims reserve 16,246,822 16,300,857
62,001,527 58,726,389
Total Liabilities 96,736,817 89,494,147
Members' Equity
Unrestricted equity 35,188,597 47,439,988
Contingency reserve 7,226,900 6,355,681
Board restricted fund 5,000,000
Restricted equity 250,000 250,000
Total Members' Equity 47,665,497 54,045,669
Total Liabilities and Member's Equity 144,402,314$ 143,539,816$
June 30,
Total Assets
Total Noncurrent Liabilities
See Independent Auditor’s Report and Notes to Financial Statements
- 8 -
72 135
Item b.
Statements of Revenues, Expenses and Changes in Members’ Equity
Virginia Association of Counties Group Self-Insurance Risk Pool
2022 2021
Operating Revenues
Premiums earned 87,121,867$ 86,668,065$
Brokered products 11,240,154 6,276,106
98,362,021 92,944,171
Operating Expenses
Losses incurred 51,652,440 37,524,551
Reinsurance premiums 18,429,268 18,907,202
Service agent’s fees 11,464,052 11,136,513
Brokered products 11,242,252 6,255,249
General and administrative
Other 3,149,157 2,786,732
Endorsement fees 1,189,290 1,132,020
Total Operating Expenses 97,126,459 77,742,267
1,235,562 15,201,904
Nonoperating Revenues (Expenses)
Investment income
Interest and dividends 2,539,054 2,534,502
Net change in the fair value of investments (8,553,545) (3,419,114)
Net realized gain (loss) from sales and maturities of investments (1,601,243) 991,873
Net investment income (loss)(7,615,734) 107,261
Other income 1,222,416
Total Nonoperating Revenues (Expenses) (7,615,734)1,329,677
Net Change in Members' Equity (6,380,172)16,531,581
Members' equity at beginning of year 54,045,669 37,514,088
Members' Equity at End of Year 47,665,497$ 54,045,669$
Year Ended June 30,
Operating Income
See Independent Auditor’s Report and Notes to Financial Statements
- 9 -
73 136
Item b.
Statements of Cash Flows Virginia Association of Counties Group Self-Insurance Risk Pool
2022 2021
Cash Flows from Operating Activities
Cash received from members 99,298,178$ 93,259,508$
Cash paid for claims, net of recoveries (48,313,624) (36,168,406)
Cash paid for reinsurance premiums (18,429,268) (18,907,202)
Cash paid for other operating expenses (24,704,166) (22,481,974)
Net Cash Provided by
Operating Activities 7,851,120 15,701,926
Cash Flows from Investing Activities
Proceeds from sale and maturities of investments 75,130,765 63,772,821
Purchases of investments (80,436,466) (81,320,152)
Investment income received 2,819,026 2,417,615
Rental and other receipts 60,000 1,282,416
Net Cash Used by
Investing Activities (2,426,675) (13,847,300)
Net Increase in
5,424,445 1,854,626
Cash and cash equivalents at beginning of year 28,674,364 26,819,738
Cash and Cash Equivalents
at End of Year 34,098,809$ 28,674,364$
Cash and Cash Equivalents
Year Ended June 30,
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income 1,235,562$ 15,201,904$
Adjustments to reconcile operating income to net cash
provided by operating activities:
Change in operating assets and liabilities
Receivable from reinsurer (336,322) (106,266)
Premiums receivable (290,790) 189,294
Prepaid expenses and other assets - (1,385,193)
Claims and IBNR reserve 3,675,138 1,462,411
Unearned income 2,138,462 (476,636)
Premiums refundable (911,515) 602,679
Accounts payable and accrued expenses 2,340,585 213,733
Net Cash Provided
by Operating Activities 7,851,120$ 15,701,926$
See Independent Auditor’s Report and Notes to Financial Statements
- 10 -
74 137
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note A - Nature of Business and Summary of Significant Accounting Policies
Nature of Business: Virginia Association of Counties Group Self-Insurance Risk Pool (the “Pool”) was organized
under the laws of the Commonwealth of Virginia and licensed by the State Corporation Commission to begin
operations on July 1, 1993. The objective of the Pool is to make available a long-term, stable source of cost-
effective insurance protection for participating members. The Pool provides, among other things, general liability,
automobile liability, automobile physical damage coverage and workers’ compensation insurance coverage to
participating members. The Pool’s membership consisted of counties, authorities, school systems, and other
political subdivisions located in the Commonwealth of Virginia. The Pool had approximately 536 members at
June 30, 2022 and 2021.
The bylaws of the Pool provide that the portion of each members’ contribution which shall not be required to pay
claims, administrative expenses, or to fund required or appropriate reserves may be returned to the members of
the Pool from time to time, but only when specifically authorized or approved by the Members’ Supervisory
Board and by the Virginia State Corporation Commission. No surplus accumulations may be returned if such
payment will impair the capital stability and/or security of the Pool.
Effective July 1, 2013, the Board of Directors of Virginia Association of Counties Group (VACORP), VSBA
Workers’ Comp Group (VSBAWC) and VSBA Property & Casualty Pool (VSBAPC) approved a merger of
VACORP, VSBAWC and VSBAPC, with VACORP being the surviving company, collectively referred to as the
“Pool”.
Basis of Accounting: The accounting policies of the Pool follow accounting principles generally accepted in the
United States of America (GAAP) applicable to public entity risk pools, as prescribed by the Government
Accounting Standards Board (GASB). The Pool’s financial statements have been prepared using the economic
resources measurement focus and accrual basis of accounting. In accordance with GASB Statement No. 20,
“Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use
Proprietary Fund Accounting,” the Pool applies all applicable GASB pronouncements as well as all applicable
Financial Accounting Standards Board (FASB) pronouncements and predecessor Accounting Principles Board
Opinions and Accounting Research Bulletins issued on or before November 30, 1989. Under paragraph 7 of
GASB Statement No. 20, the Pool has elected to apply FASB pronouncements issued after November 30, 1989
that do not conflict with or contradict GASB pronouncements.
Reclassifications: Certain reclassifications have been made to the June 30, 2021 financial statements to conform
to the June 30, 2022 presentation.
Investments: Investments are stated at fair value, which is based on quoted market prices. The cost used in the
determination of gains and losses on sales of investments is based on the specific cost of the investment sold.
Advertising: Advertising costs are expensed when incurred.
Revenues and Expenses: The Pool’s statements of revenues, expenses and changes in members’ equity
distinguishes between operating and nonoperating revenues and expenses. Operating revenues include, but are
not limited to, premiums and brokered products revenues. Operating expenses include claims, reinsurance,
general and administrative, and other costs associated with the operations of the Pool. Nonoperating revenues and
expenses include, but are not limited to, investment income.
- 11 -
75 138
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note A - Nature of Business and Summary of Significant Accounting Policies - Continued
Estimates: The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect certain amounts and disclosures. Such estimates and assumptions could
change in the future as more information becomes known, which could impact the amounts reported and disclosed
therein. Significant estimates included in these financial statements primarily relate to the assumptions and
methods used to estimate the liability for unpaid losses as described below.
The industry in which the Pool operates is affected by numerous factors and circumstances, some of which cannot
be predicted or controlled. Among them are 1) an insurers’ ability to enter into suitable future reinsurance
agreements is subject to prevailing conditions in the reinsurance markets which may change risk-retention levels;
2) fluctuations in interest rates affect the value and income yield of an insurer’s investment portfolio in the short-
term, and often affect default and prepayment rates over time; 3) future inflation may result in ultimate loss
settlements different from the amounts originally anticipated; 4) catastrophic or unusual losses, such as the effects
of the terrorist attacks of September 11, 2001, may distort historical experience; and 5) losses may not fully
emerge for several years following the year in which the insured event occurred. Should any of these or similar
events occur, the Pool’s operating results and financial condition may be affected.
Fair Value Measurements: GASB has issued guidance for measurement and disclosure of fair value and
establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily
available unadjusted quoted market prices in active markets for identical assets (level 1 measurements) and the
lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or
reliable. The three levels of the hierarchy are described below:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active
markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the asset or liability and market-corroborated inputs.
Level 3: Prices determined using significant unobservable inputs in situations where quoted market prices or
observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity
for an investment at the end of the period), unobservable inputs may be used. These reflect the Pool’s own
assumptions about the factors market participants would use in pricing an investment, and would be based on the
best information available.
From time to time, changes in market conditions may result in reclassification of an investment’s assigned level
within the hierarchy. There were none in 2022 and 2021.
Recognition of Premium and Brokered Products Income: Premiums and brokered products are reported as earned
over the annual policy period. Premiums and brokered products in the course of collection at the balance sheet
date are reflected as an asset and premium deposits are reflected as a liability. The Pool does not consider
anticipated investment income in determining if a premium deficiency exists.
Income Taxes: The Pool is tax exempt under section 115 of the Internal Revenue Code; accordingly, no provision
for federal and state income taxes has been made in these financial statements.
- 12 -
76 139
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note A - Nature of Business and Summary of Significant Accounting Policies - Continued
Allowance for Doubtful Accounts: The Pool considers accounts receivable to be fully collectible; accordingly, no
allowance for doubtful accounts is required. The difference between the allowance not recorded and that which
would be acceptable under GAAP was immaterial.
Contingency Reserve: The State Corporation Commission requires a contingency reserve equivalent to 1% of the
Pool’s earned premiums for the years ended June 30, 2022 and 2021, respectively. This reserve is reported as a
restriction of members’ equity for financial reporting purposes and amounted to approximately $7,227,000 and
$6,356,000 at June 30, 2022 and 2021, respectively.
Administrative and Other Services Agreements: The Pool has an agreement with Risk Management Programs,
Inc. (RMP) to provide management, underwriting, marketing and administrative services and to provide risk
management, claims investigation, adjustment and loss reporting services. For the years ended June 30, 2022 and
2021, total service fee expense was approximately $11,464,000 and $11,137,000, respectively.
The Pool has endorsement agreements with the Virginia School Boards Association (VSBA) and the Virginia
Association of Counties (VACo). For the years ended June 30, 2022 and 2021, total endorsement fee expense was
approximately $1,189,000 and $1,132,000, respectively.
Cash and Cash Equivalents: Cash equivalents include all highly liquid investments with original maturities of
three months or less and are stated at fair value. At June 30, 2022 and 2021, cash equivalents of approximately
$2,625,000 and $441,000, respectively, consisted of money market mutual funds, which are not exposed to
custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry
form.
Subsequent Events: Subsequent events have been evaluated through December 22, 2022, which is the date the
financial statements were available to be issued.
Catastrophe Exposure: The Pool has geographic exposure to catastrophe losses, which can be caused by a variety
of events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires,
severe winter weather, floods, and volcanic eruptions. Catastrophes can also result from a terrorist attack
(including those involving nuclear, biological, chemical, or radiological events), explosions, infrastructure
failures, or as a consequence of political instability. The incidence and severity of catastrophes are inherently
unpredictable.
Board Restricted Fund: During the year ended June 30, 2022, the Pool approved the establishment of a board
restricted fund in the amount of $5,000,000 to be used for COVID related claims and costs. This amount is
reported as a separate line item within members’ equity of the balance sheet.
- 13 -
77 140
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note B - Reinsurance
The Pool maintains specific excess liability reinsurance covering its property, general, auto, crime, public officials
liability, and workers’ compensation which covers all losses in excess of certain specific retention amounts. The
Pool also maintains aggregate and/or stop loss excess liability reinsurance covering its property, general, auto
physical damage, auto liability, crime, public officials, line of duty and workers’ compensation which covers all
losses during the year in excess of certain aggregate retention amounts. The Pool remains contingently liable to
the extent the reinsurers are unable to honor their commitments under the agreements. The Pool evaluates the
financial condition of its reinsurers and monitors concentration of credit risk arising from similar geographic
regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from
reinsurer insolvencies.
The amount due from reinsurer at June 30, 2022 was $15,542,033, of which $741,791 related to paid claims, and
$14,800,242 related to unpaid claims. The amount due from reinsurer at June 30, 2021 was $4,352,698, of which
$405,469 related to paid claims, and $3,947,230 related to unpaid claims. The amount due from reinsurer related
to unpaid claims is netted against unpaid losses for financial reporting purposes. The amount of recoveries
pertaining to reinsurance contracts that were deducted from losses incurred during 2022 and 2021 were
approximately $2,210,000 and $2,680,000, respectively.
Certain of the Pool’s reinsurance agreements include provisions, whereby the ultimate amount of premiums,
reinsurance commissions or profits shared between the Pool and its reinsurers vary based on the loss experience
under the agreements. The Pool estimates the amounts receivable or payable under these contractual provisions
consistent with the Pool’s current estimates for subject losses. Accordingly, these estimates are subject to the
same uncertainty associated with the estimates for losses and loss adjustment expenses. The Pool records the
impact resulting from changes in estimated subject losses upon these reinsurance agreements in the period in
which the estimates are changed.
The Terrorism Risk Insurance Program (the “Program”) is a Federal program administered by the Department of
Treasury that provides for a system of shared public and private compensation from certain insured losses
resulting from acts of terrorism or war committed by or on behalf of a foreign interest. On December 20, 2019,
the President signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2019, which extended
the Program through December 31, 2027.
The Pool obtains reinsurance and brokered products from a company that is related to the administrator (RMP) by
common ownership. The Pool incurred approximately $16,117,000 and $12,514,000 related to these agreements
for the years ended June 30, 2022 and 2021, respectively. The Amount due from this reinsurer that related to
losses paid and reserved over the reinsurance retentions was approximately $11,788,000 and $3,955,000, at June
30, 2022 and 2021, respectively.
For various policy years, this reinsurer provided profit commissions based on loss experience and reinsurance
premiums. The Pool did not recognize profit commissions during the year ended June 30, 2022. During the year
ended June 30, 2021, the Pool recognized approximately $1,222,000 of income for profit commissions and this
was reported in other income on the statement of revenues, expenses and changes in members’ equity. At June 30,
2022, the Pool did not have any accounts receivable related to profit commissions. At June 30, 20221, the Pool
had approximately $1,148,000 in accounts receivable related to profit commissions, which were reported in other
accounts receivable.
- 14 -
78 141
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note C - Deposits
At June 30, 2022 and 2021, the carrying values (book balances) of the Pool’s deposits with banks were
$34,098,809 and $28,674,364, respectively. The balances reported by the banks at June 30, 2022 and 2021 were
$35,629,744 and $29,556,138, respectively. For deposits, custodial credit risk is the risk that in the event of
failure of a depository financial institution, the Pool may not recover its deposits. The Pool does not have a
deposit policy for custodial credit risk. Of the bank balances, 100% was covered by federal depository related
insurance or collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”). Under
the Act, banks holding public deposits in excess of the amounts insured by the Federal Deposit Insurance
Corporation (“FDIC”) must pledge collateral in the amount of 50% of excess deposits to a collateral pool in the
name of the Commonwealth Treasury Board.
If any member bank fails, the entire collateral pool becomes available to satisfy the claims of governmental
entities. If the value of the Pool’s collateral was inadequate to cover the loss, additional amounts would be
assessed on a pro rata basis to the members of the Pool. Collateral is not specifically identified as security for any
one public depositor and public depositors are prohibited from holding collateral in their name as security for
deposits. With the ability to make additional assessments, the multiple bank collateral pool functions similar to
depository insurance. The Commonwealth Treasury Board is responsible for monitoring compliance with the
collateralization and reporting requirements of the Act. Funds deposited in accordance with the requirements of
the Act are considered fully secured and not subject to custodial credit risk.
At June 30, 2022 and 2021, the Pool had $1,240,000 and $1,300,000, respectively, on deposit with RMP, which is
covered by federal depository insurance or is fully collateralized.
In accordance with the provisions of Section 14 VAC 5-360-45 of the Code of Virginia, the Association
maintained on deposit with the Commonwealth of Virginia investments in the amount of $250,000 as of June 30,
2022 and 2021, respectively, and is included in investments and restricted equity at June 30, 2022 and 2021.
Note D - Investments in Fixed Income and Equity Securities
The Pool’s investment portfolio was comprised of fixed income and equity securities classified as available-for-
sale and are recorded in the financial statements at fair market value, in accordance with the applicable GASB
pronouncements.
The net decrease in fair value of investments recorded in nonoperating revenue for the years ended June 30, 2022
and 2021 was $8,798,726 and $3,415,705, respectively. The calculations of the fair value of investments are
reported as follows:
- 15 -
79 142
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note D - Investments in Fixed Income and Equity Securities - Continued
2022 2021
Fair value at beginning of year 107,828,854$ 92,705,355$
Add: cost of investments purchased 80,436,466 81,320,152
Less: proceeds of sales and maturities (75,130,765) (63,772,821)
Add: realized gains on sales and maturities 305,770 1,154,765
Less: realized losses from sales and maturities (1,907,013) (162,892)
Less: amortization of discount/premiums (245,181) 3,409
Add: net decrease in fair value of investments (8,553,545) (3,419,114)
Fair value at end of year 102,734,586$ 107,828,854$
June 30,
The Pool invested in various financial instruments including cash equivalents and corporate and U.S. agency fixed
income securities and equity securities. Investments are exposed to various risks, such as changes in interest rates,
market conditions and credit assessments. Due to the level of risk associated with certain securities, it is at least
reasonably possible that changes in risk in the near term could materially affect the Pool’s invested balances and
amounts reported in the financial statements.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of fixed income instruments will adversely affect the fair
value of an investment. All of the Pool’s fixed income portfolios are managed in accordance with investment
guidelines set forth by 14 VAC 5-360-50 of the Code of Virginia.
The risk is managed within the fixed income portfolio using the segmented time distribution below and is
summarized as follows:
Investment Type Fair Value Less than 1 1 - 5 6 - 10 More than 10
U.S. Treasuries 50,830,753$ 500,245$ 41,854,990$ 8,475,518$ $
Asset Backed Securities 164,902 99,151 65,751
Corporate Bonds 47,574,277 7,013,855 25,902,277 14,658,145
Total 98,569,932$ 7,514,100$ 67,856,418$ 23,133,663$ 65,751$
Investment Type Fair Value Less than 1 1 - 5 6 - 10 More than 10
U.S. Treasuries 50,358,091$ 85,638$ 33,284,121$ 16,988,332$ $
Asset Backed Securities 5,647,275 2,966,028 163,466 2,517,781
Corporate Bonds 51,823,488 8,913,292 22,124,272 20,785,924
Total 107,828,854$ 11,964,958$ 55,408,393$ 37,937,722$ 2,517,781$
Contractual Maturities (In Years) at June 30, 2021
Contractual Maturities (In Years) at June 30, 2022
- 16 -
80 143
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note D - Investments in Fixed Income and Equity Securities - Continued
The Pool’s investments in fixed income securities are exposed to market fluctuations. At June 30, 2022, the Pool
held multiple investments in debt securities that have had an unrealized loss for more than 12 months. The Pool
has no intentions of selling the securities at a loss and has the ability to hold the debt securities until maturity. In
addition, the maturity values of the investments exceed their fair value at June 30, 2022. Due to these reasons, the
losses are not considered to be other than temporary. The investments in debt securities that are in a loss position
at June 30, 2022 were as follows:
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Asset-backed securities 48,490,022$ 3,015,932$ 129,529$ 10,777$
Corporate and other debt securities 39,419,732 2,764,438 5,271,944 835,422
87,909,754$ 5,780,370$ 5,401,473$ 846,199$
Less Than 12 Months More Than 12 Months
As of June 30, 2022, the Pool holds 156 debt securities in an unrealized loss position for less than twelve months
and 26 debt securities in an unrealized loss position for twelve months or greater. Based upon the evaluation of
the criteria as identified in Note A, the Pool does not consider these debt securities to be other than temporarily
impaired as of June 30, 2022.
Concentration of Credit Risk
Concentration of credit risk is related to the risk of loss that may be attributed to the magnitude of the Pool’s
investment in a single issue. The Pool’s investment in U.S. Treasury Notes represented 49% and 47% of the total
investments for the years ended June 30, 2022 and 2021, respectively.
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the center party, the Pool will not be able to
recover the value of its investments that are in possession of an outside party. At June 30, 2022 and 2021, all
investments were held in the Pool’s name by the Pool’s custodian.
Credit Risk
Credit risk is the risk that an issuer or other counterparts to an investment will not fulfill its obligations. The
Pool’s investment policy limits investments to those set forth in 14 VAC 5-360-50 of the Code of Virginia. The
Pool’s rated fixed income instruments as of June 30, 2022 and 2021 were rated by Moody’s.
- 17 -
81 144
Item b.
Notes to Financial Statements
Virginia Association of Counties Group
Self-Insurance Risk Pool
June 30, 2022 and 2021
Note D - Investments in Fixed Income and Equity Securities - Continued
The ratings of the investments in fixed income securities are presented using the Moody’s rating scale below and
are summarized as follows:
US Government Asset
Agency Backed Corporate
Moody's Credit Rating Obligations Securities Bonds Total
U.S. Government Agencies(Not Rated) $ 164,902$ $ 164,902$
Baa3 1,646,762 1,646,762
Baa2 5,818,075 5,818,075
Baa1 4,685,882 4,685,882
Aaa 50,830,753 1,763,204 52,593,957
Aa3 1,211,298 1,211,298
Aa2 4,683,066 4,683,066
Aa1 1,571,593 1,571,593
Ba1 546,125 546,125
A1 6,294,227 6,294,227
A2 13,016,293 13,016,293
A3 6,337,752 6,337,752
Total 50,830,753$ 164,902$ 47,574,277$ 98,569,932$
US Government Asset
Agency Backed Corporate
Moody's Credit Rating Obligations Securities Bonds Total
U.S. Government Agencies(Not Rated) $ 2,681,247$ $ 2,681,247$
BBB 14,240,308 14,240,308
Baa3 743,714 743,714
Baa2 1,848,201 1,848,201
Baa1 2,558,736 2,558,736
Aaa 50,358,091 2,966,028 1,504,705 54,828,824
A 21,986,343 21,986,343
AA 2,622,411 2,622,411
Aa1 606,685 606,685
A1 2,499,851 2,499,851
A2 489,474 489,474
A3 2,723,060 2,723,060
Total 50,358,091$ 5,647,275$ 51,823,488$ 107,828,854$
June 30, 2021
June 30, 2022
- 18 -
82 145
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note D - Investments in Fixed Income and Equity Securities - Continued
The following schedule summarizes the fair value hierarchy of investments:
As of June 30, 2022:
Level 1 Level 2 Level 3 Total
U.S. Treasuries $ 50,830,753$ $ 50,830,753$
Corporate Bonds 47,574,277 47,574,277
Equity Securities 4,164,654 4,164,654
Asset Backed Securities 164,902 164,902
Total 4,164,654$ 98,569,932$ $ 102,734,586$
As of June 30, 2021:
Level 1 Level 2 Level 3 Total
U.S. Treasuries $ 50,358,091$ $ 50,358,091$
Asset Backed Securities 5,647,275 5,647,275
Corporate Bonds 51,823,488 51,823,488
Total $ 107,828,854$ $ 107,828,854$
Investment Type
Investment Type
During the years ended June 30, 2022 and 2021, the Pool did not have any significant transfers between Level 1,
2, or 3. The Pool’s policy is to recognize transfers in and transfers out of all levels as of the end of the period.
Valuation Techniques
Investments in fixed income securities include corporate debt securities, U.S. Treasury obligations and U.S.
government agency debt securities. The estimated fair value of fixed income securities are based on prices
obtained from a third-party pricing service. Prices obtained from the third-party pricing service are determined
based on quoted market prices, or, in the absence of quoted market prices, dealer quotes or matrix pricing, all of
which are based on observable market-based inputs when available. Investments in fixed income securities are
classified as Level 2 investments in accordance with FASB ASC 820. Investments in equity securities are
classified as Level 1 investments in accordance with FASB ASC 820.
The method described above may produce a fair value calculation that may not be indicative of net realizable
value or reflective of future fair values. Furthermore, while the Pool believes its valuation methods are appropriate
and consistent with other market participants, the use of different methodologies or assumptions to determine the
fair values of certain financial instruments could result in a different fair value measurement at the reporting date.
- 19 -
83 146
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses
The following is information about incurred and paid loss development as of June 30, 2022, net of reinsurance, as
well as cumulative loss frequency and the total of incurred-but-not-reported liabilities plus expected development
on reported losses included within the net incurred loss amounts.
The information about incurred and paid loss development for the years ended June 30, 2013 to 2022, is presented
as supplementary information.
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 30,328$ 30,334$ 31,870$ 33,746$ 33,454$ 32,917$ 33,214$ 33,873$ 33,370$ 33,384$ 299$ 5,200
2014 30,487 33,855 33,845 37,741 38,138 39,243 40,483 39,996 40,014 806 6,477
2015 32,043 31,977 31,355 32,541 33,789 33,757 33,342 32,814 1,001 6,863
2016 33,315 34,657 36,562 37,203 38,077 37,403 37,291 1,808 7,206
2017 38,043 37,777 39,153 39,791 38,698 38,189 2,068 7,840
2018 41,462 39,473 43,442 44,220 44,406 3,863 8,116
2019 46,881 45,638 45,641 44,035 5,642 8,491
2020 45,830 42,407 40,695 7,619 7,474
2021 42,842 39,380 11,868 6,759
2022 58,595 26,334 8,265
Total 408,803$
* Presented as unaudited required supplementary information.
As of June 30, 2022
All Lines - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 20- 84 147
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
All Lines - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 14,497$ 21,894$ 25,686$ 28,596$ 29,157$ 30,428$ 30,281$ 30,964$ 31,861$ 32,327$
2014 11,588 24,624 29,527 33,224 33,615 36,024 38,473 37,713 38,058
2015 13,827 22,744 26,924 28,504 29,423 30,606 31,355 31,907
2016 12,763 25,399 30,120 32,441 34,045 33,710 34,606
2017 17,391 26,032 30,196 33,885 34,992 35,626
2018 17,975 28,009 33,090 36,631 38,701
2019 17,875 29,059 33,278 37,755
2020 15,549 25,878 31,164
2021 14,340 24,990
2022 21,658
Total 326,792
All outstanding liabilities before 2013, net of reinsurance 1,891
Liability for losses and loss adjustment expenses, net of reinsurance 83,902$
* Presented as unaudited required supplementary information.
- 21 -
85 148
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 2,019$ 2,101$ 1,893$ 1,979$ 1,837$ 1,733$ 1,998$ 1,988$ 1,993$ 1,998$ 1$ 332
2014 1,341 1,249 1,089 1,211 1,732 1,678 2,414 1,570 1,558 7 412
2015 1,661 1,412 1,402 1,431 1,394 1,284 1,191 1,169 11 543
2016 2,113 2,472 2,343 2,434 2,472 2,476 2,490 54 573
2017 2,382 2,119 2,028 1,894 1,851 1,877 78 532
2018 1,913 1,826 2,196 2,640 2,586 287 534
2019 2,000 2,196 3,266 2,942 552 533
2020 1,871 2,022 2,270 519 483
2021 2,912 2,710 1,450 417
2022 4,517 1,971 478
Total 24,117$
* Presented as unaudited required supplementary information.
Casualty - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 22 -
86 149
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 519$ 958$ 1,290$ 1,597$ 1,598$ 1,612$ 1,934$ 1,958$ 1,972$ 1,976$
2014 269 762 772 861 1,551 1,551 2,360 1,551 1,551
2015 517 818 954 1,119 1,151 1,158 1,158 1,158
2016 732 1,708 1,918 2,041 2,094 2,340 2,380
2017 844 1,459 1,533 1,600 1,672 1,792
2018 844 1,148 1,478 2,083 2,204
2019 612 1,282 1,401 2,314
2020 673 1,169 1,698
2021 998 1,227
2022 2,114
Total 18,414
All outstanding liabilities before 2013, net of reinsurance 31
Liability for losses and loss adjustment expenses, net of reinsurance 5,734$
* Presented as unaudited required supplementary information.
Casualty - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 23 -
87 150
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 3,968$ 3,740$ 3,625$ 3,628$ 3,628$ 3,728$ 3,728$ 3,728$ 3,728$ 3,728$ -$ 327
2014 3,476 4,148 4,158 4,160 4,161 4,161 4,161 4,161 4,161 - 353
2015 3,847 2,613 2,550 2,396 2,376 2,376 2,376 2,376 - 312
2016 2,863 2,562 2,372 2,372 2,367 2,366 2,368 - 340
2017 4,352 4,074 4,006 4,003 4,003 4,004 - 324
2018 3,952 4,267 3,931 3,933 3,941 - 389
2019 4,785 4,269 4,217 4,221 - 391
2020 4,081 3,470 3,477 12 324
2021 4,613 4,297 91 388
2022 7,264 1,102 342
Total 39,837$
* Presented as unaudited required supplementary information.
Property - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 24 -
88 151
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Property - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 2,709$ 3,484$ 3,620$ 3,628$ 3,628$ 3,728$ 3,728$ 3,728$ 3,728$ 3,728$
2014 1,968 4,022 4,155 4,160 4,161 4,161 4,686 4,161 4,161
2015 2,660 2,550 2,550 2,396 2,376 2,376 2,376 2,376
2016 1,639 2,562 2,372 2,371 2,367 2,366 2,368
2017 4,352 3,858 4,003 4,003 4,003 4,004
2018 4,352 4,106 3,931 3,931 3,941
2019 2,904 4,217 4,217 4,221
2020 2,246 3,200 3,455
2021 2,365 4,091
2022 3,757
Total 36,102
All outstanding liabilities before 2013, net of reinsurance -
Liability for losses and loss adjustment expenses, net of reinsurance 3,735$
* Presented as unaudited required supplementary information.
- 25 -
89 152
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 6,512$ 6,766$ 7,016$ 7,135$ 6,910$ 6,919$ 6,658$ 6,697$ 6,786$ 6,786$ -$ 1,393
2014 6,495 6,942 7,116 6,835 6,658 6,636 6,638 6,945 6,944 - 1,939
2015 8,078 7,978 7,380 6,932 6,924 7,040 6,985 7,117 8 2,277
2016 8,099 8,038 7,253 6,850 6,853 6,770 6,794 19 2,280
2017 9,047 8,247 8,154 8,090 7,949 7,908 47 2,471
2018 10,281 9,140 9,474 9,716 10,355 119 2,388
2019 9,930 9,693 9,023 9,358 217 2,575
2020 9,596 9,913 9,635 464 2,022
2021 8,557 7,792 772 1,972
2022 12,524 2,746 2,470
Total 85,213$
* Presented as unaudited required supplementary information.
Automotive - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 26 -
90 153
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 3,618$ 5,143$ 6,166$ 6,680$ 6,618$ 6,678$ 6,415$ 6,746$ 6,796$ 6,796$
2014 2,810 5,331 7,298 6,909 6,499 6,513 7,004 6,944 6,944
2015 4,604 5,900 6,130 6,483 6,528 6,758 6,781 6,804
2016 3,783 5,571 5,998 6,284 6,316 6,346 6,507
2017 5,166 5,973 6,478 7,664 7,771 7,777
2018 5,166 6,883 7,657 7,805 8,407
2019 6,127 7,840 8,268 9,607
2020 5,636 7,579 8,555
2021 5,614 6,755
2022 8,011
Total 76,163
All outstanding liabilities before 2013, net of reinsurance -
Liabilities for losses and loss adjustment expenses, net of reinsurance 9,050$
* Presented as unaudited required supplementary information.
Automotive - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 27 -
91 154
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 11$ 24$ 3$ 1$ 1$ 1$ 51$ 178$ 178$ 178$ -$ 6
2014 8 10 5 5 2 2 2 2 2 - 6
2015 - 39 6 6 6 6 6 6 - 4
2016 57 242 75 75 220 220 219 - 5
2017 26 53 25 25 25 30 - 3
2018 62 5 5 5 5 - 3
2019 59 321 330 330 - 12
2020 25 23 25 - 5
2021 72 72 - 3
2022 500 - 11
Total 1,367$
* Presented as unaudited required supplementary information.
Surety and Fidelity - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 28 -
92 155
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 4$ 24$ 3$ 1$ 1$ 1$ 51$ 178$ 178$ 178$
2014 3 5 5 5 2 2 2 2 2
2015 - 3 6 6 6 6 6 6
2016 - 242 75 75 220 220 219
2017 26 - 24 25 25 30
2018 26 5 5 5 5
2019 59 321 330 330
2020 5 23 25
2021 - 70
2022 500
Total 1,365
All outstanding liabilities before 2013, net of reinsurance -
Liability for losses and loss adjustment expenses, net of reinsurance 2$
* Presented as unaudited required supplementary information.
Surety and Fidelity - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 29 -
93 156
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 325$ 595$ 698$ 676$ 649$ 643$ 725$ 725$ 726$ 726$ -$ 51
2014 190 318 474 617 671 772 803 795 815 - 23
2015 167 468 809 1,020 887 1,121 1,122 1,014 - 29
2016 296 502 563 1,039 1,050 1,056 1,069 - 38
2017 330 471 603 1,002 996 1,042 - 36
2018 235 778 1,661 2,501 2,811 - 42
2019 307 1,073 2,345 2,618 - 44
2020 206 577 1,008 - 32
2021 557 1,078 - 49
2022 622 - 39
Total 12,803$
* Presented as unaudited required supplementary information.
Public Officals - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 30 -
94 157
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 150$ 442$ 582$ 602$ 649$ 627$ 725$ 725$ 726$ 726$
2014 59 211 353 617 606 727 734 740 749
2015 56 302 809 863 835 967 993 997
2016 144 502 464 921 978 1,006 1,033
2017 330 330 518 957 972 1,026
2018 330 530 1,473 2,337 2,622
2019 92 858 1,519 2,330
2020 79 467 877
2021 253 853
2022 283
Total 11,496
All outstanding liabilities before 2013, net of reinsurance 28
Liability for losses and loss adjustment expenses, net of reinsurance 1,335$
* Presented as unaudited required supplementary information.
Public Officials - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 31 -
95 158
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 1,200$ 391$ 826$ 1,624$ 2,100$ 1,750$ 1,559$ 1,721$ 1,534$ 1,509$ -$ 19
2014 640 450 225 1,355 1,950 2,283 2,400 2,408 2,434 58 8
2015 600 100 175 1,300 2,500 1,882 1,811 1,735 89 16
2016 150 100 750 1,500 1,237 1,190 1,151 83 13
2017 200 750 2,500 2,173 2,177 2,142 185 8
2018 750 750 2,156 1,935 1,778 787 17
2019 750 2,487 2,729 1,849 1,552 6
2020 3,256 3,190 2,262 2,091 6
2021 3,318 2,842 2,796 3
2022 3,402 3,347 4
Total 21,104$
* Presented as unaudited required supplementary information.
Line of Duty - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 32 -
96 159
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 93$ 123$ 178$ 484$ 36$ 744$ (7)$ 159$ 866$ 1,034$
2014 - 303 202 477 360 1,002 1,292 1,558 1,837
2015 2 - 116 149 588 800 1,019 1,232
2016 - 30 197 315 473 606 736
2017 - - 564 804 1,158 1,373
2018 - 92 431 586 817
2019 9 54 168 297
2020 - 77 170
2021 31 46
2022 55
Total 7,597
All outstanding liabilities before 2013, net of reinsurance 531
Liabilities for loss and loss adjustment expenses, net of reinsurance 14,038$
* Presented as unaudited required supplementary information.
Line of Duty - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 33 - 97 160
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
Cumulative
Number of
Total Reported
Accident For the Years Ended June 30, IBNR Losses*
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 16,293$ 16,717$ 17,809$ 18,703$ 18,329$ 18,143$ 18,495$ 18,836$ 18,425$ 18,459$ 298$ 3,072
2014 18,337 20,738 20,778 23,558 22,964 23,711 24,065 24,115 24,100 741 3,736
2015 17,690 19,367 19,033 19,456 19,702 20,048 19,851 19,397 893 3,682
2016 19,737 20,741 23,206 22,933 23,878 23,325 23,200 1,652 3,957
2017 21,706 22,063 21,837 22,604 21,697 21,186 1,758 4,466
2018 24,269 22,707 24,019 23,490 22,930 2,670 4,743
2019 29,050 25,599 23,731 22,717 3,321 4,930
2020 26,795 23,212 22,018 4,533 4,602
2021 22,813 20,589 6,759 3,927
2022 29,766 17,168 4,921
Total 224,362$
* Presented as unaudited required supplementary information.
Workers' Compensation - Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
As of June 30, 2022
- 34 -
98 161
Item b.
Notes to Financial Statements
Virginia Association of Counties Group Self-Insurance Risk Pool
June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
For the Years Ended June 30,
Accident
Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022
(in thousands)
2013 7,404$ 11,720$ 13,847$ 15,604$ 16,627$ 17,038$ 17,435$ 17,470$ 17,595$ 17,889$
2014 6,479 13,990 16,742 20,195 20,436 22,068 22,395 22,757 22,814
2015 5,988 13,171 16,359 17,488 17,939 18,541 19,022 19,334
2016 6,465 14,784 19,096 20,434 21,597 20,826 21,363
2017 6,673 14,412 17,076 18,832 19,391 19,624
2018 7,257 15,245 18,115 19,884 20,705
2019 8,072 14,487 17,375 18,656
2020 6,910 13,363 16,384
2021 5,079 11,948
2022 6,938
Total 175,655
All outstanding liabilities before 2013, net of reinsurance 1,301
Liability for losses and loss adjustment expenses, net of reinsurance 50,008$
* Presented as unaudited required supplementary information.
Workers' Compensation - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
- 35 -
99 162
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note E - Liability for Unpaid Losses and Loss Adjustment Expenses - Continued
The following is unaudited supplementary information about average historical loss duration as of June 30, 2022:
1 2 3 4 5 6 7 8 9 10
20.6% 22.0% 8.8% 3.9% 1.9% -0.4% 0.6% 0.0% 0.0% 0.0%
58.9% 20.4% 10.2% 6.0% 0.7% 0.4% 1.5% 1.5% 0.4% 0.0%
32.9% 24.0% 10.2% 14.0% 2.2% 12.4% 17.4% -16.9% 0.4% 0.2%
76.0% 20.5% 0.7% -0.9% -0.1% 0.5% 3.2% -4.2% 0.0% 0.0%
11.9% 20.5% -8.6% 0.0% 11.0% -0.1% -0.1% 0.0% 0.0% 0.0%
17.1% 27.4% 25.1% 26.7% 3.2% 6.5% 4.9% 0.4% 0.6% 0.0%
Line of Duty 0.3% 1.6% 8.8% 5.3% 7.2% 4.3% 2.8% 0.0% 0.0% 0.0%
All lines 40.7% 27.8% 11.9% 8.0% 2.5% 2.2% 2.9% 0.0% 0.4% 0.9%
Casualty
Property
Surety & Fidelity
Public Officials
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years
Workers' Compensation
Automotive
Activity in the liability for unpaid losses and loss adjustment expenses are summarized as follows:
2022 2021
Balance at beginning of period 80,226,389$ 78,763,978$
Less receivable from reinsurer 405,469 299,202
Net balance at beginning of period 79,820,920 78,464,776
Incurred related to:
Current year 58,595,822 42,842,673
Prior years (6,943,382) (5,318,122)
51,652,440 37,524,551
Paid related to:
Current year 21,657,724 14,340,645
Prior years 26,655,900 21,827,762
48,313,624 36,168,407
Net balance at end of year 83,159,736 79,820,920
Plus receivable from reinsurer 741,791 405,469
83,901,527$ 80,226,389$
June 30,
Balance at End of Year
As a result of changes in estimates of insured events in prior years, losses incurred decreased by approximately
$6,900,000 and $5,300,000 in 2022 and 2021, respectively. No individual events were responsible for a
significant portion of the changes. The portion of the liability to be paid within one year was estimated to be
$21,900,000 and $21,500,000 as of June 30, 2022 and 2021, respectively. This estimate is based on the Pool’s
past experience.
- 36 -
100 163
Item b.
Notes to Financial Statements Virginia Association of Counties Group Self-Insurance Risk Pool June 30, 2022 and 2021
Note F - Commitments and Contingencies
The Pool is involved in certain legal matters in the ordinary course of business. In management’s opinion, the
ultimate resolution of these matters will not have a material adverse effect on the Pool’s financial position, result
of operations or cash flows.
Note G - Letter of Credit
The Pool has an irrevocable letter of credit (LOC) with Pinnacle Financial Partners in the amount of $5,000,000.
The LOC shall secure any liability, known or contingent, which has occurred, accrued to or is incurred by
Mountain Reinsurance Company Limited, pursuant to Title 65.2 of the Code of Virginia, 1950 as amended, and
Virginia Code Title 38.2. The Pool is the beneficiary of the letter of credit. The LOC automatically renews for an
additional year unless the beneficiary is notified at least 60 days prior to the current expiration date. The LOC
automatically renewed on May 6, 2022 for an additional year.
Note H - Other
In December 2019, a novel strain of coronavirus (COVID-19) surfaced in Wuhan, China and has spread around
the world, with resulting business and social disruption. COVID-19 was declared a Public Health Emergency of
International Concern by the World Health Organization on January 30, 2020. The COVID-19 pandemic is
having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets,
and business practices. The Pool to date has not seen significant disruption or significant operational restrictions,
but the substantial uncertainty and the nature and degree of the pandemic and resulting effects over time could
result in disruption on the Pool’s ability to operate normally. Overall, the future impact of the pandemic with
respect to the Pool is difficult to predict and could adversely impact its overall operations in the future.
- 37 -
101 164
Item b.
Version date July 1, 2022
Coverage Contract for
SAMPLE MEMBER Any Street Any City, VA 00000
Service Provider:
Risk Management Programs, Inc. 1819 Electric Road, Suite C
Roanoke, VA 24018 844-986-2705
Member Services 888-822-6772
Claims Services www.vacorp.org
102 165
Item b.
Version date July 1, 2022
CONTRACT DECLARATIONS
Certificate Number: VA-00-000
Member: SAMPLE MEMBER
Contract Period: 07/01/2022 until cancelled
Effective Date: 12:01 a.m. Eastern Standard Time
Amount of Coverage: See Declarations Pages and Annual Coversheet to the Member Agreement
Form of Coverage: Manuscript
103 166
Item b.
Version date July 1, 2022
TABLE OF CONTENTS Section I Property
Section II General Liability
Section III Auto
Section IV Crime
Section V Public Officials Liability
(If endorsed and additional contribution paid) Section VI Cyber Risk
Section VII General Conditions
Section VIII Line of Duty Act
Section IV Security Risks
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Item b.
Version date July 1, 2022
SAMPLE MEMBER
VA-00-000
- SECTION I -
PROPERTY
Section A
DECLARATIONS PAGE
PLEASE READ THE ENTIRE CONTRACT CAREFULLY TO DETERMINE RIGHTS, DUTIES, AND WHAT IS AND IS NOT COVERED.
It is understood that certain limits and deductibles contained herein can change annually at the election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the
Coversheet to the Member Agreement supersede any contradictory limits and deductibles contained herein.
A. FUND LIMIT OF LIABILITY In no event shall the liability for loss under this Section I (Property) of this Contract arising out of any one Occurrence involving one or more Members exceed the Total Insurable
Value, nor shall liability exceed specific sub-limits of liability listed below.
B. LIMITS OF COVERAGE – For application of Limits of Coverage refer to Section O., Limits of Coverage in Section J (General Conditions):
LIMITS OF
COVERAGE
1. Buildings, per Member, in any one Occurrence:
Included means, included in the Limits of Coverage
Included
2. Business Personal Property, per Member, in any one
Occurrence:
Included means, included in the Limits of Coverage
Included
3. Electronic Data Processing Equipment and
Electronic Data Processing Data and Media, per
Member, in any one Occurrence:
$100,000 minimum or as Scheduled with the
Fund, whichever is greater
4.
Accounts Receivable, per Member in any one
Occurrence:
$100,000 minimum or as Scheduled with the
Fund, whichever is
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Item b.
Version date July 1, 2022
greater
5. Valuable Papers, per Member, in any one Occurrence: $100,000 minimum or as Scheduled with the
Fund, whichever is
greater
6. Fine Arts, per Member, in any one Occurrence: $10,000,000 minimum or as Scheduled with
the Fund, whichever is greater
7. Vehicular Bridges, in any one Occurrence regardless of the number of Members involved, of:
$10,000,000
Subject to a maximum Annual Aggregate for all vehicular bridge losses covered under this Contract, regardless of the number of Members involved, of: $20,000,000
Pedestrian Bridges Included
Included means, included in the Limits of Coverage
8. Newly Constructed or Acquired Property, at any one building, per Member, in any one Occurrence: Number of days :120
$25,000,000
9. Outdoor Property including Debris Removal, per
Member, in any one Occurrence:
$5,000,000
10. Covered Property at Undescribed Premises, per
Member, in any one Occurrence: $10,000,000
11. Covered Property in Transit, regardless of the number of Members involved, in any one Occurrence of: $5,000,000
12. Debris Removal (additional), regardless of the number of
Members involved, in any one Occurrence of: $25,000,000
106 169
Item b.
Version date July 1, 2022
13. Pollutant Cleanup and Removal, aggregate in any one
Contract year, per Member, for all losses covered under this Contract, commencing with the inception date of this Contract occurring at all Member Premises: Subject to a maximum Annual Aggregate for all Pollutant Cleanup and Removal losses covered under this
Contract, commencing with the inception date of this
Contract, regardless of the number of Members involved, of: If more than one Annual Aggregate Limit applies in any
one Occurrence, the most the Fund will pay is the highest involved Annual Aggregate Limit. The most the
Fund will pay during each annual period is the largest of
the Annual Aggregate Limits shown.
$500,000
$500,000
14. Ordinance or Law
Loss to Undamaged Portion, per Member, in any one
Occurrence: $20,000,000
Demolition, per Member, in any one Occurrence: Included
Increased Cost of Construction, per Member, in any one
Occurrence: Included
Subject to a maximum for all loss or damage for
Ordinance or Law, regardless of the number of
Members involved, in any one Occurrence of: $20,000,000
Included means, included in the Limit shown for Loss to the Undamaged Portion
15. Cost of Excavations, Grading, Backfilling and Filling, per
Member, in any one Occurrence: Subject to a maximum for all cost of Excavations,
Grading, Backfilling and Filling, regardless of the number of Members involved, in any one Occurrence of:
$500,000
$500,000
107 170
Item b.
Version date July 1, 2022
16. Underground Property Consisting of Tanks, Pipes,
Flues, Drains or Tunnels per Member, in any one
Occurrence:
Subject to a maximum for all loss or damage to underground pipes, flues, drains or tunnels, regardless
of the number of Members involved, in any one
Occurrence of:
$500,000
$500,000
17. Business Income, per Member, in any one
Occurrence:
$100,000 minimum or as Scheduled with the
Fund, whichever is greater
Rental Value, per Member, in any one Occurrence:
Ordinary Payroll Excluded
Extended Business Income or Rental Value at 60 days. Civil Authority up to 30 consecutive days.
Included under
Business Income
18. Extra Expense, per Member, in any one Occurrence: Civil Authority up to 30 consecutive days.
Included under
Business Income
19. Earthquake, Volcanic Eruption, Landslide, and Mine
Subsidence - aggregate in any one Contract year, per
Member, for all losses covered under this Contract, commencing with the inception date of this Contract, occurring at all Member Premises: $100,000,000
Subject to a maximum aggregate for all Earthquake, Volcanic Eruption, Landslide, and Mine Subsidence losses covered under this Contract, commencing with
the inception date of this Contract, regardless of the number of Members involved, of: $100,000,000
If more than one Annual Aggregate Limit applies in any one Occurrence, the most the Fund will pay is the highest involved Aggregate Limit. The most the Fund
will pay during each annual period is the largest of the Annual Aggregate Limits shown.
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Item b.
Version date July 1, 2022
20. Flood - aggregate in any one Contract year, per
Member, for all losses covered under this Contract, commencing with the inception date of this Contract: Occurring at all Member Premises, except this
Contract does not cover Flood loss occurring wholly or partially within Special Flood Hazard Areas, areas of 100 Year Flooding, as defined by the Federal Emergency Management Agency.
$100,000,000
Subject to a maximum aggregate for all Flood losses covered under this Contract, commencing with the inception date of this Contract, regardless of the number of Members involved, of: If more than one Annual Aggregate Limit applies in any one Occurrence, the most the Fund will pay is the highest involved Annual Aggregate Limit. The most the
Fund will pay during each annual period is the largest of the Annual Aggregate Limits shown.
$100,000,000
21. Sewer Back Up, per Member, in any one Occurrence: $10,000,000
22. Contractors Equipment:
a. Reported Contractors Equipment per Member:
b. Unreported Contractors Equipment per Member, maximum in any one Occurrence:
c. Newly Acquired Contractors Equipment per
Member, in any one Occurrence:
As Scheduled with the
Fund
$500,000
$500,000
23. Utility Services Time Element, per Member, in any one
Occurrence: $5,000,000
24. Piers, Wharves, Docks
a. Losses caused by a Specified Cause of Loss except wind and water, per Member, in any one
Occurrence:
b. Losses caused by windstorm and water, per
Member, in any one Occurrence:
$100,000 minimum or as Scheduled with the
Fund, whichever is
greater
$100,000 maximum regardless of amount Scheduled with the
Fund
109 172
Item b.
Version date July 1, 2022
25.
Mobile Communications and Radio Equipment, specific
amounts of coverage apply, per item, as per schedule on file with the Fund, not to exceed in any one
Occurrence:
$500,000 minimum or
as Scheduled with the Fund, whichever is greater
26. Equipment Breakdown Coverage, in any one Accident $100,000,000
27. Equipment Breakdown, Service Interruption, per Member, in any one Occurrence:
$1,000,000
28. Equipment Breakdown, Spoilage Damage, per Member,
in any one Occurrence: $ 250,000
29. Equipment Breakdown, Data Restoration, per Member, in any one Occurrence:
$ 100,000
30. Equipment Breakdown, Demolition, per Member, in any one Occurrence: $1,000,000
31. Equipment Breakdown, Ordinance or Law, per Member, in any one Occurrence: $1,000,000
32. Equipment Breakdown, Newly Acquired Property Number of days: 90
$1,000,000
33. Equipment Breakdown, Expediting Expenses $500,000
34. Equipment Breakdown, Hazardous Substance $250,000
C. DEDUCTIBLES: For application of Deductibles refer to Section B. (Application of Deductibles) in Section J (General Conditions)
1. By Earthquake, Volcanic Eruption, Landslide and Mine
Subsidence in any one Occurrence: As respects Business Income, the deductible is
included in the Occurrence deductible. As respects Rental Value, the deductible is included in
the Occurrence deductible.
As respects Extra Expense, the deductible is included in
the Occurrence deductible.
$25,000
110 173
Item b.
Version date July 1, 2022
2. By Flood, in any one Occurrence:
As respects Business Income, the deductible is included in the Occurrence deductible. As respects Extra Expense, the deductible is included in the Occurrence deductible. As respects Rental Value, the deductible is included in the Occurrence deductible.
$25,000
3. Equipment Breakdown: $1,000
4. To any other cause of loss, in any one Occurrence: $1,000
D.
VALUATION PROVISION: Replacement Cost applies as per Section K (Replacement Cost) unless otherwise
specified.
111 174
Item b.
Version date July 1, 2022
PROPERTY COVERAGE
Section B
Various provisions in this Contract restrict coverage. Read the entire Contract carefully to
determine rights, duties and what is and is not covered. Words and phrases that appear in bold have special meaning; refer to Section 1 (Property) G. (Definitions) in this Section B (Property Coverage) and Section VII (General Conditions).
A. COVERAGE AGREEMENT
The Fund will pay for direct physical loss or damage to Covered Property at Premises as described in the most recent Statement of Values or other documentation on file with the
Fund, caused by or resulting from a Covered Cause of Loss. Covered Cause of Loss means risks of direct physical loss unless the loss is excluded in this Section B. (Property Coverage), D. (Exclusions); limited in E. (Limitations); or excluded or limited in Section I (Property) Declarations Page or by endorsements.
B. COVERAGE
Coverage is provided for Covered Property and Covered Costs and Expenses, as described in Section I (Property) B.1. (Covered Property) and B.2. (Covered Costs and
Expenses), for which the Member has an insurable interest, unless excluded in this Section C. (Property and Costs Not Covered) or Section D (Exclusions). Coverage applies only when a Limit of Coverage is shown in the Declarations Page for the specific type of
Covered Property or Covered Costs and Expenses, except for items in this Section B.2. (Covered Costs and Expenses) a.(Debris Removal), c. (Fire Department Service Charge), d. ((Fire Protective Equipment Discharge), e. (Ordinance or Law), f. (Preservation of Property),
g. (Protection of Property), h. (Water, Other Liquids, Powder or Molten Material Damage) which do not require a specific Limit of Coverage to be shown.
1. COVERED PROPERTY
a. Building(s) means the buildings or other structures at the Member’s premises, in which the Member has an insurable interest, including:
(1) Completed additions;
(2) Fixtures, including outdoor fixtures;
(3) Machinery and equipment permanently attached to the building; and
(4) If not covered by other coverage and reported to the Fund within 120 days:
(a) New construction, alterations and repairs to buildings or structures; and
(b) Materials, equipment, supplies and temporary structures, on or within 1,000 feet of the Member’s Premises, used for construction, alterations or repairs to buildings or structures.
Building(s) do not include Outdoor Property except as provided in Section B.1. h. (Outdoor Property) of this Section I (Property).
b. Business Personal Property, in which the Member has an insurable interest, located in or on the buildings at the Member’s Premises or in the open within 1,000 feet of
the Member’s Premises or in a vehicle, means the following unless otherwise specified in the Declarations Page:
(1) Furniture and fixtures;
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Item b.
Version date July 1, 2022
(2) Machinery and equipment;
(3) Stock;
(4) All other personal property owned by the Member and used in the Member’s business;
(5) Labor, materials, or services furnished or arranged by the Member on personal
property of others;
(6) The Member’s use interest as tenant in improvements and betterments. Improvements and betterments are fixtures, alterations, installations, or
additions:
(a) Made a part of the buildings or structures occupied or leased, but not owned, by the Member; and
(b) Acquired or made at the Member’s expense but which the Member is not permitted to remove; and
(7) Personal Property of Others (including the Member’s employees) used in the
Member’s business that is in the care, custody, or control of the Member or for which the Member has agreed in writing to insure prior to any loss or damage. However, payment by the Fund for loss or damage to Personal Property of Others will only be for the account of the owner of the property.
Business Personal Property does not include:
(a) Electronic Data and Media except as provided in Section B.1.c. (Electronic
Data and Media);
(b) Accounts Receivable except as provided in Section B.1.d. (Accounts Receivable);
(c) Valuable Papers except as provided in Section B.1.e. (Valuable Papers and
Records); or
(d) Fine Arts except as provided in Section B.1.f.
c. Electronic Data and Media This Contract is extended to cover direct physical loss or damage to Electronic Data
and Media by a Covered Cause of Loss. However, the Fund shall not be liable for any loss or damage arising out of Unauthorized Access, Unauthorized Use, Denial
of Service Attack, Malicious Code, Magnetic Damage to Electronic Data and
Media or Vandalism and Malicious Mischief.
d. Accounts Receivable This coverage applies to direct physical loss or damage by a Covered Cause of
Loss to the accounts receivable records of the Member while at or within 1,000 feet
of the Member’s Premises, including records stored on Electronic Data and
Media. Credit card fund charge records will be considered accounts receivable records until delivered to the credit card fund.
(1) The Fund will pay:
(a) Amounts due the Member from customers that the Member is unable to collect because of loss or damage to the Member’s accounts receivable
records;
(b) Interest charges on any loan required to offset amounts the Member is unable to collect because of loss or damage to the Member’s accounts
receivable records, pending the Fund’s payment of these amounts;
(c) Collection expenses in excess of the Member’s normal collection expenses that are made necessary by the loss; and
113 176
Item b.
Version date July 1, 2022
(d) Other reasonable expenses that the Member incurs to re-establish the
Member’s records of accounts receivable.
(2) The following additional exclusions apply to accounts receivable: The Fund will not pay for loss or damage caused by or resulting from any of the following:
(a) Bookkeeping, accounting, or billing errors or omissions; and
(b) Alteration, falsification, erasure, manipulation, concealment, destruction or disposal of records of accounts receivable committed to conceal the wrongful
giving, taking, obtaining, or withholding of money, securities or other property but only to the extent of such wrongful giving, taking, obtaining, or withholding.
(3) The Fund will not pay for loss or damage that requires an audit of records or any inventory computation to prove its factual existence.
(4) In the event the Member cannot accurately establish the amount of Accounts receivable outstanding as of the time of loss, the following method will be used:
(a) The Fund will determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss occurs;
(b) The Fund will adjust the total for any normal fluctuations in the amounts of
accounts receivable for the month in which the loss occurred or for any demonstrated variance from the average for that month; and
(c) The following will be deducted from the total amount of Accounts receivable,
however that amount is established:
(i) The amount of the accounts for which there is no loss;
(ii) The amount of the accounts that the Member is able to reestablish or
collect;
(iii) An amount to allow for probable bad debts that the Member is normally unable to collect; and
(iv) All unearned interest and service charges.
e. Valuable Papers and Records This coverage applies to direct physical loss or damage by a Covered Cause of
Loss to Valuable Papers and Records while at or within 1,000 feet of the
Member’s Premises. Coverage does not apply to Valuable Papers and Records that exist on Electronic Data and Media.
f. Fine Arts This coverage applies to direct physical loss or damage by a Covered Cause of
Loss to Fine Arts while at or within 1,000 feet of the Member’s Premises.
However, no coverage is provided for breakage unless such breakage is caused by a Specified Cause of Loss. The Fund shall not be liable for loss or damage resulting from restoring, repairing, or retouching Fine Arts.
g. Newly Constructed or Acquired Property This coverage applies to direct physical loss or damage by a Covered Cause of
Loss to:
(1) New buildings while being built on the Member’s Premises or on a newly acquired location including materials, equipment, supplies, and temporary
structures which are at or within 1,000 feet of the Member’s Premises;
(2) Buildings newly acquired by the Member at locations other than the Member’s
Premises;
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(3) Buildings the Member becomes newly required to insure under a written contract;
(4) Personal Property of a type covered under this Contract at or within 1,000 feet of a newly constructed building or a newly acquired location;
(5) Additional expenses which are incurred by the Member for the purpose of
continuing as nearly as practicable the scheduled progress of undamaged work, but only when such scheduled progress is impaired by direct physical loss or damage by a Covered Cause of Loss to new buildings, structures, and/or
additions while in the course of construction. Coverage for each newly constructed or acquired property will end when any of the
following first occurs:
(1) This Contract is cancelled or expires;
(2) 120 days expire after the Member acquires or begins to construct the building(s);
(3) The Member reports the new values to the Fund; or
(4) The property is more specifically covered elsewhere. If the total replacement cost value of any one newly constructed or acquired building or of personal property at any one newly acquired building or location is less than or
equal to $500,000, the Fund will not charge the Member additional contribution for coverage provided under this Contract during the current Contract Period. For all other buildings or personal property at any one newly acquired building or location
the Fund will charge the Member additional contribution for values reported from the date construction begins or the Member acquires the property.
h. Outdoor Property This coverage applies to direct physical loss or damage to Outdoor Property located within 1,000 feet of the Member’s Premises.
This coverage also applies to the necessary and reasonable expense incurred by the
Member to remove debris of Outdoor Property at the Member’s Premises caused by or resulting from a Covered Cause of Loss that occurs during the Contract
Period. Such expenses will be paid only if reported to the Fund in writing within 180 days of the date of direct physical loss or damage. This will not increase the Limit of Coverage that applies to Outdoor Property.
i. Covered Property At Undescribed Premises This coverage applies to direct physical loss or damage by a Covered Cause of
Loss to:
(1) Covered Property at an Exhibition including while in transit to and from the
Exhibition site. Coverage for this property applies worldwide except within any country on which the United States government has imposed sanctions,
embargoes or any other similar prohibitions.
(2) Covered Property that will or has become a permanent part of an installation project being performed for others by the Member, or on the Member’s behalf,
while such property is at the installation premises or at other premises where the property is temporarily stored. Coverage for this installation property applies only within the Contract Territory and will apply only until the Member’s interest in the
property ceases, the installation is accepted, the installation is abandoned, or this
Contract is cancelled or expires, whichever occurs first.
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(3) Covered Property at any other premises within the Contract Territory which are not otherwise covered under this Contract, and which the Member does not
own, lease or regularly operate. This Coverage does not apply to personal effects of officers and employees of the Member.
j. Covered Property in Transit This coverage applies to direct physical loss or damage by a Covered Cause of
Loss to Covered Property in due course of transit at the risk of the Member between points within the Contract Territory, including inland and coastal waters and air space.
This Coverage will attach when the Covered Property leaves the initial point of shipment and will continue until the property is delivered at its destination provided that the original point of shipment and the point of destination are within the Coverage Territory.
In the event the Covered Property is not deliverable or is rejected by the consignee, such property will be covered while in due course of transit back to the Member and while temporarily being held by the receiver or carrier awaiting its return to the
Member. The Fund will also pay for:
(1) Any general average or salvage charges incurred by the Member with respect to losses to waterborne shipments.
(2) The Member’s contingent interest in shipments sold on a F.O.B. (Free On
Board) basis but only in the event that any loss recoverable hereunder is not collectible from the consignee or any other coverage.
(3) Loss of Covered Property occasioned by the unintentional acceptance of
fraudulent bills of lading, shipping receipts or messenger receipts by the Member or any agent, customer or consignee of the Member. This Coverage does not apply to:
(1) Shipments by a government postal service except by registered mail;
(2) Shipments made by air unless via regularly scheduled passenger airlines or air freight carriers;
(3) Any export shipment once the earlier of the following occurs:
(a) The shipment is placed on the export conveyance; or
(b) Coverage under an Ocean Marine or other coverage contract covering the shipment begins;
(4) Any import shipment until the later of the following occurs:
(a) The shipment is unloaded from the importing vessel or conveyance; or
(b) Coverage under an Ocean Marine or other coverage contract covering the
shipment ends;
(5) Property of others for which the Member is responsible while acting as a common or contract carrier, freight forwarder, freight consolidator, freight broker
or public warehouseman; or
(6) Personal effects of officers and employees of the Member or to Covered
Property in due course of transit to or from an Exhibition.
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k. Covered Property Overseas The Fund will pay for direct physical loss or damage to Covered Property by a
Covered Cause of Loss while in the custody of any employee of a Member while temporarily traveling outside of the Contract Territory. But this Coverage does not apply to Covered Property at, or in due course of transit to or from, an Exhibition.
Section I (Property) B.1. i. (Covered Property At Undescribed Premises) and B.1.j. (Covered Property in Transit), are each subject to the applicable Limit specified in
the Declarations Page for the coverage, but in no event will the Fund pay more for loss or damage to any type of Covered Property than the amount that would have been paid if the loss or damage had occurred at or within 1000 feet of the Member’s
Premises.
2. COVERED COSTS AND EXPENSES
a. Debris Removal
(1) The Fund will pay the necessary and reasonable expense incurred by the
Member to remove debris of Covered Property from the Member’s Premises, other than Outdoor Property, caused by or resulting from direct physical loss or damage from a Covered Cause of Loss that occurs during the Contract
Period. Such expenses will be paid only if reported to the Fund in writing within 180 days of the date of direct physical loss or damage. Coverage for the expense to remove debris of Outdoor Property is provided separately under
Section B.1.h. of this Coverage Form.
(2) For this Debris Removal Coverage, the Fund will pay up to 25% of:
(a) The amount the Fund pays for the direct physical loss or damage to the
Covered Property; plus
(b) The deductible in this Contract applicable to that direct physical loss or damage.
This limit is part of, and not in addition to, the Limit of Coverage that applies to the lost or damaged Covered Property. But if: (i) The sum of direct physical loss or damage and debris removal expense exceeds the Limit of Coverage; or
(ii) The debris removal expense exceeds the above 25% limitation; and (iii) A Limit of Coverage is specified in the Declarations Page for Debris Removal (additional); The Fund will also pay an additional amount, up to the Limit of Coverage
specified in the Declarations Page, for Debris Removal (additional).
(3) In no event will this Debris Removal Coverage apply to:
(a) Costs to extract Pollutants from land or water; or
(b) Costs to remove, restore or replace polluted land or water.
b. Pollutant Cleanup and Removal
The Fund will pay the necessary and reasonable expense incurred by the Member to extract Pollutants from land or water at the Member’s Premises if the discharge, dispersal, seepage, migration, release or escape of the Pollutants is caused by or
results from a Specified Cause of Loss which occurs during the Contract Period. Such expenses will be paid only if reported to the Fund in writing within 180 days of
the date on which the Specified Cause of Loss occurs.
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This Coverage does not apply to costs to test for, monitor or assess the existence, concentration, or effects of Pollutants. But the Fund will pay for testing which is
performed in the course of extracting the Pollutants from the land or water. The most the Fund will pay under this Coverage for the sum of all covered expenses
arising out of all Specified Cause of Loss Occurrences that occur during each separate 12 month period of this Contract is the Limit of Coverage specified for Pollutant Cleanup and Removal shown in the Declarations Page.
c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a
Covered Cause of Loss, the Fund will pay for any fire department service charges incurred by the Member that are:
(1) Assumed by contract or agreement prior to loss;
(2) Required by local ordinance. There is no coverage for any costs incurred as a result of a false alarm.
d. Fire Protective Equipment Discharge If fire protective equipment discharges accidentally or to control a Covered Cause of
Loss, the Fund will pay the Member’s cost to:
(1) Refill or recharge the system with the extinguishing agents that were discharged; and
(2) Replace or repair faulty valves or controls that caused the discharge.
e. Ordinance or Law
In the event of direct physical loss or damage by a Covered Cause of Loss to
Covered Property, the Fund will pay for:
(1) The loss to the undamaged portion of a covered building caused by the
enforcement of any ordinance or law that:
(a) Requires the demolition of parts of the same property not damaged by a
Covered Cause of Loss;
(b) Regulates the construction or repair of buildings, or establishes zoning or land use requirements at the Member’s Premises; and
(c) Is in force at the time of loss. The most the Fund will pay for loss or damage under this portion of Ordinance or Law is the Limit of Coverage specified for Ordinance or Law – Undamaged
Portion shown in the Declarations Page.
(2) The cost to demolish and clear the site of undamaged parts of the covered building caused by the enforcement of building, zoning or land use ordinance or
law. The Fund will not pay more for loss or damage under this portion of Ordinance or Law than the lesser of:
(a) The amount the Member actually spends to demolish and clear the site; or
(b) The Limit of Coverage specified for Ordinance or Law – Demolition shown in the Declarations Page.
(3) The increased cost to repair, rebuild, or construct the Covered Property caused by enforcement of building, zoning, land use, or any other ordinance or law when the Covered Property is scheduled for replacement cost. If the covered building
is repaired or rebuilt, it must be intended for similar occupancy as the current building, unless otherwise required by zoning or land use ordinance or law.
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The Fund will not pay for increased construction costs until the Covered
Property is actually repaired or replaced, at the same location or elsewhere; and unless the repairs or replacement are made as soon as reasonably possible after the loss or damage but not to exceed 2 years. The Fund may extend this period
in writing during the 2 years. The most the Fund will pay for loss or damage under this portion of Ordinance or
Law is the increased cost of construction repair or replacement:
(a) Of a building of the same size and at the same Premises, or another
Premises if required by the ordinance or law; and
(b) Limited to the minimum requirements of such ordinance or law regulating the repair or reconstruction of the damaged property on the same site. Not to exceed the Limit of Coverage specified for Ordinance or Law – Increased Cost of Construction shown in the Declarations Page.
(4) Ordinance or Law Coverages do not apply to:
(a) Vacant properties;
(b) Any loss due to the Member’s failure to comply with any ordinance or law that the Member was required to comply with before the loss, even if the
Covered Property was undamaged; and
(c) Costs associated with the enforcement of any ordinance or law that requires the Member or others to test for, monitor, clean up, remove, contain, treat,
detoxify or neutralize, or in any way respond to, or assess the effects of
Pollutants.
f. Preservation of Property If it becomes necessary to move Covered Property from a covered Premises to preserve it from loss or damage by a Covered Cause of Loss, the Fund will pay for:
(1) The necessary and reasonable expenses actually incurred by the Member to remove the Covered Property from a covered Premises and to move the
Covered Property back to covered Premises; and
(2) Any direct physical loss or damage to Covered Property while it is being moved from covered Premises, while temporarily stored at another location or while it is being moved back to covered Premises. However, this Coverage will apply only if the loss or damage occurs within 90 days
after the property is first moved and will cease when the Contract is amended to provide coverage at the new location, the property is returned to the existing location, or this Contract is cancelled or expires, whichever occurs first.
g. Protection of Property The Fund will pay the necessary and reasonable expenses actually incurred by the
Member to temporarily safeguard Covered Property against the threat of imminent direct physical loss or damage by a Specified Cause of Loss. This Coverage does not apply to any expenses to which the above Preservation of Property coverage
applies.
h. Water, Other Liquids, Powder or Molten Material Damage
If covered loss or damage caused by or resulting from water or other liquid, powder, or molten material damage occurs, the Fund will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or
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appliance from which the water or other substance escapes. When a Limit of Coverage is specified in the Declarations Page for Water, Other
Liquids, Powder or Molten Material Damage, that Limit of Coverage is the most the
Fund will pay under this Coverage.
C. PROPERTY AND COSTS NOT COVERED Unless the following property or costs are added by endorsement to this Coverage Form,
Covered Property and Covered Costs and Expenses do not include:
1. Currency, deeds or other evidences of debt, money, notes, checks, drafts, or securities stamps, furs, jewelry, precious metals, precious stones and semi-precious stones. This
exclusion does not apply to precious metals and precious or semi-precious stones used by the Member for industrial purposes;
2. Contraband or property in the course of illegal transportation or trade;
3. Water whether in its natural state or otherwise, above or below ground, watercourses, aquifers, or the cost of reclaiming or restoring water, except water which is normally contained within any type of tank, piping system or other process equipment covered by
this Contract;
4. Land whether in its natural state or otherwise (including land on which the property is
located), land values, land improvements, grain, hay straw or other harvested crops while outside of buildings, growing crops or standing timber, however, this Contract does cover the following:
a. Any manmade: dams, dikes, levees, aqueducts and other surface containments, if values for such structures are reported to the Fund; an
b. Fill beneath any buildings or structures;
5. The cost of excavations, grading, backfilling or filling; however, the Fund will pay the cost of excavations, grading, backfilling or filling that is necessarily incurred by the
Member in the repair or replacement of loss or damage to Covered Property by a
Covered Cause of Loss. The most the Fund will pay for all such costs arising out of one Occurrence is the Limit of Liability for Cost of Excavations, Grading, Backfilling, and Filling shown in Section I (Property), Section A (Declarations Page);
6. Property sold by the Member under an installment plan, conditional sale, trust agreement, or other deferred payment plan after delivery to the purchasers;
7. Vehicles or self-propelled machines that:
a. Are licensed for use on public roads; or
b. Are operated principally away from the covered Premises;
8. Aircraft or watercraft (except watercraft less than 51 feet in length); For purposes of this exclusion, unmanned aerial vehicles, commonly known as drones, owned by the Member,
are covered;
9. Live animals or birds;
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10. Brick, stone, or concrete foundations or other supports which are below the undersurface of the lowest basement floor of each building or section, or when there is
no basement, which are below the surface of the ground;
11. Bridges, roadways, walks, paving, and retaining walls over 1000 feet from the Member’s
Premises; however, the Fund will pay for loss or damage to Outdoor Property in any one Occurrence up to the Limit of Liability for Outdoor Property as shown in Section I (property), Section A (Declarations Page);
12. Bulkheads, pilings, piers, wharves, docks, dikes, dams, canals, sea walls, or vehicular bridges not included in the statement of values; however, the Fund will pay for loss or
damage to piers, wharves, and docks in any one Occurrence up to the Limit of Liability for Piers, Wharves, and Docks as shown in Section I (Property), Section A (Declarations Page); for vehicular bridges scheduled with the Fund, the Fund will pay for loss or damage up to $10,000,000 per any one Occurrence;
13. Underground property consisting of caverns or mining shafts, and any property contained therein all whether or not connected to a Member’s Premises insured herein; however, the Fund will pay for direct physical loss or damage to the following
underground property consisting of tanks, pipes, flues, drains, or tunnels, when
connected to buildings, at the Member’s Premises or within a 1,000 feet thereof, caused by or resulting from a Covered Cause of Loss. This coverage is limited to the
direct physical loss or damage to the underground property consisting of tanks, pipes, flues, drains, or tunnels and does not include coverage for any contents or property contained therein which are specifically excluded. The most the Fund will pay for direct
physical loss or damage to underground property consisting of tanks, pipes, flues, drains, or tunnels in any one Occurrence is the Limit of Liability for Underground Property consisting of Tanks, Pipes, Flues, Drains or Tunnels as shown in Section I
(Property), Section A (Declarations Page);
14. Any Electronic Data and Media which is obsolete or unused by the Member;
15. Property that is covered under another coverage form or endorsement of any other contract, insurance or self-insurance in which it is more specifically described, except for any amount in excess of the limits of the other coverage (whether the Member can collect on it or not);
16. Any of the specific types of Covered Property described in Sections B.1.a. (Buildings) through B.1.k. (Covered Property Overseas) of this Section I (Property) B. (Property
Coverage) for which a Limit of Coverage is not shown in the Declarations Page; or
17. Any of the following Covered Costs and Expenses for which a Limit of Coverage is not
shown in the Declarations Page:
a. Pollutant Clean Up and Removal, as described in Section B.2.b. (Pollution Clean Up and Removal);
b. Ordinance or Law, as described in Section B.2.e. (Ordinance or Law).
18. Transmission and distribution lines of every type and description, except when located
on or within 1,000 feet of the Member’s Premises;
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D. PERILS EXCLUDED
1. The Fund will not pay for loss or damage caused directly or indirectly by any of the
following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area.
a. Earth Movement
(1) Any earth movement (other than Sinkhole Collapse) including earthquake, mine subsidence, landslide, erosion, the expansion or contraction of soil due to the presence of moisture or water, or the lack thereof, tsunamis and any other earth sinking, rising, shifting, or movement, all whether naturally occurring or due to manmade or other artificial causes. . But if earth movement results in fire or explosion, the Fund will pay for the direct
physical loss or damage to Covered Property caused by that fire or explosion.
(2) Volcanic eruption, explosion, or effusion. But if volcanic eruption, explosion, or
effusion results in Volcanic Action or fire, the Fund will pay for the direct physical loss or damage to Covered Property caused by that Volcanic Action or fire.
All Volcanic Action that results from all volcanic eruptions or explosions that occur within any continuous 72 hour period will constitute a single Occurrence.
b. Flood Flood meaning:
(1) Surface water, underground water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not;
(2) Mudslide or mudflow;
(3) Release of water impounded by a dam; and
(4) Water or sewage which backs up through sewers, drains, or sumps. This exclusion will not apply to direct physical loss or damage from resulting fire, explosion, or leakage from fire protective equipment; however, the Fund will be liable
only for such resulting physical loss or damage.
c. Governmental Action
Seizure or destruction of property by order of governmental authority except as provided for under the Covered Costs and Expenses, Section B.2.e. (Ordinance or Law).
But the Fund will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Form.
d. Nuclear Hazard Nuclear reaction or nuclear radiation, or radioactive contamination however caused, all whether direct or indirect, controlled or uncontrolled, proximate or remote, or contributed to or aggravated by a Covered Cause of Loss.
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This exclusion will not apply to direct physical loss or damage by:
(1) Fire resulting from nuclear reaction or nuclear radiation, or radioactive
contamination; or
(2) Sudden and accidental radioactive contamination, including resultant nuclear radiation damage to Covered Property provided:
(a) Such radioactive contamination arises out of material at the Member’s
Premises;
(b) Such radioactive material is kept at a Member’s Premises for the purpose of
the Member’s operations; and
(c) At the time of such loss at the Member’s Premises there is neither a nuclear reactor capable of sustaining nuclear fission in a self-supporting chain
reaction, nor any new or used nuclear fuel which is intended for or which has been used in a nuclear reaction on the Member’s Premises. But the most the Fund will pay for Sudden and Accidental Radioactive Contamination as provided in d. (2)(a), (b) and (c) above is the specified Limit of Coverage shown in Section I (Property) A. (Declarations Page). This is not additional coverage.
e. War and Military Action
(1) Hostile or warlike action in time of peace or war, whether or not declared, including action in hindering, combating, or defending against an actual,
impending, or expected attack:
(a) By any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval, or air forces;
(b) By military, naval, or air forces; or
(c) By an agent of any such government, power, authority or forces.
(2) Insurrection, rebellion, revolution, civil war, usurped power, seizure, destruction,
or any action taken by governmental authority in hindering, combating, or defending against such an Occurrence.
(3) Any discharge, explosion, or use of any weapon of war employing nuclear fission or fusion will be conclusively presumed to be such a hostile or warlike action by such a government, power, authority, or forces.
(4) Any weapon employing atomic fission, fusion or radioactive force, or any weapon that disperses radioactive material or a directed-energy or electromagnetic weapon, whether in time of peace or war, whether or not its discharge was
accidental.
f. Computer Virus
Loss or damage due to any Unauthorized Access, Unauthorized Use, Malicious
Code, Magnetic Damage to Electronic Data and Media, Denial of Service
Attack or other similar peril affecting Electronic Data and Media or the access to
or use of computer hardware, software or other components thereof; all unless direct physical loss or damage not otherwise excluded by this Contract ensues, in which event, the Fund shall cover only such ensuing loss or damage.
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g. Programming Errors or Omissions Error or omission in machine programming or instructions of Electronic Data and
Media, including, loss attributable to program design constraints, networking compatibility, and original business software; all unless direct physical loss or damage not otherwise excluded by this Contract ensues, in which event, the Fund
shall cover only such ensuing loss or damage.
h. Ordinance or Law The enforcement of any ordinance or law:
(1) Regulating the construction, use or repair of any property; or
(2) Requiring the tearing down of any property, including the cost of removing its debris; except as provided in the Covered Costs and Expenses, item B.2.e.
(Ordinance or Law). The Ordinance or Law exclusion applies whether the loss results from an ordinance or law that is enforced even if the property has not been damaged; or from the increased costs incurred to comply with an ordinance or law in the course of construction, remodeling or demolition of property, or removal of its debris, following a physical loss to that property.
i. Off Premises Utility Services
The interruption, failure or fluctuation of power or other utility service(s) provided to covered Premises if the cause of the interruption, failure or fluctuation occurs off a covered Premises.
This exclusion will not apply in the event the interruption, failure, or fluctuation of power or other utility service(s) results in a Covered Cause of Loss; however, the
Fund will be liable only for such resulting loss or damage.
j. Collapse of Buildings
Collapse of buildings means an abrupt falling down or caving in of a building or substantial portion of a building with the result being that the building or substantial portion of a building cannot be occupied for its intended purpose.
(1) This exclusion will not apply if caused by one or more of the following:
(a) A Specified Cause of Loss;
(b) Decay or insect or vermin damage that is hidden from view, unless the presence of such decay or insect or vermin damage is known to the Member prior to collapse;
(c) Weight of people or personal property;
(d) Weight of rain that collects on a roof;
(e) Use of defective material or methods in construction, remodeling or
renovation if the collapse occurs during the course of construction, remodeling, or renovation; or
(f) Use of defective material or methods in construction, remodeling, or
renovation if the collapse occurs after construction, remodeling, or renovation is complete and is caused in part by a cause of loss listed in j. (Collapse of Buildings) (1) (a) through (d) above.
In the event collapse results in a Covered Cause of Loss, the Fund will be liable only for such resulting loss or damage by that Covered Cause of Loss.
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(2) A building or portion of a building that is in imminent danger of abruptly falling down or caving in or suffers a substantial impairment of structural integrity is not
considered a collapse but is considered to be in a state of imminent collapse.
(3) With respect to buildings in a state of imminent collapse, the Fund will not pay for loss or damage unless the state of imminent collapse first manifests itself during
the Contract Period and is caused only by one or more of the following which occurs during the Contract Period:
(a) Fire; lightning; explosion; windstorm or hail; Aircraft or vehicles; riot or civil
commotion; Sinkhole Collapse; weight of snow, ice, or sleet;
(b) Weight of people or personal property;
(c) Weight of rain that collects on a roof; or
(d) Use of defective material or methods in construction, remodeling, or renovation if the state of imminent collapse occurs during the course of construction, remodeling or renovation.
k. Removal of asbestos material, except this exclusion does not apply to asbestos material when such material is part of Covered Property which sustains direct physical loss or damage caused by a Specified Cause of Loss at the Member
Premises.
l. Lack of:
(1) Incoming electricity, gas, fuel, steam, water or refrigeration;
(2) Cloud Computing Service or data, voice or video service; or
(3) Outgoing sewerage.
m. Any functioning or malfunctioning or lack of:
(1) internet or similar facility; or
(2) Any intranet or private network, computer system, computer or computing
device or similar facility; However, if direct physical loss or damage to Covered Property at a Member
Premises from a Specified Cause of Loss ensues, this Contract shall cover such ensuing loss or damage.
n. Equipment Breakdown of: (1) vehicles, draglines or excavation or construction equipment; or (2) any equipment on the foregoing.
o. Costs, expenses, fines or penalties incurred or sustained by or imposed on the
Member at the order of any government agency, court or other authority arising from
any cause whatsoever.
p. Loss or damage arising out of any Covered Cause of Loss, or Additional
Coverages for which the words NOT COVERED is shown in the Declaration Pages.
q. Mechanical or machinery breakdown, including rupture or bursting caused by
centrifugal force. Explosion of steam boilers, steam pipes, steam engines, or steam turbines owned or leased by the Member, or operated under the Member’s control.
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With respect to Electronic Data and Media, only Exclusions D.1.a. through g. and D.1.i. apply. With respect to Accounts Receivable, and Valuable Papers and Records, only
exclusions D.1.a. through g. apply. With respect to Property in the due course of transit, Exclusions D.1.a. and D.1.b. do not apply.
2. The Fund will not pay for loss or damage caused by or resulting from any of the following:
a. Artificially generated electric current, including electric arcing, that disturbs electrical
devices, equipment, appliances or wires. But in the event artificially generated electric current results in fire or explosion, the
Fund will be liable only for such resulting loss or damage.
This exclusion does not apply with respect to Electronic Data Processing
Equipment and Electronic Data Processing Data and Media.
(1) Indirect, remote, or consequential loss or damage; delay, loss of use or loss of market, or interruption of business.
(2) Delay, loss of market, or loss of use.
b. (1) Wear and tear or depletion;
(2) Rust, corrosion, erosion, decay, deterioration, wet or dry rot, inherent vice hidden or latent defect, or any quality in the property that causes it to damage or destroy
itself;
(3) Fungus, Mold or Spore; or any spores or toxins created or produced by or emanating from such Fungus, Mold, or Spore;
(4) Settling, cracking, shrinking, bulging, or expansion of pavements, foundations, walls, floors or ceilings;
(5) Animal, insect, or vermin damage;
(6) Hydrostatic, pneumatic or gas pressure test of any boiler or pressure vessel, or an electrical insulation breakdown test to any type of electrical equipment;
(7) Faulty workmanship, material, construction, installation or design from any
cause; and
(8) The following causes of loss to personal property:
(a) Dampness or dryness of atmosphere, including, but not limited to, damage from changes in relative humidity;
(b) Changes in or extremes of temperature;
(c) Changes in flavor, color, texture or finish; and
(d) Contamination, evaporation or leakage.
However, in the event an excluded cause of loss that is listed in 2.c. (1) through (6) above results in a Specified Cause of Loss, the Fund will pay for the loss or damage caused by that Specified Cause of Loss.
c. But if explosion of steam boilers, steam pipes, steam engines, or steam turbines results in fire or combustion explosion, the Fund will pay for loss or damage caused by that fire or combustion explosion. The Fund will also pay for loss or damage
caused by or resulting from the explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass.
d. Dishonest or criminal act by the Member, any of the Member's employees (including leased employees), elected officials, volunteers, non-compensated officials, authorized representatives or anyone (other than a carrier for hire or bailee) to whom
the Member entrusts the property for any purpose:
(1) Acting alone or in collusion with others; and
(2) Whether or not occurring during the hours of employment.
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This exclusion does not apply to acts of destruction by the Member’s employees, (including leased employees) but theft by the Member’s employees (including
leased employees) is not covered.
e. Rain, snow, sand, dust, ice, or sleet to personal property in the open (other than to property in the custody of a carrier for hire).
f. The cost of correcting or making good the damage to personal property attributable to such property being processed, manufactured, tested, or otherwise being worked upon.
g. The actual, alleged or threatened discharge, dispersal, seepage, migration, release, or escape of Pollutants or Contaminants all whether direct or indirect, proximate or remote or in whole or in part caused by, contributed to or aggravated by any
Covered Cause of Loss under this Contract, unless the discharge, dispersal, seepage, migration, release, or escape is itself caused by a Specified Cause of
Loss. But in the event the discharge, dispersal, seepage, migration, release, or escape of Pollutants results in a Specified Cause of Loss, the Fund will be liable only for such resulting direct physical loss or damage caused by that Specified
Cause of Loss including the cost to clean-up Pollutants or Contaminants from
Covered Property at the Member Premises, resulting from such loss or damage. No coverage is provided for testing or monitoring for Pollutants or
Contaminants. For the purpose of the exception to this exclusion only, Pollutants
or Contaminants do not include radioactive contaminants.
h. Voluntary parting with title or possession of any property by the Member or anyone
else to whom the Member has entrusted the property, including voluntary parting which is the result of larceny, false pretenses, or any other similar act.
i. Accumulated effects of smog, smoke, vapor, liquid, or dust.
j. If the building or leased Premises where loss or damage has occurred has been
Vacant for more than 60 consecutive days before that loss or damage occurs, the
Fund will not pay for any loss or damage caused by sprinkler leakage. Buildings
under construction or renovation are not considered Vacant.
k. Continuous or repeated seepage, leakage, or flow of water that occurs over a period of 14 consecutive days or more.
l. Mysterious disappearance or loss or shortage disclosed by audit or upon taking inventory or by a profit and loss statement or other instances where there is no physical evidence to show what happened to the property.
With respect to accounts receivable, Valuable Papers and Records, Electronic Data
Media only the following in Section I (Property) B. (Property Coverage)
a. (Exclusions) 2 apply:
(1) Exclusions c. (1), c. (6) (a) and c. (6) (b); but if mechanical breakdown not otherwise excluded results, the Fund will pay for that resulting loss or damage by
mechanical breakdown; and
(2) Exclusions b., e., g., and i.
3. The Fund will not pay for loss or damage caused by or resulting from any of the following:
a. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in D.1 above to produce the loss or damage.
b. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body.
c. Faulty, inadequate, or defective:
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(1) Planning, zoning, development, surveying, siting;
(2) Design, specifications, workmanship, repair, construction, renovation,
remodeling, grading, compaction;
(3) Materials used in repair, construction, renovation, or remodeling; or
(4) Maintenance;
Of part or all of any property on or off a covered Premises. However, in the event an excluded cause of loss that is listed in 3.a. through 3.c. above
results in a Covered Cause of Loss, the Fund will pay only for such resulting loss or damage.
E. LIMITATIONS
1. The Fund will not pay for loss of or damage to property, as described and limited in this section. In addition, the Fund will not pay for any loss that is a consequence of loss or damage as described and limited in this section.
a. Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment. But the Fund will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or
fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass.
b. Hot water boilers or other water heating equipment caused by or resulting from any
condition or event inside such boilers or equipment, other than explosion.
2. The Fund will not pay the cost to repair any defect to a system or appliance from which
water, other liquid, powder, or molten material escapes. But the Fund will pay the cost to repair or replace damaged parts of the fire extinguishing equipment if the damage:
a. Results in discharge of any substance from an automatic fire protections system; or
b. Is directly caused by freezing.
F. DEDUCTIBLES When a deductible(s) is shown in the Declarations Page, refer to Section I (Property) J. (General Conditions) B. (Application of Deductibles).
G. DEFINITIONS
1. Aircraft or Vehicle Impact means physical contact of an Aircraft including a drone, spacecraft, self-propelled missile, or objects falling there from, or of a vehicle or an object thrown up by a vehicle.
2. Cloud Computing Service means a service: (i) in the business of storing, managing and processing electronic data for which the Member has a written contract and (ii) that provides access to and use of: software and/or a network of remote servers to store, manage or process such data hosted away from the Member’s Premises.
3. Corruption, Erasure or Alteration means Electronic Data and Media that has been
corrupted, destroyed or deleted such that the Electronic Data and Media can no longer be accessed or used for its intended purpose.
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4. Covered Cause of Loss means a peril or other type of loss, not otherwise excluded under this Contract.
5. Denial of Service Attack means an attack that sends an excessive volume of electronic data to computer hardware, software, or any components thereof which
prevents those who are authorized to do so from gaining access to or using such computer hardware, software or any components thereof.
6. Electronic Data and Media consists of:
a. Electronic Data, meaning data, messages, information, coding, programs, instructions, or software stored in a form suitable for communications, storage or
processing by electronic, electromechanical, electromagnetic data processing, or electronically controlled production equipment; and
b. Media, meaning the electronic storage media upon which Electronic Data is stored and includes, but is not limited to means electronic data processing equipment, facsimile machines, word processors, multi-functional telephone equipment, and laptop and portable computers; related surge protection devices; and their component parts and peripherals used solely for data processing operations. Electronic Data and Media does not include Valuable Papers and Records.
7. Exhibition means the temporary display of personal property at a convention, exposition, trade show, or similar event at a location not owned or regularly occupied by the
Member.
8. Fine Arts means paintings, etchings, pictures, tapestries, rare or art glass, art glass
windows, valuable rugs, statuary, sculptures, marbles, bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass, bric-a-brac, and similar property of rarity, historical value, or artistic merit.
9. Finished Stock means goods manufactured by the Member that in the ordinary course of the Member’s business are in their completed state and ready for sale.
Finished Stock does not include goods manufactured by the Member that are held for sale on the premises of any retail outlet covered under this Coverage Contract.
10. Fire Protection Equipment includes tanks, water mains, hydrants or valves, and any other equipment whether used solely for fire protection or jointly for fire protection
and for other purposes, but does not include:
a. Branch piping from a joint system where such branches are used entirely for purposes other than fire protection;
b. Any underground water mains or appurtenances located outside of the Member
Premises and forming a part of the public water distribution system; or
c. Any pond or reservoir in which the water is impounded by a dam.
11. Leakage From Fire Protection Equipment means direct physical loss or damage from:
a. Water or other substances discharged from within any part of t he Fire
Protection Equipment for the Member Premises or for any adjoining locations; and/or
b. Collapse or fall of tanks forming a part of the Fire Protection Equipment or
the component parts or supports of such tanks.
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12. Magnetic Damage to Electronic Data and Media means the Corruption, Erasure
or Alteration of Electronic Data and Media through magnetism of any kind or
description from any source.
13. Malicious Code means a corrupting or a harmful piece of code which infiltrates computer hardware, software, or any components thereof.
14. Occurrence shall mean any one loss, disaster, casualty, incident or series of losses, disasters, or casualties, or incidents, including all resultant or concomitant covered losses, not otherwise excluded by this Contract arising out of one event. When the term applies to loss or losses from the perils of tornado, cyclone, hurricane, windstorm, hail, flood, earthquake, volcanic eruption, riot, riot attending a strike, civil commotion, vandalism, and malicious mischief, or terrorism, one event shall be construed to be all losses arising during a continuous period of 72 hours. When filing the Proof of Loss the
Member may elect the moment at which the continuous 72 hour period shall be deemed to have commenced, which may not be earlier than the time when the first loss to
Covered Property occurs.
15. Outdoor Property means retaining walls not part of a building, lawns (including fairways, greens and tees), trees, shrubs, plants, bridges (excluding vehicular bridges),
walkways, roadways, patios or other paved surfaces, including the fill beneath such paved surfaces.
16. Pollutants or Contaminants means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, waste,
which after its release can cause or threaten damage to human health or human welfare or causes or threatens damage, deterioration, loss of value, marketability, or loss of use to property covered hereunder, including, but not limited to, bacteria,
virus, or hazardous substances listed in applicable environmental state, federal or foreign law or regulation, or as designated by the U.S. Environmental Protection Agency or similar applicable state or foreign governmental authority. Waste includes
materials to be recycled, reconditioned, or reclaimed. Pollutants or Contaminants does not include Fungus, Mold, or Spore.
17. Raw Stock means material in the state in which the Member receives it for conversion by the Member into Stock in Process or Finished Stock.
18. Riot, Strike, or Civil Commotion means riot or civil commotion including, but not limited to:
a. Acts of striking employees while occupying a Member’s Premises; and
b. Pilferage or looting occurring at the time and place of a riot or civil commotion.
19. Sinkhole Collapse means the sudden sinking or collapse of land into underground
empty spaces created by the action of water on limestone or dolomite. This cause of loss does not include:
a. The cost of filling sinkholes; or
b. Sinking or collapse of land into manmade underground cavities.
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20. Specified Cause of Loss means any of the following: Fire; lightning; explosion; windstorm or hail; smoke; Aircraft or vehicle impact, or vessels; Riot, Strike or Civil
Commotion; Vandalism and Malicious Mischief; collapse or leakage from fire extinguishing equipment; Sinkhole Collapse; Volcanic Action; falling objects; weight of snow, ice, or sleet; or water damage.
a. Falling objects does not include loss or damage to:
(1) Personal property in the open; or
(2) The interior of a building, or property inside a building, unless the roof or an
outside wall of the building is first damaged by a falling object.
b. Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of any part of a system or appliance
(other than a sump system including its related equipment and parts) containing water or steam.
c. Loss due to vessels does not include damage by vessels due to flood or rising waters.
21. Stock means merchandise held in storage or for sale, Raw Stock, Stock in Process, or
Finished Stock including supplies used in their packing or shipping.
22. Stock in Process means Raw Stock which has undergone any aging, seasoning, mechanical, or other process of manufacturing but which has not become Finished
Stock.
23. Total Insurable Values is the total values for all categories of Covered Property and other covered exposure at each location as reported to us on the Statement of Values.
24. Unauthorized Access means the gaining of access to computer hardware, software or any components thereof by an unauthorized person.
25. Unauthorized Use means the use of computer hardware, software or any components thereof by any person in an unauthorized manner.
26. Vacant means a building that does not contain adequate Covered Property to conduct
customary business operations, but Covered Property is not considered Vacant any time period when customary business operations are suspended due to circumstances that are usual to such business operations.
27. Valuable Papers and Records means documents that are written, printed, or otherwise
inscribed. These include:
a. Books, manuscripts, abstracts, maps, and drawings; film and other photographically produced records, such as slides and microfilm;
b. Legal and financial agreements such as deeds and mortgages;
c. Addressograph plates;
d. Any electronically produced data such as printouts, punched cards, tapes, or discs.
Valuable Papers and Records does not include money and securities and converted data, programs or instructions used in data processing operations, including the
materials on which the data is stored, Fine Arts or Electronic Data and Media.
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28. Vandalism and Malicious Mischief means willful and malicious damage to, or destruction of, Covered Property.
Vandalism and Malicious Mischief does not include loss or damage caused by or resulting from theft, except for real property loss or damage caused by the breaking or
exiting of burglars.
29. Volcanic Action means direct loss or damage resulting from the eruption of a volcano
when the loss or damage is caused by:
a. Airborne volcanic blast or airborne shock waves;
b. Ash, dust or particulate matter; or
c. Lava flow
Volcanic Action does not include the cost to remove ash, dust, or particulate matter that does not cause direct physical loss or damage to the Covered Property.
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BUSINESS INCOME COVERAGE EXCLUDING EXTRA EXPENSE
Section C
Various provisions in this Contract restrict coverage. Read the entire Contract carefully to
determine rights, duties and what is and is not covered. Words and phrases that appear in bold have special meaning; refer to Section I (Property) G. (Definitions) in this Section C. (Business
Income Coverage Excluding Extra Expense) and to Section I (Property) G. (Definitions) in the
Property Coverage Section B (Property Coverage) and Section VII (General Conditions).
A. COVERAGE
The Fund will pay for the actual loss of Business Income and/or Rental Value sustained by the Member due to the necessary Suspension of the Member’s Operations during the
Period of Restoration directly resulting from a Covered Cause of Loss to Covered
Property at Member’s Premises. The Suspension must be caused by direct physical loss or damage to property, including personal property in the open within 1,000 feet at the
Member’s Premises or in a vehicle:
1. Which are described in the most recent Statement of Values or Business Income Work
Sheet(s) or other documentation on file with the Fund; and
2. For which a value for the exposure at the Premises to which this coverage applies has been reported.
The loss or damage must be caused by or result from a Covered Cause of Loss. Covered
Cause of Loss means risks of direct physical loss unless the loss is excluded in this Section
C. (Business Income Coverage Excluding Extra Expense) C. (Exclusions); limited in Section C. (Business Income Coverage Excluding Extra Expense) D. (Limitations); or excluded or limited in Section I (Property) Declarations Page or by endorsements.
Coverage is provided as described below only when a Limit of Coverage is shown for the specified coverage in the Declarations Page. 1. Business Income
Business Income means the Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred by the Member; and continuing normal operating expenses incurred by the Member. But Business Income does not include Rental
Value. Continuing normal operating expenses incurred by the Member exclude Ordinary
Payroll Expenses. The Fund will pay for those continuing fixed charges and expenses, excluding Ordinary Payroll Expenses, directly attributable to Research and
Development activities even if the activities would not have produced income during the
Period of Restoration.
2. Rental Value
Rental Value means the:
a. Total anticipated rental income;
b. Amount of all charges which are the legal obligation of the tenant(s) and which would
otherwise be the obligation of the Member; and
c. Fair rental value of any portion of the Member’s Premises that is occupied by the
Member;
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less any operating expenses that do not continue from tenant occupancy of the Premises as furnished and equipped by the Member.
B. ADDITIONAL COVERAGE EXTENSIONS—Each of the following Additional Coverage Extensions applies only when a Limit of Coverage is shown in the Declarations Page
except for items 1., 2., 3.,7., and 8. which do not require a specific Limit of Coverage to be shown:
1. Civil Authority The coverage provided by this Contract is extended to apply to such loss of Business
Income or Rental Value incurred by the Member caused by the action of civil authority
that prohibits access to the Member’s Premises due to direct physical loss or damage to property, other than at the Member’s Premises, caused by or resulting from a
Covered Cause of Loss. Coverage for Business Income and/or Rental Value will begin 72 hours after the time of the civil authority action and will then apply for a period of up to 30 consecutive days. No other hour deductible applicable to Business Income and/or Rental Value applies to this coverage.
2. Extended Business Income or Rental Value If the necessary Suspension of the Member’s Operations produces a Business
Income or Rental Value loss payable under this Contract, the coverage provided by this
Contract is extended to apply to such loss of Business Income or Rental Value incurred by the Member during the period that:
a. Begins on the date property (except Finished Stock) is actually repaired, rebuilt or replaced and Operations are resumed or tenantability is restored; and
b. Ends on the earlier of:
(1) The date the Member could restore Operations, with reasonable speed, to the level which would generate the Business Income amount or Rental Value amount that would have existed if no direct physical loss or damage had occurred; or
(2) 60 consecutive days after the date determined in 2.a. above. However, this Additional Coverage Extension does not apply to loss of Business Income or Rental Value incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the Member’s Premises are located. Loss of Business Income or Rental Value must be caused by direct physical loss or
damage to property at the Member’s Premises, the Premises of a Dependent Property, newly acquired Premises, or undescribed Premises, all only as covered under this
Contract, caused by or resulting from a Covered Cause of Loss.
The expiration date of this Contract will not cut short the extended Business Income or Rental Value period of coverage.
3. Dependent Property The coverage provided by this Contract is extended to apply to such loss of Business
Income or Rental Value incurred by the Member during the Period of Restoration due to
direct physical loss or damage by a Covered Cause of Loss to property at the Premises of a Dependent Property within the Contract Territory.
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This Additional Coverage Extension does not apply to Dependent Property for which the
Member has more specific coverage either under this Contract or another.
4. Ordinance or Law – Increased Period of Restoration
a. If a Covered Cause of Loss occurs to property at the Member’s Premises, the
Period of Restoration is increased to include the additional period of Suspension of
Operations caused by or resulting from the enforcement of any ordinance or law that:
(1) Regulates the construction, repair or replacement of any property;
(2) Requires the tearing down or replacement of any parts of property not damaged by a Covered Cause of Loss; and
(3) Is in force at the time of loss.
b. Coverage under this Additional Coverage Extension applies only to the increased period required to repair or replace the property to comply with the minimum requirements of the ordinance or law.
c. Under this Additional Coverage Extension, the Fund will not pay for:
(1) Any loss due to any ordinance or law that:
(a) The Member was required to comply with before the loss, even if the property was undamaged; and
(b) The Member failed to comply with.
(2) Costs associated with the enforcement of any ordinance or law which requires any Member or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of
Pollutants.
5. Newly Acquired Premises
a. The coverage provided by this Contract is extended to apply to such loss of Business
Income or Rental Value incurred by the Member during the Period of Restoration due to direct physical loss or damage by a Covered Cause of Loss to property within
the Contract Territory at any:
(1) Premises newly acquired by the Member; and
(2) Premises the Member becomes newly required to insure under a written contract.
b. Coverage under this Additional Coverage Extension for each premise will end when any of the following first occurs:
(1) This Contract is cancelled or expires;
(2) 120 days expire after the Member acquires or begins to construct the property or
is required to insure the property;
(3) The Member reports the new Premises to the Fund; or
(4) The Business Income or Rental Value is more specifically covered elsewhere.
c. If the total replacement cost value of any one newly constructed or acquired building or of personal property at any one newly acquired building or location is less than or equal to $500,000, the Fund will not charge the Member additional contribution for
coverage provided under this Contract during the current Contract period. For all other buildings or personal property at any one newly acquired building or location the Fund will charge the Member additional contribution for values reported from the
date construction begins or the Member acquires the property. 6. Un-described Premises
The coverage provided by this Contract is extended to apply to such loss of Business
Income or Rental Value incurred by the Member during the Period of Restoration due to direct physical loss or damage by a Covered Cause of Loss to the Covered
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Property, as described in the Property Coverage Form, while at an Un-described
Premises. Un-described Premises means Premises not owned, leased, or regularly
operated by the Member. Covered Property at an Un-described Premises does not include:
a. Property at the Premises of Dependent Property;
b. Property in due course of transit; or
c. Property at any Premises outside of the Contract Territory. But this exclusion does not apply to Covered Property at an Exhibition, unless the Exhibition is within any
country on which the United States government has imposed sanctions, embargoes or any other similar prohibitions.
7. Expenses to Reduce Loss The Fund will pay reasonable and necessary expenses incurred by the Member, except the cost of extinguishing a fire, to reduce the amount of loss under this coverage form. The total of the Fund’s payment for Business Income or Rental Value loss and expenses to reduce loss will not be more than the Business Income or Rental Value loss that would have been payable under this coverage form if the expenses to reduce loss had not been incurred. This coverage does not increase the Limit of Coverage for either Business Income or Rental Value.
8. Claim Data Expense This coverage applies to the reasonable expenses incurred by the Member in preparing
claim data when required by the Fund. This includes the cost of preparing income statements and other documentation to show the extent of loss. The Fund will not pay for any expenses incurred, directed, or billed by or payable to coverage adjusters or their
associates or subsidiaries, or any costs as provided in Section I (Property) J. (General Conditions), C. (Appraisal).
C. EXCLUSIONS
1. All of the exclusions contained in Section I (Property) Section B. (Property Coverage) D. (Exclusions) apply to this coverage form except:
a. Exclusion 1.h. (Ordinance or Law) is amended by the addition of the following: This exclusion does not apply to the Ordinance or Law – Increased Period of
Restoration Additional Coverage Extension.
b. Exclusion 1.i. (Off Premises Utility Services) is replaced by the following: The interruption, failure or fluctuation of power or other utility service(s) provided to the Member Premises if the cause of the interruption, failure or fluctuation occurs
outside a building at the Member’s Premises. This exclusion will not apply in the event the interruption, failure, or fluctuation of power or other utility service(s) results in a Covered Cause of Loss; however, the
Fund will pay only for such resulting loss.
c. Exclusion 2.b., Indirect or remote loss or damage; delay, loss of use, or loss of market; or interruption of business, does not apply to the extent coverage is
specifically provided under this coverage form.
2. In addition, the Fund will not pay for:
a. Any loss caused by or resulting from:
(1) Damage or destruction of Finished Stock; or
(2) The time required to reproduce Finished Stock.
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b. Any loss caused by or resulting from direct physical loss or damage to outdoor trees, shrubs, plants, or lawns (including fairways, greens and tees); growing crops; standing
timber; land; water; or radio or television antennas (including microwave satellite dishes), and their lead-in wiring, masts, or towers.
c. Any loss or damage to property while in due course of transit.
d. Any increase of loss caused by or resulting from:
(1) Delay in rebuilding, repairing or replacing the property or resuming Operations due to interference at the location of the rebuilding, repair, or replacement by
strikers or other persons; or
(2) Any license, lease or contract which is suspended, lapses, or is cancelled. But if the license, lease or contract is suspended, lapses, or is cancelled as the direct
result of the Suspension of Operations, the Fund will cover such loss that affects the Member’s Business Income or Rental Value during the Period of
Restoration and the period of Extended Business Income or Rental Value.
e. Any extra expense, except as provided in the Expenses to Reduce Loss Additional Coverage Extension.
f. Notwithstanding any other provision of this Contract to the contrary, the Fund does not cover any loss, cost, damage, or expense arising out of, attributable to, or occurring concurrently or in any sequence with a communicable disease.
As used herein, communicable disease means any infectious or contagious substance:
(1) Including, not limited to, a virus, bacterium, parasite or other organism or any
mutation thereof, whether deemed living or not, and
(2) Regardless of the method of transmission, whether direct or indirect, including, but not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid, or gas or between humans, animals, or from any animal to any human or from any human to any animal, that can cause or threaten damage to human health or human welfare or causes or
threatens damage, deterioration, loss of value, marketability, or loss of use to tangible or intangible property covered hereunder.
For avoidance of doubt, no coverage extension, additional coverage, global extension, exception to any exclusion or other coverage grant shall afford any coverage that would otherwise be excluded through this exclusion. For further
avoidance of doubt, loss, cost, damage, or expense includes any cost to clean-up, detoxify, remove, monitor, or test:
(a) for a communicable disease; or
(b) any tangible or intangible property covered hereunder that is affected by such
communicable disease.
g. Any other consequential loss.
D. LIMITATIONS Section D., Exclusions, of the Property Coverage Form, 2. e., which limits the amount the
Fund will pay for theft loss to specified types of personal property, does not apply to this coverage form. All other limitations contained in Section E. of the Property Coverage Form apply to this coverage form. In addition, the following limitation applies:
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Limitation – Electronic Data Processing Data and Media The Fund will not pay for any loss of Business Income or Rental Value caused by direct
physical loss or damage to Electronic Data Processing Data and Media after the longer of:
1. 60 consecutive days from the date of direct physical loss or damage; or
2. The period, beginning with the date of direct physical loss or damage, necessary to repair, rebuild, or replace, with reasonable speed and similar quality, other property at the covered Premises which suffered loss or damage in the same Occurrence.
E. DEDUCTIBLES
When a deductible(s) is shown in Section I (Property) Declarations Page, refer to J. (General Conditions) B. (Application of Deductibles).
F. ADDITIONAL CONDITION
The following condition applies in addition to the conditions contained in Section I (Property) J. (General Conditions) and Section VII (General Conditions).
Loss Determination
1. The amount of Business Income or Rental Value loss will be determined based on:
a. The Net Income or Rental Value of the business before the direct physical loss or
damage occurred;
b. The likely Net Income or Rental Value of the business if no direct physical loss or damage occurred, but not including any likely increase in Net Income or Rental Value
attributable to an increase in the volume of business as a result of favorable business conditions caused by the impact of the Covered Cause of Loss on customers or on other businesses;
c. The operating expenses, including Ordinary Payroll Expenses to the extent covered, necessary to resume Operations with the same quality of service that existed just before the direct physical loss or damage; and
d. Other relevant sources of information, including:
(1) The financial records and accounting procedures of the Member;
(2) Bills, invoices, and other vouchers; and
(3) Deeds, liens, contracts, or leases.
2. The Fund will reduce the amount of the Member’s Business Income or Rental Value loss, to the extent the Member can resume Operations in whole or in part, by using:
a. Damaged or undamaged property (including merchandise or Stock) at the Member’s
Premises or elsewhere; or
b. Any other available sources of materials or outlets for the Member’s products.
3. If the Member intends to continue the Member’s business, the Member must resume
Operations, in whole or in part, as quickly as possible. If the Member does not resume
Operations, or does not resume Operations as quickly as possible, the Fund will pay
based on the length of time it would have taken to resume Operations as quickly as possible.
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G. DEFINITIONS
The following definitions are in addition to those contained in the Property Coverage Form:
1. Dependent Property means property operated by others that the Member depends on to:
a. Supply materials or services to the Member, or to others for the account of the
Member (Contributing Locations). With respect to Contributing Locations, services do not mean utility services including but not limited to water supply services,
communication supply services, or power supply services supplying electricity, steam, or gas;
b. Accept the Member’s products or services (Recipient Locations);
c. Manufacture products for delivery to the Member’s customers under contract of sale (Manufacturing Locations); or
d. Attract customers to the Member’s business (Leader Locations).
2. Exhibition means the temporary display of personal property at a convention, exposition, trade show or similar event at a location not owned or regularly occupied by the Member.
3. Operations means:
a. The Member’s business activities occurring at the Member’s Premises; and
b. The tenantability of the Member’s Premises when coverage for Rental Value
applies.
4. Ordinary Payroll Expenses means payroll expenses for all employees of the Member
except: Elected Officials; Department Managers; Employees under contract; and any Additional Exemptions for which coverage is added by endorsement for specific Job Classifications or Employees.
Ordinary Payroll Expenses include:
a. Payroll;
b. Employee benefits, if directly related to payroll;
c. FICA and Medicare payments;
d. Union dues; and
e. Worker's compensation contributions.
5. Period of Restoration
a. Except as provided in paragraphs b. and c. below, Period of Restoration means the period of time that:
(1) Begins with the date and time of direct physical loss or damage to property at the covered Premises caused by or resulting from a Covered Cause of Loss; and
(2) Ends on the earlier of the following:
(a) The date when the property should be repaired, rebuilt or replaced with reasonable speed and similar quality; or
(b) The date when business is resumed at a new permanent location.
b. If:
(1) The direct physical loss or damage by a Covered Cause of Loss is to any of the
following property at Premises to which this coverage applies:
(a) New buildings or structures, whether complete or under construction;
(b) Alterations or additions to existing buildings or structures; or
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(c) Machinery, equipment, supplies or building materials on or within 1000 feet of the Premises that are used in the construction, alterations or additions, or
incidental to the occupancy of the buildings; and
(2) Such direct physical loss or damage delays the start of Operations; the Period of Restoration for Business Income or Rental Value will be the
same length of time provided in a. above, but will not begin until the date when
Operations would have begun if the direct physical loss or damage had not occurred.
c. When a number of hours are shown in the deductible item in the Declarations Page for Business Income or Rental Value, the Period of Restoration will not begin until that number of hours immediately following the date and time the Period of
Restoration would otherwise have begun, as described in a. and b. above.
d. Period of Restoration does not include any increased period required due to the enforcement of any ordinance or law that:
(1) Regulates the construction, use, repair, or replacement, or requires the tearing down of any property, except as provided under the Ordinance or Law – Increased Period of Restoration Additional Coverage Extension; or
(2) Requires any Member or others to test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any way respond to, or assess, the effects of
Pollutants.
e. The expiration date of this Contract will not cut short the Period of Restoration.
6. Research and Development means the development of new products and enhancements of existing products. Research and Development does not mean the maintenance of existing products.
7. Suspension means:
a. The partial or complete cessation of the Member’s business Operations; or
b. That a part or all of the covered Premises is rendered untenantable, if coverage for Rental Value is provided.
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EXTRA EXPENSE COVERAGE
Section D
Various provisions in this Contract restrict coverage. Read the entire Contract carefully to
determine rights, duties and what is and is not covered. Words and phrases that appear in bold have special meaning; refer to Section I (Property) F. (Definitions) in this Section D. (Extra Expense) and to Section I (Property) G. (Definitions) in Section B (Property Coverage) and
Section VII (General Conditions).
A. COVERAGE
The Fund will pay the actual reasonable and necessary Extra Expense sustained by the
Member during the Period of Restoration due to direct physical loss or damage by a
Covered Cause of Loss to Covered Property, including personal property and Contractors Equipment in the open within 1,000 feet, at the Member’s Premises or in a vehicle:
1. Which are described in the most recent Statement of Values or other documentation on file with the Fund; and
2. For which a value for the exposure at the Premises to which this form applies has been
reported. The loss or damage must be caused by or result from a Covered Cause of Loss. Covered
Cause of Loss means risks of direct physical loss unless the loss is excluded in this Section D. (Extra Expense) C. (Exclusions); limited in this Section D. (Extra Expense) D. (Limitations); or excluded or limited in Section I (Property) or by endorsement.
Coverage is provided as described below only when a Limit of Coverage is shown for Extra Expense in the Declarations Page.
Extra Expense Extra Expense means the following expenses the Member incurs that the Member would not have incurred if there had been no direct physical loss or damage to Covered Property caused by or resulting from a Covered Cause of Loss:
1. Reasonable and necessary expenses to avoid or minimize the Suspension of business and to continue Operations:
a. At the Member’s Premises; or
b. At replacement Premises or at temporary locations, including relocation expenses and costs to equip and operate the replacement Premises or temporary locations;
2. Reasonable and necessary expenses to minimize the Suspension of business if the
Member cannot continue Operations; and
3. Reasonable and necessary expenses to:
a. Repair or replace any property; or
b. Research, replace or restore the lost information on damaged Valuable Papers and
Records;
to the extent they reduce the amount of loss that otherwise would have been payable under this coverage form.
4. EXTRA EXPENSE - This coverage is extended to cover the loss sustained by the
Member for Extra Expense during the Period of Interruption resulting from direct physical loss or damage by a Covered Cause of Loss to Covered Property utilized by
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the Member. Extra Expense means reasonable and necessary:
a. Extra expense incurred to temporarily continue as nearly normal as practicable
the conduct of the Member’s business; and
b. Extra costs of temporarily using property or facilities of the Member or others;
All less any value remaining at the end of the Period of Interruption for property obtained in connection with the above.
The Member agrees to use any suitable property or service owned or controlled by the
Member or obtainable from other sources in reducing the loss under this TIME ELEMENT COVERAGE Section of this Contract.
The maximum amount that the Company will pay for all Extra Expense under this
Contract is the Extra Expense Sublimit of Liability as shown in the Declarations Pages regardless of any other applicable coverages, Additional Coverages or Additional Time Element Coverages.
B. ADDITIONAL COVERAGE EXTENSIONS – Each of the following Additional Coverage Extensions applies only when a Limit of Coverage is shown in the Declarations Page except for item 1. which does not require a specific Limit of Coverage to be shown:
1. Civil Authority The coverage provided by this Contract is extended to apply to the Extra Expense incurred by the Member caused by the action of civil authority that prohibits access to the
Member’s Premises due to direct physical loss or damage to property, other than at the
Member’s Premises, caused by or resulting from a Covered Cause of Loss.
Coverage for Extra Expense will begin immediately after the action of the civil authority and will end 30 consecutive days after the date of the civil authority action.
2. Dependent Property The coverage provided by this Contract is extended to apply to the Extra Expense incurred by the Member during the Period Restoration due to direct physical loss or damage by a Covered Cause of Loss to property at the Premises of a Dependent
Property within the Contract Territory. This Additional Coverage Extension does not apply to Dependent Property for which the
Member has more specific coverage either under this Contract or another.
3. Ordinance or Law – Increased Period of Restoration
a. If a Covered Cause of Loss occurs to property at the Member’s Premises, the
Period of Restoration is increased to include the additional period of Suspension of
Operations caused by or resulting from the enforcement of any ordinance or law that:
(1) Regulates the construction, repair, or replacement of any property;
(2) Requires the tearing down or replacement of any parts of property not damaged by a Covered Cause of Loss; and
(3) Is in force at the time of loss.
b. Coverage under this Additional Coverage Extension applies only to the increased period required to repair or replace the property to comply with the minimum requirements of the ordinance or law.
c. Under this Additional Coverage Extension, the Fund will not pay for:
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(1) Any loss due to any ordinance or law that:
(a) The Member was required to comply with before the loss, even if the property
was undamaged; and
(b) The Member failed to comply with.
(2) Costs associated with the enforcement of any ordinance or law which requires
any Member or others to test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any way respond to, or assess the effects of
Pollutants.
4. Newly Acquired Premises
a. The coverage provided by this Contract is extended to apply to the Extra Expense incurred by the Member during the Period of Restoration due to direct physical loss
or damage by a Covered Cause of Loss to property within the Contract Territory at any:
(1) Premises newly acquired by the Member; and
(2) Premises the Member becomes newly required to insure under a written contract.
b. Coverage under this Additional Coverage Extension for each premise will end when any of the following first occurs:
(1) This Contract is cancelled or expires;
(2) 120 days expire after the Member acquires or begins to construct the property or is required to insure the property;
(3) The Member reports the new Premises to the Fund; or
(4) The Extra Expense is more specifically covered elsewhere.
c. If the total replacement cost value of any one newly constructed or acquired building or of personal property at any one newly acquired building or location is less than or
equal to $500,000, the Fund will not charge the Member additional contribution for coverage provided under this Contract during the current Contract period. For all other buildings or personal property at any one newly acquired building or location
the Fund will charge the Member additional contribution for values reported from the date construction begins or the Member acquires the property.
5. Undescribed Premises The coverage provided by this Contract is extended to apply to the Extra Expense incurred by the Member during the Period of Restoration due to direct physical loss or damage by a Covered Cause of Loss to the Covered Property, as described in the Property Coverage Form, while at an Undescribed Premises. Undescribed Premises
means Premises not owned, leased or regularly operated by the Member. Covered
Property at an Undescribed Premises does not include:
a. Property at the Premises of Dependent Property;
b. Property in due course of transit; or
c. Property at any Premises outside of the Contract Territory. But this exclusion does not apply to Covered Property at an Exhibition, unless the Exhibition is within any
country on which the United States government has imposed sanctions, embargoes or any other similar prohibitions.
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C. EXCLUSIONS
1. All of the exclusions contained in Section I (Property) Section B. (Property Coverage) D. (Exclusions) apply to this coverage form except:
a. Exclusion 1.h. (Ordinance or Law) is amended by the addition of the
following: This exclusion does not apply to the Ordinance or Law – Increased Period of
Restoration Additional Coverage Extension.
b. Exclusion 1.i. (Off Premises Utility Services) is replaced by the following: The interruption, failure or fluctuation of power or other utility service(s) provided to the Member Premises if the cause of the interruption, failure or fluctuation occurs
outside a building at the Member’s Premises. This exclusion will not apply in the event the interruption, failure, or fluctuation of power or other utility service(s) results in a Covered Cause of Loss; however, the
Fund will pay only for such resulting loss.
c. Exclusion 2.b., Indirect or remote loss or damage; delay, loss of use, or loss of market; or interruption of business, does not apply to the extent coverage is specifically provided under this Contract.
2. In addition, the Fund will not pay for:
a. Any loss caused by or resulting from direct physical loss or damage to outdoor trees,
shrubs, plants, or lawns (including fairways, greens and tees); growing crops; standing timber; land; water; or radio or television antennas (including microwave satellite dishes), and their lead-in wiring, masts, or towers.
b. Any loss or damage to property while in due course of transit.
c. Any increase of loss caused by or resulting from delay in rebuilding, repairing, or replacing the property or resuming Operations due to interference at the location of
the rebuilding, repair or replacement by strikers or other persons.
d. Any Extra Expense caused by or resulting from any suspended, lapsed or cancelled license, lease or contract beyond the Period of Restoration.
e. Notwithstanding any other provision of this Contract to the contrary, the Fund does not cover any loss, cost, damage or expense, arising out of, attributable to, or occurring concurrently or in any sequence with a communicable disease.
As used herein, communicable disease means any infectious or contagious substance:
(1) Including, not limited to, a virus, bacterium, parasite, or other organism or any mutation thereof, whether deemed living or not, and
(2) Regardless of the method of transmission, whether direct or indirect, including, but not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid, or gas or between humans, animals, or from any animal to any human or from any human to any animal, that can cause or threaten damage to human health or human welfare or causes or threatens damage, deterioration, loss of value, marketability or loss of use to tangible or intangible property covered hereunder.
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For avoidance of doubt, no coverage extension, additional coverage, global extension, exception to any exclusion or other coverage grant shall afford any
coverage that would otherwise be excluded through this exclusion. For further avoidance of doubt, loss, cost, damage, or expense, includes any cost to clean-up, detoxify, remove, monitor, or test:
(1) for a communicable disease; or
(2) any tangible or intangible property covered hereunder that is affected by such
communicable disease.
f. Any other consequential loss.
D. LIMITATIONS
All of the limitations contained in Section I (Property) Section B. (Property Coverage) E. (Limitations) apply to this coverage form.
E. ADDITIONAL CONDITION The following condition applies in addition to the conditions contained in Section I (Property), Section J (General Conditions) and Section VII (General Conditions).
Loss Determination
1. The amount of Extra Expense will be determined based on:
a. All reasonable and necessary expenses that exceed the normal operating expenses that would have been incurred by Operations during the Period of Restoration if no direct physical loss or damage had occurred. The Fund will deduct from the total of
such expenses:
(1) The salvage value that remains of any property bought for temporary use during the Period of Restoration, once Operations are resumed; and
(2) Any Extra Expense that is paid for by other coverage, except for coverage that is written subject to the same plan, terms, conditions, and provisions as this coverage; and
b. All necessary expenses that reduce the Extra Expense otherwise incurred.
2. The Fund will reduce the amount of the Member’s Extra Expense loss to the extent the
Member can return Operations to normal and discontinue such Extra Expense.
3. If the Member intends to continue the Member’s business, the Member must resume
Operations, in whole or part as quickly as possible. If the Member does not resume
Operations, or does not resume Operations as quickly as possible, the Fund will pay based on the length of time it would have taken to resume Operations as quickly as
possible.
F. DEFINITIONS The following definitions are in addition to those contained in the Property Coverage Form:
1. Dependent Property means property operated by others that the Member depends on to:
a. Supply materials or services to the Member, or to others for the account of the Member (Contributing Locations). With respect to Contributing Locations, services do not mean utility services including but not limited to water supply services, communication supply services, or power supply services supplying electricity, steam, or gas;
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b. Accept the Member’s products or services (Recipient Locations);
c. Manufacture products for delivery to the Member’s customers under contract of sale
(Manufacturing Locations); or
d. Attract customers to the Member’s business (Leader Locations).
2. Exhibition means the temporary display of personal property at a convention, exposition, trade show or similar event at a location not owned or regularly occupied by the Member.
3. Operations mean the Member’s business activities occurring at the Member’s Premises.
4. Period of Restoration means the period of time that:
a. Begins with the date and time of direct physical loss or damage to property at the
Member Premises caused by or resulting from a Covered Cause of Loss; and
b. Ends on the earlier of the following:
(1) The date when the property should be repaired, rebuilt, or replaced with reasonable speed and similar quality; or
(2) The date when business is resumed at a new permanent location.
c. Period of Restoration does not include any increased period required due to the
enforcement of any ordinance or law that:
(1) Regulates the construction, use, repair, or replacement, or requires the tearing down of any property, except as provided under the Ordinance or Law –
Increased Period of Restoration Additional Coverage Extension; or
(2) Requires any Member or others to test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any way respond to, or assess, the effects of
Pollutants.
d. The expiration date of this Contract will not cut short the Period of Restoration.
5. Suspension means the partial or complete cessation of the Member’s business Operations.
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EARTHQUAKE, VOLCANIC ERUPTION, LANDSLIDE AND MINE SUBSIDENCE
Section E
This endorsement modifies the coverage provided under this Contract.
A. The following are added to the Covered Causes of Loss and the Specified Causes of
Loss:
1. Earthquake, meaning a shaking or trembling of the earth's crust, caused by underground volcanic or tectonic forces or by breaking or shifting of rock beneath the surface of the ground from natural causes. Earthquake includes tsunami. Tsunami, meaning a
destructive wave caused by an earthquake or volcanic eruption, including any associated reductions in water levels prior to or resulting from a tsunami wave.
2. Volcanic Eruption, meaning the eruption, explosion, or effusion of a volcano.
3. Landslide, meaning the rapid downward movement of a mass of rock, earth, or artificial fill on a slope.
4. Mine Subsidence, meaning lateral or vertical ground movement caused by a failure initiated at the mine level of man-made underground mines, including but not limited to coal, clay limestone, and fluorspar mines;
5. Earth sinking, rising, or shifting, including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of real or personal property. Soil conditions include, but are not limited to, contraction, expansion, freezing, thawing,
erosion, improperly compacted soil, and the action of water under the ground surface;
6. Shocks, tremors, rock falls, volcanic eruption, Sinkhole Collapse, or subsidence;
All Earthquake shocks, Volcanic Eruptions, Landslides or Mine Subsidence ground movements that occur within any 72-hour period will constitute a single Earthquake, Volcanic Eruption, Landslide or Mine Subsidence. The expiration of this Contract will not
reduce the 72-hour period.
B. All of the exclusions contained in Section I (Property) Section B. (Property Coverage) D. (Exclusions) apply to this coverage form except:
1. The Earth Movement exclusion does not apply to the coverage specifically provided under this endorsement for loss or damage caused by Earthquake, Volcanic Eruption, Landslide and Mine Subsidence.
2. The Collapse of Buildings exclusion is amended to include Earthquake, Volcanic
Eruption, Landslide and Mine Subsidence in the list of named causes of loss for which coverage for buildings in a state of imminent collapse applies.
All other exclusions and limitations in this Section I (Property) Contract continue to apply.
C. The following additional exclusions apply to this coverage:
1. The Fund will not pay for loss or damage caused directly or indirectly by Flood, as defined in the Flood exclusion contained in Section I (Property) B. (Property Coverage) D. (Exclusions), even if attributable to an Earthquake, Volcanic Eruption, Landslide, or
Mine Subsidence.
2. This coverage for Earthquake, Volcanic Eruption, Landslide, and Mine Subsidence does not apply to, or modify any limits or deductibles that apply to:
a. The coverage otherwise provided for loss or damage by fire or explosion that results from an earth movement and for loss or damage by fire or Volcanic Action that results from a Volcanic Eruption; or
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b. Any other coverage provided for loss or damage to which the Earth Movement exclusion does not apply.
3. The Fund will not pay for loss or damage caused by or resulting from any Earthquake, Volcanic Eruption, Landslide or Mine Subsidence that begins before the inception of this coverage.
4. This coverage does not apply to the cost of restoring or remediating land or to loss resulting from the time required to restore or remediate land.
D. The most the Fund will pay for the total of all loss or damage caused by Earthquake, Volcanic Eruption, Landslide and Mine Subsidence in any one Contract year is the single highest Annual Aggregate Limit of Coverage specified for Earthquake, Volcanic Eruption,
Landslide and Mine Subsidence shown in the Declarations Page. This limit is part of, and does not increase, the Limits of Coverage that apply under this Contract. Subject to the single highest Annual Aggregate Limit of Coverage:
1. Any individual Annual Aggregate Limit of Coverage shown in the Declarations Page for Earthquake, Volcanic Eruption, Landslide and Mine Subsidence is the most the Fund will pay in any one Contract year for all loss or damage to which that Limit of Coverage applies.
2. If more than one Annual Aggregate Limit of Coverage applies to direct physical loss or damage under this endorsement in any one Occurrence, each limit will be applied separately, but the most the Fund will pay under this endorsement for all loss or damage
in that Occurrence is the single highest Annual Aggregate Limit of Coverage applicable to that Occurrence.
E. Under the Property Coverage Form, when a Building at the Member’s Premises is Covered Property covered under this Contract, the coverage provided under this endorsement is
extended to apply to direct physical loss or damage to underground property consisting of tanks, pipes, flues, drains and tunnels at those Premises or within a 1,000 feet thereof, caused by Earthquake, Volcanic Eruption, Landslide, or Mine Subsidence. The most the Fund will pay for such underground property in any one Occurrence is the Limit of Liability for Underground Property consisting of Tanks, Pipes, Flues, Drains or Tunnels as shown in Section I (Property), Section A (Declarations Page). But this will not increase the limit that applies to this coverage.
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FLOOD
Section F
This endorsement modifies coverage provided under this Contract.
A. The following is added to the Covered Causes of Loss and the Specified Causes of Loss: Flood, meaning:
1. Surface water, underground water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not;
2. Mudslide or mudflow;
3. Release of water impounded by a dam. Flood does not include any damaged caused by a tsunami. Tsunami, means a destructive wave caused by an earthquake or volcanic eruption, including any associated reductions in water levels prior to or resulting from a tsunami wave.
B. All Flood loss that occurs:
1. During a period of continued rising or overflow of any river(s), stream(s) or any body of
water and the subsidence of same within the banks of such river(s), stream(s) or bodies of water; or
2. Due to any tidal waves that occur within any continuous 72 hour period;
will constitute a single Flood Occurrence. If Flood loss commences prior to the expiration date of this Contract and the Flood
Occurrence, as defined above, extends beyond the expiration date of this Contract, the expiration of the Contract will not reduce the Flood Occurrence period.
C. All of the exclusions contained in Section I (Property) Section B. (Property Coverage) D. (Exclusions) apply to this coverage form except:
1. The Flood exclusion does not apply to the coverage specifically provided under this endorsement.
2. The Collapse of Buildings exclusion is amended to include Flood in the list of named causes of loss for which coverage for buildings in a state of imminent collapse applies. All other exclusions and limitations in this Contract continue to apply.
D. The following additional exclusions apply to this coverage:
1. The Fund will not pay for loss or damage caused directly or indirectly by Earth
Movement, as defined in the Earth Movement exclusion contained in Section I (Property) B. (Property Coverage) D. (Exclusions), even if attributable to a Flood. But this exclusion does not apply to mudslide or mudflow that is caused or precipitated by the
accumulation of water on or below the ground.
2. This coverage for Flood does not apply to, or modify any limits or deductibles that apply to:
a. The coverage otherwise provided for loss or damage by fire, explosion, or leakage from fire protective equipment that results from Flood; or
b. Any other coverage provided for loss or damage to which the Flood exclusion does not apply.
3. The Fund will not pay for loss or damage caused by or resulting from any Flood
Occurrence that begins before the inception of this coverage.
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4. This coverage does not apply to the cost of restoring, recovering, or de-watering land or to loss resulting from the time required to restore, recover, or de-water land.
5. This coverage for Flood does not apply to direct physical loss or damage to property at any location which is, wholly or partially within Special Flood Hazard Areas, areas of 100 Year Flooding, as defined by the Federal Emergency Management Agency.
E. The most the Fund will pay for the total of all loss or damage caused by Flood in any one
Contract year is the single highest Annual Aggregate Limit of Coverage specified for Flood
shown in the Declarations Page. This limit is part of, and does not increase, the Limits of Coverage that apply under this Contract.
Subject to the single highest Annual Aggregate Limit of Coverage:
1. Any individual Annual Aggregate Limit of Coverage shown in the Declarations Page for Flood is the most the Fund will pay in any one Contract year for all loss or damage to which that Limit of Coverage applies.
2. If more than one Annual Aggregate Limit of Coverage applies to direct physical loss or damage under this endorsement in any one Occurrence, each limit will be applied separately, but the most the Fund will pay under this endorsement for all loss or damage in that Occurrence is the single highest Annual Aggregate Limit of Coverage applicable
to that Occurrence.
F. Under the Property Coverage Form, when a Building at the Member’s Premises is Covered Property covered under this Contract, the coverage provided under this endorsement is extended to apply to direct physical loss or damage to underground property consisting of
tanks, pipes, flues, drains and tunnels at those Premises or within a 1,000 feet thereof, caused by Flood. The most the Fund will pay for such underground property in any one
Occurrence is the Limit of Liability for Underground Property consisting of Tanks, Pipes,
Flues, Drains or Tunnels as shown in Section I (Property), Section A (Declarations Page). But this will not increase the limit that applies to this coverage.
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SEWER BACK-UP
Section G
This endorsement modifies the coverage provided under this Contract.
A. The following is added to the Covered Causes of Loss and the Specified Causes of Loss:
Sewer Back-Up, meaning water that backs up through sewers or drains.
B. This coverage for Sewer Back-Up does not apply to, or modify any limits or deductibles that
apply to, any coverage otherwise provided for loss or damage to which Section F, Flood applies.
C. Under the Flood exclusion contained in Section I (Property) B. (Property Coverage) D. (Exclusions), the exclusion of water which backs up through sewers or drains does not apply to the coverage specifically provided under this endorsement. But this Sewer Back-Up coverage does not apply to direct physical loss or damage caused by:
1. The emanation of water from a sump or similar device designed to prevent overflow or
seepage or leakage of subsurface water; or
2. The emanation of water from a sewer or drain that is itself directly or indirectly caused by, or the result of:
a. Surface water, underground water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not;
b. Mudslide or mudflow; or
c. Release of water impounded by a dam. All other exclusions and limitations continue to apply.
D. The most the Fund will pay for loss or damage under this endorsement is the Limit of Coverage specified or Sewer Back-Up shown in the Declarations Page.
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CONTRACTORS EQUIPMENT
Section H
This endorsement modifies coverage provided under the Property Coverage (Section I).
The following coverage is added:
Contractors Equipment
A. The Fund will pay for direct physical loss or damage by a Covered Cause of Loss to
Contractors Equipment, as described in B. below, that is:
1. The Member’s property or property of others in the care, custody, or control of the
Member; and
2. Described in the most recent Schedule of Contractors Equipment or other documentation on file with the Fund; while the property is at the Member’s Premises or away from the Member’s Premises, or in the due course of transit, within the Contract Territory.
B. As used in this Endorsement, Contractors Equipment means mobile machinery and equipment that is:
1. Used by the Member for the purpose for which it was designed and manufactured; and
2. Used in the Member’s business.
C. The Fund will also provide each of the following Additional Coverage Extensions for which a Limit of Coverage is shown in the Declarations Page:
1. Unreported Contractors Equipment
a. The Fund will pay for direct physical loss or damage to Unreported Contractors Equipment, as defined in b. below, caused by or resulting from a Covered Cause of
Loss.
b. As used in this endorsement, Unreported Contractors Equipment means Contractors Equipment that is owned by the Member, but which is not described in the most recent Statement of Values or other documentation on file with the Fund. But Unreported Contractors Equipment does not include:
(1) Any Unreported Contractors Equipment that the Member acquires or becomes
required to insure during the Contract period;
(2) Any Unreported Contractors Equipment at Undescribed Premises; or
(3) Any Unreported Contractors Equipment at Unreported Premises; or
(4) Any Unreported Contractors Equipment that is otherwise covered under this
Contract.
c. This coverage does not apply to any loss or damage to which any other coverage
provided under this Contract applies, regardless of whether the Limit of Coverage applicable to such other coverage is adequate to cover the loss or damage.
d. The most the Fund will pay for loss or damage in any one Occurrence under this
coverage, regardless of the number of Unreported Contractors Equipment involved, is the Maximum Limit of Coverage shown in the Declarations Page for Unreported Contractors Equipment.
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2. Newly Acquired Contractors Equipment The coverage provided for Contractors Equipment is extended to apply to direct physical
loss or damage by a Covered Cause of Loss to newly acquired Contractors Equipment. This coverage will end when one of the following first occurs:
a. This Contract is canceled or expires;
b. 120 days expire from the date of such acquisition;
c. The property is reported to the Fund; or
d. The property is more specifically covered elsewhere.
The Fund will charge the Member an additional contribution for Contractors Equipment values reported from the date that the Member acquires the property.
If the total replacement cost value of any one newly acquired Contractors Equipment is less than or equal to $500,000, the Fund will not charge the Member additional contribution for the coverage provided for such Contractors Equipment during the current
Contract period. The most the Fund will pay for loss or damage in any one Occurrence under this coverage is the Limit of Coverage specified for Newly Acquired Contractors Equipment shown in the Declarations Page.
D. The following changes apply to Section I (Property) B. (Property Coverage) 1. (Covered
Property):
1. Items B.1. b. (Business Personal Property) and B. 1. j. (Covered Property at Undescribed Premises) does not include Contractors Equipment.
2. Item B.1.g. (Newly Constructed or Acquired Property) does not apply to newly acquired
Contractors Equipment.
3. The provisions of item B.1.k. (Covered Property in Transit) apply to the coverage provided under this Endorsement for Contractors Equipment in the due course of transit.
But the most the Fund will pay for loss or damage to such property is subject to the Limits of Coverage described in Section G. of this Section.
E. All of the Property and Costs Not Covered in Section I (Property) B. (Property Coverage) C. (Property and Costs Not Covered) apply to the coverage provided under this Endorsement, except:
1. Item C. 7. is replaced by the following: Vehicles or self-propelled machines that are licensed for road use.
2. The following items are added as property not covered:
a. Any Contractors Equipment while leased, rented, or loaned to others;
b. Any Contractors Equipment while underground or underwater;
c. Any Contractors Equipment while waterborne, except while in the due course of transit;
d. Tires, unless the loss or damage to the tires is coincident with other covered loss or
damage to the Contractors Equipment; or
e. Electronic Data Processing Equipment unless the Electronic Data Processing
Equipment is an integral part of the Contractors Equipment.
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F. With respect only to the coverage provided under this Endorsement, the following exclusion is added to Section I (Property) B. (Property Coverage) D. (Exclusions):
The Fund will not pay for loss or damage caused by or resulting from:
1. The weight of a load exceeding, at the time of loss, the maximum lifting or operating capacity established by the manufacturer for the property; or
2. Work upon or service of the Contractors Equipment, but if loss or damage by fire or
explosion results, the Fund will pay for loss or damage to the Contractors Equipment caused by the resulting fire or explosion.
G. The most the Fund will pay in any one Occurrence under this Endorsement for loss or damage to Contractors Equipment, other than newly acquired Contractors Equipment, is the applicable Limit of Coverage specified for Contractors Equipment shown in the
Declarations Page. The Limits of Coverage that apply to the Unreported Contractors Equipment and Newly Acquired Contractors Equipment Additional Coverage Extensions apply in addition to the Contractors Equipment Limit(s) of Coverage.
H. The valuation provisions of this Contract are amended as follows:
In the event of a covered loss or damage, the Fund will determine the value of:
1. Contractors Equipment specifically scheduled and on file with the Fund, at replacement cost as of the time and place of loss, as per Section I (Property) K. (Replacement Cost).
2. Unreported Contractors Equipment at Actual Cash Value as of the time and place of loss. The actual cash valuation is subject to the following condition: The Fund will pay the lesser of:
a. The cost to repair, rebuild or replace, at the same site, the lost, damaged, or destroyed property with other property of comparable size, material, and quality, less allowance for physical deterioration, depreciation, obsolescence, and depletion; or
b. The actual amount incurred by the Member that is necessary to repair, rebuild, or replace the lost, damaged or destroyed property; or
c. The Limit of Coverage applicable to the lost, damaged or destroyed property.
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UTILITY SERVICES—TIME ELEMENT
Section I This Endorsement modifies coverage provided under Section I (Property) B. (Property Coverage) C. (Business Income Coverage Excluding Extra Expense Section) and D. (Extra
Expense Coverage).
A. The coverage provided for loss of Business Income, Rental Value and/or Extra Expense is
extended to apply to such loss and/or expense at the Member’s Premises caused by the interruption, failure or fluctuation of service to the Member’s Premises. The interruption, failure or fluctuation must result from direct physical loss or damage by a Covered Cause of
Loss to Utility Supply Services Property, as defined in B. and C. below, that is located away from the Member’s Premises or outside of a building at the Member’s Premises.
B. As used in this Endorsement, Utility Supply Services Property means:
1. Water Supply Services Property, meaning the following types of property supplying water to the Member’s Premises:
a. Water treatment plants;
b. Water tanks;
c. Water mains; and
d. Pumping stations.
2. Communication Supply Services Property, meaning property supplying
communication services, including telephone, radio, microwave, or television services, to the Member’s Premises, such as:
a. Communication transmission lines (including optic fiber transmission lines), other
than Overhead Transmission Lines;
b. Coaxial cables; and
c. Microwave radio relays except satellites.
3. Power Supply Services Property, meaning the following types of property supplying electricity, steam, or gas to the Member’s Premises:
a. Utility generating plants;
b. Switching stations;
c. Substations, pumping stations;
d. Transformers;
e. Transmission lines, other than Overhead Transmission Lines; and
f. Tanks.
C. Utility Supply Services Property also includes Overhead Transmission Lines, meaning overhead power transmission lines supplying electricity, steam, or gas to the Member’s
Premises and overhead communication lines supplying communication services to the
Member’s Premises.
D. All of the exclusions that apply to the Coverage Form(s) modified by this Endorsement apply to this coverage except exclusion D.1.i. (Off Premises Utility Services). In addition, the
Fund will not pay for any loss or expense under this coverage if the loss or damage to the
Utility Supply Services Property results from any deliberate act or acts by the supplying utility to shed load or to maintain system integrity.
E. The most the Fund will pay for loss or expense under this coverage is the Limit of Coverage specified for Utility Services – Time Element shown in the Declarations Page.
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GENERAL CONDITIONS
Section J
All coverages included in this Contract are subject to the following conditions, in addition to any
conditions specifically set forth in each coverage section, as well as Section VII (General Conditions).
A. ABANDONMENT
There can be no abandonment of any property to the Fund.
B. APPLICATION OF DEDUCTIBLES
1. Deductible Application Any deductibles that apply are specified in the Declarations Page or in the forms or endorsements attached to this Contract. Unless otherwise specified in the Declarations Page, or by endorsement, when a
deductible is specified as applying separately “at each affected location, in any one
Occurrence,” or at a specific location in any one Occurrence, each of the following will be considered a “location”:
a. A single address that is not part of a complex described in b. below, regardless of the number of buildings at that address; or
b. A multiple building complex, such as an apartment complex, office building complex
or industrial park, with multiple addresses, provided:
(1) All addresses within the complex are under the same ownership or management; and
(2) The complex is known by a single name; and
(3) All addresses within the complex are covered Premises under this Contract; and
(4) The addresses are adjacent to one another, or separated only by a street.
2. Dollar Deductibles When the deductible that applies is specified as a dollar amount, the Fund will not pay for loss or damage to which the deductible applies until the amount of loss or damage
exceeds the specified deductible amount. The Fund will then pay the amount of the loss or damage in excess of the specified deductible, up to the applicable Limit of Coverage.
3. Hour Deductibles If the deductible for Business Income or any other time element coverage is specified in hours, the Fund will not be liable for any loss incurred during the specified number of
hours immediately following the start of the Period of Restoration or other applicable period during which incurred loss would otherwise be covered. The Fund will then pay the amount of loss incurred for the remainder of the Period of Restoration or other
applicable period during which incurred loss is covered, up to the Limit of Coverage.
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4. Two or More Deductibles in Any One Occurrence If any causes of loss, coverages, or types of property covered against under this
Contract are subject to separate deductibles and two or more of those causes of loss, coverages and/or types of property are involved in any one loss Occurrence, each cause of loss, coverage, and type of property loss will be adjusted separately. But the
total of the deductible amounts applied will not exceed the highest deductible amount applied in that Occurrence for any one involved cause of loss, coverage, or type of property.
This provision does not apply to:
a. Earth Movement, Earthquake, Earthquake Sprinkler Leakage, Flood, Windstorm, or
Hurricane deductibles; or
b. Any hour deductible.
5. Application of Earth Movement, Earthquake, Earthquake Sprinkler Leakage, Flood
and Sewer Back-Up Deductibles Any deductible shown on the Declarations Page for a cause of loss listed below applies only with respect to direct physical loss or damage to which the corresponding cause of loss endorsement applies:
a. Earth Movement;
b. Earthquake;
c. Earthquake Sprinkler Leakage;
d. Flood; or
e. Sewer Back-Up.
These deductibles do not apply to any loss or damage by these causes of loss that is covered in the absence of such endorsements, such as fire or explosion that results from an earth movement.
6. Any Other Covered Loss Deductible Unless otherwise specifically stated in this Contract, the deductible shown in the
Declarations Page for “any other covered loss” applies to all causes of loss, coverages, and types of property covered against under this Contract for which no deductible is specifically shown in the Declarations Page or in the forms or endorsements attached to this Contract, except Extra Expense. No deductible applies to Extra Expense.
C. APPRAISAL If the Fund and the Member disagree on the value of the property, the amount of net
income and operating expense or the amount of loss, either may make written demand for an appraisal of the loss within sixty (60) days after receipt of Proof of Loss by the Fund. In this event, each party will select a competent and impartial appraiser. The two appraisers
will select an umpire. If they cannot agree upon an umpire within fifteen (15) days, either may request that a judge of a court having jurisdiction make the selection. The appraisers will state separately the value of the property, the amount of loss or the amount of net
income and operating expense. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, the Fund will still retain its right to deny the claim.
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D. CANCELLATION AND NONRENEWAL
1. Cancellation
a. The Member shown in the Declarations may cancel this Contract in accordance with the provisions of the Member Agreement.
b. The Fund may cancel this Contract by mailing or delivering to the Member written notice of cancellation at least:
(1) 30 days before the effective date of cancellation if the Fund cancels for
nonpayment of contribution; or
(2) 90 days before the effective date of cancellation if the Fund cancels for any other reason.
c. The Fund will mail or deliver notice to the Member's last mailing address known to the Fund.
d. Notice of cancellation will be the end of the fiscal year, unless the Contract is cancelled for nonpayment of contribution. If the cancellation is due to nonpayment of contribution, the notice of cancellation will state the effective date of the cancellation and that date will become the end of the Contract period. Cancellation will not affect coverage on any shipment in transit on the date of the cancellation. Coverage will continue in full force for such property in transit until it is delivered and accepted.
e. If this Contract is cancelled for any reason other than nonpayment of contribution, the Fund will send to the Member any contribution refund due in accordance with the provisions of the Member Agreement.
f. If notice is mailed, proof of mailing will be sufficient proof of notice.
2. Nonrenewal
In the event the Fund decides not to renew this Contract, the Fund will mail or deliver to the Member shown in the Declarations written notice in accordance with the provisions of the Member Agreement.
E. CHANGES This Contract contains all the agreements between the Member and the Fund concerning the coverage afforded. The Contract terms can be amended or waived only by written endorsement issued by the Fund as part of this Contract.
F. CONCEALMENT, MISREPRESENTATION, OR FRAUD
This Contract is void in any case of fraud by the Member as it relates to this Contract at any time. It is also void if the Member or any other person or entity covered under this
Contract, at any time, intentionally conceals or misrepresents a material fact concerning:
1. This Contract;
2. The Covered Property;
3. The Member’s interest in the Covered Property; or
4. A claim under this Contract.
G. CONTROL OF PROPERTY Any act or neglect of any person other than the Member beyond the direction or control of
the Member will not affect this coverage. The breach of any condition of this Contract at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist.
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H. CURRENCY
It is understood and agreed that all amounts used herein are in the currency of the United States of America and that contributions and losses are payable in United States currency. In the event of a loss adjustment involving foreign currency, the conversion into the currency
of the United States of America will be at the rate of exchange quoted in The Wall Street Journal as of the date of the loss.
I. EXAMINATION OF THE MEMBER’S BOOKS AND RECORDS The Fund may examine and audit the Member’s books and records as they relate to this
Contract at any time during the Contract period and up to three years afterward.
J. IDENTITY OF INTEREST
If the Member under this Contract is comprised of more than one legal entity, liability under this Contract will not exceed the amount of loss had all such interests comprised a single legal entity.
K. INSPECTIONS AND SURVEYS
The Fund has the right but is not obligated to:
1. Make inspections and surveys at any time;
2. Give the Member reports on the conditions found resulting there from; and
3. Recommend changes.
Neither the right to make inspections, nor the making thereof, nor any risk analysis, nor any advice or reports resulting there from will imply any liability, or constitute an undertaking on
behalf of or for the benefit of the Member. Any inspections, surveys, reports or recommendations relate only to insurability and the contributions to be charged. The Fund does not make safety inspections. The Fund does not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. In addition, the Fund does not warrant that the conditions are safe, healthful, or in compliance with any law, rule, regulation, code, or standard. This condition applies not only to the Fund, but also to any rating, advisory, rate service, or similar organization that makes coverage inspections, surveys, reports, or
recommendations.
L. KNOWLEDGE OF OCCURRENCE
It is hereby understood and agreed that knowledge of an Occurrence, Accident, claim, loss or damage, or receipt or service of complaint, demand, notice, summons, or other legal
papers by the agent, servant or employee of the Member will not in itself constitute knowledge or receipt by the Member unless an executive officer or risk manager of the
Member has such knowledge or receives or is served such documents or notice from its
agent, servant or employee.
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M. LEGAL ACTION AGAINST THE FUND
No one may bring a legal action against the Fund under this Contract unless:
1. There has been full compliance with all of the terms and requirements of this Contract; and
2. The action is brought in the United States of America, in a court having proper jurisdiction, within 2 years after the date on which the direct physical loss or damage occurred.
N. LIBERALIZATION
If the Fund adopts any revision that would broaden the coverage under this Contract without additional contribution, within 45 days prior to or during the Contract period, the broadened coverage will immediately apply to this Contract.
O. LIMITS OF COVERAGE The most the Fund will pay for all loss or damage in any one Occurrence under this
Contract is the Limits of Coverage shown in the Declarations Page. All other specified
Limit(s) of Coverage shown in the Declarations Page, Schedule(s), Coverage Form(s) or endorsement(s) are included within, and do not increase, the Limits of Coverage.
Subject to the Limits of Coverage:
1. The most the Fund will pay in any one Occurrence for any loss or damage to which a specific Limit of Coverage applies is the applicable specified Limit of Coverage.
2. Under the Property Coverage Form, unless otherwise stated in the Declarations Page, or by endorsement:
a. Payments under the following Covered Costs and Expenses will not increase the
applicable Covered Property Limit(s) of Coverage:
(1) Debris Removal. But if a Limit of Coverage for Debris Removal (additional) is specified in the Declarations Page, that Limit of Coverage will apply in addition to the applicable Covered Property Limit(s) of Coverage;
(2) Fire Department Service Charge;
(3) Fire Protective Equipment Discharge;
(4) Preservation of Property;
(5) Protection of Property; and
(6) Water Damage, Other Liquids, Powder or Molten Material Damage.
b. The Limits of Coverage that are specified for the remaining Covered Costs and Expenses are in addition to the Covered Property Limit(s) of Coverage.
3. Under the Business Income Coverage Sections or the Extra Expense Coverage Section, unless otherwise stated in the Declarations Page, or by endorsement:
a. Payments under the following Additional Coverage Extensions will not increase the
Limit(s) of Coverage that applies to Business Income, Rental Value and/or Extra Expense:
(1) Civil Authority;
(2) Extended Business Income or Rental Value (Business Income Coverage Forms only);
(3) Expenses to Reduce Loss (Business Income Coverage Form Excluding Extra
Expense only).
b. The Limits of Coverage that are specified for the remaining Additional Coverage Extensions are additional amounts of coverage.
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4. Unless otherwise specified in the Declarations Page, or by endorsement, when a Limit of Coverage is specified as applying separately “at each affected location, in any one
Occurrence” or on a per location basis, the description of a “location” contained in provision 1. of the Application of Deductibles condition in Section B. of this form (General Conditions) will apply.
P. LOSS PAYMENT
1. In the event of loss or damage to property covered by this Contract, at the option of the
Fund, the Fund will either:
a. Pay the value of lost or damaged property;
b. Pay the cost of repairing or replacing the lost or damaged property subject to 2. below;
c. Take all or any part of the property at an agreed or appraised value; or
d. Repair, rebuild, or replace the property with other property of like kind, size, and quality subject to 2. below.
2. Except as otherwise specifically provided in this Contract, the cost to repair, rebuild, or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use, or repair of any property.
3. In the case of a payment on an Actual Cash Value basis, total payments by the Fund shall not exceed the Actual Cash Value as defined under Section I (Property), K. (Replacement Cost), C. (Additional Definition), inclusive of any and all sub-limits
provided under Section I (Property).
4. The Fund will give notice of its intentions within 30 days after the Fund receives the
Proof of Loss it requires.
5. The Fund will not pay the Member more than the Member’s financial interest in the
Covered Property.
6. The Fund may adjust losses with the owners of lost or damaged property if other than
the Member. If the Fund pays the owners, such payments will satisfy the Member’s claims against the Fund for the owner's property. The Fund will not pay the owners more than their financial interest in the Covered Property.
7. The Fund has the right, but is not obligated, to defend the Member against suits arising from claims of owners of property. The Fund will do this at its own expense.
8. The Fund will pay for covered loss or damage within 30 days after the Fund receives the sworn Proof of Loss it requires, if:
a. The Member has complied with all of the terms of this Contract; and
b. The Fund has reached agreement with the Member on the amount of loss or an appraisal award has been made.
9. At the option of the Fund, the Fund may make a partial payment toward any claims,
subject to the Contract provisions and the Fund’s normal adjustment process. To be considered for a partial claim payment, the Member must submit a partial sworn Proof
of Loss with supporting documentation. Any applicable Contract deductibles must be
satisfied before any partial payments are made.
10. If two or more of this Contract’s coverages apply to the same loss or damage, the Fund will not pay more than the actual amount of the loss or damage.
Q. MORTGAGEE INTERESTS AND OBLIGATIONS
Loss or damage, if any, as covered under this Contract, will be payable to each mortgagee (or trustee) designated herein in order of their precedence as their interests may appear. With respect to the mortgagee’s (or trustee’s) interest, this coverage will not be invalidated
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by any act of the Member (mortgagor or owner), nor by any foreclosure or other similar proceedings or notice of sale relating to the property, nor by any change in title or ownership
of the property, provided that:
1. In the event the Member (mortgagor or owner) has neglected to pay any contribution due under this Contract, the mortgagee (or trustee), at the request of the Fund, pays
the same;
2. The mortgagee (or trustee) has notified the Fund of any change in ownership, occupancy or increase in the risk or hazards known to the mortgagee (or trustee) and, at
the request of the Fund, pays the contribution for such increased risk or hazards; and
3. The mortgagee (or trustee) submits a signed, sworn Proof of Loss within sixty (60) days after having been notified by the Fund that the Member (mortgagor or owner) has failed
to do so. In the event the Fund pays the mortgagee (or trustee) for any loss or damage covered under this Contract and thereafter claims that as to the Member (mortgagor or owner) no liability existed, the Fund will be subrogated to all the rights, to the extent of such payment, of the party to whom such payment was made. The Fund may, at the Fund’s option, pay to the mortgagee (or trustee) the whole principal due plus any accrued interest. Thereupon, the Fund will receive a full assignment and transfer of the mortgage and other such
securities and the remaining mortgage debt will be payable by the Member (mortgagor or owner) to the Fund.
The Fund reserves the right to cancel this Contract at any time in accordance with the provisions of the Member Agreement. In the event the Fund elects not to renew this
Contract, the Fund will give written notice to the mortgagee (or trustee) at least thirty (30)
days prior to the expiration of this Contract.
R. NO BENEFIT TO BAILEE
No person or organization, other than the Member, having custody of Covered Property will benefit from this Contract.
S. NO REDUCTION BY LOSS Except with respect to any aggregate limit(s) or aggregate sublimit(s) of coverage in this
Contract, it is mutually understood and agreed that the amount of coverage will not be reduced by the payment of losses under this Contract.
T. NOTICE OF LOSS AND DUTIES IN THE EVENT OF LOSS OR DAMAGE
1. The Member must see that the following are done in the event of loss of or damage to
Covered Property:
a. Notify the police if a law may have been broken.
b. Give the Fund prompt notice of the loss or damage. Include a description of the property involved.
c. As soon as possible, give the Fund a description of how, when, and where the loss or damage occurred.
d. Promptly make claim in writing against any other party, which had custody of the
Covered Property at the time of loss.
e. Take all reasonable steps to protect the Covered Property from further damage, and keep a record of expenses necessary to protect the Covered Property, for
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consideration in the settlement of the claim. This will not increase the Limit of Coverage. However, the Fund will not pay for any subsequent loss or damage
resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination.
f. At the request of the Fund, give the Fund complete inventories of the damaged and
undamaged property. Include quantities, costs, values and amount of loss claimed.
g. As often as may be reasonably required, permit the Fund to inspect the property and records proving the loss or damage and examine the Member’s books and records.
Also permit the Fund to take samples of damaged and undamaged property for inspection, testing and analysis and permit the Fund to make copies from the
Member’s books and records.
h. Send the Fund a signed, sworn Proof of Loss containing the information that the
Fund requests to investigate the claim. The Member must do this within 60 days after the Fund’s request.
i. Cooperate with the Fund in the investigation or settlement of the claim.
2. The Fund may examine any Member under oath, while not in the presence of any other
Member and at such times as may be reasonably required, about any matter relating to
this coverage or the claim, including a Member's books and records. In the event of an examination, a Member's answers must be signed.
U. OTHER COVERAGE
1. Underlying Coverage
Permission is granted to the Member to purchase coverage on all or any part of the deductibles of this Contract, and the existence of such underlying coverage will not prejudice any recovery otherwise payable under this Contract. If the limits of such
underlying coverage exceed the deductible which would apply under this Contract, then the coverage provided by this Contract will apply only as excess after the limits applicable to the underlying coverage, including that portion which exceeds such deductible, have been exhausted. The Funds obligation shall not arise until the
Member’s deductible or self-insured retention has been exhausted.
2. Excess Coverage Permission is granted to the Member to have excess coverage over the Limit(s) of
Coverage set forth in this Contract without prejudice to this Contract. The existence of such coverage will not reduce the Fund’s liability under this Contract. The Funds obligation shall not arise until the Member’s deductible or self-insured retention has
been exhausted.
3. Other Coverage Subject to Same Plan, Terms, Conditions, and Provisions
In the event the Member has other coverage subject to the same plan, terms, conditions and provisions as the coverage under this Contract, the Fund will pay its share of the covered loss or damage. The Fund’s share is the proportion that the applicable Limit of
Coverage under this Contract bears to the Limits of Coverage of all coverage covering on the same basis.
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If there is other coverage covering the same loss or damage, other than that described above, the Fund will pay only for the amount of covered loss or damage in excess of the
amount due from that other coverage, whether the Member can collect on it or not. But, the
Fund will not pay more than the applicable Limit of Coverage.
V. CONTRACT PERIOD AND TERRITORY Under this Contract, the Fund will cover loss or damage that commences during the
Contract period as specified in the Declarations and, except as otherwise specifically provided, within the Contract Territory. The Contract Territory is:
1. The United States of America (including its territories and possessions);
2. Puerto Rico; and
3. Canada.
W. RECOVERED PROPERTY
In the event either the Member or the Fund recovers any property after loss settlement, that party must give the other prompt notice. At the option of the Member, the property will be returned to the Member. The Member must then return to the Fund the amount the Fund
paid to the Member for the property.
1. The Fund will pay:
a. Recovery expenses; and
b. Costs to repair the recovered property;
2. But the amount the Fund pays will not exceed:
a. The total of 1. a. and 1. b. above;
b. The value of the recovered property; or
c. The Limit of Coverage; whichever is less.
X. SUBROGATION AND SUBROGATION WAIVER
1. Subrogation – Transit The following subrogation provisions apply to any transit coverage provided under this
Contract:
a. If any person or organization to or for whom the Fund makes payment under any transit coverage provisions of this Contract has rights to recover damages from
another, those rights are transferred to the Fund to the extent of such payment. That person or organization must do everything necessary to secure the Fund’s rights and must do nothing after the loss to impair them.
b. Coverage under the transit coverage provisions will be null and void if any Member does any act or enters into any agreement, before or after loss, which in any way releases, impairs or destroys the right to recover against any carrier for hire, or other
party liable for the loss, or transfers such right to anyone other than the Fund. Even if the transit coverage becomes null and void, the Fund has the right to retain and recover the contribution for this coverage. The Member does have permission to
accept the limited liability form receipts or bills of lading commonly used by carriers for hire without prejudice to this coverage. The Fund is not liable however, for any loss that is settled or compromised without the written consent of the Fund.
c. If the Fund pays for loss or advances or loans money under the transit coverage, the
Member will, upon request and at the expense of the Fund, make claim upon and institute legal proceedings against any carrier, bailee or other party liable for the loss.
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At the option of the Fund, such claims or legal proceedings may be instituted in the name of the Member. The Member agrees to fully cooperate with the Fund in
making such claims and prosecuting such legal proceedings.
2. Subrogation – All Other Coverages
If any person or organization to or for whom the Fund makes payment under this
Contract has rights to recover damages from another those rights are transferred to the
Fund to the extent of such payment. That person or organization must do everything
necessary to secure the Fund’s rights and must do nothing after the loss to impair them. The Fund will be entitled to priority of recovery against any such third party (including interest) to the extent payment has been made by the Fund, plus attorney’s fees,
expenses or costs incurred by the Fund. But, the Member may waive its rights against another party by specific written agreement:
a. Prior to a loss to Covered Property.
b. After a loss to Covered Property or Covered Income only if, at time of loss, that party is one of the following:
(1) Someone covered by this Contract;
(2) A business firm owned or controlled by the Member or that owns or controls the
Member; or
(3) The Member’s tenant;
Such waiver will not invalidate or restrict this coverage.
Y. TRANSFER OF THE MEMBER’S RIGHTS AND DUTIES UNDER THIS CONTRACT
The Member’s rights and duties under this Contract may not be transferred without the prior written consent of the Fund.
Z. UNINTENTIONAL ERRORS IN DESCRIPTION The coverage provided by this Contract is extended to apply with respect to direct physical loss or damage to property at locations within the Contract Territory that are owned, leased or operated by the Member, if such loss or damage is not payable under this Contract due solely to any unintentional error in the description of the address of the property. But this will not increase any Limits of Coverage that apply under this Contract.
Upon discovery of the unintentional error, the Member will report the correct information to the Fund. An additional contribution may be charged based upon the corrected information.
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REPLACEMENT COST
Section K
This endorsement modifies Section I (Property) B. (Property Coverage).
The following Valuation Provisions are added:
A. REPLACEMENT COST
In the event of a covered loss or damage, the Fund will determine the value of Covered
Property at replacement cost as of the time and place of loss, without deduction for physical
deterioration, depreciation, obsolescence and depletion, except as otherwise provided in this endorsement or as stipulated by any other endorsement(s) attached to this Contract. This replacement cost valuation is subject to the following conditions:
1. The Fund will not pay more on a replacement cost basis than the least of:
a. The cost to repair, rebuild or replace, at the same site, the lost, damaged or destroyed property, with other property of comparable size, material and quality; or
b. The actual amount incurred by the Member that is necessary to repair, rebuild or
replace the lost, damaged or destroyed property; or
c. The Limit of Coverage applicable to the lost, damaged or destroyed property.
Property that is not repaired or replaced within two (2) years after the date of loss, will be valued at Actual Cash Value at the time and place of the loss, unless such requirement is waived by Company in writing.
2. The Fund will not pay for any loss or damage on a replacement cost basis until the property is repaired, rebuilt or replaced, and then only if such repair, rebuilding or
replacement is made as soon as reasonably possible after the loss or damage. If the property is not repaired, rebuilt, or replaced as soon as reasonably possible after the loss or damage, the value of the property will be determined at Actual Cash Value. This restriction does not apply to losses less than $25,000. If the loss is less than $25,000, property that is not repaired or replaced within two (2) years after the date of loss, will be valued at Actual Cash Value at the time and place of the loss, unless such requirement is waived by Company in writing.
3. For property to which this replacement cost valuation applies, the Member may make a claim for loss or damage on an Actual Cash Value basis instead of on a replacement
cost basis. In the event the Member elects to have loss or damage settled on an Actual
Cash Value basis, the Member may still make a claim on a replacement cost basis if the Member notifies the Fund within 180 days after the loss or damage.
4. The cost to repair, rebuild, or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any
property unless a Limit of Coverage is specified for Ordinance or Law in the
Declarations Page, and then only to the extent provided under that coverage.
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5. In the event the Member decides to repair, rebuild, or replace the damaged or destroyed property, payment will include any reasonable and necessary architectural, engineering,
consulting, or supervisory fees related to the construction, repair or replacement of the damaged or destroyed property. This will not increase the applicable Limits of Coverage.
B. REPLACEMENT COST EXCEPTIONS
1. Valuable Papers and Records and Electronic Data and Media will be valued as
follows:
a. At the Member’s cost to research, replace or restore the lost information on lost, damaged or destroyed Valuable Papers and Records or Electronic Data and
Media for which duplicates do not exist;
b. At the cost of blank materials or media and the cost of copying data onto blank materials or media when duplicates of the papers, records or data exist;
c. In the event replacement of Electronic Data and Media with identical property is impossible, the replacement cost will be the cost of items that are similar to the damaged or destroyed equipment and intended to perform the same function, but which may include technological advances;
d. At the cost of blank materials or media of the same kind and quality if the papers,
records or data are not replaced;
e. At the specified amount per article for those articles which are specifically declared, described and valued in a schedule forming a part of this Contract;
2. Brands and Labels If branded or labeled merchandise that is Covered Property is damaged by an
Accident, but retains a salvage value, the Member may, at its expense:
a. Stamp the word SALVAGE on the merchandise or its containers if the stamp will not physically damage the merchandise; or
b. Remove the brands or labels, if doing so will not physically damage the merchandise. The Member must re-label the merchandise or its containers to comply with the law.
c. The Fund will pay for any reduction in value of the salvage merchandise resulting from either of these two actions, subject to all applicable limits. If a Brands and Labels Limit is shown on the Declarations, the Fund will not pay more than the indicated amount for coverage under this Condition.
3. Contractors Equipment - In the event of a covered loss or damage to Scheduled Contractors Equipment the Fund will pay the lesser of:
a. The cost of repairing damaged property or replacing damaged or stolen property with
the same kind or quality;
b. The cost to replace the damaged or stolen property with comparable new property as of the time of loss; or
c. The Limit of Coverage applicable to the lost, damaged or stolen property.
In the event of a covered loss or damage to unscheduled Contractors Equipment the Fund
will pay in accordance with the valuation provisions of Section I (Property), Section H. (Contractors Equipment), H. 2.
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5. Fine Arts will be valued at the least of:
a. The cost of reasonably restoring that property; or
b. The cost of replacing that property, at the time and place of loss, with substantially the same property; or
c. The market value of the property at the time and place of loss or, if the article of property is specifically declared, described and valued in a schedule forming a part of this Contract, the amount per article specified in the Schedule on file with the
Fund.
6. Finished Stock will be valued at the selling price less discounts and expenses the
Member otherwise would have had.
7. Pairs, Sets, or Parts
a. Pairs or Sets - In case of loss to any part of a pair or set, the Fund may, at its option:
(1) Repair or replace any part to restore the pair or set to its value before the loss; or
(2) Pay the difference between the values of the pair or set before and after the loss.
b. Parts - In case of loss to any part of Covered Property consisting of several parts when complete, the Fund will only pay for the value of the lost or damaged part.
8. Patterns, dies, molds, and forms not in current usage will be valued at Actual Cash
Value. If loss is paid on an Actual Cash Value basis, and within 24 months from the
date of the loss the Member needs to repair or replace one or more of the items, the
Fund will pay the Member, subject to the conditions of this coverage, the difference between Actual Cash Value and replacement cost for those patterns, molds, and dies
which are actually repaired or replaced.
9. Business Personal Property sold by the Member but not delivered will be valued at the
selling price less discounts and expenses the Member otherwise would have had.
10. Business Personal Property of Others will be valued at the amount for which the
Member is liable, not to exceed the replacement cost.
11. Stock in Process will be valued at the cost of Raw Stock, labor expended, plus the proper proportion of overhead charges.
12. Tenant’s Improvements and Betterments will be valued at:
a. Replacement cost of the damaged or destroyed property [subject to the provisions of this Section K. (Replacement Cost) A. (Replacement Cost) above] if the covered tenant makes the repairs or replaces the property promptly.
b. A proportion of the Member tenant’s original cost if the covered tenant does not make repairs promptly. The Fund will determine the proportionate value as follows:
(1) Multiply the original cost by the number of days from the loss or damage to the
expiration of the lease; and
(2) Divide the amount determined in (1) above by the number of days from the installation of improvements to the expiration of the lease. If the covered tenant’s lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure.
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c. If repaired or replaced at the expense of others, there will be no liability hereunder.
13. Contractor’s equipment shall be valued at Actual Cash Value, unless an agreed value on file with the Company applies.
14. Trees, shrubs, plants and lawns will be valued at the cost to replace the property with local
nursery Stock.
15. Vacant property will be valued at Actual Cash Value.
C. ADDITIONAL DEFINITION
The following definition is in addition to those contained in the Property Coverage Section.
Actual Cash Value means the cost to repair, rebuild or replace the lost or damaged property, at the time and place of the loss, with other property of comparable size, material and quality, less allowance for physical deterioration, depreciation, obsolescence and
depletion. This actual cash valuation is subject to the following conditions:
1. The Fund will not pay more than the least of:
a. The cost to repair, rebuild, or replace, at the same site, the lost, damaged or destroyed property with other property of comparable size, material and quality, less allowance for physical deterioration, depreciation, obsolescence, and depletion; or
b. The actual amount incurred by the Member that is necessary to repair, rebuild or replace the lost, damaged or destroyed property; or
c. The Limit of Coverage applicable to the lost, damaged or destroyed property.
2. The cost to repair, rebuild, or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property unless a Limit of Coverage is specified for Ordinance or Law in the
Declarations Page, and then only to the extent provided under that coverage.
3. In the event the Member decides to repair, rebuild, or replace the damaged or destroyed property, payment will include any reasonable and necessary architectural, engineering,
consulting, or supervisory fees related to the construction, repair or replacement of the damaged or destroyed property. This will not increase the applicable Limits of Coverage.
4. Total payments by the Fund shall not exceed the Actual Cash Value, inclusive of any and all sub-limits provided under Section I (Property).
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EQUIPMENT BREAKDOWN COVERAGE FORM
Section L
Various provisions in this coverage document restrict coverage. Read the entire document carefully to determine rights, duties, and what is and is not covered. Throughout this document, words and phrases that appear in bold have special meaning.
Refer to Section G, DEFINITIONS, below and Section VII, General Conditions, C. Definitions.
A. COVERAGE
This Equipment Breakdown Coverage provides Coverage for a Covered Cause of Loss as defined in A.1. below. In the event of a Covered Cause of Loss, the Fund will pay for loss as described in A.2. below.
1. Covered Cause of Loss–Accident The Covered Cause of Loss for this Equipment Breakdown Coverage is an
Accident. Without an Accident, there is no Equipment Breakdown Coverage.
a. Accident means a fortuitous event that causes direct physical damage to
Covered equipment. The event must be one of the following:
(1) Mechanical breakdown, including rupture or bursting caused by centrifugal force;
(2) Artificially generated electrical current, including electrical arcing, that damages electrical devices, appliances, or wires;
(3) Explosion, other than combustion explosion, of steam boilers, steam piping,
steam engines, or steam turbines;
(4) An event inside steam boilers, steam pipes, steam engines, or steam turbines that damages such equipment;
(5) An event inside hot water boilers or other water heating equipment that damages such equipment; or
(6) Bursting, cracking, or splitting.
Accident does not include any condition or event listed in Definition G.1.b.
b. Covered Equipment means the following:
(1) Unless specified otherwise in the Declarations:
(a) Equipment that generates, transmits, or utilizes energy, including
electronic communications and data processing equipment; or
(b) Equipment which, during normal usage, operates under vacuum or pressure, other than the weight of its contents.
(2) Except as specifically provided for under Off Premises Property Damage, Service Interruption, Contingent Business Income and paragraph (2) of
Perishable Goods, such equipment must be at a location on schedule with
the Fund and must be owned or leased by the Member or operated under the Member’s control.
Covered Equipment does not include any property listed in Definition G.8.b.
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2. Coverages Provided This section lists the coverages that may apply in the event of an Accident. Each
coverage is subject to a specific limit as shown in the Declarations. See paragraph C.2. for details.
These coverages apply only to the direct result of an Accident. For each coverage, the
Fund will pay only for that portion of the loss, damage or expense that is solely attributable to the Accident.
a. Property Damage The Fund will pay for physical damage to Covered Property that is at a location on schedule with the Fund at the time of the Accident.
b. Off Premises Property Damage If the Member has transportable Covered Equipment that, at the time of the
Accident, is within the Coverage Territory, but is not:
(1) At a location indicated on schedule with the Fund ; or
(2) At any other location owned or leased by the Member, The Fund will pay for physical damage to such Covered Equipment.
c. Business Income
(1) The Fund will pay the Member’s actual loss of Business Income during the
Period of Restoration that results directly from the necessary total or partial interruption of its business.
(2) The Fund will also pay any necessary expenses the Member incurs during the
Period of Restoration to reduce the amount of loss under this coverage. The
Fund will pay for such expenses to the extent that they do not exceed the
amount of loss that otherwise would have been payable under this coverage.
(3) The Fund will consider the actual experience of the Member’s business before the Accident and the probable experience the Member would have had without
the Accident in determining the amount of payment.
d. Extra Expense The Fund will pay the reasonable and necessary Extra Expense to operate the
Member’s business during the Period of Restoration.
e. Service Interruption The Fund will pay for the Member’s loss and expense as defined under Business
Income coverage and Extra Expense coverage that is the result of an
Interruption of Service.
f. Contingent Business Income The Fund will pay for the Member’s loss and expense as defined under Business
Income and Extra Expense coverages that results from an Interruption of
Supply.
g. Perishable Goods
(1) The Fund will pay for physical damage to Perishable Goods due to Spoilage.
(2) The Fund will also pay for physical damage to Perishable Goods due to
Spoilage that is the result of an Interruption of Service.
(3) The Fund will also pay for physical damage to Perishable Goods due to
contamination from the release of refrigerant, including but not limited to ammonia.
(4) The Fund will also pay any necessary expenses the Member incurs during the
Period of Restoration to reduce the amount of loss under this coverage. The
Fund will pay for such expenses to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage.
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h. Data Restoration
(1) The Fund will pay for the Member’s reasonable and necessary cost to
research, replace or restore lost Data.
(2) The Fund will also pay for the Member’s loss and expense as defined under
Business Income coverage and Extra Expense coverage that is the result of
h.(1) above, if such coverage is otherwise applicable under this Contract. This coverage is included within and subject to the Data Restoration limit.
i. Demolition
(1) This coverage applies if an Accident damages a building that is Covered
Property and the loss is increased by an ordinance or law that:
(a) Requires the demolition of a building that is otherwise reparable;
(b) Is in force at the time of the Accident; and
(c) Is not addressed under Hazardous Substances coverage.
(2) The Fund will pay for the following additional costs to comply with such ordinance or law:
(a) The actual and necessary cost to demolish and clear the site of the undamaged parts of the building; and
(b) The actual and necessary cost to reconstruct the undamaged parts of the building.
(3) As used in this coverage, additional costs mean those beyond what would have been payable under this Equipment Breakdown Coverage had no such ordinance or law been in force at the time of the Accident.
(4) The Fund will also pay for the Member’s loss and expense as defined under
Business Income coverage and Extra Expense coverage that is the result of i.(1) above, if such coverage is otherwise applicable under this Contract. This
coverage is included within and subject to the Demolition limit.
j. Ordinance or Law
(1) This coverage applies if an Accident damages a building that is Covered
Property and the loss is increased by an ordinance or law that:
(a) Regulates the construction or repair of buildings, including Building Utilities;
(b) Is in force at the time of the Accident; and
(c) Is not addressed under Demolition coverage or Hazardous
Substances coverage.
(2) The Fund will pay for the following additional costs to comply with such ordinance or law:
(a) The actual and necessary cost to repair the damaged portions of the building;
(b) The actual and necessary cost to reconstruct the damaged portions of the building; and
(c) The actual and necessary cost to bring undamaged portions of the building
in to compliance with the ordinance or law.
(3) As used in this coverage, additional costs mean those beyond what would have been payable under this Equipment Breakdown Coverage had no such
ordinance or law been in force at the time of the Accident.
(4) The Fund will also pay for the Member’s loss and expense as defined under
Business Income coverage and Extra Expense coverage that is the result of
j.(1) above, if such coverage is otherwise applicable under this Contract. This coverage is included within and subject to the Ordinance or Law limit.
k. Expediting Expenses
With respect to damaged Covered Property, the Fund will pay the reasonable extra cost to:
(1) Make temporary repairs; and
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(2) Expedite permanent repairs or permanent replacement.
l. Hazardous Substances
(1) The Fund will pay for the additional cost to repair or replace Covered Property because of contamination by a Hazardous Substance. This includes the additional expenses to clean up or dispose of such property. This does not
include contamination of Perishable Goods by refrigerant, including but not limited to ammonia, which is addressed in Perishable Goods, A.2.g.(3).
(2) As used in this coverage, additional costs mean those beyond what would have
been payable under this Equipment Breakdown Coverage had no Hazardous
Substance been involved.
(3) The Fund will also pay for the Member’s loss and expense as defined under
Business Income coverage and Extra Expense coverage that is the result of l.(1) above, if such coverage is otherwise applicable under this Contract. This coverage is included within and subject to the Hazardous Substances limit.
m. Newly Acquired Locations
(1) The Member will notify the Fund promptly of any newly acquired location that the Member has purchased or leased during the Contract Period.
(2) All coverages applicable to any scheduled location under this Equipment Breakdown Coverage are extended to a newly acquired location that the
Member has purchased or leased during the Contract Period.
(3) This coverage begins at the time the Member acquires the property. As respects newly constructed properties, the Fund will only consider them to be
acquired by the Member when it has fully accepted the completed project.
(4) This coverage ends when any of the following first occurs:
(a) This Contract expires;
(b) The location is incorporated into the regular coverage of this Contract; or
(c) The location is incorporated into the regular coverage of another Equipment Breakdown policy or coverage.
(5) If limits or deductibles vary by location, the highest limits and deductibles will apply to newly acquired locations. However, the most the Fund will pay for loss, damage or expense arising from any One Accident is the amount shown as the Newly Acquired Locations limit in the Declarations.
(6) If the total replacement cost value of any one newly constructed or acquired building or of personal property at any one newly acquired building or location is less than or equal to $500,000, the Fund will not charge the Member additional contribution for coverage provided under this Contract during the current
Contract period. For all other buildings or personal property at any one newly acquired building or location the Fund will charge the Member additional contribution for values reported from the date construction begins or the
Member acquires the property.
n. Course of Construction This coverage is automatically included and does not need to be indicated in the
Declarations.
(1) The Member will notify the Fund promptly of any expansion or rehabilitation of any location on schedule with the Fund.
(2) All coverages applicable to any location on schedule with the Fund are extended to an expansion or rehabilitation of that location.
(3) This coverage begins at the time the expansion or rehabilitation project begins.
(4) If the total replacement cost value of any one newly constructed or acquired building or of personal property at any one newly acquired building or location is less than or equal to $500,000, the Fund will not charge the Member additional
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contribution for coverage provided under this Contract during the current
Contract period. For all other buildings or personal property at any one newly
acquired building or location the Fund will charge the Member additional contribution for values reported from the date construction begins or the Member acquires the property.
B. EXCLUSIONS
The Fund will not pay for any excluded loss, damage or expense, even though any other cause or event contributes concurrently or in any sequence to the loss, damage or expense.
1. The Fund will not pay for loss, damage or expense caused directly or indirectly by any of the following, whether or not caused by or resulting from an Accident.
a. Fire and Explosion
(1) Fire, including smoke from a fire.
(2) Combustion explosion. This includes, but is not limited to, a combustion explosion of any steam boiler or other fired vessel.
(3) Any other explosion, except as specifically provided in A.1.a.(3) of this Equipment Breakdown Coverage.
b. Ordinance or Law The enforcement of, or change in, any ordinance, law, regulation, rule or ruling regulating or restricting repair, replacement, alteration, use, operation,
construction, or installation, except as specifically provided inA.2.i., j. and l. of this Equipment Breakdown Coverage (Demolition, Ordinance or Law, and Hazardous
Substances coverages).
c. Earth Movement Earth movement, whether natural or human-made, including but not limited to earthquake, shock, tremor, subsidence, landslide, rock fall, earth sinking, Sinkhole
Collapse, or tsunami.
d. Nuclear Hazard Nuclear reaction, detonation or radiation, or radioactive contamination, however caused.
e. War and Military Action
(1) Hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack:
(a) By any government or sovereign power (de jure or de facto), or by any
authority maintaining or using military, naval, or air forces;
(b) By military, naval, or air forces; or
(c) By an agent of any such government, power, authority or forces.
(2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating, or defending against such an
Occurrence.
(3) Any discharge, explosion, or use of any weapon of war employing nuclear fission or fusion will be conclusively presumed to be such a hostile or warlike action by such a government, power, authority, or forces.
f. Water
(1) Flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not;
(2) Mudslide or mudflow; or
(3) Water that backs up or overflows from a sewer, drain, or sump.
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However, if electrical Covered Equipment requires drying out because of the above, the Fund will pay for the amount the Member actually expends to dry out
such equipment, subject to the applicable Property Damage limit and deductible. The Fund will not pay more than the Actual Cash Value of the affected electrical
Covered Equipment.
The Fund will not pay to replace such equipment or for any other loss, damage or expense.
g. Failure to Protect PropertyFailure to use all reasonable means to protect Covered Property from damagefollowing an Accident.
h. FinesFine, penalty, or punitive damage.
i. MoldMold, fungus, mildew, or yeast, including any spores or toxins created or producedby or emanating from such mold, fungus, mildew or yeast. This includes, but is notlimited to, costs arising from clean-up, remediation, containment, removal, orabatement of such mold, fungus, mildew, yeast, spores, or toxins. However, thisexclusion does not apply to Spoilage of personal property that is Perishable Goods
to the extent that such Spoilage is covered under Perishable Goods coverage.
j. Deliberate ActsThe deliberate act of any person to cause damage or harm, including but not limited
to vandalism, malicious mischief, or sabotage.
2.The Fund will not pay for an Accident caused by or resulting from any of the following
causes of loss:
a.Lightning.
b.Wind storm or Hail. However, this exclusion does not apply when:
(1) Covered Equipment located within a building or structure suffers an Accidentthat results from wind- blown rain, snow, sand, or dust; and
(2) The building or structure did not first sustain wind or hail damage to its roof or walls through which the rain, snow, sand, or dust entered.
c.Collision or any physical contact caused by a Vehicle. This includes damage byobjects falling from Aircraft. However, this exclusion does not apply to anyunlicensed Vehicles own or operated in the course of the Member’s business.
d.Riot or Civil Commotion.
e.Leakage or discharge of any substance from an automatic sprinkler system,including collapse of a tank that is part of the system.
f. Volcanic Action.
g.An electrical insulation breakdown test.
h.A hydrostatic, pneumatic, or gas pressure test.
i.Water or other means intended to extinguish a fire, even when such an
attempt is unsuccessful.
j.Elevator collision.
3.The Fund will not pay for an Accident caused by or resulting from any of the followingperils, if such peril is a Covered Cause of Loss under another coverage part or policyof insurance the Member has, whether collectible or not, and without regard to
whether or not the other coverage part or policy of insurance provides the samecoverage or scope of coverage as this Contract.
a.Falling Objects.
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b.Weight of Snow, Ice, or Sleet.
c.Water Damage, meaning discharge or leakage of water or steam as the direct
result of the breaking apart or cracking of any part of a system or appliancecontaining water or steam.
d.Collapse.
e.Breakage of Glass.
f.Freezing caused by cold weather.
g.Discharge of molten material from equipment, including the heat from such
discharged material.
4.Exclusions 2. and 3. do not apply if all of the following are true:
a.The excluded peril occurs away from any location on schedule on file with the
Fund and causes an electrical surge or other electrical disturbance;
b.Such surge or disturbance is transmitted through utility service transmission lines toa described location;
c.At a location on schedule with the Fund, the surge or disturbance results in an
Accident to Covered Equipment that is owned or operated under the control ofthe Member or the landlord; and
d.The loss, damage, or expense caused by such surge or disturbance is not a
Covered Cause of Loss under another coverage part or policy of insurance the
Member has, whether collectible or not, and without regard to whether or not theother coverage part or policy of insurance provides the same coverage or scope of
coverage as this Contract.
5.With respect to Business Income, Extra Expense and Service Interruption
coverages, the Fund will also not pay for:
a.Loss associated with business that would not or could not have been carried on ifthe Accident had not occurred;
b.Loss caused by the Member’s failure to use due diligence and dispatch and allreasonable means to resume business;
c.That part of any loss that extends beyond or occurs after the Period of
Restoration. This includes, but is not limited to:
(1) Business Income that would have been earned after the Period of
Restoration, even if such loss is the direct result of the suspension, lapse or cancellation of a contract during the Period of Restoration; and
(2) Extra Expense to operate the Member’s business after the Period of
Restoration, even if such loss is contracted for and paid during the Period of
Restoration.
d.Any increase in loss resulting from an agreement between the Member and the
Member’s customer or supplier. This includes, but is not limited to, contingentbonuses or penalties, late fees, demand charges, demurrage charges, andliquidated damages.
6.With respect to Off Premises Property Damage coverage, Service Interruptioncoverage, Contingent Business Income coverage and paragraph (2) of Perishable
Goods coverage, the Fund will also not pay for an Accident caused by or resulting fromany of the perils listed in Exclusion 3. above, whether or not such peril is a Covered
Cause of Loss under another coverage part or policy of insurance.
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7.With respect to Data Restoration coverage, the Fund will also not pay to reproduce:
a.Software programs or operating systems that are not commercially available; or
b. Data that is obsolete, unnecessary, or useless.
8.With respect to Demolition and Ordinance or Law coverages, the Fund will also not
pay for:
a.Increased demolition or reconstruction costs until they are actually incurred; or
b.Loss due to any ordinance or law that:
(1) The Member was required to comply with before the loss, even if the buildingwas undamaged; and
(2) The Member failed to comply with; whether or not the Member was aware of
such non-compliance.
C. LIMITS OF COVERAGE
Any payment made under this Equipment Breakdown Coverage will not be increased if more than one Member is shown in the Declarations or if the Member is comprised of more than one legal entity.
1. Equipment Breakdown LimitThe most the Fund will pay for loss, damage or expense arising from any One
Accident is the amount shown as the Equipment Breakdown Limit in the
Declarations.
2. Coverage Limits
a.The Limit of Coverage under each of the coverages listed in A.2. from loss, damageor expense arising from any One Accident is the amount indicated for thatcoverage in the Declarations. These limits are a part of, and not in addition to, the
Equipment Breakdown Limit. If a coverage is shown as “Included,” that coverage isprovided up to the remaining amount of the Equipment Breakdown Limit. If no limitis shown in the Declarations for a coverage, or if a coverage is shown as Excludedin the Declarations, that coverage will be considered to have a limit of $0.
b.If two or more coverage limits apply to the same loss or portion of a loss, the Fundwill pay only the smallest of the applicable limits for that loss or portion of the loss.This means that if:
(1) The Member has a loss under one of the coverages listed in A.2.;and
(2) All or part of the loss is not covered because the applicable coverage isExcluded or has a limit that is less than the amount of your loss, the Fund will not pay the remaining amount of such loss under any other coverage.
D. DEDUCTIBLES
1.Deductibles for Each Coverage
a.Unless the Declarations indicate that your deductible is combined for all coverages,multiple deductibles may apply to any One Accident.
b.The Fund will not pay for loss, damage, or expense under any coverage until theamount of the covered loss or damage exceeds the deductible amount indicated forthat coverage in the Declarations. The Fund will then pay the amount of loss,
damage or expense in excess of the applicable deductible amount, subject to theapplicable limit indicated in the Declarations.
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c. If deductibles vary by type of Covered Equipment and more than one type of
Covered Equipment is involved in any One Accident, only the highest deductible
for each coverage will apply.
2. Application of Deductibles
The Fund will not pay for loss, damage, or expense resulting from any One Accident until the amount of loss, damage or expense exceeds the applicable deductible or deductibles shown in the Declarations. The Fund will then pay the amount of loss,
damage, or expense in excess of the applicable deductible or deductibles, subject to the applicable limits shown in the Declarations.
E. LOSS CONDITIONS
1. Defense The Fund has the right, but is not obligated, to defend the Member against suits arising from claims of owners of property in the Member’s care, custody, or control. When the Fund does this, it will be at the Fund’s expense. The Member must cooperate with the Fund in the investigation and settlement of
the claim.
2. Errors and Omissions
a. The Fund will pay the Member’s loss covered by this Equipment Breakdown coverage if such loss is otherwise not payable solely because of any of the following:
(1) Any error or unintentional omission in the description or location of property as covered under this Contract;
(2) Any failure through error to include any Premises owned or occupied by the
Member at the inception of this Contract; or
(3) Any error or unintentional omission by the Member that results in cancellation of any Premises covered under this Contract.
b. No coverage is provided as a result of any error or unintentional omission by the
Member in the reporting of values or the coverage requested.
c. It is a condition of this coverage that such errors or unintentional omissions shall be reported and corrected when discovered. The Contract contribution will be adjusted accordingly to reflect the date the Premises should have been added
had no error or omission occurred.
d. If an Errors and Omissions Limit is shown on the Declarations, the Fund will not pay more than the indicated amount for coverage under this Condition.
3. Proving the Loss It is the Member’s responsibility, at its own expense, to provide documentation to the
Fund:
a. Demonstrating that the loss, damage or expense is the result of an Accident covered under this Equipment Breakdown Coverage; and
b. Calculating the dollar amount of the loss, damage and expense that the
Member claims is covered.
The Member’s responsibility in 3.a. above is without regard to whether or not the possible Accident occurred at the Member’s Premises or involved the Member’s equipment.
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4. Salvage and Recoveries When, in connection with any loss under this Equipment Breakdown Coverage, any
salvage or recovery is received after the payment for such loss, the amount of the loss shall be refigured on the basis on which it would have been settled had the amount of salvage or recovery been known at the time the loss was originally determined. Any
amounts thus found to be due either party from the other shall be paid promptly.
5. Valuation
The Fund will determine the value of Covered Property as follows:
a. Except as specified otherwise, the Fund’s payment for damaged Covered
Property will be the smallest of:
(1) The cost to repair the damaged property;
(2) The cost to replace the damaged property on the same site; or
(3) The amount the Member actually spends that is necessary to repair or replace the damaged property.
b. The amount of the Fund’s payment will be based on the most cost-effective means to replace the function, capacity and remaining useful life of the damaged property. This may include the use of generic, used or reconditioned parts, equipment, or property.
c. Except as described in d. below, the Member must pay the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity.
d. The following property will be valued on an Actual Cash Value basis:
(1) Any property that does not currently serve a useful or necessary function for the
Member;
(2) Any Covered Property that the Member does not repair or replace within 24 months after the date of the Accident; and
(3) Any Covered Property for which Actual Cash Value coverage is specified in
the Declarations or by endorsement. Actual Cash Value includes deductions for depreciation.
e. If anyone of the following conditions is met, property held for sale by the Member will be valued at the sales price as if no loss or damage had occurred, less any discounts and expenses that otherwise would have applied:
(1) The property was manufactured by the Member;
(2) The sales price of the property is less than the replacement cost of the property; or
(3) The Member is unable to replace the property before its anticipated sale.
f. Except as specifically provided for under Data Restoration coverage, Data and
Media will be valued on the following basis:
(1) For mass-produced and commercially available software, at the replacement cost.
(2) For all other Data and Media, at the cost of blank Media for reproducing the
records. The Fund will not pay for Data representing financial records based on the face value of such records.
g. Air conditioning or refrigeration equipment that utilizes a refrigerant containing CFC
(chlorofluorocarbon) substances will be valued at the cost to do the least expensive of the following:
(1) Repair or replace the damaged property and replace any lost CFC refrigerant;
(2) Repair the damaged property, retrofit the system to accept a non- CFC refrigerant and charge the system with a non-CFC refrigerant; or
(3) Replace the system with one using a non-CFC refrigerant.
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In determining the least expensive option, the Fund will include any associated
Business Income or Extra Expense loss. If option (2) or (3) is more expensive than (1), but the Member wishes to retrofit or replace anyway, the Fund will consider this better for the environment and therefore eligible for valuation under paragraph a.,
Environmental, Safety and Efficiency Improvements. In such case, E.5.d.(1)is amended to read: “The Fund will not pay more than 125% of what the cost would have been to repair or replace with like kind and quality.”
h. Brands and Labels If branded or labeled merchandise that is Covered Property is damaged by an
Accident, but retains a salvage value, the Member may, at its expense:
(1) Stamp the word SALVAGE on the merchandise or its containers if the stamp will not physically damage the merchandise; or
(2) Remove the brands or labels, if doing so will not physically damage the merchandise. The Member must re-label the merchandise or its containers to comply with the law.
(3) The Fund will pay for any reduction in value of the salvage merchandise resulting from either of these two actions, subject to all applicable limits. If a Brands and Labels Limit is shown on the Declarations, the Fund will not pay
more than the indicated amount for coverage under this Condition.
6. Environmental, Safety and Efficiency Improvements
If Covered Equipment requires replacement due to an Accident, the Fund will pay the Member’s additional cost to replace with equipment that the Fund agree is better for the environment, safer for people or more energy efficient than the equipment being
replaced, subject to the following conditions:
a. The Fund will not pay more than 125% of what the cost would have been to replace with like kind and quality;
b. The Fund will not pay to increase the size or capacity of the equipment;
c. This provision only applies to Property Damage coverage;
d. This provision does not increase any of the applicable limits;
e. This provision does not apply to any property valued on an Actual Cash Value basis; and
f. This provision does not apply to the replacement of component parts.
F. ADDITIONAL CONDITIONS
The following conditions apply, in addition to any conditions set forth in Section J. General Conditions of Section I (Property) as well as Section VII (General Conditions):
1. Jurisdictional Inspections It is the Member’s responsibility to comply with any state or municipal boiler and
pressure vessel regulations. If any Covered Equipment that is Covered Property requires inspection to comply with such regulations, at the Member’s option the Fund agrees to perform such inspection.
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2. Maintaining Property and Equipment It is the Member’s responsibility to appropriately maintain its property and equipment.
The Fund will not pay the Member’s costs to maintain, operate, protect, or enhance the Member’s property or equipment, even if such costs are to comply with the Fund’s recommendations or prevent loss, damage, or expense that would be covered under
this Contract.
3. Suspension
Whenever Covered Equipment is found to be in, or exposed to, a dangerous condition, any of the Fund’s representatives may immediately suspend the coverage against loss from an Accident to that Covered Equipment. This can be done by
delivering or mailing a written notice of suspension to:
a. The Member’s last known address; or
b. The address where the Covered Equipment is located. Once suspended in this way, coverage can be reinstated only by an endorsement or that Covered Equipment. If the Fund suspends coverage, the Member will get a pro rata refund of contribution
for that Covered Equipment for the period of suspension. But the suspension will be effective even if the Fund has not yet made or offered a refund.
G. DEFINITIONS The following definitions apply, in addition to any definitions set forth in Section I, (Property)
as well as Section VII (General Conditions):
1. Accident
a. Accident is defined inA.1.a.
b. None of the following is an Accident, however caused and without regard to whether such condition or event is normal and expected or unusual and unexpected:
(1) Depletion, deterioration, rust, corrosion, erosion, settling, or wear and tear;
(2) Any gradually developing condition;
(3) Any defect, programming error, programming limitation, computer virus,
Malicious Code, loss of Data, loss of access, loss of use, loss of
functionality, or other condition within or involving Data or Media of any kind;
(4) Contamination by a Hazardous Substance; or
(5) Misalignment, miscalibration, tripping off-line, or any condition which can be corrected by resetting, tightening, adjusting, or cleaning, or by the performance of maintenance.
2. Boilers and Vessels means:
a. Boilers;
b. Steampiping;
c. Piping that is part of a closed loop used to conduct heat from a boiler;
d. Condensate tanks; and
e. Unfired vessels which, during normal usage, operate under vacuum or pressure, other than the weight of contents.
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This term does not appear elsewhere in this coverage form, but may appear in the
Declarations.
3. Building Utilities means Covered Equipment permanently mounted on or in a building and used to provide any of the following services within the building: heating,
ventilating, air conditioning, electrical power, hot water, elevator or escalator services, natural gas service or communications. Building Utilities does not include personal property or equipment used in manufacturing or processing.
4. Buried Vessels or Piping means any piping or vessel buried or encased in the earth, concrete, or other material, whether above or below grade, or in an enclosure which
does not allow access for inspection and repair.
5. Business Income means the sum of:
a. The Net Income (net profit or loss before income taxes) that would have been earned or incurred; and
b. Continuing normal and necessary operating expenses incurred, including employee payroll.
6. Business Income Actual Annual Value means the Business Income for the current fiscal year that would have been earned had no Accident occurred. In calculating the Business Income Actual Annual Value, the Fund will take into
account the actual experience of the Member’s business before the Accident and the probable experience the Member would have had without the Accident.
7. Business Income Estimated Annual Value means the anticipated Business Income reported to the Fund and shown in the Declarations. If no value is shown in the
Declarations, the Business Income Estimated Annual Value will be the most recent
report of anticipated Business Income values on file with the Fund.
8. Covered Equipment
a. Covered Equipment is defined in A.1.b.
b. None of the following is Covered Equipment:
(1) Structure, including but not limited to the structural portions of buildings and towers, scaffolding, and any air supported enclosure;
(2) Foundation;
(3) Cabinet, compartment, conduit, or ductwork;
(4) Insulating or refractory material;
(5) Buried Vessels or Piping;
(6) Waste, drainage, or sewer piping;
(7) Piping, valves or fittings forming a part of a sprinkler or fire suppression system;
(8) Water piping that is not part of a closed loop used to conduct heat or cooling from a boiler or a refrigeration or air conditioning system;
(9) Vehicle or any equipment mounted on a Vehicle;
(10) Satellite, spacecraft, or any equipment mounted on a satellite or spacecraft;
(11) Dragline, excavation or construction equipment;
(12) Equipment manufactured by the Member for sale; or
(13) Data.
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9. Covered Property
a. Covered Property means property that the Member owns or property that is in its
care, custody or control and for which the Member is legally liable. Such property must be at a location on schedule with the Fund except as provided under Off
Premises Property Damage coverage.
b. None of the following is Covered Property:
(1) Accounts, bills, currency, deeds, or other evidences of debt, money, notes or securities;
(2) Fine Arts, jewelry, furs or precious stones;
(3) Precious metal, unless forming a part of Covered Equipment;
(4) Animals;
(5) Contraband or property in the course of illegal transportation or trade;
(6) Land (including land on which the property is located), water, trees, growing crops, or lawns; or
(7) Shrubs or plants, unless held indoors for retail sale.
10. Data means information or instructions stored in digital code capable of being processed by machinery.
11. Electrical Generating Equipment
a. Electrical Generating Equipment means equipment which converts any other form of energy into electricity. This includes, but is not limited to, the following:
(1) Boilers used primarily to provide steam for one or more turbine-generator units;
(2) Turbine-generators (including steam, gas, water, or wind turbines);
(3) Engine-generators;
(4) Fuel cells or other alternative Electrical Generating Equipment;
(5) Electrical transformers, switchgear, and power lines used to convey the
generated electricity; and
(6) Associated equipment necessary for the operation of any of the equipment listed in (1) through (5) above.
b. Electrical Generating Equipment does not mean:
(1) Elevator or hoist motors that generate electricity when releasing cable; or
(2) Equipment intended to generate electricity solely on an emergency, back-up basis. This term does not appear elsewhere in this coverage form, but may appear in
the Declarations.
12. Extra Expense means the additional cost the Member incurs to operate its business
over and above the cost that it normally would have incurred to operate its business during the same period had no Accident occurred.
13. Hazardous Substance means any substance that is hazardous to health or has been declared to be hazardous to health by a governmental agency.
14. Interruption of Service
a. Interruption of Service means a failure or disruption of the normal supply of any of the Covered Services listed in b. below, when such failure or disruption is caused by
an Accident to Covered Equipment, subject to the conditions listed in c. through f. below.
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b. Covered Services are electrical power, waste disposal, air conditioning, refrigeration, heating, natural gas, compressed air, water, steam, internet access,
telecommunications services, wide area networks, and data transmission.
c. The Covered Equipment must either be:
(1) Owned by a company with whom the Member has a contract to supply it with one
of the Covered Services; or
(2) Used to supply the Member with one of the Covered Services and located within one mile of a location on schedule with the Fund.
d. No failure or disruption of service will be considered to qualify as an Interruption of
Service until the failure or disruption exceeds 24 hours immediately following the
Accident.
e. Interruption of Service does not include any failure or disruption, whether or not arising from or involving an Accident, in which a supplier could have continued to provide service to the location but chose for any reason to reduce or discontinue service.
15. Interruption of Supply
a. Interruption of Supply means a failure or disruption of the normal supply of any of
the Covered Contingencies listed below, when such failure or disruption is caused by an Accident to Covered Equipment that is located at a Contingent Business
Income supplier or receiver location scheduled with the Fund. The Covered
Equipment must be owned by a supplier from whom the Member has received the Covered Contingency for at least six months prior to the Accident or a receiver to whom the Member has supplied the Covered Contingency for at least six months
prior to the Accident.
b. Covered Contingencies are raw materials, intermediate products, finished products, packaging materials and product processing services.
16. Media means material on which Data is recorded, such as magnetic tapes, hard disks, optical disks, or floppy disks.
17. One Accident means all Accidents occurring at the same time from the same event. If an Accident causes other Accidents, all will be considered One Accident.
18. Ordinary Payroll means the Payroll Expenses associated with all employees other
than executives, department managers, and employees under contract. As used above, Payroll Expenses means all payroll, employee benefits directly related to payroll, FICA payments the Member pays, union dues the Member pays and
workers compensation premiums/contributions.
Ordinary Payroll does not include pensions or directors fees.
19. Overhead Transmission Lines means overhead power transmission lines supplying electricity, steam, or gas to the Member’s Premises and overhead communication lines supplying communication services to the Member’s Premises.
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20. Period of Restoration means the period of time that begins at the time of the
Accident and continues until the earlier of:
a. Covered Equipment is repaired or replaced; or
b. The date on which such damage could have been repaired or replaced with the exercise of due diligence and dispatch, plus the number of days, if any, shown in
the Declarations for Extended Period of Restoration.
21. Perishable Goods means any Covered Property subject to deterioration or
impairment as a result of a change of conditions, including but not limited to temperature, humidity, or pressure.
22. Premises means the interior of that portion of any building the Member occupies in conducting the Member’s business.
23. Production Machinery means any machine or apparatus that processes or produces a product intended for eventual sale. This includes all component parts of such machine or apparatus and any other equipment used exclusively with such machine or apparatus.
24. Spoilage means any detrimental change in state. This includes but is not limited to
thawing of frozen goods, warming of refrigerated goods, freezing of fresh goods, solidification of liquid or molten material, and chemical reactions to material in process.
25. Vehicle means any machine or apparatus that is used for transportation or moves under its own power. Vehicle includes, but is not limited to, car, truck, bus, trailer, train,
Aircraft, watercraft, forklift, bulldozer, tractor, or harvester.
However, any property that is stationary, permanently installed at a covered location and that receives electrical power from an external power source will not be considered a
Vehicle.
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SAMPLE MEMBER
VA-00-000
- SECTION II -
GENERAL LIABILITY
DECLARATIONS PAGE
Liability Limit: $2,000,000 Per Occurrence
Sub-limits: Fire Legal Liability - Real Property $ 500,000 Per Occurrence
Broad Form Property Damage and Property in the Care, Custody and Control
$ 100,000 Per Occurrence
Medical Payments $ 5,000 Per Person $ 10,000 Per Occurrence
Employee Benefits Liability $2,000,000 Per Occurrence
Law Enforcement Liability $2,000,000 Per Occurrence $ Deductible It is understood that certain limits and deductibles contained herein can change annually at the
election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the Coversheet to the Member Agreement supersede any contradictory limits and deductibles
contained herein.
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- SECTION II –
GENERAL LIABILITY COVERAGE
A. COVERAGE AGREEMENT
The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
1. to pay on behalf of the Member or Covered Person all sums which the Member or
Covered Person shall be legally obligated to pay as money Damages by reason of civil liability imposed upon the Member or Covered Person by law on account of Personal
Injuries, including death at any time resulting there from, suffered or alleged to have been suffered by any person or persons (excepting employees of the Member injured in the course of their employment), and/or damage to or destruction of property or the loss of use thereof arising out of any Occurrence during the Contract Period and caused by the
Member or Covered Person while acting in his or her regular course of duty with the
Member from any cause other than as covered by Sections I (Property), III (Auto), IV (Crime), V (Public Officials) and VI (CyberRisk) of the Contract, including, but not limited to, Products Liability and/or Completed Operations, Host Liquor Liability, Incidental
Malpractice, Broad form Property Damage liability, employee benefits liability, and Mobile
Equipment.
2. to pay on behalf of the Member or Covered Person all costs and expenses incurred by the
Fund in the investigation, adjustment, settlement, defense, and appeal of any Claim or suit for which coverage is afforded by this Section II (General Liability) of this Contract. Costs
and expenses payable by the Fund shall include only reasonable costs and expenses as shall be authorized and incurred by the Fund when investigating and defending an
Occurrence. However, costs of defense shall not include any costs or expenses
attributable to the Member’s normally employed officers, employees, or attorneys or any other expenses incurred or payable by the Member without the Fund’s prior written approval. Coverage for such costs and expenses provided herein are in addition to the limit of liability as stated in H (Limit of Liability) of Section II (General Liability).
3. to defend any action or suit seeking money Damages brought against the Member or a
Covered Person alleging Personal Injury or Property Damage, even if such action or suit is groundless, false, or fraudulent; but, the Fund has no duty to defend any Claim or
suit to which this coverage does not apply nor does the Fund have the duty of defending an allegation of a criminal act in a criminal court. The Fund has the sole authority to select the attorney who will defend the Claim or suit without obtaining consent from the
Member or Covered Person. The Member or Covered Person shall not admit liability for or settle any Claim or suit or incur any cost or expense without the written consent of the Fund, and the Fund shall have the right to make such investigation and conduct
negotiations and enter into such settlement of any Claim or suit as the Fund deems expedient. If the Member or a Covered Person unreasonably refuses any settlement recommended by the Fund, the Member or the Covered Person shall thereafter, at its
or his own expense, negotiate or defend such Claim or suit independently of the Fund, and the Fund’s liability shall not exceed the amount for which the Claim or suit could have been settled plus the costs and expenses incurred with the Fund’s consent up to
the date of such refusal. The Fund’s obligation to defend and indemnify shall not arise until the Member’s deductible or self-insured retention has been paid.
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B. COVERAGE TERRITORY Under this Section II (General Liability), the coverage territory is:
1. the United States of America, its territories or possessions, or Canada; or
2. anywhere in the world with respect to Bodily Injury, Property Damage, Personal Injury, or Advertising Injury arising out of the activities of the Member or any Covered Person
permanently domiciled in the United States of America though temporarily outside the United States of America, its territories or possessions, or Canada, provided the original suit for damages because of any such injury or damage is brought within the United States
of America, its territories or possessions, or Canada.
C. FIRE LEGAL LIABILITY - REAL PROPERTY
With respect to Property Damage to structures or portions thereof rented to or leased to the named Member including fixtures permanently attached thereto, if such Property Damage arises out of fire:
1. With regard to Fire Legal Liability - Real Property, all of the exclusions of the Contract are deleted and replaced by the following: This coverage does not apply to:
a. liability assumed by the Member under any contract or agreement;
b. Property Damage expected or intended from the standpoint of the Member or any
Covered Person;
c. Property Damage brought about or contributed to by the fraudulent, dishonest, or criminal behavior of the Member or any Covered Person.
2. The limit of Property Damage liability provided under this Fire Legal Liability - Real Property Coverage is $500,000 per Occurrence unless otherwise stated in the
Declarations Page of this Section II (General Liability).
3. The Fire Legal Liability - Real Property Coverage shall be excess coverage over any valid
and collectible property insurance or coverage (including any deductible or retention portion thereof) available to the Member, such as, but not limited to, fire, extended coverage, builder's risk coverage, or installation risk coverage and the other coverage conditions of the Contract are amended accordingly. When insurance provided hereunder is excess, the Fund will have no duty to defend any Claim or suit.
D. BROAD FORM PROPERTY DAMAGE AND PROPERTY IN THE CARE, CUSTODY,
AND CONTROL OF THE MEMBER
The coverage for Property Damage liability applies subject to the following additional provisions:
1. This coverage does not apply to:
a. property owned or occupied by or rented to the Member. (See C. above for special provisions applying to Fire Legal Liability - Real Property);
b. property in the custody of the Member which is to be installed, erected, or used in
construction by the Member;
c. that particular part of any property, not on premises owned by or rented to the Member:
(1) upon which operations are being performed by or on behalf of the Member at the
time of the Property Damage arising out of such operations; or
(2) out of which any Property Damage arises; or
(3) the restoration, repair, or replacement of which has been made or is necessary by
reason of faulty workmanship thereon by or on behalf of the Member.
d. with respect to the Completed Operations hazard, to work performed by the Member arising out of such work or any portion thereof, or out of such materials,
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parts, or equipment furnished in connection therewith.
2. Except with respect to the use of elevators or liability under a written sidetrack agreement,
coverage for the following exposures is limited to $100,000 and will be paid only at the option of the Member:
a. Property Damage to property held by the Member for sale or entrusted to the Member
for storage or safekeeping; and
b. Property Damage to tools or equipment of others while being used by the Member in performing its operations.
3. The Broad Form Property Damage and Property in the Care, Custody, and Control of the
Member coverage shall be excess over any valid and collectible property insurance or coverage (including any deductible or retention portion thereof) available to the property
owner, such as, but not limited to, fire, extended coverage, builder's risk coverage, or installation risk coverage and the other coverage conditions of the Contract are amended accordingly. When insurance provided hereunder is excess, the Fund will have no duty to defend any Claim or suit.
E. MEDICAL PAYMENTS
The Fund will pay on behalf of the Member all expenses incurred during the Contract Period
for such medical and surgical relief to others, including volunteers of the Member (excepting employees of the Member injured in the course of their employment), as shall be necessary as the result of Bodily Injury caused by an Occurrence, provided such Bodily Injury arises out
of operations with respect to which the Member is afforded coverage for Bodily Injury liability under this Contract.
The Fund will make these payments regardless of fault. These payments will not exceed the applicable limit of coverage for Medical Payments described in the Declarations Page.
Coverage under this Medical Payments section shall be excess over any other valid and collectable coverage.
2. EXCLUSIONS
This Medical Payments coverage does not apply to any of the following:
a. To any Covered Person. However, this exclusion does not apply to volunteers of the
Member except those listed in E.2.i. below;
b. To a person hired to do work on behalf of the named Member or tenant of the named
Member;
c. To a person injured on that part of the premises the named Member owns or rents and
that person normally occupies;
d. To a person, whether or not an employee of the named Member, if benefits for the
Bodily Injury are payable under a workers’ compensation or disability benefits law or
similar law;
e. To students. However, coverage applies to students if the Student Accident Endorsement is attached hereto and the appropriate Contribution is paid by the
Member;
f. For any medical expense(s) not incurred and reported to the Fund within one year from the date of Occurrence;
g. For Bodily Injury to inmates, prisoners, juvenile detainees, or any person in custody of the Member's law enforcement division regardless of location or method;
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h. To any person while participating in any interscholastic or intrascholastic sports or athletic contest, exhibition, or practice. No medical payments coverage applies to any
athletic or sports activity of any kind including gym classes or intramural sports. However, coverage applies to students if the Student Accident Endorsement is attached hereto and the appropriate Contribution is paid by the Member;
i. To volunteer emergency services personnel, including, but not limited to, firefighters, Emergency Medical Technicians, fire and rescue personnel, paramedics, and ambulance technicians;
j. Arising out of the use of trampolines or inflatable bounce houses;
k. Arising out of any parks and recreation sponsored activity, including, but not limited to, athletic or sports activity;
l. To any person injured at a playground or other type of park;
m. To any person injured while racing automobiles.
F. EMPLOYEE BENEFITS LIABILITY
The Fund will pay on behalf of the Member, all sums which the Member shall become legally obligated to pay as a result of damages sustained by an employee, prospective employee, former employee, or the beneficiaries or legal representatives thereof, caused by any negligent
act or omission of the Member, or any other person for whose acts the Member is legally liable, in the Administration of the Member's employee benefit programs arising out of any
Occurrence during the Contract Period. This coverage does not apply to liability arising from
any Covered Person’s activities in a fiduciary capacity with respect to any employee pension or benefit plans, or the issuance, management of proceeds, or replacements of bonds, notes, or other debt instruments.
The following definitions are added to this Employee Benefits Liability Section:
1. Administration means:
a. Providing information to Employees, including their dependents and beneficiaries, with respect to eligibility for or scope of Employee Benefit Programs;
b. Handling records in connection with the Employee Benefit Programs; or
c. Effecting, continuing, or terminating any Employee's participation in any benefit included in the Employee Benefit Programs. However, Administration does not include handling payroll deductions.
2. Cafeteria Plans means plans authorized by applicable law to allow employees to elect to pay for certain benefits with pre-tax dollars.
3. Claim means any demand, or civil suit, made by an Employee or an Employee’s dependents and beneficiaries, for damages as the result of an act, error, or omission.
4. Employee Benefit Programs means a program providing some or all of the following
benefits to Employees, whether provided through a Cafeteria Plan or otherwise:
a. Group life insurance, group accident or health insurance, dental, vision and hearing plans, flexible spending accounts, health savings accounts, and health
reimbursement accounts, provided that no one other than an Employee may subscribe to such benefits and such benefits are made generally available to those
Employees who satisfy the plan's eligibility requirements;
b. Profit sharing plans, employee savings plans, employee stock ownership plans, pension plans, and stock subscription plans, provided that no one other than an
Employee may subscribe to such benefits and such benefits are made generally
available to all Employees who are eligible under the plan for such benefits;
c. Unemployment insurance, social security benefits, workers' compensation, and disability benefits;
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d. Vacation plans, including buy and sell programs; leave of absence programs, including military, maternity, family, and civil leave; tuition assistance plans;
transportation and health club subsidies; and
e. Any other similar benefits designated in the Schedule or added thereto by endorsement.
5. Employee means a person actively employed, formerly employed, on leave of absence or disabled, or retired. Employee includes a Leased Worker. Employee does not include a Temporary Worker.
6. Suit means a civil proceeding in which damages because of an act, error, or omission to which this insurance applies are alleged. Suit includes:
a. An arbitration proceeding in which such damages are claimed and to which the
Member or Covered Person must submit or does submit with the Fund’s consent; or
b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the Member or Covered Person submits with the Fund’s consent.
G. EXCLUSIONS This coverage does not apply to any of the following:
1. Expected or Intended Injury
Personal Injury or Property Damage expected or intended from the standpoint of a
Covered Person. This exclusion shall also include any willful violation of a penal statute or ordinance committed by or with the knowledge or consent of the Member and any action or statement made by or at the direction of the Member with knowledge of the falsity thereof.
This exclusion does not apply to Bodily Injury resulting from the use of reasonable force to protect persons or property;
2. Fraud and Dishonesty
Personal Injury or Property Damage brought about or contributed to by the fraudulent or dishonest behavior of any Covered Person. Notwithstanding the foregoing, the Member and a Covered Person shall be protected under the terms of the Contract as to any civil claims upon which civil suit is brought against them by reason of any alleged fraud or dishonesty on their part except that coverage and defense shall cease immediately for any Covered Person against whom such fraudulent or dishonest acts are established in fact;
3. Malicious, Willful, Wanton, or Criminal Behavior
Personal Injury or Property Damage brought about or contributed to by the malicious,
willful, wanton, or criminal behavior of any Covered Person. Notwithstanding the foregoing, the Member and a Covered Person shall be protected
under the terms of the Contract as to any civil claims upon which civil suit is brought against them by reason of any alleged malicious, willful, wanton, or criminal behavior on their part except that coverage and defense shall cease immediately where the Covered
Person has admitted, or a court or other trier of fact has determined, that the Covered
Person was engaged in any of the aforementioned acts;
4. Non-Monetary Relief Seeking relief, or redress, in any form other than money Damages including injunctive relief or equitable relief, or quasi-judicial, or administrative orders; for purposes of this
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exclusion, a claim for attorneys’ fees, costs, or expenses shall not be construed as a claim for money Damages;
5. Workers’ Compensation Any obligation for which the Member or Fund may be held liable under any workers’
compensation, disability benefits, or unemployment compensation law or any similar law;
6. Employee Indemnification and Employer's Liability
Bodily Injury to:
a. An employee of the Member arising out of or in the course of employment by the
Member; or
b. The spouse, child, parent, brother, or sister of that employee as a consequence of paragraph a. above. This exclusion applies:
(1) Whether the Member may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury; This exclusion applies in all situations, including, but not limited to, situations in which the
Member has assumed the liability in a Member Contract;
7. Watercraft The ownership, maintenance, or use, including loading or unloading, of watercraft over 51
feet in length. This exclusion does not apply to watercraft over 51 feet in length if scheduled with the Fund;
8. Property Damage and Care, Custody, and Control For special provisions pertaining to property in the care, custody, and control of the
Member See C. (Fire Legal Liability - Real Property) and D. (Broad Form Property
Damage and Property in the Care, Custody, and Control of the Member); at the option of the Member, coverage in the amount of $100,000 per Occurrence may be provided for property in the care, custody, and control of the Member (see Section II (General Liability) D. (Broad Form Property Damage and Property in the Care, Custody, and Control of the
Member); if called upon, this coverage will be in lieu of, and not in addition to, coverage provided in Section I (Property);
9. Property Damage and Work Performed
Property Damage to work performed by or on behalf of the Member arising out of the work or any portion thereof, or out of materials, parts, or equipment furnished in connection therewith;
10. Aircraft, Airfields Liability arising out of the ownership, maintenance, loading or unloading, use, or operation
of any airport, aircraft, airfields, runways, hangars, buildings, or other properties in connection with aviation activities. For purposes of this exclusion, unmanned aerial vehicles, commonly known as drones, are covered while being operated by a Covered
Person, but are excluded when in operation, control or use by a Constitutional Officer, its employees, agents, or volunteers.
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11. Land Use Bodily Injury, Personal Injury, or Property Damage arising out of any land use or zoning
issue, including but not limited to, condemnation, inverse condemnation, adverse possession, dedication by adverse use, disputes involving the application of impact, or any zoning action or decision. This includes, but is not limited to, takings or partial takings of
private property resulting from the application of land use, zoning, building, subdivision or similar ordinance, or regulation;
12. Pollution
a. Bodily Injury, Personal Injury, or Property Damage arising directly or indirectly out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of Pollutants at any time;
b. any loss, cost, or expense arising directly or indirectly out of any:
(1) Request, demand, order, or statutory or regulatory requirement that any Member or others test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any way respond to, or assess the effects of, Pollutants; or
(2) Claim or Suit by or on behalf of a governmental authority or others because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, or assessing the effects of, Pollutants.
Paragraph a. of this exclusion does not apply to:
(1) Bodily Injury or Property Damage caused by heat, smoke, or fumes from
Hostile Fire;
(2) Bodily Injury if sustained within a building which is or was at any time owned or occupied, or rented or loaned to, any Member, but only so long as the Bodily
Injury, was caused by smoke, fumes, vapors, or soot from equipment used to heat, cool, or dehumidify that building;
13. Asbestos
Bodily Injury, Personal Injury, or Property Damage arising directly or indirectly out of, or resulting from, caused by, or contributed to by:
a. The use of, sale of, installation of, abatement of, distribution of, containment of, or exposure to asbestos, asbestos products, asbestos-containing material, asbestos fibers, or asbestos dust;
b. The actual or threatened abatement, mitigation, removal, or disposal of asbestos, asbestos products, asbestos-containing material, asbestos fibers, or asbestos dust;
c. Any supervision, instructions, recommendations, warnings, or advice given or which
should have been given in connection with parts a. or b. above; or
d. Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs a., b., or c. above;
14. Electromagnetic Radiation
Bodily Injury, Personal Injury, or Property Damage arising directly or indirectly out of,
or resulting from, caused by, or contributed to by electromagnetic radiation, provided that such loss, cost, or expense results from or is contributed by the hazardous properties of electromagnetic radiation. This includes any costs for the actual or threatened abatement, mitigation, or removal;
15. Lead
Bodily Injury, Personal Injury, or Property Damage arising directly or indirectly out of, or resulting from, caused by, or contributed to by:
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a. The toxic or pathological properties of lead, lead compounds, or lead contained in any materials;
b. The actual or threatened abatement, mitigation, removal or disposal of lead, lead compounds, or materials containing lead;
c. Any supervision, instructions, recommendations, warnings, or advice given or which
should have been given in connection with parts a. or b. above; or
d. Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs a., b., or c. above;
16. Fungus
Bodily Injury, Personal, Injury or Property Damage arising directly or indirectly out of,
or resulting from, caused by, or contributed to by:
a. Any fungus(es) or spore(s);
b. Any solid, liquid, vapor, or gas produced by or arising out of any fungus(es) or
spore(s);
c. Any material, product, building component, or building structure that contains, harbors, nurtures, or acts as a medium for any fungus(es) or spore(s);
d. Any intrusion, leakage, or accumulation of water or any other liquid that contains, harbors, nurtures, or acts as a medium for any fungus(es) or spore(s);
e. The actual or threatened abatement, mitigation, removal, or disposal of fungus(es) or spore(s) or any material, product, building component, or building structure that contains, harbors, nurtures, or acts as a medium for any fungus(es) or spore(s);
f. Any supervision, instructions, recommendations, warnings, or advice given or which should have been given in connection with parts a., b., c., d., or e. above; or
g. Any obligation of the Member to indemnify or contribute with any party in
connections with subparagraphs a., b., c., d., e., or f. above;
17. Silica
Bodily Injury, Personal Injury, or Property Damage arising, in whole or in part, out of the actual, alleged, threatened or suspected inhalation of, congestion of, contact with, exposure to, existence of, or presence of:
a. Silica, Silica-Related Dust, exposure to Silica or the use of Silica;
b. Any damages or any loss, cost expense arising, in whole or in part, out of any:
(1) Claim or Suit by or on behalf of any governmental authority or any other alleged responsible party because of, or
(2) Request, demand, order, or statutory or regulatory requirement that any Member
or any other person or entity should be, or should be responsible for:
(a) Assessing the presence, absence, amount, or effects of Silica or Silica-
Related Dust;
(b) Identifying, sampling or testing for, detecting, monitoring, cleaning up, removing, containing, neutralizing, treating, detoxifying, remediating, abating, disposing of, or mitigating Silica or Silica-Related Dust; or
(c) Responding to Silica or Silica-Related Dust in any way other than as described in (2)(a) or (b) above;
c. Any supervision, instructions, recommendations, warnings, or advice given or which
should have been given in connection with parts a. and b. above; or
d. Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs a., b., or c. above;
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18. Nuclear Hazard
Bodily Injury, Personal Injury, or Property Damage arising directly or indirectly out of,
or resulting from, caused by, or contributed to by:
a. The explosion of any weapon employing atomic fission or fusion; or
b. Nuclear reaction or radiation, or radioactive contamination, however caused;
19. Punitive Damages Punitive or exemplary damages because of Bodily Injury to the Member’s Employee
while employed by the Member in violation of law with the Member’s actual knowledge or the actual knowledge of the Member’s elected or appointed officials;
20. Errors and Omissions Liability for any actual or alleged error, misstatement, or misleading statement, act, or omission, or neglect or breach of duty by the Member, or by any other person for whose acts the Member is legally responsible, arising out of the discharge of duties by the
Member or any Covered Person;
21. Certain Personal Injury in Employment Personal Injury arising out of discrimination, false arrest, false imprisonment, invasion of
privacy, libel, slander, defamation of character, or wrongful termination with respect to the employment of or failure to employ any person;
22. Volunteer Emergency Services Personnel Bodily Injury to any volunteer Emergency Services Personnel, whether or not a member of the Member's organization, while in the course of the volunteer's duties as such.
Emergency Services Personnel shall include, but are not limited to: firefighters, Emergency Medical Technicians, fire and rescue personnel, paramedics, and ambulance technicians;
23. Autos Liability arising out of the ownership, maintenance, use, or entrustment to others of any
Auto. This includes liability imposed on the Member by reason of any
Uninsured/Underinsured motorist, underinsured motorist, or automobile no-fault or first party Bodily Injury or Property Damage laws. Use includes operation and loading or unloading;
24. War
Bodily Injury, Personal Injury, or Property Damage, however caused, arising directly or indirectly, out of:
a. War, including undeclared or civil war; or
b. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign, or other authority using
military personnel or other agents; or
c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these;
25. Health Care Facility
Bodily Injury, Personal Injury, or Property Damages arising out of or in connection with
the operation of any hospital, nursing home, continuum of care facility or other health care facility in which overnight care is provided or any medical facility which is, in whole or in part, owned, managed or operated by such hospital, nursing home, continuum of care
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facility or other overnight health care facility. This exclusion applies to liability which the
Member has assumed under any contract arising out of or in connection with the operation
of hospital, nursing home, continuum of care facility or other overnight health care facility, or any medical facility which is, in whole or in part, owned, managed or operated by any hospital, nursing home, continuum of care facility or other overnight health care facility;
26. Medical Services Bodily Injury, Personal Injury, or Property Damages arising out of the rendering of or
failure to render medical services to a person:
a. By any physician, mental health care professional, physician’s assistant, radiologist, osteopath, dentist, pharmacist, medical resident, medical student, or any individual
licensed to practice medicine who is employed by the Member to provide such services. This exclusion does not apply to healthcare professionals who are not licensed to practice medicine. Residents who are in accredited residency programs that permits them to practice under supervision until fully licensed are considered licensed for purposes of this exclusion;
b. By any third party firefighters, Emergency Medical Technicians, fire and rescue personnel, paramedics, ambulance technicians, or first aid attendants providing services to or on behalf of the Member under a mutual aid agreement; or
c. In any correctional facility, juvenile detention facility, or jail; or
d. Through a community services board; This exclusion does not apply to any police officer, firefighter, or employee, other than
those referenced in paragraph a. or b.
27. Contractual Liability
Bodily Injury, Personal Injury, or Property Damage that the Member is obligated to pay by reason of the assumption of liability in any contract or agreement. This exclusion does not apply to liability:
a. Assumed in a contract or agreement that is a Member Contract; or
b. The Member would have in the absence of the contract or agreement;
28. Law Enforcement Liability
Bodily Injury, Personal Injury, or Property Damage arising out of or in connection with the Member’s law enforcement activities. This exclusion includes, but is not limited to, claims arising from any law enforcement department, division, agency, agents, employees or volunteers; claims arising from all operations of any detention facility or regional jail or
arising from the occupation or use of any building or premises occupied in any way whatsoever by any law enforcement department, division, agency, agents, employees or volunteers, detention facility or regional jail;
29. Known Injury or Damage Any Claim for which a Covered Person is entitled to indemnity or payment from another
source by reason of having given notice of any circumstances which might give rise to a
Claim under any insurance policy or other self-insurance plan, the term of which has expired prior to the inception date of coverage by the Fund;
30. Oil and Gas Utilities Any Claim arising out of or in connection with the operation of oil or gas utilities;
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31. Sovereign Immunity Any Claim to pay damages that the Member or Covered Person would not be obligated
to pay under applicable sovereign immunity laws if this Contract was not obtained. The existence of this Contract does not constitute a waiver of any statutory immunity or limitation on the amount of damages that can be awarded against the Member or
Covered Person;
32. Access or Disclosure of Confidential or Personal Information and Data-related
Liability Any Claim arising out of:
a. Any access to or disclosure of any person's or organization's confidential or
personal information, including patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information, or any other type of nonpublic information; or
b. The loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses, or any other loss, cost or expense incurred by you or others arising out of that which is described in
Paragraph a. or b. above. As used in this exclusion, electronic data means information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including
systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices, or any other media which are used with electronically controlled equipment and includes Supervisory Control and Data Acquisition (SCADA)
systems.
33. Abuse and Molestation
Bodily Injury or Property Damage arising out of Abuse and Molestation committed by a person acting alone or in collusion with other persons, the Occurrence of which began before the Contract Period shown in the Declarations;
34. Cyber Liability Exclusion This coverage does not apply to:
a. Bodily injury, Property Damage, Personal or Advertising Injury arising, directly or indirectly, out of the loss of or alteration of any electronic data, electronic information, computer applications software, computer operations software, or any other similar data, information, or software in any computer hardware, computer system, computer network, or the “Internet”; or
b. Bodily injury, Property Damage, Personal or Advertising Injury arising directly or indirectly out of damage to any computer hardware, computer system, computer
network, or the “internet” as a result of a. above.
Internet shall mean the worldwide public network of computers as it currently exists or may be manifested in the future, including the Internet, an intranet, an extranet, or a
virtual public network;
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35. Sub-Limits All supplemental coverages provided in this Section II (General Liability) that are subject
to a sub-limit are deleted in their entirety in the event that the Member’s Deductible exceeds the stated sub-limit;
36. Not Covered No coverage is provided for any coverage for which the words NOT COVERED or similar verbiage is shown in the Declaration Pages.
H. LIMIT OF LIABILITY With regards to the General Liability (Section II) coverages afforded by this Contract, the total
liability of the Fund for any one Occurrence will be the per Occurrence limit as stated in the
Declarations Page of Section II (General Liability), not including expense and defense costs and except where coverage sub-limits apply, regardless of the number of Covered Persons, number of claimants, claims made, or number of Fund Members involved. Where coverage sub-limits apply, then the Funds liability will be limited to the applicable sub-limit. All Personal Injuries to one or more persons and/or Property Damage arising out of an
Occurrence will be treated as one Occurrence irrespective of the period of time or area over which such losses occur.
If any Occurrence is covered in whole or in part under more than one (1) Coverage Agreement of this Contract, including, but not limited to, any Claim covered by Sections I (Property), II (General Liability), III (Business Auto Coverage), IV (Crime), V (Public Officials), and/or VI
(CyberRisk), the most the Fund will pay for such loss shall not exceed the largest Limit of Liability available under any one of those Coverage Agreements or coverages. If all limits are equal, only one limit shall apply.
I. CONDITIONS APPLICABLE TO SECTION II (GENERAL LIABILITY)
1. Member's Duties in the Event of Occurrence, Claim, or Suit
a. In the event of an Occurrence, written notice containing particulars sufficient to identify the Member and also reasonably obtainable information with respect to the time, place, and circumstances thereof and the names and addresses of the injured and of available witnesses shall be given by or for the Member to the Fund or any of its authorized agents as soon as practicable.
b. If a Claim is made or suit is brought against the Member or Covered Person, the
Member or Covered Person shall immediately forward to the Fund every demand, notice, summons, or other process received by the Member, Covered Person or its representative.
c. The Member and Covered Person shall cooperate with the Fund and, upon the
Fund's request, assist in making settlements, in the conduct of suits, and in enforcing any right of contribution or indemnity against any person or organization who may be
liable to the Member or Covered Person because of injury or damage with respect to which coverage is afforded under this Contract; and the Member and/or Covered
Person shall attend hearings and trials and assist in securing and giving evidence and
obtaining the attendance of witnesses. The Member or Covered Person shall not, except at its own cost, voluntarily make any payment, assume any obligation, or incur any expense, other than for first aid to others at the time of Occurrence. Assignment
of all defense counsel shall be made exclusively by the Fund. Payment of any legal expenses incurred by the Member or Covered Person to lawyers/firms of the
Member or Covered Person’s own choosing, without the prior written approval of
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the Fund, shall be borne entirely by the Member and/or Covered Person.
d. The Fund reserves the right to deny defense and/or indemnity for any Claim or suit not
submitted in accordance with a. and b. above or in which the Member and/or Covered
Person fails to cooperate with the Fund as set forth in c. above.
2. Medical Reports, Proof, and Payment of Claim As soon as practicable the Member or someone on its behalf shall give to the Fund a
Proof of Claim and shall, after each request from the Fund, provide copies of all records
pertinent to the loss and in the Member or Covered Person’s possession. The Fund may pay the injured person or any person or organization rendering the services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder
shall not constitute an admission of liability of any person or of the Fund.
3. Other Provisions See Section VII (General Conditions) for items not addressed in this Section II (General Liability).
J. DEFINITIONS
1. Abuse or Molestation means Bodily Injury to a person arising out of actual or
threatened abusive behavior, conduct, or verbal or nonverbal communication whether such Bodily Injury is:
a. For sexual gratification, discrimination, intimidation, coercion, or for any other
purpose; and/or
b. Results in emotional or psychological injury or harm of any person(s).
Abuse or Molestation includes the negligent:
a. Employment;
b. Supervision;
c. Investigation;
d. Reporting or failure to report to the proper authorities; or
e. Retention; of a person whose behavior, conduct, or verbal or nonverbal communication results in
Abuse or Molestation.
2. Auto means a land motor vehicle, trailer, or semi-trailer designed for travel on public roads but does not include mobile equipment.
3. Bodily Injury means Bodily Injury, sickness, or disease sustained by a person, including death resulting from any of these at any time.
4. Claim means a demand or civil suit received by the Member arising out of an Occurrence to which this Contract applies.
5. Completed Operations wherever used herein includes Bodily Injury or Property
Damage arising out of Operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the Bodily Injury or Property Damage occurs after such Operations have been completed or abandoned and occurs away from premises owned by or rented to the Member. Operations shall be deemed completed at the earliest of the following times:
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a. When all Operations to be performed on behalf of the Member have been completed; or
b. When all Operations to be performed by or on behalf of the Member at this site of
Operations have been completed; or
c. When the portion of the work out of which the injury arises has been put to its intended
use by any person or organization other than another contractor or subcontractor engaged in performing Operations for the Member as a part of the same project.
Operations which may require further service or maintenance work, or correction, repair, or replacement because of any defect or deficiency, but which are otherwise complete, shall be deemed completed.
6. Covered Person
The following are Covered Persons under this Contract while acting in the course and scope of their duties for the Member:
a. The Member named in the Contract Declarations;
b. Members of the governing Board of the named Member while acting in the course and scope of their duties for the Member;
c. Current or former commission, boards or other entities, including their current or former
board members, under the named Member’s exclusive operation and jurisdiction while acting in the course and scope of their duties for the Member. This includes Parent Teachers Association (PTA) and/or Parent Teachers Organization (PTO) and any
members thereof, but excludes Booster Clubs and any members thereof;
d. All the current or former employees of the named Member while acting in the course and scope of their duties for the Member;
e. All persons who perform a service on a volunteer basis for the named Member, provided such performance is under the Member’s direction and control while acting in the scope of their duties for the Member. This includes student teachers, but does not include any person working on retainer or as an independent contractor. No coverage is provided hereunder for any person in his/her individual capacity. No coverage is provided hereunder for any of the Member’s Constitutional Officers as defined by Article 7, Section 4 of the Virginia Constitution.
No person committed to the custody of the Department of Corrections, a Regional Jail, Correctional Facility, Juvenile Detention Facility, or any state, federal, regional, or local agency as a result of a finding of probable cause that a crime has been committed, a guilty
plea or a criminal conviction, and while still under order of the court, shall qualify as a
Covered Person under this Contract. This applies whether the person receives payment or consideration of any type from the state, federal, regional or local agency while in
custody, and shall apply whether the custody is incarceration, probation, parole, or community service.
No coverage is provided hereunder for any School Security Officer (SSO) or School Resource Officer (SRO) whether employed by the Member or otherwise, unless the SSO(s) has been reported to the Fund in advance of any Occurrence and the appropriate
Contribution paid.
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7. Fungus(es) includes, but is not limited to, any form of mold, mushroom, or mildew.
8. Host Liquor Liability means legal liability of the Member arising out of the giving or serving of alcoholic beverages at functions incidental to the Member's operations.
9. Hostile Fire means one which breaks out or becomes uncontrollable from where it was intended.
10. Incidental Malpractice means injury arising out of the rendering of or failure to render, during the Contract Period, (a) medical, surgical, dental, x-ray, or nursing service or treatment or the furnishing of food or beverages in connection therewith; (b) the
furnishing or dispensing of drugs or medical, dental, or surgical supplies or appliances; (c) First aid; or (d) Medical services rendered or provided in an emergency and to which no enumeration is demanded or received. Coverage provided hereunder does not include (a) services rendered to employees of the Member injured in the course of their employment; or (b) services rendered by any physician, physician’s assistant, radiologist, osteopath, dentist, pharmacist, medical resident, medical students, or any individual licensed to practice medicine. Coverage is provided hereunder for services rendered by Operational Medical Directors, medical students, nurses, or Technicians
employed by or acting on behalf of the Member. Incidental Malpractice includes coverage for any employee while acting independent of that person's activities as the
Member's employee or acting as a volunteer with another emergency unit or
organization but only when the person encounters the scene of an accident or medical emergency requiring sudden action. Incidental Malpractice coverage does not apply to any Member or Covered Person in the business or occupation of providing any of the
services described herein.
11. Loading or unloading means the handling of property:
a. After it is moved from the place where it is accepted for movement into or onto an aircraft, rolling stock, watercraft, or auto;
b. While it is in or on an aircraft, rolling stock, watercraft, or auto; or
c. While it is being moved from an aircraft, rolling stock, watercraft, or auto to the place where it is finally delivered; but loading or unloading does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, rolling stock, watercraft, or auto.
d. Property includes pollutants.
12. Medical Payment means expenses for necessary medical, surgical, x-ray, and dental services, including prosthetic devices, and necessary ambulance, hospital, professional
nursing, and funeral services.
13. Member Contract means:
a. A lease of premises;
b. A sidetrack agreement;
c. Any easement or license agreement except in connection with:
(1) Vehicle or pedestrian private railroad crossings at grade; or
(2) Construction or demolition operations on or within 50 feet of a railroad;
d. A mutual aid agreement or contract between political subdivisions;
e. An elevator maintenance agreement;
f. Any law enforcement service agreement for anyone other than the Member provided such agreement has received the Member’s approval and provided that the Member’s
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law enforcement activities are endorsed to and covered by this Contract;
g. That part of any other contract or agreement pertaining to the Member’s operation
under which the Member assumes the tort liability of another because of Bodily Injury or Property Damage to a third person or organization, provided the Bodily Injury or
Property Damage is caused in whole or in part, by a Covered Person, if the contract
or agreement is made prior to the Bodily Injury or Property Damage. A Member Contract does not include that part of a contract or agreement:
a. That indemnifies an architect, engineer, or surveyor for injury arising out of:
(1) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs, or specifications; or
(2) Giving directions or instructions, or failing to give them, if that is the primary cause
of the injury or damage;
b. That indemnifies any person or organization for damage by fire to premises rented or loaned to a Member.
14. Mobile Equipment means any of the following categories of land vehicles, including any attached machinery or equipment:
a. Bulldozers, farm machinery, forklifts, and other vehicles designed for use principally off public roads;
b. Vehicles maintained for use solely on or next to premises the Member owns or rents;
c. Vehicles that travel on crawler treads;
d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to
permanently mounted:
(1) Power cranes, shovels, loaders, diggers, or drills; or
(2) Road construction or resurfacing equipment such as graders, scrapers, or rollers.
e. Vehicles not described in subparagraphs a., b., c., or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types:
(1) Air compressors, pumps, and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting, and well servicing equipment; or
(2) Cherry pickers and similar devices used to raise or lower workers.
f. Vehicles not described in subparagraphs a., b., c., or d. above that are maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not Mobile Equipment but will be considered Autos:
(1) Equipment designed primarily for:
(a) Snow removal;
(b) Road maintenance, but not construction or resurfacing; or
(c) Street cleaning;
(2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and
(3) Air compressors, pumps, and generators, including spraying, welding, building
cleaning, geophysical exploration, lighting, and well servicing equipment.
15. Occurrence means all losses or damages that are attributable directly or indirectly to one
cause or to a series of similar causes. For purposes of Abuse and Molestation,
Occurrence shall mean all losses or damages that are attributable directly or indirectly to a person acting alone or in collusion with other persons.
16. Operation includes materials, parts, or equipment furnished in connection therewith.
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17. Personal Injury means as follows:
a. Personal Injury means Bodily Injury, shock, sickness, or disease;
b. Personal Injury also means false arrest, false imprisonment, wrongful eviction, wrongful entry, detention, malicious prosecution, invasion of rights of privacy, libel, slander or defamation of character, and publication of disparaging materials;
c. Personal Injury also means mental injury, mental anguish, humiliation, erroneous service of civil papers, and disparagement of property but only if accompanied by actual
Bodily Injury or Property Damage;
d. Personal Injury also means Advertising Injury. Advertising Injury means injury, including consequential Bodily Injury, arising out of an offense committed during the
Contract Period occurring in the course of the Member’s advertising activities, if such
injury arises out of libel, slander, defamation, violation of right of privacy, piracy, unfair competition, or infringement of copyright, title, or slogan.
18. Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes material to be recycled, reconditioned, or reclaimed.
19. Products Liability means Bodily Injury or Property Damage arising out of the Member's
product or reliance upon a representation or warranty made at any time with respect thereto, but only if the Bodily Injury or Property Damage occurs away from premises owned by or rented to the Member and after physical possession of such products has been relinquished
to others.
20. Property Damage means damage or destruction to or loss of property, excluding, however,
damage to property owned by the Member.
21. Silica means silicon dioxide (occurring in crystalline, amorphous and impure forms),
silica particles, silica dust, or silica compounds.
22. Silica-Related Dust means a mixture or combination of silica and other dust or particles.
23. Spore(s) include any reproductive body produced by or arising out of any
fungus(es).
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SAMPLE MEMBER
VA-00-000
POLLUTION COVERAGE
DECLARATIONS PAGE
Liability Limit Per Environmental Impairment Incident: $1,000,000
Total Fund Combined Aggregate $2,000,000
Deductible: $ 25,000 NO BUSINESS AUTO POLLUTION COVERAGE IS PROVIDED HEREUNDER UNLESS THE
MEMBER PAYS A CONTRIBUTION FOR BUSINESS AUTO LIABILITY COVERAGE WITH THE FUND.
It is understood that certain limits and deductibles contained herein can change annually at the
election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the Coversheet to the Member Agreement supersede any contradictory limits and deductibles contained herein.
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This Endorsement Changes the Contract. Please Read Carefully.
This Endorsement modifies coverage provided under the following:
Section II (GENERAL LIABILITY COVERAGE)
G. (Exclusions)
12. (Pollution)
and
Section III (BUSINESS AUTO COVERAGE)
A. (Liability)
3. (Auto Liability Coverage Exclusions)
k. (Pollution)
A. GENERAL LIABILITY
Section II (GENERAL LIABILITY COVERAGE) G. (Exclusions) 12. (Pollution) is deleted in its entirety and replaced with the following:
In consideration of the payment of contributions under this Contract, and in reliance upon the statements contained on the Declarations Page and any applications or other materials and information submitted herewith, and subject to the terms, conditions and exclusions of
this Contract, the Fund agrees as follows:
1. ENVIRONMENTAL IMPAIRMENT LIABILITY COVERAGE
a. COVERAGE A-Claims for Off-Site Bodily Injury and Property Damage:
(1) The Fund will pay those sums that the Member becomes legally obligated to pay as compensatory damages because of Bodily Injury and Property Damage to
which this coverage applies. The Fund will have the right and duty to defend any suit seeking those damages. The Fund may at its discretion investigate any
Environmental Impairment Incident and settle any Claim or suit that may
result, but:
(a) The amount the Fund will pay for damages is limited as described in LIMITS OF LIABILITY (Section C. below); and
(b) The Fund’s right and duty to defend end when the Fund has used up the applicable limit of liability in the payment of judgments, settlements, or claim
related cost.
(2) This coverage applies to Bodily Injury and Property Damage only if:
(a) The Bodily Injury or Property Damage arise directly out of an
Environmental Impairment Incident emanating from and migrating beyond the boundaries of a Member site in the coverage territory;
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(b) The Bodily Injury or Property Damage arise directly out of an
Environmental Impairment Incident that commences during the Contract
Period;
(c) The Member’s responsibility to pay damages because of Bodily Injury or
Property Damage is determined in a suit on the merits, in the coverage
territory, by environmental regulations in effect at the time of the
Environmental Impairment Incident or in a settlement the Fund agrees to;
(d) A Claim for damages because of the Bodily Injury or Property Damage is
first made against and reported to the Fund by any Member, in writing, in accordance with paragraph (2) (e) below, during the Contract Period; and
(e) The Environmental Impairment Incident is reported, in writing, to the Fund
within thirty (30) days of the onset of the Environmental Impairment
Incident.
(3) A claim by a person or organization seeking damages will be deemed to have been made at the earlier of the following times:
(a) When notice of such Claim is received and recorded by the Fund; or
(b) When the Fund makes a settlement in accordance with paragraph (3) (a) above.
All claims for damages because of Bodily Injury to the same person arising
from an Environmental Impairment Incident, including damages claimed by any person or organization for care, loss of services, or death resulting at any
time from the Bodily Injury, will be deemed to have been made at the time the first of those claims is made against any Member.
All claims for damages because of Property Damage to the same person or organization arising from an Environmental Impairment Incident will be deemed to have been made at the time the first of those claims is made against
any Member.
b. COVERAGE B-Claims for Off-Site Cleanup Costs:
(1) The Fund will pay those sums for cleanup costs that the Member becomes legally obligated to pay because of an Environmental Impairment Incident
emanating from such Member site and to which the coverage applies. The
Fund will have the right and duty to defend any suit seeking those damages.
The Fund may at its discretion investigate any Environmental Impairment
Incident and settle any Claim or suit that may result, but:
(a) The amount the Fund will pay for damages is limited as described in LIMITS
OF LIABILITY (Section C. below); and
(b) Our right and duty to defend end when the Fund has used up the applicable limit of liability in the payment of judgments, settlement, claim related costs,
or clean-up costs.
(2) This coverage applies to clean-up costs only if:
(a) The clean-up cost arise directly out of an Environmental Impairment
Incident emanating from and migrating beyond the boundaries of a
Member site in the coverage territory;
(b) The clean-up costs arise directly out of an Environmental Impairment
Incident that commences during the Contract Period;
(c) The Member’s responsibility to pay damages because of clean-up costs is determined in a suit on the merits, in the coverage territory, by
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environmental regulations in effect at the time of the Environmental
Impairment Incident or in a settlement the Fund agrees to;
(d) A Claim for damages because of the clean-up costs is first made against and reported to the Fund by any Member, in writing, in accordance with paragraph (2) (f) below, during the Contract Period;
(e) The Environmental Impairment Incident results in the presence of
Pollutants that exceed the maximum levels allowable in accordance with
environmental regulations; and
(f) The Environmental Impairment Incident is reported, in writing, to the Fund within thirty (30) days of the onset of the Environmental Impairment
Incident.
(3) A Claim by a person or organization seeking damages will be deemed to have been made at the earlier of the following times:
(a) When notice of such Claim is received and recorded by the Fund; or
(b) When the Fund makes a settlement in accordance with paragraph (3) (a) above. All claims for damages because of clean-up costs to the same person or organization arising from an Environmental Impairment Incident will be
deemed to have been made at the time the first of those claims is made against any Member.
c. COVERAGE C-Claims for On-Site Bodily Injury and Property Damage:
(1) The Fund will pay those sums that the Member becomes legally obligated to pay
as compensatory damages because of Bodily Injury and Property Damage occurring at a Member site to which this coverage applies. The Fund will have the right and duty to defend any suit seeking those damages. The Fund may at
its discretion investigate any Environmental Impairment Incident and settle any Claim or suit that may result, but:
(a) The amount the Fund will pay for damages is limited as described in LIMITS OF LIABILITY (Section C. below); and
(b) The Funds right and duty to defend end when the Fund has used up the applicable limit of liability in the payment of judgment, settlements, or claim
related costs.
(2) This coverage applies to Bodily Injury and Property Damage only if:
(a) The Bodily Injury or Property Damage arise directly out of an
Environmental Impairment Incident originating within the boundaries of a
Member site in the coverage territory;
(b) The Bodily Injury or Property Damage, arise directly out of an
Environmental Impairment Incident that commences during the Contract
Period;
(c) The Member’s responsibility to pay damages because of Bodily Injury or
Property Damage is determined in a suit on the merits, in the coverage territory, by environmental regulations in effect at the time of the
Environmental Impairment Incident, or in a settlement the Fund agrees to;
(d) A claim for damages because of Bodily Injury or Property Damage is first made against and reported to the Fund by any Member, in writing, in
accordance with paragraph (2) (e) below, during the Contract Period; and
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(e) The Environmental Impairment Incident is reported, in writing, to the Fund within thirty (30) days of the onset of the Environmental Impairment
Incident.
(3) A Claim by a person or organization seeking damages will be deemed to have been made at the earlier of the following times:
(a) When notice of such Claim is received and recorded by the Fund; or
(b) When the Fund makes a settlement in accordance with paragraph 3. (a) above.
All claims for damages because of Bodily Injury to the same person arising
from an Environmental Impairment Incident, including damages claimed by
any person or organization for care, loss of services, or death resulting at any time from the Bodily Injury, will be deemed to have been made at the time the first of those claims is made against any Member. All claims for damages because of Property Damage to the same person or organization arising from an Environmental Impairment Incident will be deemed to have been made at the time the first of those claims is made against any Member.
d. COVERAGE D-Claims for On-Site Cleanup Costs:
(1) The Fund will pay those sums for clean-up costs at a Member site that the
Member becomes legally obligated to pay because of an Environmental
Impairment Incident originating within the boundaries of such Member site and
to which this coverage applies. The Fund has the right, but not the duty, to investigate, settle, contest, or appeal, at our expense, any obligation asserted against a Member to pay clean-up costs.
(a) The amount the Fund will pay for damages is limited as described in Limits of Liability (Section C. below); and
(b) The Funds right and duty to defend end when the Fund has used up the applicable limit of liability in the payment of judgment, settlements or claim
related costs.
(2) This coverage applies to clean-up costs only if:
(a) The clean-up costs arise directly out of an Environmental Impairment
Incident originating within the boundaries of a Member site in the coverage territory;
(b) The clean-up costs arise directly out of an Environmental Impairment
Incident that commences during the Contract Period;
(c) The Member’s obligation to pay clean-up costs because of an
Environmental Impairment Incident is reported under applicable
environmental regulations in effect at the time of the Environmental
Impairment Incident;
(d) Notice asserting such obligation must first be received by the Member and
reported to the Fund in writing, in such written form as the Fund may require, during the Contract Period; and
(e) The Environmental Impairment Incident is reported, in writing, to the Fund
within thirty (30) days of the onset of the Environmental Impairment
Incident.
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2. EXCLUSIONS
This coverage does not apply to any claim, claim related costs, clean-up costs, or suit arising from:
a. Prior Environmental Impairment Incidents Any Environmental Impairment Incident existing, commencing, or occurring prior to the Contract Period.
Or arising from any Environmental Impairment Incident existing, commencing, or occurring prior to the inception date shown on the Contract Declarations or as
specifically endorsed to the Contract if any supervisory employee of any Member knew or reasonably could have foreseen that such Environmental Impairment
Incident took place.
b. Expected or Intended Acts Any Environmental Impairment Incident expected or intended from the standpoint of the Member, or any intentional, willful, or grossly negligent failure by any Member to comply with any statute, regulation, ordinance, or administrative complaint, notice
or probation, notice letter, executive order, or instructions of any government or public agency or body.
c. Contractual Liability The assumption of liability by any Member in a contract or agreement. This exclusion does not apply to liability for damages that the Member would have in the
absence of the contract or agreement.
d. Workers’ Compensation and Similar Laws
Any obligation of the Member under a workers’ compensation, disability benefits, unemployment compensation law, or any similar law.
e. Employers’ Liability
Bodily Injury or Property Damage to:
(1) An employee or former employee of the Member, including any leased
employee or borrowed employee, arising out of and in the course of:
(a) Employment by any Member; or
(b) Performing duties related to the conduct of the Member’s business.
(2) The spouse, child, parent, brother, or sister of that employee, former employee,
leased employee, or borrowed employee as a consequence of paragraph e.
(1) (a) above. This Exclusion applies:
(1) Whether the Member may be liable as an employer, former employer, or in any other capacity; and
(2) To any obligation to share damages with or repay someone else who must pay
damages because of the injury or damage.
f. Punitive Damages
Any punitive, exemplary, or multiplied damages or statutory assessments.
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g. Fines or Penalties Any fines or penalties arising from any civil, regulatory, administrative, or criminal
fines or penalties, assessments, punitive, exemplary, or multiplied damages.
h. Damages to Property
Any Property Damage to:
(1) Any Member site, including any building or property located at the Member site;
(2) Property the Member owns, rents, or occupies;
(3) Premises the Member sells, gives away, or abandons, if the Property Damage arises out of any part of those premises;
(4) Property loaned to the Member; or
(5) Personal property in the care, custody, or control of the Member.
i. Natural Resource Damage Or based upon any Natural Resource Damage.
j. Products-Completed Operations Hazard Any Environmental Impairment Incident included within the products-completed
operations hazard.
k. Offshore Facility/Wells The ownership or operation of any offshore facility as defined in the Outer
Continental Shelf Lands Act Amendment of 1978 or the Clean Water Act of 1977 as amended in 1978 or any deepwater port as defined in the Deepwater Port Act of 1974 as amended, or as may be amended, nor shall there by any coverage for
claims or suits arising from any water or geothermal well of any kind or nature whatsoever.
l. Aircraft, Auto, Rolling Stock, or Watercraft The ownership, maintenance, use, or entrustment to others of any aircraft, auto, rolling stock, or watercraft. Use includes operation and loading or unloading.
m. Nuclear Hazard
(1) Any Claim, suit or claim related costs for which there is any other policy, insurance or coverage or with respect to which a Member under this Contract is also a Member under a Nuclear Energy Liability Policy issued by the Nuclear
Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be a
Member under any such policy but for its termination upon exhaustion of its Limit
or Liability.
(2) The hazardous properties of nuclear material and with respect to which:
(a) Any person or organization is required to maintain financial protection
pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or
(b) The Member is, or had the Contract not been issued by the Fund would be, entitled to indemnity from the United States of America, or any agency
thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization.
(3) The hazardous properties of any radioactive material, nuclear material, nuclear
waste, or spent fuel.
(4) As used in the exclusion:
(a) Hazardous properties include radioactive, toxic, or explosive properties;
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(b) Nuclear material means source material, special nuclear material, or byproduct material;
(c) Source material, special nuclear material and byproduct material have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof;
(d) Spent fuel means any fuel element or fuel component, solid, or liquid, which has been used or exposed to radiation in a nuclear reactor;
(e) Nuclear waste means any waste material containing nuclear material,
radioactive material, or byproduct material;
(f) Nuclear facility means:
(i)Any nuclear reactor;
(ii) Any equipment or device designed or used for separating the isotopes of uranium or plutonium, processing or utilizing spent fuel, or handling, processing, or packaging waste;
(iii) Any equipment or device used for the processing, fabricating, or alloying of special nuclear material, if at any time the total amount of such material in the custody of the Member at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of
uranium 235;
(iv) Any structure, basin, excavation, premises, or place prepared or used for the storage or disposal of nuclear waste and includes the site on which
any of the foregoing is located, all operations conducted on such site and all premises used for such operations;
(g) Nuclear reactor means any apparatus designed or used to sustain nuclear
fission in a self-supporting chain reaction or to contain a critical mass of fissionable material.
n. War Any consequence, whether direct or indirect, of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection for military or usurped power, strike, riot, or civil commotion.
o. Lead Paint Any lead contained in paint.
p. Capital Improvements Any capital expenditure or improvement to or from any Member site. This exclusion does not apply to any Environmental Impairment Incident arising out of the
improvement activities themselves.
q. Natural Radioactive Material
Any naturally occurring radioactive materials, including but not limited to radon.
r. Underground Storage Tank(s)
Any existing or previously existing underground storage tank(s) and associated piping on, at, or under a Member site, unless such underground storage tank(s) and associated piping, if any, are specifically listed and covered by endorsement to this
Contract.
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s. Absolute Asbestos Any asbestos, including, but not limited to, asbestos products, asbestos containing
material, asbestos fibers, or asbestos dust.
t. Acid Rain
Any acid rain.
u. Superfund Sites
Any site, premises, or location identified under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, or any state Superfund or Priorities list.
v. Landfill Sites Any site, premises, or location which is or was used as a regulated or unregulated landfill or site for the disposal, storage, treatment, or deposit of solid or liquid wastes on or beneath the land. This exclusion does not apply to Bodily Injury or Property Damage arising directly or indirectly out of an Environmental Impairment Incident occurring during the
collection and transportation of materials as part of garbage collection activities, including, but not limited to, standalone solid waste collection sites, implemented and operated by the Member, excluding any recycling program, if such discharge was:
(1) Accidental and neither expected nor intended by the Member or Covered Person; and
(2) Instantaneous and was demonstrable as having commenced at a specific time and date during the Contract Period.
However, this exception to the exclusion does not apply once the collected and transported
materials have been deposited at a landfill, garbage dump, or other waste disposal or
transfer facility.
w. Date Recognition
(1) Any actual or alleged failure, modification to, malfunction or inadequacy of:
(a) Any of the following, whether belonging to any Member or to others or
whether recommended, sold, procured, designed, or developed by any
Member or others:
(i)Computer hardware, including micro-processors;
(ii)Computer application software;
(iii) Computer operating systems and related software;
(iv) Computer networks;
(v)Micro-processors, semi-conductors, or digital, analog, or integrated devices not part of any computer systems; or
(vi) Any other computerized or electronic equipment or components; or
(b) any other products, and any services, data, or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in paragraph w. (1) (a) of this Endorsement.
(c) Due to the inability to correctly recognize, process, distinguish, interpret or accept any date.
(2) This exclusion applies regardless of any other cause, event or incident that
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contributes concurrently or in any sequence to the Claim, suit, claim related
costs or Environmental Impairment Incident. This exclusion also applies
regardless of any changes or modifications made at any time to any of the items listed in paragraph w. 1) a) to correct or attempt to correct the inability to recognize, process, distinguish, interpret or accept any date.
x. Access or Disclosure of Confidential or Personal Information and Data-related
Liability
Any Claim arising out of:
(1) Any access to or disclosure of any person's or organization's confidential or personal information, including patents, trade secrets, processing methods,
customer lists, financial information, credit card information, health information or any other type of nonpublic information; or
(2) The loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses, or any other loss, cost or expense incurred by you or others arising out of that which is described
in Paragraph a. or b. above. As used in this exclusion, electronic data means information, facts, or programs
stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices, or any other media which are used with
electronically controlled equipment and includes Supervisory Control and Data Acquisition (SCADA) systems.
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B. BUSINESS AUTO COVERAGE
If the Member has Business Auto Liability coverage with the Fund, then the following is added to Section III (BUSINESS AUTO COVERAGE) C. (Liability) 3. (Auto Liability Coverage Exclusions) k. (Pollution):
This exclusion does not apply to the loading and unloading of a Covered Auto.
No Business Auto Pollution Coverage is provided hereunder unless the Member pays a contribution for Business Auto Liability Coverage to the Fund.
C. LIMITS OF LIABILITY
The Each Occurrence Limit and Aggregate Limit as stated in Section II (General Liability)
Declarations Page, H. (Limit of Liability); and Section III (Business Auto Coverage)
Declarations Page, A. (Liability) 4. (Liability Limit for Auto Liability Coverage) Declarations
Page do not apply. Instead, the Fund’s liability for each Environmental Impairment
Incident will be limited to the per Environmental Impairment Incident and total Fund combined annual aggregate limits as set forth in the Declarations Page of this
endorsement. All expenses associated with any claim related costs and/or clean-up
costs are included in the Limit of Liability regardless of the number of Covered Persons, number of claimants, Claims made, Member sites, or number of Fund Members involved.
In no event shall coverage under this Endorsement combine with any other Section, including, but not limited to, any Claim covered by Sections I (Property), II (General Liability), III (Business
Auto Coverage), IV (Crime), V (Public Officials Legal Liability) and/or VI (CyberRisk) of the
Contract, to increase the per Environmental Impairment Incident limit of liability as set out above.
D. DEDUCTIBLE
The Fund will not pay for loss resulting directly from an Environmental Impairment
Incident unless the amount of loss exceeds the Deductible Amount as set forth in the
Declarations Page of this endorsement. The Fund will then pay the amount of loss in excess of the Deductible Amount, up to the Limits of Liability.
E. DEFINITIONS
1. Arising from means arising out of, relating to, or resulting from.
2. Borrowed employee means a person provided to the Member by a temporary labor or other firm to perform duties related to the conduct of the Member’s business.
3. Claim means any written demand, notice, request for defense, request for indemnity, or other legal or equitable proceeding against any Member by a person, entity, or asserted
class for damages because of Bodily Injury, Property Damage, or clean-up costs.
4. Claim related costs means costs and expenses associated with the handling,
investigation, defense, and/or settlement of any Claim or suit, including, but not limited to, amounts for attorneys’ fees, court costs, arbitration, or mediation costs or expenses,
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expert witness fees, investigative fees, consulting fees, adjustment fees, and any other
Claim or suit related costs or expenses.
5. Clean-up costs means expenses incurred in the removal, detoxification, dilution, neutralization, or remediation of pollutants in contaminated soil (including any building
or structure thereupon), surface water, or groundwater, arising directly out of an
environmental impairment incident. Clean-up costs does not include entry, Membership, or other fees related to gaining entrance to any local, state or federal
voluntary cleanup program.
6. Emanating from means coming directly from and originating from a Member site.
7. Environmental impairment incident means the discharge, dispersal, release, seepage, migration or escape of any solid, liquid, gaseous, or thermal irritant or contaminant, including, but not limited to smoke, vapors, soot, dust, fumes, acids, alkalis, toxic chemicals, medical waste and waste materials into or upon land (including any building or structure thereupon), the atmosphere or watercourse or body of water, including groundwater.
8. Environmental regulations means any of the following statutes or any subsequent amendments, and any other applicable local or state regulations in effect during the
Contract Period: Comprehensive Environmental Response, Compensation and Liability
Act of 1980 (CERCLA), Superfund Amendments and Reauthorization Act of 1986 (SARA), Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 (RCRA), Federal Water Pollution Control Act, Toxic Substances
Control Act (TSCA), and the Clean Air Act.
9. Leased employee means a person leased to the Member by a professional employer
organization, employee-leasing company, or other firm under a contract or agreement, to perform duties related to the conduct of the Member’s business.
10. Loading or unloading means the handling of property: After it is moved from the place where it is accepted for movement into or onto an aircraft, rolling stock, watercraft, or auto;
a. While it is in or on an aircraft, rolling stock, watercraft, or auto; or
b. While it is being moved from an aircraft, rolling stock, watercraft, or auto to the place
where it is finally delivered; but loading or unloading does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, rolling stock, watercraft, or auto.
c. Property includes pollutants.
11. Member site means the specific location(s) of real property listed on the Contract
Declarations or by applicable endorsement to the Contract.
12. Natural Resource Damage means physical injury to or destruction of land, fish, wildlife,
biota, air, water, groundwater, drinking water supplies, and other such resources belonging to, managed by, held in trust by, appertaining to, or otherwise controlled by the United States (including the resource of the fishery conservation zone established by
the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C 1801 et seq), any state or local government, any foreign government, any Indian tribe, or, if such resources are subject to a trust restriction on alienation, any Member of an Indian tribe.
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13. Products-completed operations hazard means:
a. Bodily Injury, Property Damage, and/or clean-up costs, arising from, and
Environmental Impairment Incident occurring at or away from a Member site and arising from the Member’s product or the Member’s work; except:
(1) Products that are still in the Member’s physical possession at a Member site; or
(2) Work that has not been completed or abandoned at a Member site.
b. The Member’s work will be deemed completed at the earliest of the following times:
(1) When all of the work called for in the Member’s contract has been completed.
(2) When all the work to be done at the site has been completed if the Member’s contract calls for work at more than one site.
(3) When that part of the work done at a site has been put to its intended use.
14. Supervisory employee means any executive officer, project foreman, site supervisor, project manager, or any officer, director, manager, or supervisor who is or who has at any time been employed by or working on behalf of any Member.
15. The Member’s product means:
a. Any goods or products, other than real property, manufactured, sold, distributed, or
disposed of by:
(1) The Member;
(2) Others trading under the Member’s name; or
(3) A person or organization whose business or assets the Member have acquired; and
b. Containers (other than vehicles), materials, parts, or equipment furnished in
connection with such goods or products.
The Member’s product includes:
a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance, or use of the Member’s product; and
b. The providing of or failure to provide warnings or instructions.
The Member’s product does not include vending machines or other property rented to or located for the use of others but not sold.
16. The Member’s work means:
a. Work or operations performed by the Member or on the Member’s behalf; and
b. Materials, parts, or equipment furnished in connection with such work or operations.
The Member’s work includes:
a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance, or use of the Member’s work; and
b. The providing of or failure to provide warnings or instructions.
E. OTHER PROVISIONS
See Section VII (General Conditions) for items not addressed in this Endorsement.
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SAMPLE MEMBER
VA-00-000
- SECTION III -
BUSINESS AUTO
DECLARATIONS PAGE
SCHEDULE OF COVERAGES AND COVERED AUTOS This coverage is for those Autos listed on the Application and any Autos acquired AFTER the Effective Date of coverage.
COVERAGES
COVERED
AUTOS
LIMIT
Liability Limit per Accident
All Owned and
Hired Autos
$2,000,000
Liability Limit per Accident All Non-Owned
Autos
$1,000,000
Out of State No-Fault per Accident Any Covered Auto Minimum Statutory Limits
Auto Medical Payments per person Any Covered Auto $5,000
Comprehensive/Collision per Accident All Owned Autos #1 below
Comprehensive/Collision per Accident All Non-Owned
and Hired Autos
$50,000
#1 below
Uninsured/Underinsured Motorist per Accident All Owned Autos Statutory Limits
unless otherwise specified
Garage Liability All Non-Owned
Autos
$1,000,000
Garage Keepers All Non-Owned
Autos
$100,000*
#1 Comprehensive/Collision - actual cash value or cost of repair, whichever is less, minus $250 deductible for each Covered Auto not scheduled at replacement cost; replacement cost minus $250 deductible for each Owned Auto scheduled at replacement cost. *$1,000 deductible applies to all claims under garage keepers’ coverage.
It is understood that certain limits and deductibles contained herein can change annually at the election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the
Coversheet to the Member Agreement supersede any contradictory limits and deductibles contained herein.
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- SECTION III -
BUSINESS AUTO COVERAGE
A. LIABILITY COVERAGE
1. Liability Coverage Agreement
The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
a. to pay on behalf of the Member or Covered Person all sums which the Member or
Covered Person shall be legally obligated to pay as damages because of Bodily
Injury or Property Damage to which this coverage applies, caused by any Accident and resulting from the ownership, maintenance, or use of a Covered Auto designed for travel on public roads occurring during the Contract Period;
b. to pay on behalf of the Member or Covered Person all costs and expenses incurred by the Fund in the investigation, adjustment, settlement, defense and appeal of any Claim or suit for which coverage is afforded by this Section III (Business Auto Coverage) A. (Liability Coverage) of this Contract. Costs and expenses payable by the Fund shall include only reasonable costs and expenses as shall be authorized and incurred by
the Fund when investigating and defending an Accident. However, costs of defense shall not include any costs or expenses attributable to the Member’s normally employed officers, employees or attorneys or any other expenses incurred
or payable by the Member without the Funds prior written approval. Coverage for such costs and expenses provided herein are in addition to the limit of liability as stated in 4. (Limit of Liability) of Section III (Business Auto Coverage) A. (Limit of Liability for
Auto Liability).
c. to defend any action or suit seeking money Damages brought against the Member or a Covered Person alleging Bodily Injury or Property Damage, even if such
action or suit is groundless, false, or fraudulent; but, the Fund has no duty to defend any Claim or suit to which this coverage does not apply nor does the Fund have the duty of defending an allegation of a criminal act in a criminal court. The Fund has
the sole authority to select the attorney who will defend the Claim or suit without obtaining consent from the Member or Covered Person. The Member or Covered
Person shall not admit liability for or settle any Claim or suitor incur any cost or expense without the written consent of the Fund, and the Fund shall have the right to make such investigation and conduct negotiations and enter into such settlement
of any Claim or suit as the Fund deems expedient. If the Member or a Covered
Person unreasonably refuses any settlement recommended by the Fund, the
Member or the Covered Person shall thereafter at its or his own expense negotiate
or defend such Claim or suit independently of the Fund, and the Fund’s liability shall not exceed the amount for which the Claim or suit could have been settled plus the costs and expenses incurred with the Fund’s consent up to the date of such
refusal. The Funds obligation to defend and indemnify shall not arise until the
Member’s deductible or self-insured retention has been paid.
2. Auto Liability Coverage Extensions
a. Supplemental Payments
The Fund will pay on behalf of the Member or Covered Person:
(1) Up to $250 for the cost of all bail bonds (including bonds for related traffic law violations) required because of a covered Accident; the Fund does not have to
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furnish these bonds;
(2) Premiums on appeal bonds in any Suit the Fund defends, but only for bond
amounts within the Limit of Liability;
(3) Premiums on bonds to release attachments in Suits the Fund defends but only for bonds within the Limit of Liability;
(4) All costs and expenses incurred by the Fund;
(5) All costs taxed to the Member in Suits the Fund defends; and
(6) Post judgment interest on any judgment in proportion to the Fund’s share of the
judgment, in any suit the Fund defends, but the Fund’s duty to pay interest ends when the Fund pays, offers to pay, or deposits in court the part of the judgment that is within the Limit of Liability.
Payments made under this Supplemental Payments section 2.a. do not reduce the Limit of Liability as set forth in the Declarations Page.
b. Out of State Coverage Extensions While a Covered Auto is away from the state where it is licensed, the Fund will:
(1) Increase the Limit for Liability Coverage to meet the limit or limits specified by a compulsory or financial responsibility law in the jurisdiction where the Covered
Auto is being used; and
(2) provide the minimum amount and types of other coverage’s, such as no-fault, required of out of state vehicles by the jurisdiction where the Covered Auto is being used.
The Fund will NOT pay any person more than once for the same elements of Loss because of these extensions.
2. Auto Liability Coverage Exclusions
This coverage does not apply to any of the following:
a. Expected or Intended Injury
Bodily Injury or Property Damage expected or intended from the standpoint of the
Member or a Covered Person;
b. Contractual Liability Liability assumed under any contract or agreement; but this exclusion does not apply to liability for damages:
(1) Assumed in a contract or agreement that is a Covered Contract; or
(2) That the Member would have in the absence of the contract or agreement;
c. Workers’ Compensation Any obligation for which the Member or the Fund may be held liable under any
workers’ compensation, disability benefits, or unemployment compensation law, or any similar law;
d. Employee Indemnification and Employer’s Liability
Bodily Injury to:
(1) An Employee of the Member arising out of and in the course of employment by the
Member; or
(2) The spouse, child, parent, brother, or sister of that Employee as a consequence of paragraph (1) above; This exclusion applies:
(a) Whether the Member may be liable as an employer or in any other capacity; and
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(b) To any obligation to share damages with or repay someone else who must pay damages because of the injury.
But this exclusion does not apply to Bodily Injury to domestic employees not entitled to workers’ compensation benefits or to liability assumed by the
Member under a Covered Contract;
e. Fellow Employee
Bodily Injury to any fellow Employee of the Member arising out of and in the course of the fellow Employee's employment;
f. Care, Custody, and Control
Property Damage to property owned or transported by the Member or in the
Member's care, custody, or control. But this exclusion does not apply to liability
assumed under a sidetrack agreement or where specifically covered by the Fund;
g. Handling of Property
Bodily Injury or Property Damage resulting from the handling of property:
(1) Before it is moved from the place where it is accepted by the Member before movement into or onto the Covered Auto, or
(2) After it is moved from the Covered Auto to the place where it is finally delivered by the Member;
h. Movement of Property by Mechanical Device
Bodily Injury or Property Damage resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the
Covered Auto;
i. Operations
Bodily Injury or Property Damage arising out of the operation of any equipment listed in Section III (Business Auto Coverage) J. (Definitions) 13. f. (2) and (3) (definition of
Mobile Equipment);
j. Completed Operations
Bodily Injury or Property Damage arising out of the Member's work after that work
has been completed or abandoned; In this exclusion, the Member's work means:
(1) Work or operations performed by the Member or on its behalf; and
(2) Materials, parts, or equipment furnished in connection with such work or operations. The Member's work includes warranties or representations made at any time with respect to the fitness, quality, durability, or performance of any of the items included in subparagraphs (1) or (2) above.
The Member's work will be deemed completed at the earliest of the following times:
(a) When all of the work called for in the Member's contract has been completed;
(b) When all of the work to be done at the site has been completed if the Member's contract calls for work at more than one site; or
(c) When that part of the work done at a job site has been put to its intended use by
any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair, or replacement,
but which is otherwise complete, will be treated as completed.
k. Pollution
Bodily Injury or Property Damage arising directly or indirectly out of the actual,
alleged or threatened discharge, dispersal, seepage, migration, release, or escape of
Pollutants at any time:
(1) That are, or that are contained in any property that is:
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(a) Being transported or towed by, handled, or handled for movement into, onto or from the Covered Auto;
(b) Otherwise in the course of transit by or on behalf of the Member; or
(c) Being stored, disposed of, treated, or processed in or upon the
Covered Auto;
(2) Before the Pollutants or any property in which the Pollutants are contained are moved from the place where they are accepted by the Member for movement into the Covered Auto; or
(3) After the Pollutants or any property in which the Pollutants are contained are moved from the Covered Auto to the place where they are finally delivered, disposed of or abandoned by the Member.
Paragraph (1) above applies only to liability assumed under a Covered Contract. Paragraphs (2) and (3) above do not apply to Accidents that occur away from premises owned by or rented to a Member with respect to Pollutants not in or upon a Covered Auto if:
(1) The Pollutants or any property in which the Pollutants are contained are upset, overturned or damaged as a result of the maintenance or use of a Covered
Auto; and
(2) The discharge, dispersal, seepage, migration, release or escape of the
Pollutants is caused by such upset, overturn, or damage.
l. Asbestos
Bodily Injury or Property Damage arising directly or indirectly out of, or resulting from, caused by or contributed to by:
(1) The use of, sale of, installation of, abatement of, distribution of, containment of, or exposure to asbestos, asbestos products, asbestos-containing material, asbestos fibers, or asbestos dust;
(2) The actual or threatened abatement, mitigation, removal or disposal of asbestos, asbestos products, asbestos-containing material, asbestos fibers, or asbestos dust;
(3) Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with parts a. or b. above; or
(4) Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs (1), (2) or (3) above.
m. Electromagnetic Radiation
Bodily Injury or Property Damage arising directly or indirectly out of, or resulting from, caused by or contributed to by electromagnetic radiation, provided that such
Loss, cost or expense results from or is contributed by the hazardous properties of electromagnetic radiation. This includes any costs for the actual or threatened abatement, mitigation, or removal.
n. Lead
Bodily Injury or Property Damage arising directly or indirectly out of, or resulting from, caused by or contributed to by:
(1) The toxic or pathological properties of lead, lead compounds, or lead contained in any materials;
(2) The actual or threatened abatement, mitigation, removal or disposal of lead, lead
compounds or materials containing lead;
(3) Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with parts (1) or (2) above;
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or
(4) Any obligation of the Member to indemnify or contribute with any party in
connections with subparagraphs (1), (2) or (3) above.
o. Fungus
Bodily Injury or Property Damage arising directly or indirectly out of, or resulting
from, caused by or contributed to by:
(1) Any Fungus(es) or Spore(s);
(2) Any solid, liquid, vapor, or gas produced by or arising out of any Fungus(es) or
Spore(s);
(3) Any material, product, building component, or building structure that contains, harbors, nurtures, or acts as a medium for any Fungus(es) or Spore(s);
(4) Any intrusion, leakage, or accumulation of water or any other liquid that contains, harbors nurtures or acts as a medium for any Fungus(es) or Spore(s);
(5) The actual or threatened abatement, mitigation, removal, or disposal of
Fungus(es) or Spore(s) or any material, product, building component, or building structure that contains, harbors, nurtures, or acts as a medium for any
Fungus(es) or Spore(s);
(6) Any supervision, instructions, recommendations, warnings, or advice given or which should have been given in connection with parts (1), (2), (3), (4) or (5)
above; or
(7) Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs (1), (2), (3), (4), (5) or (6) above.
p. Silica
Bodily Injury or Property Damage arising, in whole or in part, out of the actual, alleged, threatened or suspected inhalation of, congestion of, contact with, exposure
to, existence of, or presence of:
(1) Silica, Silica-Related Dust, exposure to Silica or the use of Silica;
(2) Any damages or any Loss, cost expense arising, in whole or in part, out of any
(a) Claim or Suit by or on behalf of any governmental authority or any other alleged responsible party because of, or
(b) Request, demand, order or statutory or regulatory requirement that any
Member or any other person or entity should be, or should be responsible for:
(i) Assessing the presence, absence, amount or effects of Silica or Silica-
Related Dust;
(ii) Identifying, sampling or testing for, detecting, monitoring, cleaning up,
removing, containing, neutralizing, treating, detoxifying, remediating, abating, disposing of, or mitigating Silica or Silica Related-Dust; or
(iii) Responding to Silica or Silica-Related Dust in any way other than as
described in (b)(i) and (ii) above;
(3) Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with parts (1) or (2) above; or
(4) Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs (1), (2) or (3) above.
q. Nuclear Hazard
Bodily Injury or Property Damage arising directly or indirectly out of, or resulting from, caused by or contributed to by:
(1) The explosion of any weapon employing atomic fission or fusion; or
(2) Nuclear reaction or radiation, or radioactive contamination, however caused.
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r. War
Bodily Injury or Property Damage, however caused, arising directly or indirectly, out of:
(1) War, including undeclared or civil war; or
(2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using
military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these;
s. Punitive or Exemplary Damages Any amount the Member may become legally obligated to pay for punitive or exemplary damages, fines, or statutory penalties, whether imposed by law or otherwise.
t. Auto Racing
Bodily Injury or Property Damage arising out of automobile racing, demolition, contest or stunting activity, practice, or exhibition.
u. Sovereign Immunity Any Claim to pay damages that the Member or Covered Person would not be obligated to pay under applicable sovereign immunity laws if this Contract was not obtained. The existence of this Contract does not constitute a waiver of any statutory immunity or limitation on the amount of damages that can be awarded
against the Member or Covered Person.
4. Limit of Liability for Auto Liability Coverage
Regardless of the number of Covered Autos, Covered Persons, contributions paid, claims made or vehicles involved in the Accident, the most the Fund will pay for the
total of all damages combined resulting from any one Accident is the Limit of Insurance for Liability Coverage shown in the Declarations.
All Bodily Injury and Property Damage resulting from continuous or repeated exposure to substantially the same conditions will be considered as resulting from one Accident. If any Accident is covered in whole or in part under more than one (1) Coverage Agreement of this Contract, including, but not limited to, any Claim covered by Sections I (Property), II (General Liability), III (Business Auto Coverage), IV (Crime), V (Public Officials Liability) and/or VII (CyberRisk) of the Contract, the most the Fund will pay for such Loss shall not exceed the largest Limit of Liability available under any one of those
Coverage Agreements or coverages. If all limits are equal, only one limit will still apply.
5. Definitions for Auto Liability Coverage
a. Claim means a demand or civil Suit received by the Member arising out of an Accident to which this Contract applies.
b. The following are Covered Persons:
(1) The Member as stated in the Contract Declarations;
(2) Any official, volunteer, or employee of the Member while acting within the scope of his duties as such, and any person, organization, trustee, or estate to whom the
Member is obligated by virtue of a Covered Contract to provide coverage such as is offered by this coverage, but only in respect to operations by or on behalf of the
Member;
(3) Any person while using an Owned Auto or a Hired Auto provided the actual use thereof is by the Member or with its permission. This coverage with respect to any person or organization other than the Member does not apply:
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(a) To any person or organization, or to any agent or Employee thereof, operating an automobile sales agency, repair shop, service station, storage garage, or
public parking place, with respect to any Accident arising out of the operation thereof unless the business is the Members;
(b) To any Employee with respect to injury to or sickness, disease or death of
another Employee of the Member injured in the course of such employment in an Accident arising out of the maintenance or use of the Auto in the business of the Member;
(c) With respect to any Hired Auto, to the owner or a lessee thereof, other than the
Member, nor to any agent or employee of such owner or lessee;
(d) With respect to any Non-Owned Auto, to any official or employee if such Auto
is owned by him or a member of the same household;
(e) To anyone other than the Member's Employees or a lessee or borrower, or any of their employees, while moving property to or from a Covered Auto; and
(f) To anyone liable for the conduct of the Member described above but only to the extent of that liability. However, the owner or anyone else from whom the
Member hires or borrows a Covered Auto is covered only if that Auto is a
Trailer connected to a Covered Auto the Member owns.
B. PHYSICAL DAMAGE COVERAGE
1. Physical Damage Coverage Agreement
a. The Fund will pay for Loss to a Covered Auto or its equipment under:
(1) Comprehensive Coverage
(a) As defined in the definitions hereto;
(b) Glass breakage;
(c) Loss caused by hitting a bird or animal; and
(d) Loss caused by falling objects or missiles.
However, the Member has the option of having glass breakage caused by a
Covered Auto's collision or overturn considered a Loss under Collision
Coverage.
(2) Collision Coverage as defined in the definitions hereto.
b. The Fund will also pay up to $10 per day to a maximum of $300 for transportation expense incurred by the Member because of the total theft of a Covered Auto of the private passenger type. The Fund will pay for transportation expenses incurred during
the period beginning 48 hours after the theft and ending, regardless of the expiration date of coverage, when the Covered Auto is returned to use or the Fund pays for its
Loss.
2. Physical Damage Coverage Exclusions In addition to the Exclusions found in Section III (Business Auto Coverage) A. (Liability
Coverage) the Fund will not pay for Loss to any of the following:
a. Wear and Tear wear and tear, freezing, mechanical, or electrical breakdown; or
b. Road Damage blowouts, punctures, or other road damage to tires.
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3. Limit of Liability for Auto Physical Damage Coverage
The most the Fund will pay for Loss in any one Accident is the lesser of:
a. For all Loss or Damage except those losses falling under Section III (Business Auto), B. (Physical Damage Coverage), 2. below, at the Fund's option it may:
(1) Pay for, repair, or replace damaged or stolen property;
(2) Return the stolen property, at its expense; the Fund will pay for any damage that results to the Covered Auto from the theft;
or
(3) take all or any of the damaged stolen property at an agreed or appraised value.
b. Unless otherwise endorsed hereto, for all Loss or damage to a Covered Auto with a scheduled value on file with the Fund greater than $50,000, the Fund will pay the lesser of:
(1) The cost of repairing damaged property or replacing damaged or stolen property with the same kind or quality; or
(2) The cost to replace a part or parts of the damaged property as of the time of the
Loss with a part or parts of like kind and quality, without deduction for depreciation; or
(3) (a) For vehicles less than five (5) years old, the cost to replace the entire Covered
Auto and its permanently attached equipment as of the time of the Loss with a comparable new Auto and permanently attached equipment manufactured to
current specifications or standards set by nationally recognized organizations such as the NFPA or the U.S. Department of Transportation; or
(b) For vehicles more than five (5) years old, but less than fifteen (15) years old,
the cost to replace the damaged property and its permanently attached equipment as of the time of the Loss with that of like kind and quality, without deduction for depreciation; or
(c) For vehicles more than fifteen (15) years old, the actual cash value of the vehicle and its permanently attached equipment at the time of the Loss; or
(d) The Limit of Coverage applicable to the lost, damaged or stolen Covered
Auto.
(e) The age of the vehicle is determined based on the date of manufacture of the vehicle and the date of Loss.
4. Deductible for Auto Physical Damage Coverage
For each Covered Auto, the Fund's obligation to pay for, repair, return, or replace damaged or stolen property will be reduced by the per Accident deductible amount as listed in the Declarations Page of Section III (Business Auto Coverage) of this Contract.
5. Recovery or Salvage Any recovery or salvage excluding:
a. proceeds from subrogation and underlying insurance recovered or received after a Loss settlement under this Contract; and
b. any recovery from suretyship, insurance, reinsurance, security, or indemnity taken by or
for the behalf of the Fund; will apply as if recovered or received prior to the Loss settlement and the Loss will be
re-adjusted accordingly.
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C. UNINSURED/UNDERINSURED MOTORIST COVERAGE
1. Uninsured/Underinsured Motorist Coverage Agreement The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
a. to pay all sums the Covered Person is legally entitled to recover as damages from the
owner or driver of an Uninsured/Underinsured Motor Vehicle. The damages must result from Bodily Injury sustained by the Covered Person or Property Damage, caused by an Accident. The owner's or driver's liability for these damages must result
from the ownership, maintenance, or use of the Uninsured/Underinsured Motor Vehicle.
b. If this coverage provides a limit in excess of the amounts required by the Virginia Motor
Vehicle Safety-Responsibility Law, the Fund will pay only after all liability bonds or policies have been exhausted by judgments or payments.
c. Any judgment for damages arising out of a Suit brought without sending the Service Provider a copy of the summons, complaint, or other process against an
Uninsured/Underinsured Motorist is not binding on the Fund.
2. Uninsured/Underinsured Motorist Coverage Exclusions This coverage does not apply to:
a. Settlement Without Consent any Claim settled without the Fund's consent;
b. Workers’ Compensation
any obligation for which the Member or the Fund may be held liable under any workers compensation, disability benefits, or unemployment compensation law, or any similar law;
c. Insurer the direct or indirect benefit of any insurer of property;
d. Auto
an Auto or property contained in the Auto other than a Covered Auto;
e. Non Permissive Use anyone using a vehicle without a reasonable belief that the person is entitled to do so;
f. Punitive or Exemplary Damages Any amount the Member may become legally obligated to pay for punitive or exemplary damages, fines, or statutory penalties, whether imposed by law or otherwise.
g. Auto Racing
Bodily Injury or Property Damage arising out of automobile racing, practice or
exhibition.
3. Limit of Liability for Uninsured/Underinsured Motorist Coverage
a. Regardless of the number of Covered Autos, Covered Persons, contributions paid, claims made or vehicles involved in the Accident, the most the Fund will pay for the total of all damages combined resulting from any one Accident is the limit of
Uninsured Motorists Insurance shown in the Schedule or Declarations. However, if more than one Covered Auto is involved in the same Accident, the limit of Uninsured Motorists coverage shown in the Declarations Page will apply
separately to each of these Covered Autos. Such limits of Liability shall first provide the separate limits required by the Virginia Motor Vehicle Safety Responsibility Act.
b. Except with respect to an Underinsured Motor Vehicle, damages otherwise payable under this coverage, shall be reduced by:
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(1) All sums paid because of Bodily Injury or Property Damage by or on behalf of persons or organizations who may be legally responsible.
(2) With respect to an employee of a self-insured employer all sums paid or payable because of Bodily Injury under a workers' compensation, disability benefits, or similar law, exclusive of non-occupational disability benefits
(3) All sums paid or payable under any policy of property insurance.
c. If any Accident is covered in whole or in part under more than one (1) Coverage
Agreement of this Contract, including, but not limited to, any Claim covered by Sections I (Property), II (General Liability), III (Business Auto Coverage; A. Auto Liability), IV (Crime), V (Public Officials Liability) and/or VII (CyberRisk) of the
Contract, the most the Fund will pay for such Loss shall not exceed the largest Limit of Liability available under any one of those Coverage Agreements or coverages. If all limits are equal, only one limit will still apply.
d. Any amount paid under this coverage will reduce any amount a Member may be paid under the Contract's liability coverage.
4. Deductible
the first $200 of the amount of Property Damage to the property of each Member as the result of any one Accident;
5. Changes in Conditions The conditions of the Contract are changed for Uninsured/Underinsured Motorist Coverage as follows:
a. The reference in Section III (Business Auto Coverage) E. (Business Auto Conditions) 2. (General Conditions) e. (Other Coverages) to "collectible insurance" applies only to other collectible Uninsured/Underinsured Motorist Insurance.
b. The Member's duties after an Accident or Loss are changed by adding the following:
(1) Promptly notify the police if a hit-and-run driver is involved; and
(2) Promptly send the Service Provider copies of the legal papers if a Suit is brought. A Suit may not be brought against anyone legally responsible for the use of an
Auto involved in the Accident until 60 days after a Member notifies the Service
Provider that the prospective defendant is an Uninsured Motorist.
c. The Fund's right to recover from others is changed by adding the following: If the Fund makes any payment and the Member or Covered Person recovers from
another party, the Member or Covered Person shall hold the proceeds in trust for the
Fund and pay the Fund back the amount the Fund paid.
d. The following condition is added:
Arbitration
(1) If the Fund and the Covered Person disagree whether the Covered Person is legally entitled to recover damages from the owner or driver of an
Uninsured/Underinsured Motor Vehicle or do not agree as to the amount of damages, the Covered Person may make a written demand for arbitration. In this event, each party will select an arbitrator. The two arbitrators will select a third. If
they cannot agree within 30 days, either may request that selection be made by a judge of a court having jurisdiction. Each party will pay the expenses it incurs and bear the expense of the third arbitrator equally.
(2) Unless both parties agree otherwise, arbitration will take place in the Covered
Person's county. Local rules of law as to arbitration procedure and evidence will apply. A decision agreed by two of the arbitrators will be binding.
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(3) If the Covered Person elects not to arbitrate, the Fund's liability will be determined only in an action against the Fund. In any action against the Fund, except an action
to determine whether a vehicle is an Uninsured/Underinsured Motor Vehicle, the
Fund may require the Covered Person to join the owner or driver of the vehicle as a party defendant.
6. Definitions for Uninsured/Underinsured Motorist Coverage The definition of Uninsured/Underinsured Motor Vehicle in this subsection C. applies in
its entirety as entered below:
a. Words and Phrases with Special Meaning for Subsection C. The following words and phrases have special meanings for this subsection C.
(Uninsured Motorist Coverage):
(1) Covered Person The following persons are Covered Persons under Section III (Business Auto Coverage) C. (Uninsured/Underinsured Motorist Coverage):
(a) The Member;
(b) Anyone Occupying a Covered Auto or a temporary substitute for a Covered
Auto; if a temporary substitute, the Covered Auto must be out of service because of its breakdown, repair, servicing, Loss or destruction; and
(c) Anyone for damages he is entitled to recover because of Bodily Injury sustained by another Covered Person.
(2) Occupying means in, upon, using, getting in, out of or off.
(3) Property Damage means injury to or destruction of the property of a Member.
(4) Underinsured Motor Vehicle means: A motor vehicle, when and to the extent that, the total amount of Bodily Injury and
Property Damage coverage applicable to the operation or use of the motor vehicle, including all bonds or deposits of money or securities, is less than the total amount of uninsured motorist coverage afforded any person injured as a result of the
operation or use of the motor vehicle.
(5) Uninsured Motor Vehicle means:
(a) A motor vehicle as to which there is no Bodily Injury liability insurance in the amounts specified by compliance with the Virginia Motor Vehicle Safety-Responsibility Law; or
(b) A motor vehicle as to which there is such insurance in existence, but the insurance company writing the same has legally denied coverage for any reason whatsoever, including failure or refusal of the insured to cooperate with
the insurer; or
(c) A motor vehicle as to which there is no bond or deposit of money or securities in lieu of such Bodily Injury and Property Damage liability insurance; or
(d) A motor vehicle as to which the owner or operator of the motor vehicle has not qualified as a self-insurer under Virginia Law; or
(e) A motor vehicle as to which the owner or operator of the motor vehicle is
immune from liability for negligence under the laws of the Commonwealth or the United States; or
(f) A motor vehicle of which the owner or operator is unknown.
No vehicle shall be considered Uninsured/Underinsured that is owned by the United States government and against which a Claim may be made under the
Federal Tort Claims Act, as amended.
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(6) Statutory Limits shall mean the minimum limits required by §46.2-472.3 of the Code of Virginia, 1950, as amended, except the limits shall be increased to the
minimum required to meet the limit or limits specified by a compulsory or financial responsibility law.
D. AUTO MEDICAL PAYMENTS COVERAGE
1. Auto Medical Payments Coverage Agreement
The Fund will pay reasonable expenses incurred for necessary medical and funeral services to or for a Covered Person who sustains Bodily Injury caused by an Accident. The Fund will pay only those expenses incurred and reported within three years from the
date of the Accident.
2. Auto Medical Payments Coverage Exclusions Coverage in this subsection D. (Auto Medical Payments Coverage) does not apply to:
a. Mobile Home
Bodily Injury sustained by a Covered Person while Occupying a vehicle located for use as premises;
b. Bodily Injury
Bodily Injury sustained by a Covered Person while Occupying or being struck by any vehicle (other than a Covered Auto) owned by a Covered Person or furnished or available for the Covered Person’s regular use;
c. Workers’ Compensation Any obligation for which the Member or Fund may be held liable under any workers compensation, disability benefits, or unemployment compensation law or any similar
law;
d. Auto Business
Bodily Injury to a Covered Person while working in business of selling, servicing,
repairing, or parking Autos unless that business is the Member’s;
e. War
Bodily Injury or Property Damage, however caused, arising directly or indirectly, out of:
(1) War, including undeclared or civil war; or
(2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental
authority in hindering or defending against any of these;
f. Non-Permissive Use
Bodily Injury to anyone using a vehicle without a reasonable belief that the person is
entitled to do so.
g. Auto Racing
Bodily Injury or Property Damage arising out of automobile racing, practice, or
exhibition.
3. Limit of Liability Under Medical Payments Coverage
Regardless of the number of Covered Autos, Covered Persons under this subsection D (Auto Medical Payments Coverage), Claims made, or vehicles involved in the Accident, the most the Fund will pay for Bodily Injury for each Covered Person in any one
Accident is the limit of Auto Medical Payments shown in the Declarations Pages of Section III (Business Auto Coverage).
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4. Changes in Conditions The conditions of the Contract are changed for subsection D. (Auto Medical Payments
Coverage) as follows:
a. The Fund's right to recover from others does not apply; and
b. The references in Section III (Business Auto Coverage) E. (Business Auto Conditions)
2. (General Conditions) (e) (Other Coverage) to "other collectible insurance" applies only to other collectible medical payments insurance.
5. Definitions for Auto Medical Payments Coverage Covered Person
a. Any official, trustee, director, officer, volunteer or Employee of the Member while acting
within the scope of his duties as such, and any person, organization, trustee, or estate to whom the Member is obligated by virtue of a Covered Contract to provide coverage such as is offered by this coverage, but only in respect to operations by or on behalf of the Member; and
b. Anyone else Occupying a Covered Auto or a temporary substitute for a Covered
Auto. If a temporary substitute, the Covered Auto must be out of service because of its breakdown, repair, servicing, Loss, or destruction.
E. GARAGE LIABILITY COVERAGE
1. Liability Coverage Agreement – Garage Operations
The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
a. To pay all sums the Member legally must pay as damages because of Bodily Injury or
Property Damage to which this coverage applies, caused by any Accident and
resulting from Garage Operations other than the ownership, maintenance, or use of a
Covered Auto;
b. To defend any Suit asking for these damages. However, the Fund has no duty to
defend Suits for Bodily Injury or Property Damage not covered herein. The Fund may investigate and settle any Claim or Suit as the Fund considers appropriate.
2. Coverage Extensions for Garage Liability Coverage
a. Supplemental Payments The Fund will pay for the Covered Person:
(1) Up to $250 for the cost of all bail bonds (including bonds for related traffic law violations) required because of a covered Accident; the Fund does not have to
furnish these bonds;
(2) Premiums on appeal bonds in any Suit the Fund defends, but only for bond amounts within the Limit of Liability;
(3) Premiums on bonds to release attachments in Suits the Fund defends but only for bonds within the Limit of Liability;
(4) All costs taxed to the Member in Suits the Fund defends; and
(5) All interest on the full amount of any judgment in any Suit the Fund defends; the duty to pay interest ends when the Fund pays, offers to pay, or deposits in court the part of the judgment that is within the Liability Limit occurring after the entry of the
judgment in a Suit the Fund defends. This is limited by the Liability Limit. Payments made under this Supplemental Payments section 2.a. do not reduce the
Liability Limit as set forth in the Declarations page.
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b. Out of State Coverage Extensions While a Covered Auto is away from the state where it is licensed, the Fund will:
(1) Increase the Limit for Liability Coverage to meet the limit or limits specified by a compulsory or financial responsibility law in the jurisdiction where the Covered
Auto is being used; and
(2) Provide the minimum amount and types of other coverage’s, such as no-fault, required of out of state vehicles by the jurisdiction where the Covered Auto is being used.
The Fund will NOT pay any person more than once for the same elements of Loss because of these extensions.
3. Garage Operations Exclusions This coverage does not apply to any of the following:
a. Expected or Intended Injury
Bodily Injury or Property Damage expected or intended from the standpoint of the Member or a Covered Person;
b. Contractual Liability Liability assumed under any contract or agreement; but this exclusion does not apply to
liability for damages:
(1) Assumed in a contract or agreement that is a Covered Contract; or
(2) That the Member would have in the absence of the contract or agreement;
c. Workers’ Compensation Any obligation for which the Member or the Fund may be held liable under any workers’ compensation, disability benefits, or unemployment compensation law, or any
similar law;
d. Employee Indemnification and Employer’s Liability
Bodily Injury to:
(1) An Employee of the Member arising out of and in the course of employment by the
Member; or
(2) The spouse, child, parent, brother, or sister of that Employee as a consequence of paragraph (1) above; This exclusion applies:
(a) Whether the Member may be liable as an employer or in any other capacity; and
(b) To any obligation to share damages with or repay someone else who must pay damages because of the injury.
But this exclusion does not apply to Bodily Injury to domestic employees not entitled to workers’ compensation benefits or to liability assumed by the
Member under a Covered Contract;
e. Fellow Employee
Bodily Injury to any fellow Employee of the Member arising out of and in the course of the fellow Employee's employment;
f. Care, Custody and Control
Property Damage to property owned or transported by the Member or in the
Member's care, custody, or control. But this exclusion does not apply to liability
assumed under a sidetrack agreement or where specifically covered by the Fund. (See Section II (General Liability) for limited care, custody, and control coverage);
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g. Leased Autos Any Covered Auto while leased or rented to others. This exclusion does not apply to a
Covered Auto the Member rents to one of its customers while their Auto is left with the Member for service or repair.
h. Pollution
(1) Bodily Injury, Personal Injury or Property Damage arising directly or indirectly out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of Pollutants at any time;
(2) Any Loss, cost or expense arising directly or indirectly out of any:
(a) Request, demand, order or statutory or regulatory requirement that any
Member or others test for, monitor, clean up, remove, contain, treat, detoxify
or neutralize, or in any way respond to, or assess the effects of Pollutants; or
(b) Claim or Suit by or on behalf of a governmental authority or others because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of Pollutants. Paragraph a. of this exclusion does not apply to:
(1) Bodily Injury or Property Damage caused by heat, smoke or fumes
from Hostile Fire;
(2) Bodily Injury if sustained within a building which is or was at any time owned or occupied, or rented or loaned to, any Member, but only so long as the Bodily
Injury, was caused by smoke, fumes, vapors or soot from equipment used to heat, cool or dehumidify that building;
i. Defective Products
Property Damage to any of the Members Products if caused by a defect existing in the Product or any part of the Product, at the time it was transferred to another.
j. Property Damage and Work Performed
Property Damage to work performed by or on behalf of the named Member arising out of the work or any portion thereof, or out of materials, parts, or equipment furnished in connection therewith.
k. Products Recall
Damages claimed for any Loss, cost or expense incurred by the Member or others for the Loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of the Member’s Products or Work Performed or other property of which they form a part, if such product, work or property is withdrawn or recalled from
the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it.
l. War
Bodily Injury, Personal Injury, Property Damage, however caused, arising directly or indirectly, out of:
(1) War, including undeclared or civil war; or
(2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.
m. Watercraft or Aircraft
Any watercraft or aircraft except watercraft while ashore on premises where the Member conducts Garage Operations.
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n. Loss of Use
Loss of use of other property not physically damaged if caused by:
(1) A delay or failure by the Member or anyone acting on behalf of the Member to perform a contract or agreement in accordance with its terms.
(2) A defect, deficiency, inadequacy or dangerous condition in Members Products or
work performed. This exclusion, does not apply if the Loss of used was caused by sudden and accidental damage to or destruction of Members Products or work
performed after they have been put to their intended use.
o. Violation of Statute Arising from the willful violation of any statute, ordinance, or regulation committed by or with the knowledge or consent of any Covered Person;
3. Liability Limit for Garage Operations Coverage For Garage Operations other than the ownership, maintenance or use of Covered Autos, the following applies: The total liability of the Fund for any one Accident will be the per Accident limit as stated in the Declarations attached, not including expense and defense costs: except where other
liability and/or coverage sub-limits apply. Then the Fund's liability will be limited to the applicable sub-limit.
The Fund's liability for any one Accident will be limited to the per Accident limit as stated in the Declarations attached, not including expense and defense costs regardless of the number of Covered Persons or Members, number of claimants or Claims made, or the
number of Covered Autos involved whether or not covered in one or more than one capacity under this Contract or the contract of other Fund Members.
If any Loss is covered under more than one Coverage Agreement or Coverage, the most the Fund will pay for such Loss shall not exceed the largest Limit of Coverage available under any one of this Endorsement, those Coverage Agreements or coverages.
F. GARAGE KEEPERS’ COVERAGE
1. Garage Keepers Coverage Agreement
The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
a. to pay all sums the Member legally must pay as damages for Loss to a Customer’s
Auto or Customer’s Auto equipment left in the Members care while the Member is
attending, servicing, repairing, parking or storing it in the Members Garage Operations under:
(1) Comprehensive Coverage
From any cause except
(a) The Customer’s Auto’s collision with another object; or (b) The Customer’s Auto overturn.
(2) Specified Causes of Loss Coverage Caused by: (a) Fire, lightning or explosion;
(b) Theft; or (c) Mischief or vandalism.
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(3) Collision Coverage Caused by:
(a) The Customer’s Auto’s collision with another object; or
(b) The Customer’s Auto overturn.
b. to defend any Suit asking for these damages. However, the Fund has no duty to
defend Suits for Bodily Injury or Property Damage not covered herein. The Fund may investigate and settle any Claim or Suit as the Fund considers appropriate.
2. Coverage Extensions for Garage Keepers’ Coverage
a. Supplemental Payments The Fund will pay for the Covered Person:
(1) Premiums on appeal bonds in any Suit the Fund defends, but only for bond amounts within the Limit of Liability;
(2) Premiums on bonds to release attachments in Suits the Fund defends but only for bonds within the Limit of Liability;
(3) All costs taxed to the Member in Suits the Fund defends; and
(4) All interest on the full amount of any judgment in any Suit the Fund defends; the duty to pay interest ends when the Fund pays, offers to pay, or deposits in court the part of the judgment that is within the Liability Limit occurring after the entry of the
judgment in a Suit the Fund defends. This is limited by the Liability Limit. Payments made under this Supplemental Payments section 4.a. do not reduce the
Liability Limit as set forth in the Declarations page.
3. Garage Keepers’ Coverage Exclusions
a. This coverage does not apply to any of the following:
(1) Contractual Obligations Liability resulting from any contract or agreement by which the Member accepts
responsibility for loss. But this exclusion does not apply to liability for Loss that the
Member would have in the absence of the contract or agreement.
(2) Theft
Loss due to theft or conversion caused in any way by the Member or a Covered
Person.
(3) Defective Parts Defective parts or materials.
(4) Faulty Work
Faulty Work Performed by the Member or a Covered Person.
b. The Fund will not pay for Loss to any of the following:
(1) Tape decks or other sound reproducing equipment unless permanently installed in
a Customer’s Auto.
(2) Tapes, records or other sound reproducing devices designed for use with sound reproducing equipment.
(3) Sound receiving equipment designed for use as a citizens’ band radio, two-way mobile radio or telephone or scanning monitor receiver, including its antennas and other accessories, unless permanently installed in the dash or console opening
normally used by the Customer’s Auto for the installation of the Auto.
(4) Any device designed or used to detect speed measuring equipment such as radar or laser detectors and any jamming apparatus intended to elude or disrupt speed
measuring equipment.
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c. The Fund will not pay for Loss caused by or resulting from the following. Such Loss is excluded regardless of any other cause or event that contributes concurrently or in any
sequence to the Loss.
(1) War, including undeclared or civil war;
(2) Warlike action by a military force, including action in hindering or defending against
the actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental
authority in hindering or defending against any of these.
4. Liability Limit for Garage Keepers Coverage
For Garage Keepers Coverage, the following applies: The total liability of the Fund for any one Accident will be the per Accident limit as stated in the Declarations attached, not including expense and defense costs: except where other liability and/or coverage sub-limits apply. Then the Fund's liability will be limited to the applicable sub-limit.
The Fund's liability for any one Accident will be limited to the per Accident limit as stated in the Declarations attached, not including expense and defense costs regardless of the number of Covered Persons or Members, number of claimants or Claims made, or the
number of Covered Autos involved whether or not covered in one or more than one capacity under this Contract or the contract of other Fund Members.
If any Loss is covered under more than one Coverage Agreement or Coverage, the most the Fund will pay for such Loss shall not exceed the largest Limit of Coverage available under any one of this Endorsement, those Coverage Agreements or
coverages.
5. Deductible for Garage Keepers Coverage For each Covered Auto, the Fund's obligation to pay for, repair, return, or replace damaged or stolen property will be reduced by the per Accident deductible amount as listed in the Declarations page of this Endorsement.
G. ADDITIONAL DEFINITIONS FOR GARAGE LIABILITY AND GARAGE KEEPERS’ The following definitions apply in addition to the definitions set forth in Section III (Business
Auto Coverage) A. (Liability Coverage) J. (Definitions). Should any definition in Section III
(Business Auto Coverage) A. (Liability Coverage) 5 (Definitions) and/or J. (Definitions) conflict with this Section, the language in this Section shall supersede that language with regard to Garage Liability and Garage Keepers’.
1. Covered Autos shall include Autos not owned by the Member or Covered Person or members of their households while used in the Member’s Garage Operations.
2. Covered Persons for Garage Operations, other than Covered Autos, include:
a. The Member as stated in the Contract Declarations;
b. Any official, trustee, director, officer, volunteer or employee of the Member while acting within the scope of his duties as such;
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c. Customers of the Member’s Garage Operations. However, if a customer:
(1) Has no other available insurance or other coverage (whether primary, excess or
contingent), they are a Covered Person but only up to the compulsory or financial liability limits where the Covered Auto is principally garaged.
(2) Has other available insurance or other coverage (whether primary, excess or
contingent) less the compulsory or financial liability limits where the Covered
Auto is principally garaged, they are a Covered Person only for the amount by which the compulsory or financial liability limits exceed the limit of their own
insurance or other coverage.
3. Customers Auto means a customer’s land motor vehicle or semitrailer. It also includes
any Customer’s Auto while left with the Member for service, repair, storage or safekeeping. Customers may include employees and members of their households who pay for services performed.
4. Employees shall include students of the Member who work in the Member’s Garage
Operations.
5. Garage Operations means the ownership, maintenance or use of locations for garage
business and that portion of the roads or other accesses that adjoin these locations.
Garage Operations includes all operations necessary or incidental to a garage business.
6. Hostile Fire means one, which breaks out or becomes uncontrollable from where it was intended.
7. Garage Operations means the ownership, maintenance or use of locations for garage business and that portion of the roads or other accesses that adjoin these locations.
Garage Operations includes all operations necessary or incidental to a garage business.
8. The Member’s product means:
a. Any goods or products manufactured, sold, distributed or disposed of in a garage business by:
(1) The Member;
(2) Others trading under the Member’s name; or
(3) A person or organization whose business or assets the Member have acquired; and
b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products.
The Member’s product includes:
a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of the Member’s product; and
b. The providing of or failure to provide warnings or instructions.
The Member’s product does not include vending machines or other property rented
to or located for the use of others but not sold.
9. Work Performed means:
a. Work or operations performed by the Member or on the Member’s behalf; and
b. Materials, parts or equipment furnished in connection with such work or operations.
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Work Performed includes:
a. Warranties or representations made at any time with respect to the fitness, quality,
durability, performance or use of the work performed; and
b. The providing of or failure to provide warnings or instructions.
H. BUSINESS AUTO COVERAGE
1. Coverage Extension
a. The following is added to Section III (BUSINESS AUTO COVERAGE) B. (Physical
Damage Coverage), 1. (Physical Damage Coverage Agreement):
Specified Causes of Loss Coverage caused by:
(1) Fire, lightning or explosion;
(2) Theft;
(3) Windstorm, hail or earthquake;
(4) Flood;
(5) Mischief or vandalism, or
(6) The sinking, burning, collision, or derailment of any conveyance, transporting the Covered Auto,
2. Additional Exclusions The following exclusions are added to Section III (BUSINESS AUTO COVERAGE) B.
(Physical Damage Coverage):
a. The Fund will not pay for Loss to any of the following:
(1) Any Covered Auto leased or rented to others unless rented to a customer while
their Auto is left with the Member for service or repair.
(2) Any Covered Auto while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. The Fund
will also not pay for Loss to any Covered Auto while that Covered Auto is being prepared for such contest or activity.
(3) Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment.
(4) Any device designed or used to detect speed measuring equipment such as radar or laser detectors and any jamming apparatus intended to elude or disrupt speed measuring equipment.
(5) Any electronic equipment, without regard to whether this equipment is permanently
installed, that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound.
(6) Any accessories used with the electronic equipment described in Paragraph 5)
above. Exclusion (5) and (6) above do not apply to:
(1) Equipment designed solely for the reproduction of sound and accessories used with such equipment, provided such equipment is permanently installed in the Covered
Auto at the time of the Loss or such equipment is removable from a housing unit which is permanently installed in the Covered Auto at the time of the Loss, and such equipment is designed to be solely operated by use of the power from the
auto’s electrical system, in or upon the Covered Auto; or
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(2) Any other electronic equipment that is:
(a) Necessary for the normal operation of the Covered Auto of the monitoring of
the Covered Auto’s operating system; or
(b) An integral part of the same unit housing any sound reproducing equipment described in Paragraph a. above and permanently installed in the opening of
the dash or console of the Covered Auto normally used by the manufacturer for installation of a radio.
b. False Pretense
The Fund will not pay for Loss to a Covered Auto caused by or resulting from:
(1) Someone causing the Member or Covered Person to voluntarily part with it by trick or scheme or under false pretenses; or
(2) The Member acquiring an Auto from a seller who did not have legal title.
c. The Fund will not pay for:
(1) The Member’s expected profit, including Loss of market value or resale value.
(2) Under Collision Coverage, Loss to any Covered Auto while being driven or transported from the point of purchase or distribution to its destination if such points are more than 50 road miles apart.
(3) Under specified causes of Loss coverage, Loss to any Covered Auto caused by or resulting from the collision or upset of any vehicle transporting it.
d. The Fund will not pay for Loss to a Covered Auto due to diminution in value.
I. BUSINESS AUTO CONDITIONS
The following conditions apply in addition to the General Conditions (Section VII):
1. Loss Conditions
a. Appraisal for Physical Damage Loss If the Member and the Fund disagree on the amount of Loss, either may demand an
appraisal of the Loss within sixty (60) days after receipt of Proof of Loss by the Fund. In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. If they cannot agree on an umpire within fifteen (15) days, either may request that a judge of a court having jurisdiction make the selection. The appraisers will state separately the Actual Cash Value and amount of Loss. If they fail to agree, they will submit their difference to the umpire. A decision agreed to by any two will be binding. Each party will:
(1) Pay its chosen appraiser; and
(2) Bear the other expenses of the appraisal and umpire equally. If the Fund submits to an appraisal, the Fund will still retain its right to deny the Claim.
b. Duties in the Event of Accident, Claim, Suit or Loss
(1) In the event of an Accident, Claim, Suit, or Loss, the Member must give the
Service Provider prompt notice of the Accident or Loss. Including:
(a) How, when, and where the Accident or Loss occurred;
(b) The Covered Person's name and address; and
(c) To the extent possible, the names and addresses of any injured persons and
witnesses.
(2) Additionally, the Member and any other involved Covered Person must:
(a) Assume no obligation, make no payment, or incur no expense without the
Fund's consent, except at the Covered Person's own cost;
(b) Immediately send the Service Provider copies of any demand, notice, summons, or legal paper received concerning the Claim or Suit;
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(c) Cooperate with the Fund in the investigation, settlement, or defense of the
Claim or Suit;
(d) Authorize the Fund to obtain medical records or other pertinent information; and
(e) Submit to examination, at the Fund's expense, by physicians of the Fund's choice, as often as the Fund reasonably requires.
(3) If there is a Loss to a Covered Auto or its equipment the Member must also do the following:
(a) Promptly notify the police if the Covered Auto or any of its equipment is stolen;
(b) Take all reasonable steps to protect the Covered Auto from further damage and keep a record of all expenses for consideration in the settlement of the
Claim;
(c) Permit the Fund's representative to inspect the Covered Auto and records proving the Loss before its repair or disposition; and
(d) Agree to examinations under oath at the Fund's request and give the Fund a signed statement of the Member's answers.
c. Legal Action Against the Fund No one may bring a legal action against the Fund under this Section III (Business Auto Coverage) until:
(1) There has been full compliance with all the terms of this Contract; and
(2) Under Liability Coverage, the Fund agrees in writing that the Covered Person has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this Contract to bring
the Fund into an action to determine the liability of the Covered Person.
d. Transfer of Rights of Recovery Against Others to the Fund If any person or organization to or for whom the Fund makes payment under this
Contract has rights to recover damages from another, those rights are transferred to the Fund. That person or organization must do everything necessary to secure the
Fund's rights and must do nothing after an Accident or Loss to impair them.
5. General Conditions
a. Bankruptcy Bankruptcy or insolvency of the Member will not relieve the Fund of any obligations under this Contract.
b. Concealment, Misrepresentation or Fraud This Contract is void in any case of fraud by a Covered Person relating to it. It is also void if the Member intentionally conceals or misrepresents a material fact concerning:
(1) This Contract;
(2) The Covered Auto; or
(3) The Member's interest in the Covered Auto.
c. Liberalization If this Contract is revised to provide more coverage without additional charge, this
Contract will automatically provide the additional coverages the day of the revision and
adoption.
d. No Benefit to Bailee - Physical Damage Coverages The Fund will not recognize any assignment or grant any coverage for the benefit of
any person or organization holding, storing, or transporting property for a fee regardless of any other provision of this coverage form.
e. Other Coverage
(1) For any Auto the Member owns, this Contract provides primary coverage. For any Covered Auto the Member does not own, the coverage provided by this
Contract is excess over any other collectible insurance. When Physical Damage
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Coverage is offered by a rental company on an optional basis and the Member refuses the coverage, then coverage under this Contract applies, subject to a $250
deductible. However, while a Covered Auto, which is a Trailer, is connected to another vehicle, the Liability Coverage this Contract provides for the Trailer is:
(a) Excess while it is connected to a motor vehicle the Member does not own; or
(b) Primary while it is connected to a Covered Auto the Member does own.
(2) Regardless of the provisions of subsection (1) above, this Contract's Liability
Coverage is primary for any liability assumed under a Covered Contract.
(3) When this Contract and any other contract or policy covers on the same basis, either excess or primary, the Fund will pay only its share. This share is the proportion that the limit of the Contract bears to the total of the limits of all the
coverage forms and policies covering on the same basis.
f. Contract Period, Coverage Territory Under this Section III (Business Auto Coverage), the Fund covers Accidents and
Losses occurring:
(1) During the Contract Period shown on the Declaration Page; and
(2) Within the Coverage Territory. The Coverage Territory is:
(1) The United States of America;
(2) The territories and possessions of the United States of America;
(3) Puerto Rico; and
(4) Canada. The Fund will also cover Loss to, or Accidents involving, a Covered Auto while being
transported between any of these places.
g. Two or More Contracts Issued by the Fund If this Contract and any other contract issued to the Member by the Fund apply to the
same Accident, the aggregate maximum limit of coverage under any one Contract or contract(s) shall not exceed the highest applicable limit under any one Contract.
h. Sub-Limits All supplemental coverages provided in this Section III (Auto Liability) that are subject to a sub-limit are deleted in their entirety in the event that the Member’s Deductible exceeds the stated sub-limit.
i. Not Covered No coverage is provided for any coverage for which the words NOT COVERED or
similar verbiage is shown in the Declaration Pages.
j. Other Conditions See Section VII (General Conditions) for items not addressed in this Section III
(Business Auto Coverage).
J. DEFINITIONS
1. Accident includes continuous or repeated exposure to the same conditions resulting in
Bodily Injury or Property Damage.
2. Application means the document or documents required from the Member prior to and during its participation in the Fund.
3. Auto means a land motor vehicle, Trailer, or semi-trailer designed for travel on public roads but does not include Mobile Equipment.
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4. Bodily Injury means bodily injury, sickness, or disease sustained by a person including
death resulting from any of these.
5. Comprehensive Coverage means loss from any cause except:
a. The Covered Auto's collision with another object; or
b. The Covered Auto's overturn.
6. Collision Coverage means Loss caused by:
a. The Covered Auto's collision with another object; or
b. The Covered Auto's overturn.
7. Coverage Territory means as described in Section III (Business Auto Coverage) E (Business Auto Conditions) 2 (General Conditions) f (Contract Period, Coverage
Territory.
8. Covered Auto means
a. The following are Covered Autos:
(1) Owned Autos;
(2) Hired Autos; and
(3) Non-Owned Autos.
However, Covered Auto does not include any vehicle not owned by the Member
and which is owned, maintained or used by Volunteer Emergency Services Personnel. Emergency Services Personnel shall include, but are not limited to: firefighter, Emergency Medical Technician, fire and rescue personnel, paramedic, and
ambulance technician. b. Owned Autos Acquired by the Member After the Coverage Begins. The Member has coverage for Covered Autos that the Member acquires after
coverage begins for the remainder of the Contract Period.
c. Certain Trailers, Mobile Equipment, and Temporary Substitute Autos. The following types of vehicles are also Covered Autos for Liability Coverage:
(1) Trailers;
(2) Mobile Equipment while being carried or towed by a Covered Auto; and
(3) any Auto the Member does not own while used with the permission of its owner as a temporary substitute for a Covered Auto the Member owns that is out of service because of its breakdown, repair, servicing, Loss, or destruction.
9. Covered Contract means:
a. A sidetrack agreement;
b. An easement or license agreement in connection with vehicle or pedestrian private railroad crossing at grade;
c. Any other easement agreement, except in connection with construction or demolition
operation on or within 50 feet of a railroad;
d. An indemnification of a municipality as required by ordinance, except in connection with work for a municipality; or
e. That part of any other contract or agreement pertaining to the Member's operation under which the Member assumes the tort liability of another to pay damages because of Bodily Injury or Property Damage to a third person or organization if the contract or
agreement is made prior to the Bodily Injury or Property Damage. Tort liability means liability that would be imposed by law in the absence of any contract or agreement.
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A Covered Contract does not include that part of any contract or agreement:
a. That pertains to the loan, lease, or rental of an Auto to the Member; or
b. That holds a person or organization engaged in the business of transporting property by
Auto for hire, harmless for the Member's use of a Covered Auto over a route or
territory that the person or organization is authorized to serve by public authority.
10. Fungus(es) includes, but is not limited to, any form of mold, mushroom, or mildew.
11. Hired Autos means land motor vehicles, Trailers, or semi-trailers that the Member leases, hires, rents, or borrows designed for travel on public roads. This does not include Mobile
Equipment. This does not include any Auto the Member leases, hires, rents, or borrows from any of the Member's Employees or Members of their households.
12. Loss means direct and accidental damage or Loss.
13. Mobile Equipment means any of the following categories of land vehicles, including any attached machinery or equipment:
a. Bulldozers, farm machinery, forklifts, and other vehicles designed for use principally off
public roads;
b. Vehicles maintained for use solely on or next to premises the Member owns or rents;
c. Vehicles that travel on crawler treads;
d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted:
(1) Power cranes, shovels, loaders, diggers, or drills; or
(2) Road construction or resurfacing equipment such as graders, scrapers, or rollers;
e. Vehicles not described in subparagraphs a, b, c, or d above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of
the following types:
(1) Air compressors, pumps, and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting, and well servicing equipment; or
(2) Cherry pickers and similar devices used to raise or lower workers.
f. Vehicles not described in subparagraphs a, b, c, or d above that are maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not Mobile Equipment but will be considered Autos:
(1) Equipment designed primarily for:
(a) Snow removal;
(b) Road maintenance, but not construction or resurfacing; or
(c) Street cleaning;
(2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and
(3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting, and well servicing equipment.
14. Non-Owned Autos mean land motor vehicles, Trailers, or semi-trailers that the Member DOES NOT own, lease, hire, rent, or borrow, designed for travel on public roads that are used in connection with the Member's business. This does not include Mobile
Equipment. Non-Owned Auto includes Autos owned by the Member's Employees or partners or Members of their households but only while used in the Member’s business.
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15. Occupying means in, upon, using, getting in, on, out of, or off.
16. Owned Auto means an Auto owned by the Member and designed for travel on public roads.
17. Physical Damage Coverage means:
a. Comprehensive Coverage from any cause except:
(1) The Covered Auto's collision with another object; or
(2) The Covered Auto's overturn.
b. Collision Coverage caused by:
(1) The Covered Auto's collision with another object; or
(2) The Covered Auto's overturn.
18. Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes material to be recycled, reconditioned, or reclaimed.
19. Property Damage means damage to or Loss of use of tangible property.
20. Silica means silicon dioxide (occurring in crystalline, amorphous and impure forms),
Silica particles, Silica-Related Dust or Silica compounds.
21. Silica-Related Dust means a mixture or combination of Silica and other dust or particles.
22. Spore(s) include any reproductive body produced by or arising out of any Fungus(es).
23. Suit means a civil proceeding in which damages because of Bodily Injury or Property
Damage to which this Contract applies are alleged. Suit includes an arbitration proceeding alleging such damages to which the Member must submit or submit with the
Fund's consent.
24. Supervisor means a person duly elected or appointed to serve and serving as a
Supervisor of the Member.
25. Trailer means a vehicle designed to be pulled by an Auto and includes semi-trailer.
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SAMPLE MEMBER
VA-00-000
- SECTION IV -
CRIME
DECLARATIONS PAGE
Coverage Agreements: Limits of Liability
1. Faithful Performance
Blanket Position Coverage $250,000
2. Forgery Or Alteration Coverage $250,000
3. Loss Inside the Premises Coverage –
Theft of Money and Securities $250,000
4. Loss Inside the Premises Coverage –
Robbery or Safe Burglary of Other Property $250,000
5. Loss Outside the Premises Coverage $250,000
6. Computer Fraud Coverage $250,000
7. Funds Transfer Fraud Coverage $250,000
8. Money Orders and Counterfeit
Money Coverage $250,000
9. Claim Data Expense $250,000
10. Telephone Toll Fraud $ 25,000
Deductible: $250 per Occurrence It is understood that certain limits and deductibles contained herein can change annually at the
election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the Coversheet to the Member Agreement supersede any contradictory limits and deductibles
contained herein.
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-SECTION IV-
CRIME COVERAGE Various provisions in this Contract restrict coverage. Read the entire Contract carefully to
determine rights, duties and what is or is not covered. Words and phrases that appear in bold have special meaning. Refer to Section IV (Crime) F. (Definitions) and Section VII (General Conditions).
A. COVERAGE AGREEMENTS
Coverage is provided under the following Coverage Agreements for which a Limit of Coverage is shown in the Declarations and applies to loss that the Member sustains resulting directly from an Occurrence taking place at any time which is Discovered by the
Member during the Contract Period shown in the Declarations or during the period of time provided in this Section IV (Crime) E. (Conditions) 1. (Conditions Applicable to all Coverage Agreements) i. (Extended Period To Discover Loss):
1. Faithful Performance of Duty
The Fund will pay for loss or damage to Money, Securities, and Other Property resulting directly from the failure of any Employee to faithfully perform his or her duties as prescribed by law, when such failure has as its direct and immediate result a loss of
the Member’s covered property. The most the Fund will pay for loss arising out of any one Occurrence is the Limit of Coverage shown in the Declarations Page.
2. Forgery Or Alteration
The Fund will pay for loss resulting directly from Forgery or alteration of checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain in
Money that are:
a. Made or drawn by or drawn upon the Member; or
b. Made or drawn by one acting as the Member’s agent; or that are purported to have been so made or drawn. For the purposes of this Coverage Agreement, a substitute check as defined in the Check Clearing for the 21st Century Act shall be treated the same as the original it replaced. If the Member is sued for refusing to pay any instrument covered in Paragraph 2.a., on the basis that it has been forged or altered, and the Member has our written consent to
defend against the suit, the Fund will pay for any reasonable legal expenses that the
Member incurs and pays in that defense. The amount that the Fund will pay is in addition to the Limit of Coverage applicable to this Coverage Agreement.
3. Inside The Premises – Theft Of Money And Securities
a. The Fund will pay for loss of Money and Securities inside the Premises or
Banking Premises:
(1) Resulting directly from Theft committed by a person present inside such
Premises; or
(2) Resulting directly from disappearance or destruction;
b. The Fund will pay for loss from damage to the Premises or its exterior resulting
directly from an actual or attempted Theft of Money and Securities, if the Member is the owner of the Premises or is liable for damage to it.
c. The Fund will pay for loss of or damage to a locked safe, vault, cash register, cash
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box, or cash drawer located inside the Premises resulting directly from an actual or attempted Theft of or unlawful entry into those containers.
d. Any coverage provided under this section is secondary to any other coverage available to the Member.
4. Inside The Premises – Robbery Or Safe Burglary Of Other Property
a. The Fund will pay for loss of or damage to Other Property
(1) Inside the Premises resulting directly from an actual or attempted Robbery of a
Custodian; or
(2) Inside the Premises in a safe or vault resulting directly from an actual or attempted Safe Burglary.
b. The Fund will pay for loss from damage to the Premises or its exterior resulting directly from an actual or attempted Robbery or Safe Burglary of Other Property, if the Member is the owner of the Premises or are liable for damage to it.
c. The Fund will pay for loss of or damage to a locked safe or vault located inside the
Premises resulting directly from an actual or attempted Robbery or Safe Burglary.
5. Outside the Premises
a. The Fund will pay for loss of Money and Securities outside the
Premises in the care and custody of a Messenger or an armored motor vehicle company resulting directly from Theft, disappearance or destruction.
b. The Fund will pay for loss of or damage to Other Property outside the
Premises in the care and custody of a Messenger or an armored motor vehicle company resulting directly from an actual or attempted Robbery.
6. Computer Fraud The Fund will pay for Loss of or Damage to Money, Securities and Other Property resulting directly from the use of any computer to fraudulently cause a transfer of that
property from inside the Premises or Banking Premises:
a. To a person (other than a Messenger) outside those Premises; or
b. To a place outside those Premises.
7. Funds Transfer Fraud The Fund will pay for loss of Funds resulting directly from a Fraudulent Instruction directing a financial institution to transfer, pay or deliver Funds from the Member’s
Transfer Account.
8. Money Orders And Counterfeit Money The Fund will pay for loss resulting directly from the Member having accepted in good
faith, in exchange for merchandise, Money, or services:
a. Money orders issued by any post office, express company, or bank that are not paid upon presentation; or
b. Counterfeit Money that is acquired during the regular course of business.
9. Claim Data Expense
The Fund agrees to pay on behalf of the Member the actual reasonable and necessary expense, not to exceed $250,000 per Claim, in excess of the deductible for each Claim, incurred by the Member in preparing claim data when required by the Fund. This
includes the cost of preparing income statements and other documentation, conducting audits and forensic actuarial studies to show the extent of loss.
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10. Telephone Toll Fraud The Fund agrees to pay for loss from long distance telephone call charges incurred by
the Member resulting directly from fraudulent use or fraudulent manipulation of an
Account Code or System Password required to gain access into the Member’s Voice
Computer System.
B. LIMIT OF COVERAGE
The most the Fund will pay for all loss resulting directly from an Occurrence is the applicable Limit of Coverage shown in the Declarations Page of Section IV (Crime). If any Occurrence is covered in whole or in part under more than one (1) Coverage Agreement
of this Contract, including, but not limited to, any Claim covered by Sections I (Property), II (General Liability), III (Auto), IV (Crime), V (Public Officials Liability) and/or VII (CyberRisk) of the Contract, the most the Fund will pay for such loss shall not exceed the largest Limit of Liability available under any one of those Coverage Agreements or coverages. If all limits are equal, only one limit will apply.
C. DEDUCTIBLE
The Fund will not pay for loss resulting directly from an Occurrence unless the amount of loss exceeds the Deductible Amount shown in the Declarations Page of Section IV (Crime). The Fund will then pay the amount of loss in excess of the Deductible Amount, up to the
Limit of Coverage.
D. EXCLUSIONS
1. The following exclusions are applicable to all Coverage Agreements under Section IV (Crime):
a. Acts Committed By The Member Loss resulting from Theft or any other dishonest act committed by the Member, whether acting alone or in collusion with other persons.
b. Acts Of Employees Learned Of By The Member Prior To The Contract Period Loss caused by an Employee if the Employee had also committed Theft or any other dishonest act prior to the effective date of this Contract and the Member or any of the Member’s officials, not in collusion with the Employee, learned of that
Theft or dishonest act prior to the Contract Period shown in the Declarations.
c. Acts Of Officials, Employees, Or Representatives Loss resulting from Theft or any other dishonest act committed by any of the
Member’s officials, Employees or authorized representatives:
(1) Whether acting alone of in collusion with other persons: or
(2) While performing services for the Member or otherwise; except when covered under Coverage Agreement A.1 (Faithful Performance of
Duty).
d. Confidential Information Loss resulting from:
(1) The unauthorized disclosure of the Member’s confidential information including, but not limited to, patents, trade secrets, processing methods, or customer lists; or
(2) The unauthorized use or disclosure of confidential information of another person or entity which is held by the Member including, but not limited to, financial information, personal information, credit card information, or similar non-public
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information.
e. Governmental Action
Loss resulting from seizure or destruction of property by any governmental authority.
f. Indirect Loss Loss that is an indirect result of an Occurrence covered by this Contract including,
but not limited to, loss resulting from:
(1) The Member’s inability to realize income that the Member would have realized had there been not loss of or damage to Money, Securities, or Other Property.
(2) Payment of damages of any type for which the Member is legally liable. But, the
Fund will pay compensatory damages arising directly from a loss covered under this Contract.
(3) Payment of costs, fees or other expenses the Member incurs in establishing either the existence or the amount of loss under this Contract.
g. Legal Fees, Costs And Expenses Fees, costs and expenses incurred by the Member which are related to any legal action, except when covered under Coverage Agreement A.2 (Forgery or Alteration).
h. Nuclear Hazard Loss or damage resulting from nuclear reaction or radiation, or radioactive contamination, however caused.
i. Pollution Loss or damage caused by or resulting from pollution. Pollution means the discharge, dispersal, seepage, migration, release or escape of any solid, liquid,
gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.
j. War and Military Action Loss or damage resulting from:
(1) War, including undeclared or civil war;
(2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.
2. Coverage Agreement A.1. (Faithful Performance of Duty) does not cover:
a. Inventory Shortages
Loss, or that part of any Loss, the proof of which as to its existence or amount is dependent upon:
(1) An inventory computation; or
(2) A profit and Loss computation. However, where the Member establishes wholly apart from such computations that the Member has sustained a loss, then the Member may offer the
Member’s inventory records and actual physical count of inventory in support of the amount of Loss claimed.
b. Trading
Loss resulting from trading, whether in the Member’s name or in a genuine or fictitious account.
c. Depository
Loss resulting from the failure of any entity acting as a depository for the Member’s property or property for which the Member is responsible.
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d. Legal Liability Damages for which the Member is legally liable as a result of:
(1) The deprivation or violation of the civil rights of any person by an Employee; or
(2) The tortuous conduct of an Employee, except the conversion of property of other parties held by the Member in any capacity.
3. Coverage Agreements A.3. (Inside The Premises – Theft of Money and Securities),
A.4. (Inside The Premises – Robbery Or Safe Burglary Of Other Property) and A.5
(Outside The Premises) do not cover:
a. Accounting or Arithmetical Errors or Omissions Loss resulting from accounting or arithmetical errors or omissions.
b. Exchanges or Purchases Loss resulting from the giving or surrendering of property in any exchange or purchase.
c. Fire
Loss or damage resulting from fire, however caused, except:
(1) Loss of or damage to Money and Securities; and
(2) Loss from damage to a safe or vault.
d. Money Operated Devices
Loss of property contained in any money operated device unless the amount of
Money deposited in it is recorded by a continuous recording instrument in the device.
e. Motor Vehicles or Equipment and Accessories
Loss of or damage to motor vehicles, trailers or semi-trailers or equipment and accessories attached to them.
f. Transfer or Surrender of Property
(1) Loss of or Damage to property after it has been transferred or surrendered to a person or place outside the Premises or Banking Premises.
(a) On the basis of unauthorized instructions;
(b) As a result of a threat to do bodily harm to any person;
(c) As a result of a threat to do damage to any property;
(d) As a result of a threat to introduce a denial of service attack into the
Member’s computer system;
(e) As a result of a threat to introduce a virus or other malicious instruction into the Member’s computer system which is designed to damage, destroy or corrupt data or computer programs stored within the Member’s computer
system;
(f) As a result of a threat to contaminate, pollute, or render substandard the
Member’s products or Goods; or
(g) As a result of a threat to disseminate, divulge or utilize:
(i)The Member’s confidential information; or
(ii)Weaknesses in the source code within the Member’s computer system.
(2) But, this Exclusion does not apply under Insuring Agreement A.5. (Outside The
Premises) to loss of Money, Securities or Other Property while outside the
Premises in the care and custody of a Messenger if the Member:
(a) Had no knowledge of any threat at the time the conveyance began; or
(b) Had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat.
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g. Vandalism
Loss from damage to the Premises or its exterior, or to any safe, vault, cash register, cash box, cash drawer or Other Property by vandalism or malicious mischief.
h. Voluntary Parting of Title to or Possession of Property Loss resulting from the Member’s, or anyone acting on the Member’s express or implied authority, being induced by any dishonest act to voluntarily part with title to or
possession of any property.
4. Coverage Agreement A.6. (Computer Fraud) does not cover:
a. Credit Card Transactions
Loss resulting from the use or purported use of credit, debit, charge, access, convenience, identification, stored-value or other cards or the information contained on such cards.
b. Funds Transfer Fraud
Loss resulting from a Fraudulent Instruction directing a financial institution to transfer, pay or deliver Funds from the Member’s Transfer Account.
c. Inventory Shortages
Loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon:
(1) An inventory computation; or
(2) A profit and loss computation
d. Social Engineering
Monetary Loss or the Value of Goods transferred incurred as a direct result of a
Social Engineering Fraud incurred by the Member.
5. Coverage Agreement A.7. (Funds Transfer Fraud) does not cover:
a. Computer Fraud Loss resulting from the use of any computer to fraudulently cause
a transfer of Money, Securities, or Other Property.
b. Social Engineering
Monetary Loss or the Value of Goods transferred incurred as a direct result of a
Social Engineering Fraud incurred by the Member.
6. Coverage Agreement A.10. (Telephone Toll Fraud) does not cover: Telephone Toll Fraud resulting from the failure to:
a. Install and maintain in operating condition a call disconnect feature to terminate a caller’s access after three unsuccessful attempts to enter an Account Code;
b. Incorporate a System Password; or
c. Change a System Password within 30 days.
E. CONDITIONS
1. Conditions Applicable to All Coverage Agreements
a. Additional Premises Or Employees If, while this Contract is in force, the Member establishes any additional Premises or hires additional Employees, such Premises and Employees shall automatically
be covered under this Contract unless otherwise excluded under this Crime coverage. Notice to the Fund of an increase in the number of Premises or
Employees need not be given and no additional contribution need be paid for the
remainder of the Contract Period shown in the Declarations.
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b. Cancellation and Nonrenewal
(1) Cancellation
(a) The Member shown in the Declarations may cancel this Contract in accordance with the provisions of the Member Agreement.
(b) The Fund may cancel this Contract by mailing or delivering to the Member
written notice of cancellation at least:
(i) 30 days before the effective date of cancellation if the Fund cancels for nonpayment of contribution; or
(ii) 90 days before the effective date of cancellation if the Fund cancels for any other reason.
(c) The Fund will mail or deliver notice to the Member's last mailing address
known to the Fund.
(d) Notice of cancellation will be the end of the fiscal year, unless the Contract is cancelled for nonpayment of contribution. If the cancellation is due to nonpayment of contribution, the notice of cancellation will state the effective date of the cancellation and that date will become the end of the Contract period. Cancellation will not affect coverage on any shipment in transit on the date of the cancellation. Coverage will continue in full force for such property in transit until it is delivered and accepted.
(e) If this Contract is cancelled for any reason other than nonpayment of contribution, the Fund will send to the Member any contribution refund due in accordance with the provisions of the Member Agreement.
(f) If notice is mailed, proof of mailing will be sufficient proof of notice.
(2) Nonrenewal In the event the Fund decides not to renew this Contract, the Fund will mail or
deliver to the Member shown in the Declarations written notice in accordance with the provisions of the Member Agreement.
c. Changes
This Contract contains all the agreements between the Member and the Fund concerning the coverage afforded. This Contract’s terms can be amended or waived only by endorsement issued by the Fund and made a part of this Contract.
d. Concealment, Misrepresentation or Fraud This Contract is void in any case of fraud by the Member as it relates to this
Contract at any time. It is also void if the Member or any other Covered Person, at any time, intentionally conceal or misrepresent a material fact concerning:
(1) This Contract;
(2) The property covered under this Contract;
(3) The Member’s interest in the property Covered under this Contract; or
(4) A Claim under this Contract.
e. Cooperation The Member must cooperate with the Fund in all matters pertaining to this Contract
as stated in its terms and conditions.
f. Duties In The Event Of Loss After the Member Discovers a loss or a situation that may result in loss of or
damage to Money, Securities, or Other Property the Member must:
(1) Notify the Fund as soon as possible. If the Member has reason to believe that any loss (except for loss covered under Coverage Agreement A.1. (Faithful
Performance of Duties) or A.2. (Forgery and Alteration) involves a violation of law, the Member must also notify the local law enforcement authorities.
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(2) Submit to examination under oath at the Fund’s request and give the Fund a signed statement of the Member’s answers.
(3) Produce for the Fund’s examination all pertinent records.
(4) Give the Fund a detailed, sworn Proof of Loss within 120 days.
(5) Cooperate with the Fund in the investigation and settlement of any claim.
g. Employee Benefit Plans
(1) The Member’s employee benefit plans (hereafter referred to as Plan) are included as Members under Coverage Agreement A.1.(Faithful Performance of
Duties)
(2) Any payment the Fund makes for loss sustained by any Plan will be made to the Plan sustaining the loss.
(3) The Deductible Amount applicable to Coverage Agreement A.1. (Faithful Performance of Duties) does not apply to loss sustained by any Plan.
h. Examination of The Member’s Books and Records The Fund may examine and audit the Member’s books and records as they relate to this Contract at any time during the Contract Period shown in the Declarations and up to 3 years afterward.
i. Extended Period to Discover Loss The Fund will pay for loss that the Member sustained prior to the effective date of
cancellation of this Contract, which is Discovered by the Member no later than one (1) year from the date of that cancellation. However, this extended period to
Discover loss terminates immediately upon the effective date of any other coverage
obtained by the Member, whether from the Fund any insurer or self-insured fund, replacing in whole or in part the coverage afforded under this Contract, whether or not such other coverage provides Coverage for loss sustained prior to its effective
date.
j. Inspections and Surveys
(1) The Fund has the right to:
(a) Make inspections and surveys at any time;
(b) Give the Member reports on the conditions the Fund finds; and
(c) Recommend changes.
(2) The Fund is not obligated to make any inspections, surveys, reports or recommendations and any such actions the Fund does undertake relates only to insurability and the contributions to be charged. The Fund does not make safety inspections. The Fund does not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And the
Fund does not warrant that conditions:
(a) Are safe or healthful; or
(b) Comply with laws, regulations, codes or standards.
(3) Paragraphs j.(1) and j.(2) apply not only to the Fund, but also to any rating, advisory, rate service or similar organization which makes coverage inspections, surveys, reports or recommendations.
k. Joint Member
(1) If more than one Member is named in the Declarations, the first Named Member will act for itself and for every other Member for all purposes of this Contract. If
the first named Member ceases to be covered, then the next Named Member will become the first Named Member.
(2) If any Member or official of that Member has knowledge of any information
relevant to this Contract, that knowledge is considered knowledge of every
Member.
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(3) An Employee of any Member is considered to be an Employee of every
Member.
(4) If this Contract or any of its coverages is cancelled as to any Member, loss sustained by that Member is covered only if it is Discovered by the Member no later than 60 days from the date of that cancellation.
However, this extended period to Discover loss terminates immediately upon the effective date of any other coverage obtained by that Member, whether from the
Fund or another insurer, replacing in whole or in part the coverage afforded
under this Contract, whether or not such other coverage provides coverage for loss sustained prior to its effective date.
(5) The Fund will not pay more for loss sustained by more than one Member than
the amount the Fund would pay if all such loss had been sustained by one
Member.
(6) Payment by the Fund to the first Named Member for loss sustained by any
Member, other than an employee benefit plan, shall fully release the Fund on account of such loss.
l. Legal Action Against The Fund The Member may not bring any legal action against the Fund involving loss:
(1) Unless the Member has complied with all the terms of this Contract;
(2) Until 90 days after the Member has filed Proof of Loss with the Fund; and
(3) Unless brought within 2 years from the date the Member Discovered the loss. If any limitation in this Condition is prohibited by law, such limitation is amended so
as to equal the minimum period of limitation provided by such law.
m. Liberalization If the Fund adopts any revision that would broaden the coverage under this
Contract without additional contribution within 45 days prior to or during the
Contract Period shown in the Declarations, the broadened coverage will immediately apply to this Contract.
n. Ownership of Property; Interests Covered The property covered under this Contract is limited to property:
(1) That the Member owns or leases; or
(2) That the Member holds for others whether or not the Member is legally liable for the loss of such property. However, this Contract is for the Member’s benefit only. It provides no rights or benefits to any other person or organization. Any claim for loss that is covered under this Contract must be presented by the Member.
o. Contract Bridge – Discovery Replacing Loss Sustained
(1) If this Contract replaces coverage that provided the Member with an extended period of time after cancellation in which to Discover loss and which did not
terminate at the time this Contract became effective:
(a) The Fund will not pay for any loss that occurred during the Contract Period of that prior coverage which is Discovered by the Member during the
extended period to Discover loss, unless the amount of loss exceeds the Limit of Coverage and Deductible Amount of that prior coverage. In that case, the Fund will pay for the excess loss subject to the terms and
conditions of this Contract.
(b) However, any payment the Fund makes for the excess loss will not be greater than the difference between the Limit of Coverage and Deductible
Amount of that prior coverage and the Limit of Coverage shown in the Declarations. The Fund will not apply the Deductible Amount shown in the Declarations to this excess loss.
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(2) The Other Coverage Condition (E.1.n.) does not apply to this Condition.
p. Contributions
The first Named Member shown in the Declarations:
(1) Is responsible for the payment of all contributions; and
(2) Will be the payee for any return contributions the Fund pays.
q. Records The Member must keep records of all property covered under this Contract so the
Fund can verify the amount of loss.
r. Recoveries
(1) Any recoveries, whether effected before or after any payment under this
Contract, whether made by the Fund or the Member, shall be applied net of the
expense of such recovery:
(a) First, to the Member in satisfaction of the Member’s covered loss in excess of the amount paid under this Contract;
(b) Second, to the Fund in satisfaction of amounts paid in settlement of the
Member’s Claim;
(c) Third, to the Member in satisfaction of any Deductible Amount; and
(d) Fourth, to the Member in satisfaction of any loss not covered under this
Contract.
(2) Recoveries do not include any recovery:
(a) From coverage, suretyship, recoverage, security or indemnity taken for benefit of the Fund; or
(b) Of original Securities after duplicates of them have been issued.
s. Territory This Contract covers loss that the Member sustains resulting from an Occurrence
taking place within the United States of America (including its territories and possessions) and Puerto Rico.
t. Transfer of The Member’s Rights And Duties Under This Contract
The Member’s rights and duties under this Contract may not be transferred without written consent of the Fund.
u. Transfer of The Member’s Rights Of Recovery Against Others To The Fund The Member must transfer to the Fund all the Member’s rights of recovery against any person or organization for any loss the Member sustained and for which the
Fund has paid or settled. The Member must also do everything necessary to secure those rights and do nothing after loss to impair them.
v. Valuation – Settlement
(1) The value of any loss for purposes of coverage under this Contract shall be determined as follows:
(a) Loss of Money but only up to and including its face value.
(b) Loss of Securities but only up to and including their value at the close of business on the day the loss was Discovered. The Fund may, at its option:
(i) Pay the market value of such Securities or replace them in kind, in which
event the Member must assign to the Fund all the
Member’s rights, title and interest in and to those Securities; or
(ii) Pay the cost of any Lost Securities Bond required in connection with
issuing duplicates of the Securities. However, the Fund will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the
lesser of the:
(i) Market value of the Securities at the close of business on the day the loss was Discovered; or
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(ii) The Limit of Coverage applicable to the Securities.
(c) Loss of or damage to Other Property; or loss of or
damage to the Premises or its exterior for the replacement cost of the property without deduction for depreciation. However, the Fund will not pay more than the least of the following:
(i) The cost to replace the lost or damaged property with property of comparable material and quality and used for the same purpose;
(ii) The amount the Member actually spends that is necessary to repair or
replace the lost or damaged property; or
(iii) The Limit of Coverage applicable to the lost or damaged property.
With regard to Paragraphs v. (1)(c)(i) through v.(1)(c)(iii), the Fund will not pay on a replacement cost basis for any loss or damage:
(i) Until the lost or damaged property is actually repaired or replaced; and
(ii) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage. If the lost or damaged property is not repaired or replaced, the Fund will pay on an actual cash value basis.
(2) Any property that the Fund pays for or replace becomes property of the Fund.
2. Conditions Applicable To Coverage Agreement A.1 (Faithful Performance of Duty).
a. Indemnification
The Fund will indemnify any of the Member’s officials who are required by law to give bonds for the faithful performance of their duties against loss through the failure of any Employee under the supervision of that official to faithfully perform his
or her duties as prescribed by law, when such failure has as its direct result a loss of the Member’s covered property.
b. Termination as to any Employee
This Coverage Agreement terminates as to any Employee:
(1) As soon as:
(a) The Member; or
(b) Any official or Employee authorized to manage, govern or control the
Member’s Employees learn of any act committed by the Employee whether before or after becoming employed by the Member which would constitute a loss covered under the terms of the Faithful Performance of Duty Agreement A.1.
(2) On the date specified in a notice mailed to the first Named Member. That date will be at least 30 days after the date of mailing. The Fund will mail or deliver our notice to the first Named Member’s last mailing address
known to the Fund. If notice is mailed, proof of mailing will be sufficient proof of notice.
c. Territory
The Fund will pay for loss caused by any Employee: while temporarily outside the territory specified in the Territory Condition (E.1.s.) for a period of not more than 90 consecutive days.
3. Conditions Applicable To Coverage Agreement A.2. (Forgery or Alteration)
a. Deductible Amount
The Deductible Amount does not apply to legal expenses paid under Coverage Agreement A.2. (Forgery or Alteration).
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b. Electronic and Mechanical Signatures The Fund will treat signatures that are produced or reproduced electronically,
mechanically or by other means the same as handwritten signatures.
c. Proof Of Loss The Member must include with the Member’s Proof of Loss any instrument
involved in that loss, or, if that is not possible, an affidavit setting forth the amount and cause of loss.
d. Territory
The Fund will cover loss that the Member sustains resulting directly from an
Occurrence taking place anywhere in the world. Territory Condition (E.1.s.) does not apply to Coverage Agreement A.2. (Forgery or Alteration).
4. Conditions Applicable To Coverage Agreements A.4. (Inside The Premises –
Robbery Or Safe Burglary Of Other Property and A.5. (Outside The Premises)
a. Armored Motor Vehicle Companies
(1) Under the Member’s contract with the armored motor vehicle company; and
(2) From any coverage or indemnity carried by, or for the benefit of customers of, the armored motor vehicle company.
b. Special Limit Of Coverage For Specified Property The Fund will only pay up to $5,000 for any one Occurrence of loss of or damage to manuscripts, drawings, or records of any kind, or the cost of reconstructing them or
reproducing any information contained in them.
5. Conditions Applicable To Coverage Agreement A.6. (Computer Fraud)
a. Special Limit Of Coverage For Specified Property The Fund will only pay up to $5,000 for any one Occurrence of loss of or damage to manuscripts, drawings, or records of any kind, or the cost of reconstructing them or
reproducing any information contained in them.
b. Territory The Fund will cover loss that the Member sustains resulting directly from an
Occurrence taking place anywhere in the world. Territory Condition (E.1.s.) does not apply to Coverage Agreement A.6. (Computer Fraud).
6. Conditions Applicable to Coverage Agreement A.10. (Telephone Toll Fraud) The Fund will pay for loss resulting from toll call charges made on telephone lines
directly controlled by one Voice Computer System occurring for a period of not more than 30 days inclusive of the date on which the first such toll call charges were made.
7. Conditions Applicable to Coverage Agreement A.3. (Inside the Premises- Theft of
Money and Securities); A.5. (Outside the Premises); A.6. (Computer Fraud); A.7.
(Funds Transfer Fraud); A.8. (Money Orders and Counterfeit Money)
This Contract applies only as excess coverage over and will not contribute with: (1) any other valid and collectible insurance for the loss; and (2) indemnification to which the
Member is entitled from any other entity other than the Member. As excess coverage,
this Crime Contract will not apply or contribute to the payment of any loss to the
Member until the amount of such other insurance or indemnity has been exhausted by loss covered thereunder. If the limit of the other insurance or indemnity is insufficient to
cover the entire amount of the loss, this Crime coverage will apply to that part of the loss not recoverable or recovered under the other insurance or indemnity. Insurance includes, but is not limited to, insurance or benefits provided by insurance companies,
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mutual companies, self-insurance arrangements, pools, self-insurance trusts, captive insurance companies, retention groups, reciprocal exchanges, or any other plan or
agreement of risk transfer or assumption.
8. Other Conditions
See Section VII (General Conditions) for items not addressed in this Section IV (Crime).
F. DEFINITIONS
1. Account Code means a confidential and protected string of characters that identifies or authenticates a person and permits that person to gain access to the Member’s Voice
Computer System for the purpose of making long distance toll calls or utilizing voice mail box messaging capabilities or similar functional features of the system.
2. Banking Premises means the interior of that portion of any building occupied by a banking institution or similar safe depository.
3. Counterfeit Money means an imitation of Money that is intended to deceive and to be taken as genuine.
4. Custodian means the Member, or any Employee while having care and custody of property inside the Premises, excluding any person while acting as a Watchperson or
janitor.
5. Discover or Discovered means the time when the Member first becomes aware of facts
which would cause a reasonable person to assume that a loss of a type covered by this
Contract has been or will be incurred, regardless of when the act or acts causing or contributing to such loss occurred, even though the exact amount or details of loss may
not then be know.
Discover or Discovered also means the time when the Member first receives notice of an actual or potential claim in which it is alleged that the Member are liable to a third party under circumstances which, if true, would constitute a loss under this Contract.
6. Employee
a. Employee means:
(1) Any natural person:
(a) While in the Member’s service and for the first 30 days immediately after termination of service, unless such termination is due to Theft or any other
dishonest act committed by the Employee;
(b) Who the Member compensates directly by salary, wages, or commissions; and
(c) Who the Member has the right to direct and control while performing services for the Member;
(d) Who volunteers for the Member and who the Member has the right to
direct and control while performing services for the Member;
(2) Any natural person who is furnished temporarily to the Member:
(a) To substitute for a permanent Employee as defined in Paragraph 5.a.(1)
who is on leave; or
(b) To meet seasonal or short-term workload conditions; While that person is subject to the Member’s direction and control and
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performing services for the Member, excluding, however, any such person while having care and custody of property outside the Premises.
(3) Any natural person who is leased to the Member under a written agreement between the Member and a labor leasing firm, to perform duties related to the conduct of the Member’s business, but does not mean a temporary employee as
defined in Paragraph 5.a.(2);
(4) Any natural person who is:
(a) A trustee, officer, Employee, administrator or manager of any employee
benefit plan; and
(b) An official of the Member while that person is engaged in handling Funds or Other Property of any employee benefit plan;
(5) Any natural person who is a former official, Employee or trustee retained as a consultant while performing services for the Member;
(6) Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such person while having care and custody of property outside the Premises; or
(7) The Member’s Constitutional Officers and their Employees. The coverage provided under this Section IV (CRIME COVERAGE) F. (Definitions) 5. (Employee) a. (7) is excess over any other collectible insurance. Constitutional
Officers are defined as the Treasurer, Circuit Court Clerk, Commissioner of Revenue, Commonwealth Attorney and Sheriff. Other collectible insurance includes insurance, self-insurance, or bonds of any description.
7. Fraudulent Instruction means:
a. An electronic, telegraphic, cable, teletype, telefacsimile, or telephone instruction
which purports to have been transmitted by the Member, but which was in fact fraudulently transmitted by someone else without the Member’s knowledge or consent.
b. A written instruction (other than those described in Coverage Agreement A.2.) issued by the Member, which was forged or altered by someone other than the Member without the Member’s knowledge or consent, or which purports to have been issued by the Member, but was in fact fraudulently issued without the Member’s or the
Employee’s knowledge or consent.
8. Funds means Money and Securities.
9. Goods means those products supplied by the Member to a Client under a contract.
10. Messenger means the Member or any Employee while having care and custody of
property outside the Premises.
11. Monetary Loss means the loss of the Member’s Money from its Account including any
fees, fines or charges assessed against the Member or any expenses the Member incurs as a result of any Social Engineering Fraud Event.
12. Money means:
a. Currency, coins, and bank notes in current use and having a face value; and
b. Travelers checks, register checks, and money orders held for sale to the public.
13. Occurrence means:
a. Under Coverage Agreement A.1. (Faithful Performance of Duty):
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(1) An individual act;
(2) The combined total of all separate acts; or
(3) A series of related acts; committed by any Employee acting alone or in collusion with other persons, both
during and before the Contract Period shown in the Declarations.
b. Under All Other Coverage Agreements:
(1) An individual act or event;
(2) The combined total of all separate acts or events whether or not related; or
(3) A series of acts or events whether or not related;
committed by a person acting alone or in collusion with other persons, both during and before the Contract Period shown in the Declarations.
14. Other Property means any tangible property other than Money and Securities that has intrinsic value. Other Property does not include computer programs, electronic data or
any property specifically excluded under this Contract.
15. Premises means the interior of that portion of any building the Member occupies in
conducting the Member’s business.
16. Robbery means the unlawful taking of property from the care and custody of a person by one who has:
a. Caused or threatened to cause that person bodily harm; or
b. Committed an obviously unlawful act witnessed by that person.
17. Safe Burglary means the unlawful taking of:
a. Property from within a locked safe or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior; or
b. A safe or vault from inside the Premises.
18. Securities means negotiable and nonnegotiable instruments or contracts representing either Money or property and includes:
a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and
b. Evidences of debt issued in connection with credit or charge cards, which cards are
not issued by the Member;
c. But does not include Money.
19. Social Engineering means the intentional misleading of a Covered Person by means of a dishonest transfer statement or misrepresentation of a material fact contained or conveyed with an electronic or telephonic communications and which was relied upon by the Covered Person believing it to be genuine.
20. Social Engineering Fraud Event means:
a. The good faith transfer by a Covered Person of the Member’s Funds or the transfer of the Member’s Goods, in lieu of payment, to a third party as a direct
result of Social Engineering Fraud, whereby the Covered Person was directed to transfer Goods or pay Funds to a third party under false pretenses; or
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b. The theft of the Member’s Funds as a result of an unauthorized access to or unauthorized use of a Network directly enabled as a result of Social Engineering
Fraud.
21. System Administration means the performance of any security function including, but
not limited to:
a. Defining authorized persons to access the system;
b. Adding, deleting or changing Account Codes or passwords,
c. Installing or deleting any system option which directs telephone call routing or adds, drops or moves telephone lines; or
d. Any other activity allowed by a hardware or software-based system option that has
been incorporated by a manufacturer or a vendor into a Voice Computer System provided the system is not intended for the sole use of the manufacturer or vendor.
22. System Maintenance means performing hardware and software installation, diagnostic and correction and similar activities that are performed in the usual custom and practice by a manufacturer or vendor to establish or maintain the basic operations functionality of a Voice Computer System.
23. System Password means a confidential and protected string of characters that identifies or authenticates a person and permits that person to gain access to your Voice
Computer System to perform System Administration or System Maintenance or a
component thereof.
24. Theft means the unlawful taking of property to the deprivation of the Member.
25. Transfer Account means an account maintained by The Member at a financial institution from which the Member can Initiate the transfer, payment, or delivery of
Funds:
a. By means of electronic, telegraphic, cable, teletype, telefacsimile, or telephone instructions communicated directly through an electronic funds transfer system; or
b. By means of written instructions (other than those described in Coverage Agreement A.3.) establishing the conditions under which such transfers are to be initiated by such financial institution through an electronic funds transfer system.
26. Value of Goods means the cost price of those Goods excluding:
a. any element of profit to the Member; and
b. any tax which the Member may be able to recover as a result of Goods being
misappropriated by way of the Social Engineering Fraud Event.
27. Voice Computer System means a computer system installed in one location which functions as a private branch exchange (PBX), voice mail processor, automated call attendant or provides a similar capability used for the direction or routing of telephone
calls in a voice communications network.
28. Watchperson means any person the Member retains specifically to have care and
custody or property inside the Premises and who has no other duties.
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SAMPLE MEMBER
VA-00-000
-SECTION V–
PUBLIC OFFICIALS LIABILITY
DECLARATIONS PAGE
Liability Limit: $1,000,000 Per Occurrence $1,000,000 Annual Aggregate
Deductible: $ Per Occurrence
SUPPLEMENTAL PAYMENTS
Defense Costs Limit under D. (Supplemental Payments 1. – 7.): $100,000 Per Occurrence
$100,000 Annual Aggregate
Deductible: $ Per Occurrence
Land Use Deductible under D. (Supplemental Payments) 8:
$25,000
It is understood that certain limits and deductibles contained herein can change annually at the election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the
Coversheet to the Member Agreement supersede any contradictory limits and deductibles contained herein.
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- SECTION V -
PUBLIC OFFICIALS LIABILITY CONTRACT
THIS IS AN OCCURRENCE CONTRACT
A. COVERAGE AGREEMENT
The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
1. To pay on behalf of the Member or a Covered Person, or both, all sums which the
Member or Covered Person shall become legally obligated to pay as money Damages because of any civil Wrongful Act brought against the Member or a Covered Person arising out of any Wrongful Act of the Member or any Covered Person caused by the
Covered Person while acting in his or her regular course and scope of duty for the
Member and occurring during the Contract Period from any cause other than as covered by Sections I (Property), II (General Liability), III (Auto), IV (Crime), and VI (CyberRisk) of the Contract;
2. To pay on behalf of the Member or Covered Person all costs and expenses incurred by the Fund in the investigation, adjustment, settlement, defense and appeal of any Claim or suit for which coverage is afforded by this Section V (Public Officials Liability) of this
Contract. Costs and expenses payable by the Fund shall include only reasonable costs and expenses as shall be authorized and incurred by the Fund when investigating and defending a Wrongful Act. However, costs of defense shall not include any costs or
expenses attributable to the Member’s normally employed officers, Employees or attorneys or any other expenses incurred or payable by the Member without the Fund’s prior written approval. Coverage for such costs and expenses provided herein are in
addition to the limit of liability as stated in E. (Limit of Liability) of Section V (Public Officials Liability).
3. To defend any action or suit seeking money Damages brought against the Member or a
Covered Person alleging a Wrongful Act, even if such action or suit is groundless, false, or fraudulent but, the Fund has no duty to defend any Claim or suit to which this coverage does not apply nor does the Fund have the duty of defending an allegation of a criminal act in a criminal court. The Fund has the sole authority to select the attorney
who will defend the Claim or suit without obtaining consent from the Member or
Covered Person. The Member or Covered Person shall not admit liability for or settle any Claim or suit or incur any cost or expense without the written consent of the Fund,
and the Fund shall have the right to make such investigation and conduct negotiations and enter into such settlement of any Claim or suit as the Fund deems expedient. If the
Member or a Covered Person unreasonably refuses any settlement recommended by
the Fund, the Member or the Covered Person shall thereafter, at its or his own expense, negotiate or defend such Claim or suit independently of the Fund, and the
Fund’s liability shall not exceed the amount for which the Claim or suit could have been
settled plus the costs and expenses incurred with the Fund’s consent up to the date of such refusal. The Fund’s obligation to defend and indemnify shall not arise until the
Member’s deductible or self-insured retention has been paid.
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B. COVERAGE TERRITORY
Under this Section V (Public Officials Liability), the coverage territory is:
a. The United States of America, its territories or possessions, or Canada; or
b. Anywhere in the world with respect to a Wrongful Act by the Member or Covered
Person permanently domiciled in the United States of America though temporarily outside of the United States of America, its territories and possessions, or Canada;
Provided the original suit for Damages because of any such injury or damage is brought within the United States of America, its territories or possessions, or Canada.
C. EXCLUSIONS This coverage does not apply to any Claim as follows:
1. Profit or Gain Seeking the return of any profit, advantage, gain, or remuneration to which the Member or a Covered Person was not legally entitled;
2. Fraud and Dishonesty Brought about or contributed to by the fraudulent or dishonest behavior of any Covered
Person;
3. Malicious, Willful, Wanton, or Criminal Behavior
Brought about or contributed to by the malicious, willful, wanton or criminal behavior of any
Covered Person;
4. Non-Monetary Damages
Seeking relief, or redress, in any form other than money Damages including injunctive relief or equitable relief, or quasi-judicial or administrative orders; for purposes of this exclusion, a Claim for attorneys’ fees, costs or expenses shall not be construed as a
Claim for money damages;
5. Bodily Injury For bodily injury, sickness, disease, or death. Bodily injury includes any Claim involving actual or alleged sexual abuse and/or molestation;
6. Property Damage For damage or destruction to or loss of any property, or the loss of use thereof by reason
of the foregoing;
7. Personal Injury
For injury arising from:
a. false arrest, false imprisonment, wrongful eviction, wrongful entry, detention, malicious prosecution, invasion of rights of privacy, libel, slander, or defamation of character,
publication of disparaging materials, and assault and battery;
b. mental injury, mental anguish, humiliation, erroneous service of civil papers, and disparagement of property. However, this exclusion does not apply to false arrest, false imprisonment, invasion of rights of privacy, libel, slander or defamation of character for Employment Wrongful Acts;
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8. Advertising Arising from a publication or utterance in the course of or related to advertising,
broadcasting, or telecasting activities conducted by or in behalf of the Member or
Covered Person;
9. Land Use
Damages arising out of any land use or zoning issue, including but not limited to, condemnation, inverse condemnation, adverse possession, dedication by adverse use,
disputes involving the application of impact or zoning decision. This includes, but is not limited to takings, partial takings of private property resulting from the application of land use, zoning, building, subdivision, or similar ordinance or regulation;
10. Violation of Statute Arising from the willful violation of any statute, ordinance, or regulation committed by or with the knowledge or consent of the Member or any Covered Person;
11. Governmental Authority Any loss, cost, civil fine, penalty, or expense against any Member or Covered Person arising from any complaint or enforcement action from any federal, state, or local
government regulatory agency. This exclusion does not apply to a civil action filed against the Member by the Virginia Attorney General arising out of an alleged violation of an election law;
12. Pollution
a. Damages arising directly or indirectly out of the actual, alleged or threatened
discharge, dispersal, seepage, migration, release or escape of Pollutants at any time;
b. Any loss, cost or expense arising directly or indirectly out of any:
(1) Request, demand, order or statutory or regulatory requirement that any Member or others test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any way respond to, or assess the effects of Pollutants; or
(2) Claim or Suit by or on behalf of a governmental authority or others because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, or assessing the effects of Pollutants;
13. Asbestos
Damages arising directly or indirectly out of, or resulting from, caused by or contributed to by:
a. The use of, sale of, installation of, abatement of, distribution of, containment of, or
exposure to asbestos, asbestos products, asbestos-containing material, asbestos fibers, or asbestos dust;
b. The actual or threatened abatement, mitigation, removal or disposal of asbestos,
asbestos products, asbestos-containing material, asbestos fibers, or asbestos dust;
c. Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with parts a. or b. above; or
d. Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs a. b. or c. above;
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14. Electromagnetic Radiation
Damages arising directly or indirectly out of, or resulting from, caused by or contributed
to by electromagnetic radiation, provided that such loss, cost or expense results from or is contributed by the hazardous properties of electromagnetic radiation. This includes any costs for the actual or threatened abatement, mitigation, or removal;
15. Lead
Damages arising directly or indirectly out of, or resulting from, caused by or contributed
to by:
a. The toxic or pathological properties of lead, lead compounds or lead contained in any materials;
b. The actual or threatened abatement, mitigation, removal, or disposal of lead, lead compounds, or materials containing lead;
c. Any supervision, instructions, recommendations, warnings, or advice given or which should have been given in connection with parts a. or b. above; or
d. Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs a., b. or c. above;
16. Fungus
Damages arising directly or indirectly out of, or resulting from, caused by or contributed to by:
a. Any Fungus(es) or Spore(s);
b. Any solid, liquid, vapor, or gas produced by or arising out of any Fungus(es) or
Spore(s);
c. Any material, product, building component, or building structure that contains,
harbors, nurtures or acts as a medium for any Fungus(es) or Spore(s);
d. Any intrusion, leakage, or accumulation of water or any other liquid that contains, harbors, nurtures or acts as a medium for any Fungus(es) or Spore(s);
e. The actual or threatened abetment, mitigation, removal or disposal of Fungus(es) or
Spore(s) or any material, product, building component, or building structure that contains, harbors, nurtures or acts as a medium for any Fungus(es) or Spore(s);
f. Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with parts a., b., c., d. or e. above; or
g. Any obligation of the Member to indemnify or contribute with any party in connections with subparagraphs a., b., c., d., e. or f. above;
17. Silica
Damages arising, in whole or in part, out of the actual, alleged, threatened or suspected inhalation of, congestion of, contact with, exposure to, existence of, or
presence of:
a. Silica, Silica-Related Dust, exposure to Silica or the use of Silica;
b. Any damages or any loss, cost expense arising, in whole or in part, out of any:
(1) Claim or Suit by or on behalf of any governmental authority or any other alleged responsible party because of, or
(2) Request, demand, order or statutory or regulatory requirement that any Member
or any other person or entity should be, or should be responsible for:
(a) Assessing the presence, absence, amount or effects of Silica or Silica-
Related Dust;
(b) Identifying, sampling or testing for, detecting, monitoring, cleaning up, removing, containing, neutralizing, treating, detoxifying, remediating, abating, disposing of or mitigating Silica or Silica-Related Dust; or
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(c) Responding to Silica, Silica-Related Dust in any way other than as described in (2)(a) or (b) above;
c. Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with parts a. and b. above; or
d. Any obligation of the Member to indemnify or contribute with any party in
connections with subparagraphs a., b. or c. above;
18. Nuclear Hazard
Arising directly or indirectly out of, or resulting from, caused by or contributed to by:
a. The explosion of any weapon employing atomic fission or fusion; or
b. Nuclear reaction or radiation, or radioactive contamination, however caused;
19. Fiduciary Arising from any Covered Person’s activities in a fiduciary capacity with respect to any
Employee pension or benefit plans, or the issuance, management of proceeds, or repayment of bonds, notes, or other debt instruments;
20. Contractual Liability For which the Member or Covered Person is liable or alleged liable under any contract or
agreement, including any expressed or implied employment contract or any collective bargaining agreement. This exclusion does not apply to liability the Member would have in the absence of the contract or agreement;
21. Workers’ Compensation Any obligation for which the Member or the Fund may be held liable under any workers
compensation, disability benefits, or unemployment compensation law or any similar law;
22. Taxes
Directly or indirectly arising out of the formulation of tax rates, collection of taxes, or disbursement of tax refunds;
23. Punitive Damages For punitive or exemplary Damages because of Damages to the Member’s Employee while employed by the Member in violation of law with the Member’s actual knowledge or the actual knowledge of the Member’s elected or appointed officials;
24. Failure to Maintain Insurance Based on, arising out of or in connection with the failure on the part of the Member or any Covered Person to purchase or maintain insurance, or the failure of any insurance
to pay benefits for any reason, including, but not limited to insolvency. Insurance includes, but is not limited to, insurance or benefits for property or liability,
workers’ compensation, auto, inland marine, fidelity bonds, or insurance provided by insurance companies, mutual companies, self-insurance arrangements, pools, self-insurance trusts, captive insurance companies, retention groups, reciprocal exchanges,
or any other plan or agreement of risk transfer or assumption;
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25. Administrative Hearings To defense of or coverage for any administrative type hearings, including, but not limited
to due process, administrative hearings, and employment related hearings. However, the Fund will pay up to $10,000 for the defense of Claims filed with the Equal Employment Opportunity Commission or Office of Civil Rights.
26. Counter-Claim/Cross-Claim Any Claim brought or maintained by, on behalf of or at the behest of any Covered
Person in any capacity and regardless of collusion, other than:
a. a Claim brought by or on behalf of an employee against the Member; or
b. a Claim in the form of a cross claim or third party claim which is a part of or results
directly from a Claim which is not otherwise excluded by the terms of this Contract;
27. Medical Services Arising out of services performed:
a. By a physician, mental health care professional, physician’s assistant, radiologist, osteopath, dentist, pharmacist, medical resident, medical student, or any individual licensed to practice medicine who is employed by the Member to provide such services. This exclusion does not apply to healthcare professionals who are not
licensed to practice medicine. Residents who are in accredited residency programs that permits them to practice under supervision until fully licensed are considered licensed for purposes of this exclusion;
b. By any third party firefighters, Emergency Medical Technicians, fire and rescue personnel, paramedics, and ambulance technicians, or first aid attendant providing services to the Member under a mutual aid agreement; or
c. In any correctional facility, juvenile detention facility, or jail;
d. Through a community services board;
28. Building Law Compliance For any obligation, fine or penalty, of any Member or Covered Person to modify any building or property in order to affect compliance with municipal, state, or federal law;
29. Health Care Facility
Damages arising out of or in connection with the operation of any hospital, nursing home, continuum of care facility or other health care facility in which overnight care is provided or
any medical facility which is, in whole or in part, owned, managed or operated by such hospital, nursing home, continuum of care facility, or other overnight health care facility. This exclusion applies to liability which the Member has assumed under any contract arising out
of or in connection with the operation of hospital, nursing home, continuum of care facility, or other overnight health care facility, or any medical facility which is, in whole or in part, owned, managed, or operated by any hospital, nursing home, continuum of care facility, or other overnight health care facility;
30. War
Damages however caused, arising directly or indirectly, out of:
a. War, including undeclared or civil war; or
b. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign, or other authority using military personnel or other agents; or
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c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these;
31. Employee Benefits Liability
Damages sustained by an Employee, prospective Employee, former Employee of the
Member, or the beneficiaries or legal representatives thereof, caused by any Wrongful Act of the Member, or any other person for whose acts the Member is legally liable in the administration of the Member's Employee benefit programs;
32. Law Enforcement Liability
Damages arising out of or in connection with law enforcement activities. This exclusion
includes, but is not limited to, Claims arising from any law enforcement department, division, agency, agents, Employees or volunteers; Claims arising from all operations of any detention facility or regional jail or arising from the occupation or use of any building or premises occupied in any way whatsoever by any law enforcement department, division, agency, agents, Employees or volunteers, detention facility or regional jail;
33. Known Injury or Damage Any Claim for which a Covered Person is entitled to indemnity or payment from
another source by reason of having given notice of any circumstances which might give rise to a Claim under any insurance policy or other self-insurance plan, the term of which has expired prior to the inception date of coverage by the Fund;
34. Professional Liability
Damages arising out of the providing of professional services, including, but not limited
to, attorneys, certified public accountants, engineers, or architects; however, this exclusion shall not apply to professional services provided by an Employee of the
Member while acting in his or her course and scope of employment with the Member;
35. Access or Disclosure of Confidential or Personal Information and Data-related
Liability Any Claim arising out of:
a. Any access to or disclosure of any person's or organization's confidential or personal information, including patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information or any other type of nonpublic information; or
b. The loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data.
This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses or any other loss, cost or expense incurred by you or others arising out of that which is described in
Paragraph a. or b. above. As used in this exclusion, electronic data means information, facts or programs stored as
or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled
equipment and includes Supervisory Control and Data Acquisition (SCADA) systems.
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36. Abuse and Molestation
Damages arising out of Abuse and Molestation of any person.
37. Cyber Liability Exclusion This coverage does not apply to:
c. Damages arising, directly or indirectly, out of the loss of or alteration of any electronic data, electronic information, computer applications software, computer operations software or any other similar data, information or software in any
computer hardware, computer system, computer network, or the “Internet”; or d. Damages arising directly or indirectly out of damage to any computer hardware, computer system, computer network, or the “internet” as a result of a. above.
Internet shall mean the worldwide public network of computers as it currently exists or may be manifested in the future, including the Internet, an intranet, an extranet or a virtual public network.
38. Sub-Limits All supplemental coverages provided in this Section II (General Liability) that are subject to a sub-limit are deleted in their entirety in the event that the Member’s Deductible exceeds the stated sub-limit.
39. Not Covered No coverage is provided for any coverage for which the words NOT COVERED or similar verbiage is shown in the Declaration Pages.
D. SUPPLEMENTAL PAYMENTS
In consideration of the payment of the applicable contribution, it is hereby understood and agreed that this Contract, subject to its terms and conditions, is extended to include the following:
The Fund agrees to pay on behalf of the Member or Covered Person all Costs of Defense in excess of the deductible and within the Limit of Liability for each Claim and the Aggregate Limit of Liability for all Claims as specified on the Declarations Page of this Section V (Public Officials Liability) as follows:
1. Seeking the return of any profit, advantage, gain, or remuneration to which the Member or a Covered Person was not legally entitled;
2. Any actual or alleged fraudulent or dishonest behavior of the Member or Covered
Persons; except that such coverage, including, defense and indemnity, shall cease immediately for any Member or Covered Person against whom such fraudulent or
dishonest behavior is established in fact;
3. Seeking relief, or redress, in any form other than money Damages including injunctive relief or equitable relief;
4. Arising from the willful violation of any statute, ordinance, or regulation committed by or with the knowledge or consent of any Covered Person;
5. Alleging a breach of contract with respect to suppliers or independent contractors, other
than failure to pay;
6. Based on, arising out of or in connection with and failure on the part of the Member or any Covered Person to purchase or maintain insurance, or the failure of any insurance
to pay benefits for any reason, including, but not limited to insolvency. Insurance
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includes, but is not limited to, coverage, or benefits for property or liability, workers’ compensation, auto, inland marine, fidelity bonds, or insurance provided by insurance
companies, mutual companies, self-insurance arrangements, pools, self-insurance trusts, captive insurance companies, retention groups, reciprocal exchanges, or any other plan or agreement of risk transfer or assumption;
7. Arising out of a breach of fiduciary duty, responsibility or obligation in connection with any Employee benefit or pension plan or to any amounts due under any fringe benefit or retirement program;
8. Any Claim or Suit excluded by C. (Exclusions) 9 (Land Use) of this Section V (Public Officials Liability). The limit of the Fund’s liability for such costs and fees shall not exceed $100,000.00 per Suit and $100,000.00 in the aggregate for the Fund year. Once
the deductible, as set forth in the Declarations Page of this Section V (Public Officials Liability) has been met, the remaining costs are split evenly between the Member and the
Fund up to $100,000.00, the per occurrence limit. This additional coverage is for the payment of costs associated with the defense of the suit or Claim only and does not cover the costs of any settlement, judgment, or any other payment on behalf of the Member or other Covered Person. Any settlement, judgment or other payment shall be borne completely by the Member or other Covered Person.
All provisions and exclusions set forth in this coverage shall apply except as otherwise provided herein.
For the purposes of this Section, Cost of Defense payable by the Fund shall include only reasonable costs and expenses as shall be authorized and incurred by the Fund when
investigating and defending an Occurrence. However, costs of defense shall not include any costs or expenses attributable to the Member’s normally employed officers, Employees or attorneys or any other expenses incurred or payable by the Member notwithstanding the
Occurrence.
E. LIMIT OF LIABILITY The Fund’s liability for any one Occurrence will be limited to the per Occurrence and annual aggregate limits as set forth in the Declarations Page of Section V (Public Officials Liability) of this Contract, not including expense and defense costs and except where coverage sub-limits apply, regardless of the number of Covered Persons, number of
claimants, Claims made, or number of Fund Members involved. Where coverage sub-limits apply, then the Funds liability will be limited to the applicable sub-limit.
If any Claim is covered in whole or in part under more than one Coverage Agreement of this
Contract, including but not limited to, any Claim covered by Sections I (Property), II (General Liability), III (Business Auto Coverage), IV (Crime), V (Public Officials Liability) and/or VI
(CyberRisk) of the Contract, the most the Fund will pay for such loss shall not exceed the largest Limit of Liability available under any one of those Coverage Agreements or coverages. If all limits are equal, only one limit shall apply.
All Claims against the Member arising out of a Wrongful Act or a series of continuous, repeated, or interrelated Wrongful Acts taking place over one or more Contract Periods
covered by the Fund shall be considered as one Occurrence based on the date the first of such Wrongful Acts took place and only that Coverage Period and associated Limit of Liability will apply.
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F. CONDITIONS
Member’s Duties in the Event of Occurrence, Claim or Suit
a. Upon the Member becoming aware of any Wrongful Act which could reasonably be
expected to be the basis of a Claim or suit covered hereby, written notice shall be given by or on behalf of the Member to the Fund or any of its authorized agents as soon as practicable, together with the fullest information obtainable.
b. If Claim is made or suit is brought against the Member or a Covered Person, the
Member shall immediately forward to the Fund every demand, notice, summons, or other process received by the Member or its representative.
c. The Member or a Covered Person shall cooperate with the Fund and upon the Fund’s request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the
Member because of injury or damage with respect to which coverage is afforded under this Contract; and the Member or a Covered Person shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The Member or a Covered Person shall not, except at its or its own cost, voluntarily make any payment, assume any obligation, or incur any expense other than for first aid
to others at the time of accident without the Fund’s consent. Assignment of all defense counsel shall be made exclusively by the Fund. Payment of any legal expenses incurred by the Member to lawyers/firms of the Member’s own choosing, without the
prior written approval of the Fund, shall be borne entirely by the Member.
d. The Fund reserves the right to deny defense and/or indemnity for any Claim or suit not submitted in accordance with a. and b. above or in which the Member fails to cooperate with
the Fund as set forth in c. above.
G. OTHER PROVISIONS
See Section VII (General Conditions) for items not addressed in this Section V (Public Officials Liability).
H. DEDUCTIBLE All Claims against the Member arising out of a series of continuous, repeated, or interrelated Wrongful Acts shall be considered as one Occurrence and subject to one
deductible. Any amount payable under this Section V (Public Officials Liability) of this Contract shall be
reduced by the deductible amount stated in the Declarations Page of this Section V (Public Officials Liability). This deductible shall apply to each Wrongful Act and shall be borne by the Member. Defense costs shall erode the deductible.
I. DEFINITIONS
1. Abuse or Molestation means Bodily Injury to a person arising out of actual or threatened abusive behavior, conduct, or verbal or nonverbal communication whether such Bodily Injury is:
a. For sexual gratification, discrimination, intimidation, coercion, or for any other purpose; and/or
b. Results in emotional or psychological injury or harm of any person(s).
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Abuse or Molestation includes the negligent:
a. Employment;
b. Supervision;
c. Investigation;
d. Reporting or failure to report to the proper authorities; or
e. Retention; of a person whose behavior, conduct or verbal or nonverbal communication results in
Abuse or Molestation.
2. Benefits means perquisites, fringe benefits, deferred compensation, severance pay, and
any other form of compensation (other than salaries, wages, or bonuses as a component of a front or back pay award).
3. Claim means a demand or civil suit received by the Member arising out of Wrongful
Acts or Employment Wrongful Acts to which this Contract applies.
4. Covered Persons means:
The following are Covered Persons under this Contract while acting in the scope of their duties as such:
a. The Member named in the Contract Declarations;
b. Members of the governing Board of the named Member while acting in the scope of their duties for the Member;
c. Current or former commission, boards or other entities, including their current or former
board members, under the named Member’s exclusive operation and jurisdiction while acting in the scope of their duties for the Member;
d. All the current or former Employees of the named Member while acting in the scope of
their duties for the Member;
e. All persons who perform a service on a volunteer basis for the Member, provided such performance is under the Member’s direction and control and while acting in the scope of their duties for the Member and any person providing services to the
Member under any mutual aid or similar agreement. This does not include any person working on retainer or as an independent contractor. No coverage is provided hereunder for any person in his/her individual capacity.
No coverage is provided hereunder for any of the Member’s Constitutional Officers as defined by Article 7, Section 4 of the Virginia Constitution.
No coverage is provided hereunder for any School Security Officer (SSO) or School Resource Officer (SRO) whether employed by the Member or otherwise, unless the
SSO(s) has been reported to the Fund in advance of any Wrongful Act and the appropriate Contribution paid.
5. Employee means any natural person while in the Member’s service who the Member compensates directly by salary, wages or commissions and to whom the Member
provides a W-2.
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6. Employment Wrongful Act(s) means actions involving refusal to employ, termination of employment, false arrest, false imprisonment, coercion, demotion, evaluation,
reassignment, discipline, defamation, harassment, humiliation, libel, slander, invasion of privacy, wrongful eviction, malicious prosecution, abuse of process, discrimination, or other employment related practices, policies, acts or omissions.
For purposes of an Employment Wrongful Act, Damages means the amounts, other than defense costs, that the Covered Persons are legally liable to pay solely as a result
of an Employment Wrongful Act including:
a. compensatory damages, including front pay and back pay award;
b. settlement amounts;
c. pre- and post-judgment interest;
d. punitive and exemplary damages;
e. the multiple portion of any multiplied damage award; or
f. liquidated damages under the Age Discrimination in Employment Act, the Family and Medical Leave Act and the Equal Pay Act. However, Damages for purposes of an Employment Wrongful Act shall not include:
a. taxes, fines or penalties imposed by law;
b. non-monetary relief;
c. Benefits;
d. future compensation for any person hired, promoted, or reinstated pursuant to a
judgment, settlement, order or other resolution of a Claim;
e. costs associated with providing any accommodations required by the Americans with Disabilities Act or any similar law; or
f. any other matters uninsurable pursuant to any applicable law; provided, however, that with respect to punitive and exemplary damages, or the multiple portion of any multiplied damage award, the insurability of such damages shall be governed by the
internal laws of any applicable jurisdiction that most favors coverage of such damages.
7. Fungus(es) includes, but is not limited to, any form of mold, mushroom, or mildew.
8. Hostile Fire means one, which breaks out or becomes uncontrollable from where it was intended.
9. Member means the entity named in the Declarations Page in this Section V (Public Officials Liability).
10. Occurrence means a Wrongful Act or series of continuous, repeated, or interrelated
Wrongful Acts.
11. Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes material to be recycled, reconditioned, or reclaimed.
12. Silica means silicon dioxide (occurring in crystalline, amorphous and impure forms),
Silica particles, Silica dust, or Silica compounds.
13. Silica-Related Dust means a mixture or combination of Silica and other dust or particles.
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P
14. Spore(s) include any reproductive body produced by or arising out of any Fungus(es).
15. Wrongful Act means any actual or alleged errors or misstatement or misleading statement or act or omission or neglect or breach of duty including misfeasance and
nonfeasance by a Covered Person while acting within the scope of his Public Officials duties or Fund approved activities. Wrongful Act includes Employment Wrongful Act.
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SAMPLE MEMBER
VA-00-000
-SECTION VI –
CyberRisk
DECLARATIONS PAGE
Limits of Liability
Data Breach Incident Response;
Network Security, Privacy and Data Breach Liability;
Regulatory Liability; PCI Fines and Assessments;
Data Restoration; Cyber Extortion;
Media Liability;
Social Engineering Fraud Event: $ 500,000
Per Claim
Subject to a maximum aggregate for all CyberRisk losses
covered under this Contract, commencing with the inception
date of this Contract, regardless of the number of Members
involved, of: $ 5,000,000 Fund Annual Aggregate
DEDUCTIBLE: $ per Claim
Retroactive Date: July 1, 2013
It is understood that certain limits and deductibles contained herein can change annually at the
election of the Member and that those changes are reflected in the annual Coversheet to the
Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the Coversheet to the Member Agreement supersede any contradictory limits and deductibles
contained herein.
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-SECTION VI-
CYBERRISK COVERAGE
THIS IS A CLAIMS-MADE FORM: EXCEPT TO SUCH EXTENT AS MAY OTHERWISE BE
PROVIDED HEREIN, THE COVERAGE OF THIS CONTRACT IS LIMITED TO ONLY THOSE
CLAIMS THAT ARE FIRST MADE AGAINST THE MEMBER OR COVERED PERSON AND REPORTED IN WRITING TO THE FUND WHILE THIS CONTRACT, INCLUDING ANY
EXTENDED REPORTING PERIOD IS IN FORCE. DEFENSE EXPENSES ARE INCLUDED
IN THE LIMIT OF LIABILITY. PLEASE READ ALL TERMS CAREFULLY.
IN CONSIDERATION of the payment of the Contribution, subject to the Declarations, and pursuant to all the terms, conditions, exclusions and limitations of this Contract, the Fund and the Members agree as follows:
A. COVERAGE AGREEMENTS IN CONSIDERATION of the payment of the Contribution, subject to the Declarations, and
pursuant to all the terms, conditions, exclusions and limitations of this Contract, the Fund and the Members agree as follows:
1. DATA BREACH INCIDENT RESPONSE
The Fund shall pay on the Member’s behalf Breach Response Costs, in excess of the
deductible, arising from a Data Breach that first occurs on or after the Retroactive Date and is first discovered by the Member and notified to the Fund during the Contract
Period or any Extended Reporting Period.
2. NETWORK SECURITY, PRIVACY AND DATA BREACH LIABILITY
The Fund shall pay on the Member’s behalf Damages and Claim Expenses, in excess of the deductible, which the Member becomes legally obligated to pay as a result of a Claim arising from a Network Security Breach, Privacy Violation or
Data Breach that first occurs on or after the Retroactive Date, provided that such
Claim is first made against the Member and notified to the Fund during the Contract
Period or any Extended Reporting Period.
3. REGULATORY LIABILITY
The Fund shall pay on the Member’s behalf Penalties and Claim Expenses, in excess of the deductible, which the Member becomes legally obligated to pay as a
result of a Claim in the form of a Regulatory Proceeding arising from a Data Breach that first occurs on or after the Retroactive Date, provided that such Regulatory
Proceeding is first made against the Member and notified to the Fund during the
Contract Period or any Extended Reporting Period.
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4. PCI FINES AND ASSESSMENTS
The Fund shall pay on the Member’s behalf PCI Fines and Assessments and Claim
Expenses, in excess of the deductible, which the Member becomes legally obligated to pay as a result of a Claim arising from a Data Breach that first occurs on or after the
Retroactive Date, provided that such Claim is first made against the Member and notified to the Fund during the Contract Period or any Extended Reporting Period.
5. DATA RESTORATION
The Fund shall indemnify the Member for Data Restoration Costs, in excess of the deductible, incurred as a result of a Network Security Breach that first occurs on or after the Retroactive Date and is discovered by the Member and notified to the Fund
during the Contract Period or any Extended Reporting Period.
6. CYBER EXTORTION
The Fund shall indemnify the Member to the extent insurable by law for Extortion
Loss, in excess of the deductible, incurred as a result of a Cyber-Extortion Event
that first occurs on or after the Retroactive Date and is discovered by the Member and notified to the Fund during the Contract Period or any Extended Reporting Period.
7. MEDIA LIABILITY
The Fund shall pay on the Member’s behalf Damages and Claim Expenses, in excess of the deductible, that the Member becomes legally obligated to pay as a result of a Claim for a Media Wrongful Act that first occurs on or after the Retroactive
Date, provided that such Claim is first made against the Member and notified to the
Fund during the Contract Period or any Extended Reporting Period.
8. SOCIAL ENGINEERING FRAUD EVENT
The Fund shall indemnify the Member for the Member’s monetary loss or for the value
of goods transferred, in excess of the deductible, incurred as a direct result of a Social
Engineering Fraud Event incurred by the Member that first occurs on or after the
Retroactive Date and is discovered by the Member and notified to the Fund during the
Contract Period or any Extended Reporting Period.
B. COVERAGE TERRITORY
This Contract applies worldwide to Claims made and Events committed or occurring anywhere in the world provided the original suit for Damages because of any such injury or damage is brought within the United States of America, its territories or possessions, or Canada.
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C. EXCLUSIONS
There is no coverage under this Contract for any Loss:
1. Wrongful Termination
Based upon or arising out of any actual or alleged harassment, wrongful termination, retaliation, or discrimination, including but not limited to The Americans with Disabilities Act of 1990 (ADA).
2. Bodily Injury Based upon or arising out of any actual or alleged bodily injury, sickness, or disease,
including death, mental injury, mental anguish, and emotional distress; however, this exclusion does not apply to a Claim for mental injury, mental anguish, or emotional distress under Coverage Agreements 2. Network Security, Privacy and Data Breach Liability and 7. Media Liability.
3. Physical Damage Based upon or arising out of any actual or alleged physical damage to or destruction of any real or tangible property, including Loss of use; however, the Fund will pay for the
cost of the repair, replacement, or reinstatement of computer Hardware and reasonable and necessary costs and expenses to clean-up or remove debris of computer Hardware if, as a result of direct physical loss or direct physical damage, the computer Hardware
can no longer be used due to a Network Security Breach. There is no coverage for no coverage for Loss of Business Income resulting from ensuing physical damage, physical loss to the Member’s Covered Property or any Loss of Business Income
from any debris removal unless specifically endorsed hereto and any additional contribution paid.
4. Contractual Liability
Based upon or arising out of any liability assumed under a contract, or any actual or alleged breach of a contract, guarantee or warranty; however, this exclusion does not apply to:
a. Liability which would have existed even in the absence of such contract;
b. Breach of the Member’s publicly facing privacy policy;
c. Indemnity provisions regarding the protection of personally identifiable information;
d. A Claim for PCI Fines and Assessments under Coverage Agreement 4. PCI Fines
and Assessments;
5. Accounts, Reports or Financial Statements
Based upon or arising or alleged to have arisen from any statement or information about the Member’s business activities contained in Accounts, reports or financial statements.
6. Deliberate, Dishonest, Fraudulent or Criminal Acts Based upon or arising out of any deliberate, dishonest, fraudulent, or criminal acts by a
Covered Person acting with the knowledge or consent of the Control Group; however,
this exclusion shall not apply to Claim Expenses incurred in defending any such Claim alleging the foregoing until such time that there is a final adjudication establishing such conduct, at which time the Member shall reimburse the Fund for all such Claim
Expenses incurred. Only facts pertaining to and knowledge possessed by the Control
Group shall be imputed to other Covered Persons under this Contract.
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7. Employees Based upon or arising out of any actual or alleged: (i) liability to any employee, former
employee or prospective employee, or (ii) liability arising or alleged to have arisen from any employee benefit plan or pension plan, including but not limited to the Employee Retirement Income Security Act of 1974 (ERISA); however, this exclusion does not
apply to any Claim or Loss arising out of a Data Breach impacting the Member’s current or former employees.
8. Certain Causes of Loss Based upon or arising out of any actual or alleged fire, smoke, explosion, lightning, wind, flood, earthquake, volcanic eruption, tidal wave, landslide, hail, an act of God, or any
other similar physical Event howsoever caused or from any consequential Losses arising or alleged to have arisen there from.
9. Service Disruptions Based upon or arising out of any actual or alleged satellite, electrical, or other infrastructure service interruptions, including any electrical disturbance, spike, or blackout and any outage or disruption of power, utility services, Internet services, or telecommunications unless such infrastructure is under the Member’s direct control.
10. Insolvency or Bankruptcy Based upon or arising out of the Member’s insolvency or bankruptcy.
11. On Behalf of Member Based upon or arising out of any Claim made by or on behalf of the Member; however,
this exclusion does not apply to a Claim brought by an employee arising out of Data
Breach.
12. Patent Infringement Based upon or arising out of any actual or alleged patent infringement.
13. Pollution Based upon or arising out of any actual or alleged pollution, nuclear, radiation, or asbestos related contamination or effects thereon, including electromagnetic radiation, electromagnetic fields, and silica.
14. Member’s Products Based upon or arising from the costs to recall or withdraw any of the Member’s products from service or active use.
15. Governmental Enforcement Based upon or arising from any governmental investigation or enforcement of any state,
federal, or foreign regulation, including any regulation promulgated by the Federal Trade Commission, Federal Communications Commission, or the Securities and Exchange Commission; however, this exclusion does not apply to Coverage Agreement 3.
Regulatory Liability.
16. RICO Based upon or arising out any actual or alleged failure to comply with the Racketeer Influenced and Corrupt Organization Act 1961 or similar legislation.
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17. Securities Based upon or arising out of any actual or alleged purchase, sale or offer or solicitation
of an offer to purchase or to sell Securities, including any violation of any Securities law including the Securities Act of 1933 as amended, the Securities Exchange Act of 1934, as amended, or any similar law.
18. Children’s Online Privacy Protection Act 1998 Based upon or arising out of any actual or alleged failure to comply with the Children’s
Online Privacy Protection Act 1998 or similar legislation protecting the rights of minors in the collection, storing, sharing and displaying of data, information or likenesses of minors, or in the access or use of the Member’s website(s) by minors.
19. Terrorism Based upon or arising out of any act of terrorism; however, this exclusion does not apply to an act of terrorism involving a non-physical attack on the Member’s Network.
20. Theft or Transfer of Funds Based upon or arising out of any actual or alleged Loss, theft or transfer of the
Member’s Funds, Money or Securities, or the Funds, Money or Securities of others
in the Member’s care, custody or control, including the value of any Funds, Money or
Securities transferred by the Member or others on the Member’s behalf. This exclusion does not apply to Events which would otherwise be covered under A. Coverage
Agreements, 8. Social Engineering Fraud Event.
21. Antitrust
Based upon or arising out of any actual or alleged antitrust violation, deceptive or unfair trade practices, anti-competitive business practices, unfair competition, consumer fraud, or false or deceptive advertising; however, this exclusion does not apply to any Claim
arising out of a Data Breach, Network Security Breach or Privacy Violation under Coverage Agreement 2. Network Security, Privacy and Data Breach Liability.
22. Unsolicited Communication Based upon or arising out of any actual or alleged violation of any federal, state, local or foreign law, rule or regulation relating to unsolicited communications, including the TCPA and CAN-SPAM Act, or any anti-spam or do-not-call statutes, rules, or regulations.
23. Governmental Authority Based upon or arising out of the confiscation, nationalization, requisition, damage, or destruction to property, Networks, extended Networks, or data by or under the order of
any government, public, or local authority.
24. War
Based upon or arising out of strikes or similar labor actions, war, invasion, acts of foreign enemies, hostilities, or warlike operations (whether war be declared or not), civil war, mutiny, rebellion, insurrection, civil commotion assuming the proportions of or amounting
to an uprising, military, or usurped power.
25. Prior Knowledge
Any fact, circumstance, situation or Event that is, or reasonably would be regarded as, the basis for a Claim about which any Covered Person had knowledge prior to the
Contract Period set forth in the Declarations.
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26. Prior Notice Any fact, circumstance, situation, Event, which, before the Contract Period set forth in
the Declarations, was the subject of any notice of Claim or potential Claim given by or on behalf of any Member under any contract of insurance or self-insurance of which this CyberRisk Contract is a direct renewal or replacement or which it succeeds in time.
27. Prior Pending Proceeding Any fact, circumstance, situation, Event underlying or alleged in any prior or pending
civil, criminal, administrative or Regulatory Proceeding against any Covered Person.
28. Fraudulent Funds Transfer
Loss resulting from a Fraudulent Instruction directing a financial institution to transfer, pay, or deliver Funds from the Member’s Transfer Account.
29. Computer Fraud
Loss resulting from the use of any computer to fraudulently cause a transfer of Money,
Securities, or Other Assets.
30. Retroactive Date
Based upon or arising out of any actual or alleged act, error, incident or Event that first took place before the Retroactive Date, or any related or continuing acts, errors, incidents or Events where the first such act, error, incident or Event took place before the
Retroactive Date.
31. Constitutional Officers
No coverage is provided hereunder for any of the Member’s Constitutional Officers as defined by Article 7, Section 4 of the Virginia Constitution with respect to Coverage Agreements 2 (Network Security, Privacy and Data Breach Liability), 7 (Media
Liability) and 8 (Social Engineering Fraud Event).
D. CONDITIONS APPLICABLE TO SECTION VI (CyberRisk)
1. Notice a. In the event of a Claim or Event, written notice containing particulars sufficient to identify the Member and also reasonably obtainable information with respect to the
time, place, and circumstances thereof and the names and addresses of the injured and of available witnesses shall be given by or for the Member to the Fund or any of its authorized agents as soon as practicable.
b. If a Claim is made or suit is brought against the Member, the Member shall immediately forward to the Fund every demand, notice, summons, or other process received by the Member or its representative.
c. If any Social Engineering Fraud Event occurs, then as soon as reasonably practicable after the Member or Covered Person becomes aware of such Social
Engineering Fraud Event, the Member shall notify the Fund in writing Fund giving
as much details as possible of the following:
(1) Specific details of the acts, facts, or circumstances that are reasonably believed or suspected to have given rise to the Social Engineering Fraud Event;
(2) Possible amounts potentially covered under this Contract that may result or have resulted from the acts, facts, or circumstances;
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(3) Details regarding how the Member or Covered Person first became aware of the acts, facts, or circumstances; and
(4) The Network security and event logs, which provide evidence of the alleged incident.
Any subsequent Social Engineering Fraud Event arising out of such acts, facts, or circumstances which is the subject of the written notice will be deemed to be a
Social Engineering Fraud Event at the time written notice complying with the
above requirements was first given to the Fund.
2. Cooperation a. The Member will cooperate with the Fund in all investigations. The Fund will have
the right to make any investigation the Fund deems necessary with respect to coverage or otherwise. The Member will execute or cause to be executed all papers and render all assistance as requested by the Fund. b. Upon the Fund’s request, the Member will assist in making settlements and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the Member; and the Member will attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses at the Member’s own cost.
c. Unless specifically provided otherwise in this Contract, the Member shall not admit liability, make any payment, assume any obligation, incur any expense, enter into any settlement, stipulate to any judgment or award, or dispose of any Loss or Claim
without the Fund’s written consent. This includes negotiations of any Cyber Extortion Loss. d. The Member shall utilize the services of a third party ransomware negotiator
approved in writing by the Fund for any Cyber Extortion Event. e. The Member shall take all reasonable steps to avoid or mitigate and prevent any
Loss or any other amounts covered under this Contract and to assist in the defense
of all legal actions brought against the Member. f. With respect to Coverage Agreement 6. Cyber Extortion, the Member shall not disclose the existence of this Contract to any third party without the Fund’s prior consent.
3. The Fund reserves the right to deny defense and/or indemnity for any Claim or suit not submitted in accordance with the. above provisions or in which the Member fails to cooperate with the Fund.
4. Reports and Proof As soon as practicable the Member or someone on its behalf shall give to the Fund a
Proof of Claim and shall, after each request from the Fund, provide copies of all records pertinent to the Loss and in the Member or Covered Person’s possession.
5. Subrogation In the event of any payment by the Fund under this Contract, the Fund will be subrogated to all of the Member’s rights of recovery to such payment. The Member will
do everything that may be necessary to secure and preserve such subrogation rights, including but not limited to the execution of any documents necessary to allow the Fund to bring suit in the Member’s name. The Member will do nothing to prejudice such
subrogation rights without first obtaining the Fund’s written consent. Any recovery will first be paid to the Fund up to the amount of any Loss or other amounts that the Fund have paid. Any remaining amounts will be paid to the Member.
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6. Other Provisions See Section VII (General Conditions) for items not addressed in this Section VI
(CyberRisk).
E. LIMIT OF LIABILITY
1. With regards to the CyberRisk (Section VI) coverages afforded by this Contract, the total liability of the Fund for any one Claim or Event will be the per Claim or Event limit
as stated in the Declarations Page of Section VI (CyberRisk), not including expense and defense costs, except where other liability and/or coverage sub-limits are listed, regardless of the number of Covered Persons, number of claimants, Claims made, or
number of Fund Members involved. Where other liability or coverage sub-limits apply, then the Funds liability will be limited to the applicable sub-limit.
2. All Losses arising out of a Claim or Event will be treated as one Claim or Event irrespective of the period of time or area over which such losses occur.
3. If any Claim or Event is covered in whole or in part under more than one (1) Coverage Agreement of this Contract, including, but not limited to, any Claim covered by Sections
I (Property), II (General Liability), III (Business Auto Coverage), IV (Crime), V (Public Officials) and/or VI (CyberRisk), the most the Fund will pay for such Loss shall not exceed the largest Limit of Liability available under any one of those Coverage
Agreements or coverages. If all limits are equal, only one limit shall apply. No other limit stated in the Section I (Property; Section II (General Liability); Section III
(Business Auto); Section IV (Crime); Section V (Public Officials Liability); or Section VII (General Conditions) applies with respect to any CyberRisk Event covered herein (or which would have been covered but for the exhaustion of any applicable limit).
F. OTHER INSURANCE
Coverage afforded hereunder shall apply only as excess over any other valid and collectible insurance or indemnity available to any Covered Person, including any self-insured Deductible or deductible portion thereof, unless such other insurance is written only as specific excess insurance over the Limit of Liability of this Contract.
G. AUTOMATIC EXTENDED PERIOD TO DISCOVER LOSS AND EXTENDED REPORTING
PERIOD
1. Automatic Extended Reporting Period If either the Member or the Fund cancels or non-renews this Contract, then the
Member shall have the right following the effective date of such cancellation or
non- renewal, to a period of 60 days in which to give written notice to the Fund of any
Claim first made against the Member prior to the end of the Contract Period or any
Data Breach, Network Security Breach or Cyber Extortion Event discovered by
the Member prior to the end of the Contract Period. The limits of liability applicable during such extended reporting period will be the remaining available Contract limit under the canceled or non- renewed Contract.
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2. Option To Extend Claims Reporting Period If the Member or Fund does not renew this Contract or if either the Member or Fund
cancels this Contract or if the retroactive date is advanced or if coverage is renewed on other than a claims-made basis, the Member shall have the option to extend the coverage afforded by this Contract. Subject to the Contract terms, Limits of Liability,
exclusions and conditions, this extension will apply to Claims first made against the
Member and reported to the Fund during the twelve (12) months immediately following the effective date of such termination of this Contract, but only by reason of any Claim
covered under this CyberRisk first committed or alleged to have been committed before such termination. If purchased, the extension of coverage for Claims made subsequent to termination of this Contract shall be endorsed to the Contract and shall be referred
to as the Extension Period.
a. The Contribution for the Extension Period shall be 25% of the annual Contribution charged the Member for the expiring coverage;
b. As a condition precedent to the Member’s right to exercise this option, the full earned Contribution for the current Contract Period and any deductibles that are due must have been paid within thirty (30) days after the termination date of this
Contract. The Member’s right to purchase the Extension Period must be exercised by notice in writing not later than sixty (60) days after the cancellation or termination
of this Contract. Effective notice must include payment of contribution. If such notice, Contribution and deductible payments are not so given to the Fund, the
Member shall not at a later date be able to exercise such rights;
c. At the commencement of the Extension Period, the entire contribution shall be deemed earned, and in the event the Member terminates the Extension Period before its term for any reason, the Fund shall not be liable to return to the Member
any portion of the Contribution for the Extension Period.
H. CANCELLATION AND NONRENEWAL
1. Cancellation
a. The Member shown in the Declarations may cancel this Contract in accordance with the provisions of Member Agreement.
b. The Fund may cancel this Contract by mailing or delivering to the Member written notice of cancellation at least:
(1) 10 days before the effective date of cancellation if the Fund cancels for nonpayment of contribution; or
(2) 90 days before the effective date of cancellation if the Fund cancels for any other reason.
c. The Fund will mail or deliver notice to the Member's last mailing address known to
the Fund.
d. Notice of cancellation will state the effective date of cancellation. If the Contract is cancelled, that date will become the end of the Contract Period. Cancellation will
not affect coverage on any shipment in transit on the date of the cancellation. Coverage will continue in full force for such property in transit until it is delivered and accepted.
e. If this Contract is cancelled, the Fund will send to the Member any contribution refund due. If the Fund cancels, the refund will be pro rata. If the Member cancels, the refund may be less than pro rata. The cancellation will be effective even if the
Fund has not made or offered a refund.
f. If notice is mailed, proof of mailing will be sufficient proof of notice.
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2. Nonrenewal In the event the Fund decides not to renew this Contract, the Fund will mail or deliver
to the Member shown in the Declarations written notice of the nonrenewal not less than 60 days before the expiration date.
I. DEDUCTIBLE Unless otherwise endorsed, there is no deductible.
J. DEFINITIONS
Wherever appearing in this CyberRisk Contract, the following words and phrases appearing
in bold type will have the meanings set forth in this Section I. DEFINITIONS. Additional definitions can be found in Section VII (General Conditions):
1. Account means any bank account held in the name of the Member.
2. Breach Notification Law means any local, state, federal, or foreign law, statute, regulation, rule, or guidance that requires notice to an Impacted Population or governmental or regulatory authority.
3. Breach Response Costs means reasonable and necessary amounts paid by the
Member, with the Fund’s consent, to third party service providers for Computer
Forensic Services, Legal Services, Notification Services, Fraud Monitoring and
Resolution Services, Call Center Services, and Public Relations Services.
4. Call Center Services means establishing and operating a call center in response to a
Data Breach.
5. Claim means any:
a. Civil proceeding commenced by the filing of a complaint, motion for judgment, injunctive relief, or similar proceeding; or
b. Written demand for monetary or non-monetary relief, written demand for arbitration or written request to toll or waive a statute of limitations;
c. With respect to Coverage Agreement 3. Regulatory Liability only, Claim also means a Regulatory Proceeding.
d. Multiple Claims arising out of the same or a series of related acts, errors, omissions,
Data Breaches or Network Security Breaches will be considered a single Claim for purposes of this Contract, and will be deemed to have been made at the time of the first such Claim.
6. Claim Expenses means the following amounts incurred with the Fund’s consent:
a. Reasonable and necessary legal fees and expenses in the investigation, defense, or
appeal of a Claim; and
b. Premiums on appeal bonds, attachment bonds, or similar bond. However, the Fund will have no obligation to furnish such bond.
7. Client means any individual or entity to whom the Member is contracted to perform services or supply Goods.
8. Computer Forensic Services means investigation and analysis to determine the cause and scope of a Data Breach and the information impacted by such Data Breach.
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9. Computer Fraud means an intentional, unauthorized or fraudulent entry of data including
when such entry is made via the internet or another computer network provided that such act is committed by any person or persons who is not an Employee, director or partner or is committed by an Employee with the intent to defraud that results in any or
all of the following:
a. The Member’s Money, the Member’s Securities or the Member’s Other Assets being transferred, disbursed, paid, delivered, altered, corrupted or lost, into an
unauthorized fictious account in the Member’s name; or
b. Money, Securities or Other Assets of the Member’s customers being disbursed, paid, delivered, altered, corrupted, or lost from an account that is in the Member’s
trust or control into an unauthorized fictious account in the Member’s name.
Computer Fraud does not include Electronic Theft, Social Engineering Fraud, or
Telecommunications Fraud.
10. Computer Network(s) means interconnected electronic, wireless, web, or similar systems (including all Hardware and software) used to share or process data or information in an analog, digital, electronic or wireless format including, but not limited to, computer programs, electronic data, operating systems, servers, media libraries, associated input and output devices, mobile devices, networking equipment, telecommunications system, websites, extranets, off line storage facilities (to the extent that they hold electronic data), and electronic backup equipment. With the exception of the limited coverage provided under Exclusion 3, Physical Damage, computer network(s) also means the use of computing resources that are delivered as a service over a network or the internet (commonly known as “cloud computing”) and/or Member outsourced data center or other premises where Member
data is stored or managed by a third party.
11. Computer Security means all controls, whether policy or technology based,
implemented by the Member in order to prevent intrusions or unauthorized access to, a
Network, extended Network or electronic data.
12. Control Group means the chief administrator of the Member, the Finance Director, Director of Information Systems and or Information Technology, CIO, General Counsel, Director of Risk Management, or any individual in a functionally equivalent position of the
Member.
13. Covered Person means:
a. The Member named in the Contract Declarations;
b. Members of the governing Board of the named Member while acting in the scope of their duties for the Member;
c. Current or former commission, boards or other entities, including their current or former board Members, under the named Member’s exclusive operation and
jurisdiction while acting in the scope of their duties for the Member;
d. All the current or former employees of the named Member while acting in the scope of their duties for the Member;
e. All persons who perform a service on a volunteer basis for the Member, provided such performance is under the Member’s direction and control and while acting in
the scope of their duties for the Member and any person providing services to the
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Member under any mutual aid or similar agreement. This does not include any person working on retainer or as an independent contractor.
No coverage is provided hereunder for any person in his/her individual capacity.
No coverage is provided hereunder for any of the Member’s Constitutional Officers as defined by Article 7, Section 4 of the Virginia Constitution with respect to Coverage Agreements 2 (Network Security, Privacy and Data Breach Liability), 7 (Media
Liability) and 8 (Social Engineering Fraud Event)..
14. Covered Property means tangible property owned by the Member or in the Member’s
care, custody, and control. Covered Property does not include Property Not Covered.
15. Cyber Extortion Event means an actual or threatened malicious activity directed at the
Member’s Network or electronic data, where payment or other action from the Member is demanded by a third party.
16. Damages means a monetary judgment, award (including pre and post-judgment interest), or settlement. Damages does not mean and shall not include:
a. Past or future royalties, the Member’s past or future profits, restitution, disgorgement of profits, or the costs of complying with orders granting injunctive relief or other non-monetary relief;
b. Return or offset of the Member’s fees, charges, or commissions for Goods or services already provided or contracted to be provided;
c. Punitive, multiple, or exemplary Damages, unless insurable by the law of an
applicable venue that most favors coverage for such amounts;
d. Taxes, sanctions, fines, or civil or criminal Penalties, unless insurable by the law of an applicable venue that most favors coverage for such amounts;
e. Any amounts for which the Member are not liable, or for which there is no legal recourse against the Member;
f. Unpaid license fees;
g. Liquidated Damages, but only to the extent such liquidated Damages exceed the amount which the Member would have been liable in the absence of such liquidated
Damages agreement;
h. Penalties; or
i. PCI Fines and Assessments.
17. Data means any machine readable information, including ready for use programs or electronic data, irrespective of the way it is used and rendered including, but not limited to,
text or digital media.
18. Data Breach means the electronic acquisition, access or disclosure of Personally
Identifiable Information or non-public corporate information in the Member’s care, custody, or control by a person or entity (including a rogue employee) that is unauthorized by the Member.
19. Data Restoration Costs means reasonable and necessary amounts paid to a third party to restore, or attempt to restore, the Member’s electronic data assets which are
compromised as a result of a Network Security Breach.
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20. Employee(s) means any individual in the Member’s service, including any volunteers, interns, part-time, seasonal, leased and temporary workers or any individual who is
working on the Member’s behalf, or at the Member’s direction, and under the Member’s direct control.
21. Event means a Data Breach, Network Security Breach or Cyber Extortion Event.
22. Extortion Loss means the following costs, incurred with the Fund’s consent, in response to a Cyber-Extortion Event:
a. The ransom paid, or if the demand is for Goods or services, the fair market value of
such Goods or services at the time of surrender; and
b. Reasonable and necessary costs to execute such payment.
23. Fraudulent Instruction means:
a. An electronic, telegraphic, cable, teletype, telefacsimile, or telephone instruction which purports to have been transmitted by the Member, but which was in fact
fraudulently transmitted by someone else without the Member’s knowledge or consent.
b. A written instruction issued by the Member, which was forged or altered by someone
other than the Member without the Member’s knowledge or consent, or which purports to have been issued by the Member but was in fact fraudulently issued without the Member’s or the Employee’s knowledge or consent.
24. Fraud Monitoring and Resolution Services means the offering of credit monitoring, identity monitoring or identity restoration services to an Impacted Population for one year (or longer, if required by law).
25. Funds means Money and Securities.
26. Goods means those products supplied by the Member to a Client under a contract.
27. Hardware means any and all physical components of a computer system.
28. Impacted Population means one or more individuals whose Personally Identifiable
Information was or may have been impacted as a result of a Data Breach.
29. Legal Services means advice provided by a law firm to: determine the Member’s obligations under the breach notice laws, draft content for notifications and reports to regulatory entities, and coordinate service providers approved by the Fund to provide computer forensics, Legal Services, Notification Services, Fraud Monitoring and
Resolution Services, Call Center Services, and Public Relations Services.
30. Loss means Breach Response Costs, Damages, Claim Expenses, Penalties, PCI
Fines and Assessments, Data Restoration Costs, Extortion Loss and any other amounts covered under this Contract.
31. Malicious Code means software designed to infiltrate, disrupt, or damage a
Computer Network or gather sensitive information, all without the owner’s informed consent, by a variety of forms including, but not limited to, Trojan horses, spyware, malware, ransomware dishonest adware and crimeware.
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32. Media Wrongful Act means any of the following acts in the Member’s course of
releasing any content on the Member’s website or social media:
a. Defamation, slander, libel, trade libel, or product disparagement;
b. Invasion of privacy, intrusion upon seclusion or misappropriation of likeness, picture,
name or voice;
c. Copyright infringement, trade dress infringement, or trademark infringement or dilution;
d. Plagiarism, piracy, or misappropriation of ideas; or
e. Domain name infringement of improper deep-linking or framing.
33. Merchant Services Agreement means an agreement between the Member and a credit or debit card company, credit or debit card processor, financial institution, or independent sales organization allowing the Member to accept payment by credit or debit card.
34. Monetary Loss means the loss of the Member’s Money from its Account. Monetary
Loss shall not include:
a. Any fees, fines or charges assessed against the Member or any expenses the
Member incurs as a result of any Social Engineering Fraud Event;
b. Any monies held by the Member on behalf of Client; or
c. The cost of the Member or any employee’s time in identifying and rectifying the
Social Engineering Fraud Event.
35. Money means:
a. Currency, coins, and bank notes in current use and having a face value; and
b. Travelers checks, register checks, and money orders held for sale to the public.
36. Network means all desktops, laptops, servers, peripheral devices, mobile devices or other electronic end points under the Member’s direct operational control, whether owned or leased by the Member.
37. Network Security Breach means:
a. An actual or reasonably suspected unauthorized access to the Member’s Network.; or
b. The transmission of malicious code due to a failure of the Member’s Computer
Security.
38. Notification Services means communications to an Impacted Population advising
them of a Data Breach.
39. Other Assets means any tangible property other than Money and Securities that has
intrinsic value. Other Assets does not include computer programs, electronic data, or any property specifically excluded under this Contract.
40. PCI Fines and Assessments means all amounts the Member is legally obligated to pay under a Merchant Services Agreement following a Data Breach impacting credit or debit card information, including fines or Penalties for non-compliance with the PCI
Data Security Standards, monetary assessments, and case management fees.
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41. Penalties means monetary fines and Penalties levied by a governmental or regulatory authority due to a Data Breach, including but not limited to amounts paid to a consumer
redress fund or amounts fined under GDPR to the extent insurable by the law of an applicable venue that most favors coverage for such amounts. Penalties does not mean and shall not include: costs to comply with corrective actions or injunctive relief or audit,
assessment, compliance, or reporting costs.
42. Personally Identifiable Information means the following, in any form:
a. Non-public individually identifiable information as defined in any local, state, federal or foreign law, statute, rule, or regulation governing the control and use of an individual's confidential or protected information;
b. Any non-public information that could allow an individual to be uniquely identified; or
c. Any other information associated with an individual that could be used to perpetuate identity theft or fraud.
43. Privacy Violation means a violation of:
a. Any statute, rule or regulation requiring the Member to limit or control the collection, use of, or access to Personally Identifiable Information;
b. Any individual's right to privacy; or
c. The Member’s written, public facing privacy policy.
44. Property Not Covered means:
a. Data; or
b. Infrastructure that is not under the Member operational control; or
c. Property that is not included as covered property; or
d. Is specifically listed as property that is not covered in a separate in force property insurance policy purchased by the Member; or
e. All property of any type if the Member do not have an in force property insurance
policy at the time the direct physical loss or direct physical damage is sustained by the Member .
45. Public Relations Services means services provided by a public relations or crisis management firm to minimize the reputational impact on the Member as a result of a
Data Breach for up to a period of 12 months after the Member’s discovery of a Data
Breach.
46. Regulatory Proceeding means a request for information or assertion of liability by a local, state, federal or foreign governmental entity, in its official capacity including but not limited to in relation to GDPR.
47. Retroactive Date means the date Specified on the Declaration Page of this CyberRisk.
48. Securities means negotiable and nonnegotiable instruments or contracts representing either Money or property and includes: a. Tokens, tickets, revenue, and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are
not issued by the Member; c. But does not include Money.
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49. Social Engineering Fraud means the intentional misleading of a Covered Person by means of a dishonest statement or misrepresentation of a material fact contained or
conveyed within an electronic or telephonic communication(s) and which was relied upon by the Covered Person believing it to be genuine.
Social Engineering Fraud does not include loss arising out of:
a. Fraudulent instructions received by a Covered Person which are not first authenticated via a method other than the original means of request to
verify the authenticity or validity of the request;
b. Any actual or alleged use of credit, debit, charge, access, convenience, customer identification or other cards;
c. Any transfer involving a third party who is not a Covered Person, but had authorized access to the Member’s authentication mechanism;
d. The process of, or the failure to process, credit, check, debit, person
identification number debit, electronic benefit transfers or mobile payments for merchant accounts;
e. Accounting or arithmetical errors or omissions, or the failure, malfunction, inadequacy or illegitimacy of any product or service;
f. Any liability to any third party, or any indirect or consequential loss of any kind;
g. Any legal costs or legal expenses;
h. Proving or establishing the existence of a Social Engineering Fraud
Event.
50. Social Engineering Fraud Event means:
c. The good faith transfer by a Covered Person of the Member’s Funds or the transfer of the Member’s Goods, in lieu of payment, to a third party as a direct result of Social Engineering Fraud, whereby the Covered Person was directed to
transfer Goods or pay Funds to a third party under false pretenses; or
d. The theft of the Member’s Funds as a result of an unauthorized access to or unauthorized use of a Network directly enabled as a result of Social Engineering
Fraud.
51. Telecommunications Fraud means an intentional, malicious or willful act that results in
the misuse or unauthorized access of the Member telecommunication system by a third party.
Telecommunications Fraud does not include Electronic Theft, Social Engineering
Fraud, or Computer Fraud
52. Transfer Account means an account maintained by The Member at a financial
institution from which the Member can initiate the transfer, payment, or delivery of
Funds:
a. By means of electronic, telegraphic, cable, teletype, telefacsimile, or telephone
instructions communicated directly through an electronic funds transfer system; or
b. By means of written instructions establishing the conditions under which such transfers are to be initiated by such financial institution through an electronic funds
transfer system.
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53. Value of Goods means the cost price of those Goods excluding:
a. Any element of profit to your organization; or
b. Any tax which you may be able to recover as a result of Goods being misappropriated by way of the Social Engineering Fraud Event.
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-Section VII-
GENERAL CONDITIONS
A. GENERAL APPLICATION This Section VII (General Conditions) shall apply to Sections I (Property), II (General Liability), III
(Automobile), IV (Crime) and V (Public Officials Liability) and Section VI (CyberRisk), unless specific provisions are contained in the appropriate section.
B. CANCELLATION AND TERMINATION Cancellation and Termination of this Contract shall occur as stated in the
Member Agreement, which governs membership in the Fund.
C. DEFINITIONS In this Contract, defined terms shall have the meanings below and as set forth in the different
Sections, unless the context clearly otherwise requires, and shall have the first letter of each word capitalized. Different Sections may have different meanings for the same word of the defined term in which case the Section specific definition prevails. Except where the context
otherwise requires, words importing the singular number shall include the plural number and vice versa. Unless otherwise defined in a Section or provision therein as used in this
Contract, the following defined terms shall have the following meanings:
1. Contract means this entire agreement to provide coverage for property, general liability, automobile, crime, public officials, cyberrisk and includes the title pages, the table of
contents and all pages and provisions referred to therein.
2. Contract Declarations means the items stated in the initial pages of this Contract listing the name of the Fund, the Member, Contract Period, Effective Date, and other items.
3. Contract Period means the period of time set forth in the Contract Declarations.
4. Declarations Page means the page or pages at the beginning of each Section showing
the Member and general provisions or limits of coverage.
5. Effective Date means at 12:01 a.m. eastern standard time on the initial date listed across
from the Contract Period in the Contract Declarations.
6. Employees includes Supervisors of a Member.
7. Expiration Date means 12:01 a.m. eastern standard time of the last day stated in the
Contract Period in the Contract Declarations.
8. Fund means the Virginia Association of Counties Group Self Insurance Risk Pool.
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9. Manuscript means a specifically written and comprised document as distinguished from a printed copy or form.
10. Member means the political subdivision listed in the Contract Declarations.
11. Members means all political subdivisions participating in the Fund.
12. Notice means any reasonable communication to the party to be notified. Notice is
reasonable if actually physically delivered in writing.
13. Notice of Loss means a report in writing for the Member to the Fund concerning every
loss occurrence which may give rise to a Claim under this Contract.
14. Proof of Claim or Proof of Loss means a signed and sworn detailed statement filed with the Fund as soon as possible after the applicable event.
15. Section means the divisions into Section I (Property), Section II (General Liability), Section III (Automobile), Section IV (Crime), Section V (Public Officials Liability), Section VI (CyberRisk) and Section VII (General Conditions).
16. Service Provider means Risk Management Programs, Inc. or its successor.
17. State means the state of Virginia.
18. Table of Contents means the listing of contents of the Contract.
D. GENERAL PROVISIONS
The following provisions shall apply to the Contract, unless different provisions are specifically provided for in a Section or provision of a Section.
1. Action Against the Fund No action shall lie against the Fund unless, as a condition precedent thereto, there shall have been full compliance with all of the terms of this Contract, nor until the amount of the
Member's obligation to pay shall have been finally determined either by judgment against the Member after actual trial or by written agreement of the Member, the claimant, and the
Fund. Any person or organization or the legal representative thereof who has secured such
judgment or written agreement shall thereafter be entitled to recover under this Contract to the extent of the coverage afforded by this Contract. No person or organization shall have any right under this Contract to join the Fund as a party in any action against the Member
to determine the Member's liability, nor shall the Member or its legal representative implead the Fund. Bankruptcy or insolvency of the Member shall not relieve the Fund of any of its obligations hereunder.
2. Statutes If any of the provisions of this Contract conflict with the laws or statutes of any jurisdiction
in which this Contract applies, this Contract is amended to conform to such laws or statutes.
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3. Subrogation If the Fund pays a Claim under this Contract, it will be subrogated, to the extent of such
payment, to all the Member's rights of recovery from other persons, organizations, and entities. The Member will execute and deliver instruments and papers and do whatever else is necessary to secure such rights.
The Fund will have no rights of subrogation against:
a. Any person or entity, which is a Member under the Contract;
b. Any other person or entity, which the Member has waived its rights of subrogation against in writing before the time of loss.
The Member will act in concert with the Fund and all other interests concerned, in the exercises of such rights of recovery. If any amount is recovered as a result of such proceedings, The Fund will be entitled to priority of recovery against any such third party (including interest) to the extent payment has been made by the Fund, plus attorney’s fees, expenses or costs incurred by the
Fund. Any excess of this amount will be remitted to the Member. If there is no recovery, the interests instituting the proceedings will bear the expense of the proceedings
proportionately. The Member will do nothing after a loss to prejudice such rights of subrogation.
4. Assignment The Member shall not make any assignment of right in this Contract without prior written
approval from the Fund.
5. Bankruptcy or Insolvency
Bankruptcy or insolvency of the Member shall not relieve the Fund of its obligations hereunder.
6. Loss Payable The Fund will adjust each loss of the Member. The Fund will pay the adjusted covered loss to the Member, or its order, or other appropriate person whose receipt will constitute a full release of liability under this Contract for such loss.
7. Other Coverage The coverage afforded by this Contract is primary coverage, except when stated to apply in excess of or contingent upon the absence of other coverage. When this coverage is
primary and the Member has other coverage, which is stated to be applicable to the loss on an excess or contingent, basis, the amount of the Fund's liability under this Contract shall not be reduced by the existence of such other coverage. When both this coverage
and other coverage apply to the loss on the same basis, whether primary, excess or contingent, the Fund shall not be liable under this Contract for a greater proportion of the loss than that stated in the applicable contribution provision below.
a. Contribution by Equal Shares. If all of such other valid and collectible coverage provides for contributions by equal shares, the Fund shall not be liable for a greater
portion of such loss than would by payable if each insurer contributes an equal share until the share of each insurer equals the lowest applicable limit of liability under any one contract or the full amount of the loss is paid, and with respect to any amount of
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loss not so paid in the remaining amount of the loss until each such insurer has paid its limit in full or the full amount of the loss is paid.
b. Contribution by Limits. If any such other coverage does not provide for contribution by equal shares, the Fund shall not be liable for a greater proportion of such loss than the applicable limit of liability under this Contract for such loss bears to the total
applicable limit of liability of all valid and collectible coverage against such loss.
8. In manner of limitation only, unless specified differently in a provision of this Contract,
coverage shall apply only to any occurrences/accidents/wrongful acts during the Contract
Period. Any coverage for occurrences/accidents/wrongful acts prior to the Contract
Period must be specifically contracted for and shall exclude any
occurrences/accidents/wrongful acts known to the Member.
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SAMPLE MEMBER
VA-00-000
- SECTION VIII -
LINE OF DUTY COVERAGE
DECLARATIONS PAGE
Liability Limit: Statutory
Deductible Per Occurrence or Claim None
In consideration of contribution paid, the Fund agrees and it is understood that certain limits and deductibles contained herein can change annually at the election of the Member and that those changes are reflected in the annual Coversheet to the Member Agreement. Therefore, it is agreed that the limits and deductibles reflected in the Coversheet to the Member Agreement supersede any contradictory limits and
deductibles contained herein.
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Item b.
Version date July 1, 2022
- SECTION VIII -
LINE OF DUTY COVERAGE
A. COVERAGE AGREEMENT The Fund agrees, subject to the limitations, terms, and conditions hereunder mentioned:
1. to pay on behalf of the Member all sums which the Member shall be legally obligated to pay as damages by reason of the liability imposed upon the Member by law on account of the
Line of Duty Act for Covered Persons arising out of any Occurrence during the Contract
Period; 2. to pay on behalf of the Member all sums which the Member shall be legally obligated to pay as damages by reason of the liability imposed upon the Member by law on account of the
Line of Duty Act for Covered Persons arising out of any Claim filed with the Member during the Contract Period pursuant to the Virginia Line of Duty Act, §9.1-400 et seq of the Code of Virginia;
3. to pay on behalf of the Member all costs and expenses incurred in the investigation, adjustment, settlement, defense and appeal of any claim or suit for which coverage is
afforded by this Section VIII (Line of Duty) of this Contract. Coverage for such costs and expenses provided herein are in addition to the limit of liability as stated in D. (Limit of Liability) of Section VIII (Line of Duty);
B. COVERAGE TERRITORY
Under this Section VllI (Line of Duty), the coverage territory is: 1. the United States of America, its territories or possessions, or Canada; or
2. anywhere in the world with respect to the death or disability of any Covered Person permanently domiciled in the United States of America though temporarily outside the United States of America, its territories or possessions, or Canada.
C. EXCLUSIONS
This coverage does not apply to any of the following:
1. Payment of any and all claims arising under A. (Coverage Agreement), 3. above ceases when the Member leaves the Fund, whether voluntarily or otherwise.
D. LIMIT OF LIABILITY
With regards to the Line of Duty (Section VIII) coverages afforded by this Contract, the total liability of the Fund for any one Occurrence will be the statutory limit as stated in the Line of
Duty Act not including expense and defense costs.
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Version date July 1, 2022
E. CONDITIONS APPLICABLE TO SECTION VIII (Line of Duty)
1. Member's Duties in the Event of Occurrence, Claim, or Suit
a. In the event of an Occurrence, written notice containing particulars sufficient to identify
the Member and also reasonably obtainable information with respect to the time, place, and circumstances thereof and the names and addresses of the injured and of available witnesses shall be given by or for the Member to the Fund or any of its authorized agents
as soon as practicable.
b. If a claim is made or suit is brought against the Member, the Member shall immediately forward to the Fund every demand, notice, summons, or other process received by the
Member or its representative.
c. The Member shall cooperate with the Fund and, upon the Fund's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the Member because of injury or damage with respect to which coverage is afforded under this Contract; and the Member shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The Member shall not, except at its own cost, voluntarily make any payment, assume any obligation, or incur any expense, other
than for first aid to others at the time of accident.
2. Medical Reports, Proof, and Payment of Claim
As soon as practicable the Member or someone on its behalf shall give to the Fund a Proof of Claim and shall, after each request from the Fund, execute authorization to enable the
Fund to obtain medical reports and copies of records. The injured person shall submit to physical examination by physicians selected by the Fund when and as often as the Fund may reasonably require. The Fund may pay the injured person or any person or organization
rendering the services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of liability of any person or of the Fund.
3. Other Provisions See Section VII (General Conditions) for items not addressed in this Section VlIl (Line of Duty).
F. OTHER COVERAGE
This Line of Duty coverage is excess to any other valid and collectible insurance available to the
Member for all or a portion of any benefit otherwise payable by the Fund under the Line of Duty Act.
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Version date July 1, 2022
G. DEFINITIONS
1. Claim means any claim for payment submitted by a Covered Person under the Line of
Duty Act pursuant to §9.01-403 of the Code of Virginia.
2. Covered Person means those individuals defined as “deceased person” in §9.1-400 B. of the Code of Virginia, and who are employed or volunteer for the Member or their “beneficiary” as defined in §9.1-400 B. of the Code of Virginia.
3. Line of Duty Act means §9.1-400 et seq. of the Code of Virginia and any amendments thereto.
4. Occurrence means any action giving rise to a legal obligation under the Line of Duty Act.
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Item b.
July 1, 2022
SAMPLE MEMBER
VA-00-000
- SECTION VIII –
SECURITY RISKS COVERAGE
Limits of Liability: i) ii)
Ransom
Transit
$ 1,000,000
$ 1,000,000
per
Covered
Event
per
Covered
Event
(iii) Fees and Expenses UNLIMITED per Covered
Event
(iv) Additional Expenses $ 1,000,000 per Covered
Event
(v) Legal Liability $ 1,000,000 per Covered
Event
(vi) Personal Accident
$ 250,000 per Covered
Person
$ 2,500,000 each Covered
Event and aggregate
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Item b.
Loss of Earnings
LIMITS OF LIABILITY shall be extended as specified in item 2 below:
1. Waiting Period 6 Hours
2. Limits of Liability: $ 1,000,000 per Covered Event
3. Indemnity Period: NA
Fees and Expenses of Control Risks Group: UNLIMITED per Covered Event
Expatriate Security Evacuation (ASRM)
1. Limits of Liability: $ 150,000 per Covered Event
NA in the annual aggregate
but not exceeding:
Emergency Political Repatriation costs: $ 15,000 per Covered Person
Relocation costs: $ 15,000 per Covered Person
Salary as described in 2.d): $ 15,000 per Covered Person
Personal Effects: $ 5,000 per Covered
Person
Fees and Expenses of Control Risks Group
as described in 2.e): UNLIMITED per Covered Event
Travel Security Evacuation (ASRM)
1. Limits of Liability: $ 150,000 per Covered Event
but not exceeding:
Emergency Political Repatriation costs: $ 15,000 per Covered Person
Personal Effects: $ 5,000 per Covered Person
Fees and Expenses
of Control Risks
Group
as described in 2.e): UNLIMITED per Covered Event
EXTENSIONS &ENDORSEMENTS
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Item b.
Threat Response Expense
1. Limits of Liability: $100,000 per
Covered
Event
2. Indemnity Period: 90 Days
Disappearance Investigation and Expense
1. Limits of Liability: $ 100,000 per
Covered
Event
2. Waiting Period: 48 hours
3. Indemnity Period: 90 Days
Express Kidnap Extension (Enhanced)
1. Limits of Liability:
Covered Losses 2.a) and 2.d) combined: $ 150,000
per Covered Event
Covered Loss 2.c): UNLIMITED per Covered Event
Covered Loss 2.f) (Personal Accident): $ 250,000 per Covered Person
$1,250,000 each Incident Aggregate
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Item b.
Enhanced Child Abduction (K-12)
1. Limits of Liability:
Waiting Period 4 Hours
Covered Loss 2.c) (CRG Fees & Expenses): UNLIMITED per Covered Event
Covered Loss 2.d) (Additional Expenses): $ 1,000,000 per Covered Event
Covered Loss 2.e) (Legal Liability): $ 1,000,000 per Covered Event
Covered Loss 2.f) (Personal Accident): $ 250,000 per Covered Person
$ 1,250,000 each Incident Aggregate
Total in the annual aggregate: N/A for all Covered Events
Hostage Crisis
1. Limits of Liability:
Covered Loss 2.a) (Ransom): $ 1,000,000 per Covered Event
Covered Loss 2.c) (CRG Fees & Expenses): UNLIMITED per Covered Event
Covered Loss 2.d) (Additional Expenses): $ 1,000,000 per Covered Event
Covered Loss 2.e) (Legal
Liability):
$ 1,000,000 per Covered Event
Covered Loss 2.f) (Personal Accident): $ 250,000 per Covered Person
$ 1,250,000 each Incident Aggregate
Total in the annual aggregate: N/A for all Covered Events
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Item b.
Customer Identity Threat
1. Limits of Liability:
Covered Loss 2.a) (Ransom): $ 1,000,000 per Covered Event
Covered Loss 2.b) (Transit): $ 1,000,000 per Covered Event
Covered Loss 2.c) (CRG Fees & Expenses): UNLIMITED per Covered Event
Covered Loss 2.d) (Additional
Expenses):
$ 1,000,000 per Covered Event
Covered Loss 2.e) (Legal Liability): $ 1,000,000 per Covered Event
Covered Loss 2.f) (Personal Accident): $ 250,000 per Covered Person
$ 1,250,000 each Incident Aggregate
Total in the annual aggregate: N/A for all Covered Events
L. Assault Expense Extension*
1. The Fund liability shall be:
In respect of 2.c) and 2.d) combined: $ 1,000,000 each Incident
In respect of 2.f): $ 250,000 per Covered Person
$ 1,250,000 each Incident Aggregate
Combined Single Limit: NA each Incident
*Loss of Earnings is included.
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A. KIDNAP, EXTORTION, DETENTION, HIJACK
In consideration of the payment of the required contribution(s), and subject to the terms,
limitations, conditions, and exclusions set forth below, the Fund agree to indemnify the
Member in respect of Covered Losses sustained directly because of Covered Events which occur during the Contract Period - all as defined in this Contract. Reference to the Schedule shall determine the Limits of Liability, which shall apply.
1. DEFINITIONS
a) Computer System shall be any computer or network of computers of the
Member including its input, output, processing, storage, and communications facilities, and shall include off-line media libraries.
b) Computer Violation shall be unauthorized:
(i) entry into or deletion of data from a Computer System;
(ii) change to data elements or program logic of a Computer System, which is kept in machine readable format; or
(iii) introduction of instructions, programmatic or otherwise, which propagate themselves through a Computer System, directed solely at the Member.
c) Covered Event shall be a Kidnap or Extortion or Products Extortion or
Detention or Hijack or a series of connected acts thereof. If it is evident from the
demand(s) or the making of such demand(s) that Kidnaps and/or Extortions and/or Products Extortions and/or Detentions and/or Hijacks are or were carried out in furtherance of one or another, they shall be deemed to be connected and to
constitute a single Covered Event. Nevertheless, there shall be no liability hereunder in respect of a series of Kidnaps or Extortions or Products Extortions or Detentions or Hijacks the first of which began before the Contract Period.
d) Covered Person shall be:
(i) all Directors, Officers, Employees, Leased or Temporary Employees, Students, Volunteers, Interns, Board Members, Administrators, Faculty Parents, and Family Members while attending or participating in an activity organized by the Member.
School Alumni while on Premises or attending or participating in an activity organized or sponsored by the school district.
(ii) the spouse, or a domestic partner, or relative, fiancé or fiancée, or a lineal
descendant or a living ancestor, including but not limited to stepparents, stepchildren, stepsiblings, foster children, adopted children, adopted parents and spouses thereof, of either a Covered Person or the spouse of a Covered
Person;
(iii) a person normally resident or employed in the household and/or grounds of a
Covered Person;
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(iv) a guest in the home of a Covered Person;
(v) a guest or customer of the Member while on the Member’s Premises or on board any vehicle, aircraft or waterborne vessel owned or leased by the
Member or a Covered Person;
(vi) a person who is temporarily employed for the sole purpose of negotiating and/or delivering a Ransom;
(vii) trustees and members of the board of governors;
(viii) for the purpose of Proprietary Information, Extortion coverage applies to anyone for whom the Member has confidential or Proprietary Information regarding that individual(s).
e) Detention shall be the holding under duress in the Territory specified in item 1.w. below of a Covered Person for whatever reason and whether by authorities legally constituted in the place of custody or by others. With respect to salary payments only, the Fund's liability shall be for a period of 72 months or until 60 days after the date on which the Detention ceases, whichever shall first occur.
f) Extortion shall be the making of illegal threats either directly or indirectly to the
Member or to a Covered Person to:
(i) kill, injure, or abduct a Covered Person; or
(ii) pollute, cause physical damage or loss to Property; or
(iii) disseminate, divulge, or utilize Trade Secrets or Proprietary Information including any personal, private, or confidential data; or
(iv) adulterate or destroy any Computer System by a Computer Violation by persons who then demand a Ransom as a condition of not carrying out such threats.
g) Hijack shall be the attempted or actual illegal holding under duress of a Covered
Person for a period in excess of four hours whilst traveling in or on any aircraft, motor vehicle, railroad train, or waterborne vessel or any other form of public or
private transport.
h) Informant shall be a person providing information not otherwise obtainable and
solely in return for a monetary payment or other award by the Member.
i) Kidnap shall be the illegal and actual, alleged or attempted taking, in the Territory specified in 1. w. below and holding captive of one or more Covered Persons by persons who demand or intend to demand specifically from assets of Member or
Covered Person a Ransom as a condition of the release of such captive(s).
j) Loss of Extremity shall be the permanent physical separation or the total and
irrecoverable loss of use of a digit or part thereof or an ear, nose or genital organ or part thereof by deliberate mutilation.
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k) Loss of Limb shall be loss by separation or the total and irrecoverable loss of use of a hand at or above the wrist or a foot at or above the ankle.
l) Loss of Sight shall be loss of sight of one or both eyes which is certified as being entire and irrevocable by a qualified practitioner specializing in ophthalmology and
approved by the Fund.
m) Member means the political subdivision listed in the Contract
Declarations.
n) Member's Premises shall be that portion of any real property which is occupied by the Member in the conduct of the Member's business.
o) Member's Products shall be products of the Member and/or products which are to be represented as such and/or products which the Member handles.
p) Permanent Total Disablement shall be disablement which necessarily and continuously disables a Covered Person from attending to every aspect of his normal business or occupation for a period of 12 calendar months and, at the end of
such period is certified by two qualified medical practitioners approved by the Fund as being beyond hope of improvement. If the Covered Person has no business or occupation the disablement must confine him immediately and continuously to the
house and disable him from attending to his normal duties.
q) Permanent Total Disablement or death sustained by the Covered Person, solely
and directly as a result of a Covered Event, or attempt thereat, provided that such injury causes the death or disablement of the Covered Person within 12 calendar months from the date of the incident. Covered Losses shall not exceed those
specified in the Schedule. If a Covered Person disappears during the currency of this Insurance and his body
is not found within 12 months after his disappearance and sufficient evidence is produced satisfactory to the Fund that leads them inevitably to the conclusion that he sustained death solely and directly as a result of a Covered Event, the Fund shall forthwith pay the death benefit under this insurance provided that the person or persons to whom such a sum is paid shall sign an undertaking to refund such sum to the Fund if the Covered Person is subsequently found to be living.
r) Personal Financial Loss shall be loss suffered by a Covered Person solely as a
result of the physical inability of a Kidnap or Extortion or Detention or Hijack victim to attend to personal financial matters.
s) Products Extortion shall be the making of illegal threats to the Member or the production of publicity that the Member's Products will be or have been contaminated, polluted, or rendered substandard, by persons who demand a
Ransom from the Member, either:
(i) as a condition of not carrying out such threats, or
(ii) before providing further information about the affected Member's Products.
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t) Property shall be buildings (including fixtures, fittings, works of art and other contents), plant and equipment fixed or mobile, (including vessels and aircraft),
bloodstock and livestock owned or leased by the Member or a Covered Person for which the Member or a Covered Person is legally liable.
u) Proprietary Information shall be any confidential, private, or secret information unique to the Member, Member’s business, or a Covered Person.
v) Ransom shall be cash and/or marketable goods or services surrendered or to be surrendered by or on behalf of the Member or a Covered Person(s) to meet a
Kidnap or Extortion or Hijack or Detention or Products Extortion demand.
w) Territory shall be worldwide.
x) Trade Secrets shall be information (including formula, pattern, compilation of data, program, device, method, technique, or process), which:
(i) is particular to the Member in the conduct of his business; and
(ii) for reason of its potential commercial value to others, the Member makes constant and conscious efforts not to disclose to any third party.
y) Masculine gender shall deem to include feminine gender.
2. COVERED LOSSES shall be
a) Ransom which has been surrendered: in the case of marketable goods or services, the Fund shall pay the actual cash value thereof at the time of surrender.
b) The loss in transit of a Ransom by actual damage, destruction, disappearance, confiscation, or wrongful abstraction while being conveyed to such persons as have demanded it by any person who is duly authorized to do so by the Member
or a Covered Person.
c) The fees and expenses agreed by the Fund.
d) Additional expenses, being expenses necessarily incurred following, and for the duration of, a Covered Event by the Member or a Covered Person(s) and which
shall comprise:
(i) fees and expenses of an independent negotiator engaged by the Member with the
prior authorization of the Fund;
(ii) fees and expenses of an independent public relations consultant and/or
product recall consultant and/or interpreter:
(iii) costs of travel and accommodation incurred by the Member or a Covered Person;
(iv) the costs of travel of a Kidnap and/or Detention and/or Hijack victim and his
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family to the country of which the victim is a national and the travel costs of a replacement of a Kidnap and/or Detention and/or Hijack victim and his family
to the country in which the Kidnap and/or Detention and/or Hijack occurred. These costs shall only apply once per Covered Person per Kidnap and/or
Detention and/or Hijack;
(v) fees for independent psychiatric care and/or medical care and/or dental care and/or legal advice incurred prior to the release and within thirty-six months
following the Covered Event;
(vi) reward paid by the Member or a Covered Person to an Informant for information which directly assists the Member or a Covered Person in their negotiations and/or assists to obtain the safe release or recovery of the remains of a Kidnap or Detention or Hijack victim or which leads to the arrest and conviction of parties responsible for a Covered Event;
(vii) Personal Financial Loss;
(viii) 100% of a Kidnapped or Detained or Hijacked Insured’s Person’s gross salary and bonuses, commissions, cost of living adjustments, foreign tax reimbursements, pension and/or welfare contributions and allowances which were
contractually due or could reasonably be expected based on past performance at the time the Covered Event occurs and for sixty (60) days following the release;
(ix) 100% of a relative of a Kidnapped or Detained or Hijacked Covered Person’s gross salary including bonuses, commissions, cost of living adjustments, foreign
tax reimbursements, pension and/or welfare contributions and allowances, who leaves their employment in order to assist in the negotiations for the release of the victim, which were contractually due at the time the Covered Event occurs
and for sixty (60) days following the release;
(x) 100% of the gross salary including bonuses and allowances for a temporary replacement of a Kidnapped or Detained or Hijacked Covered Person for the
duration of the Kidnap and/or Detention and/or Hijack and sixty (60) days thereafter, but shall not exceed the Kidnapped or Detained or Hijacked
Covered Person’s total remuneration at the time the Kidnap or Detention or
Hijack occurs;
(xi) the costs incurred by the Member for the salaries of employees specifically
designated to assist in negotiating on any Covered Event, not to exceed the employees base rate of pay. Plus, all other reasonable expenses solely and directly incurred in connection with such negotiations, provided that the Member
forwards and itemized account of such employee’s time, services, and expenses;
(xii) sums payable by way of interest on loans raised specifically to meet a Covered
Loss and in respect of amounts subsequently reimbursed hereunder, provided the loan is repaid within thirty days of the Member receiving reimbursement of the same from the Fund;
(xiii) costs, fees, and expenses of temporary security measures solely and directly for
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Item b.
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the purpose of protecting a Covered Person(s) and/or Property located in the county where a Covered Event has occurred whether or not such Covered Event
involves such Covered Persons and/or Property, and on the specific recommendation of the Fund;
(xiv) costs of communications equipment, recording equipment and advertising incurred solely and directly to obtain the release of a Kidnapped or Detained or Hijacked Covered Person or required during an Extortion or Product
Extortion negotiation;
(xv) reasonable fees and expenses of independent forensic analysts engaged by the
Member;
(xvi) reasonable rest and rehabilitation expenses including meals and recreation
incurred by the Kidnap and/ or Detention and/or Hijack victim and a spouse and/or children following the release of the Kidnap and/or Detention and/or
Hijack victim;
(xvii) the reasonable costs of cosmetic or plastic surgery which is required to correct any permanent disfigurement sustained by a Covered Person solely and directly as a result of a Covered Event;
(xviii) job retaining costs for the Kidnap and/or Detention and/or Hijack victim, including
but not limited to salary of the Kidnap and/or Detention and/or Hijack victim while being retrained, and costs of external training courses;
(xix) all other reasonable expenses incurred by the Member or Covered Person(s) incurred as a direct result of a Covered Event.
e) Legal Liability, being settlements or awards fees and judgements imposed upon and paid by the Member as a result of an action for damages brought by or on behalf of any Covered Person(s) or his or their legal representative or shareholders solely and directly as a result of a Kidnap or a Detention or a
Hijack or an Extortion. However;
(i) the Member shall neither admit any liability for, nor settle any claim, nor incur any costs or expenses without the prior authorization of the Fund;
(ii) the Fund shall have the right to defend any such suit against the Member and may make whatever investigation and settlement of any claim or suit
they deem expedient, and the law allows, and the Member shall co-operate fully with the Fund in all things in connection therewith.
Defense costs incurred by the Fund, or with their authorization are payable in addition to the limit for Legal Liability. However, if the total amount for all settlements, awards, fees, and judgments to which such costs refer exceeds this
limit, this Contract shall pay only that proportion of defense costs which the limit bears to the total of such settlements, awards, fees, and judgments.
f) Personal Accident sustained by a Covered Person or bodyguard or driver whilst working for or on behalf of the Member or Covered Person.
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3. CONDITIONS
a) When the Covered Event has occurred, or is believed to have occurred, the
Member shall:
(i) inform the Fund and provide whatever information is required as soon as is practicable and inform the appropriate authorities responsible for law enforcement in the country where a Covered Event has occurred, or is
believed to have occurred, of the Ransom demand as soon as is practicable having regard to the personal safety of the Victim;
(ii) before agreeing to the payment of any Ransom, make every reasonable effort
to:
(a) determine that the Covered Event has actually occurred and is not a hoax;
(b) ensure that a senior official of the Member agrees to the payment of the
Ransom;
(iii) when requesting the reimbursement hereunder of a Ransom, be able to demonstrate that such Ransom had been surrendered under duress.
b) The Member shall use due diligence and do and concur in doing all things reasonably practicable to avoid or diminish any Covered Losses.
c) In the event of any payment under this Contract, the Fund shall be subrogated to the extent of such payment to all the Member's or Covered Person(s)’ rights
of recovery, and the Member or Covered Person(s) shall execute all papers required and shall do everything necessary to enable the Fund to bring suit in the name of the Member or Covered Person(s).
d) Other than as set forth in paragraph 2.e) hereof, the Fund's liability hereunder shall in all cases be limited to the amount shown in the Schedule. Specifically, but without limiting the generality of the foregoing, the Fund's liability shall not be increased because:
(i) the Member may comprise or include more than one legal entity. If more than one legal entity is named in this Contract, only the first-named shall have any right to make, adjust, receive, or enforce payment of any claim;
(ii) of renewal of this Contract. The Fund's liability shall not be cumulative from
one Contract Period to another;
(iii) of any other reason whatsoever.
e) This Contract may be cancelled by the Fund solely as a result of non-payment of contribution by the Member. In such an event, the Fund shall mail written
notice of not less than 30 days of the effective date of cancellation and earned
contribution shall be calculated on a pro rata basis. The Contract may be
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cancelled by the Member at any time during the Contract period providing written notice in advance. Unearned contribution will be refunded on a pro rata basis.
f) No assignment of the Member's interest hereunder shall be binding on the Fund, unless and until their written consent thereto has been obtained and endorsed
hereon.
g) Notice to any agent or knowledge possessed by any agent or by any other person
shall not affect a waiver or a change in any part of this Contract or prevent the
Fund from asserting any right under this Contract, nor shall the terms of this
Contract be waived or changed except by endorsement to form part of this
Contract.
h) Failure by the Fund to exercise or enforce any rights hereunder will not be
deemed to be a waiver of such rights nor operate so as to bar the exercise or enforcement thereof at any time thereafter.
i) Under Personal Accident the following conditions apply:
(i) any Covered Person who suffers an incident which caused or may cause
disablement within the meaning of this Contract must place himself under the care of a qualified medical practitioner approved by the Fund as early as possible after the incident.
(ii) The Fund will not be liable to pay compensation unless the medical advisors appointed by the Fund shall be allowed as often as is thought necessary to
examine the Covered Person.
4. EXCLUSIONS
The Fund shall not be liable in respect of any losses caused by or arising from or attributable to any of the following circumstances:
a) The surrender of a Ransom in any face-to-face encounter, unless surrendered by a person who is in possession of such Ransom at the time of such
surrender for the sole purpose of conveying it to pay a previously communicated
Ransom demand.
b) The surrender of a Ransom either at the location where the Kidnap of one or more Covered Person(s) occurs or where the Extortion or Products Extortion demand is first made, unless brought to such location after receipt of the Ransom demand for the sole purpose of paying such Ransom demand.
c) In respect of Kidnap, Extortion, Products Extortion or Hijack only, a fraudulent, or criminal act of the Member, a director, officer, employee, or agent
of the Member, or a Covered Person or agent thereof, whether acting alone or in collusion with others and sanctioned by the Member.
d) In respect of Detention only:
(i) a Detention which is for a period of less than four hours;
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14 | P a g e
(ii) any act or alleged act of the Member or a Covered Person which would be a
criminal offence if committed by the same party in the State where its headquarters are located or of which he is a national, unless the Fund determine that such allegations were intentionally false, fraudulent, and
malicious and made solely and directly to achieve a political, propaganda or coercive effect upon or at the expense of the Member or the victim of a
Detention;
(iii) failure of the Member or a Covered Person to properly procure or maintain immigration, work, residence, or similar visas, permits or other documentation.
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Item b.
B. Loss of Earnings Extension
Business Interruption Loss suffered by the Member resulting from the necessary interruption of business caused directly and solely by a Kidnap, Extortion, Detention or Hijack, or an Extortion threat to physically damage any real or tangible property bordering the Member’s Premises which necessarily results in an interruption of the Insured’s business. The maximum Limit of Liability for all Business Interruption Loss will not exceed the limit stated in the schedule.
The waiting period for all Business Interruption Loss will be as stated in the schedule. The indemnity period for all Business Interruption Losses will be as stated in the schedule.
Business Interruption Loss means the loss of Earnings, but not exceeding the
actual reduction in Earnings, less charges and expenses which do not necessarily continue during the interruption of business, resulting from necessary interruption of business caused directly and solely by a Covered Event.
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Item b.
C. Expatriate Security Evacuation Extension (ASRM)
In consideration of the additional contribution and subject to the Contract terms and
conditions, this Contract shall be extended to include Expatriate Security Evacuation as specified below, and solely in respect thereto shall read as stated below. Reference to the schedule attaching to and forming part of this endorsement shall determine the
Limits of Liability which shall apply. 1. Definitions
a) Covered Event shall be the Expatriate Security Evacuation of a Covered Person or in the event of death, his remains.
b) Expatriate Security Evacuation shall be a Repatriation necessitated by:
(i) officials of the Resident Country issuing for security related reasons, a
recommendation that categories of person which include the Covered Persons should leave the country in which that Covered Person is temporarily resident and/or
(ii) a Covered Person being expelled or declared persona non grata on the written authority of the recognized government of the country where temporarily resident, and/or
(iii) the wholesale seizure, confiscation, or expropriation of the property, plant, and equipment of the Member located in the country where the Covered Person is
temporarily resident and/or
(iv) both the Member and Control Risks agreeing that for security related
reasons Covered Persons should leave the country.
c) Repatriation shall be the return of a Covered Person to his Resident Country.
d) Relocation shall be the return of ap Covered Person who has been the subject of an
Expatriate Security Evacuation to the country from which he had been repatriated.
e) Resident Country shall be the country of which a Covered Person is a national or permanent resident.
2. Covered Losses
a) Costs incurred by the Member or a Covered Person for travel to the nearest place of safety or to the Resident Country.
b) Reasonable accommodation costs incurred by the Member or a Covered Person whilst the subject of an Expatriate Security Evacuation for a maximum period of seven days.
c) Economy class fares on any licensed common carrier operating from a published timetable
incurred by the Member or a Covered Person in the Relocation of a Covered Person.
d) The gross salary, including any bonuses and allowances, paid by the Member to a
316 379
Item b.
Covered Person temporarily resident, immediately prior to the Covered Event, this salary shall be reimbursed for a maximum period of three months following the
Expatriate Security Evacuation, or until the date of Relocation, whichever shall first occur.
e) The fees and expenses as agreed by the Fund.
f) Personal effects left behind and irrecoverably lost by the evacuated Covered Person
up to the limit as stated in the schedule.
g) Cost of tuition reimbursed by the Member to a Covered Person as a result of a Covered
Event.
3. Conditions
a) In respect of Expatriate Security Evacuation, the Member shall be indemnified solely for the costs of transportation by economy fares unless unavailable, clearly impractical or the risk to the life of the Covered Person is such that any other appropriate means of transport becomes essential.
b) Coverage shall apply once per Covered Person per Covered Event. 4. Exclusions
This endorsement does not include Covered Losses by the Member or a Covered Person arising from or attributable to:
a) Violation by the Member or a Covered Person of the laws or regulations of the country of which they are a national or a resident.
b) The failure of the Member or a Covered Person properly to procure or maintain immigration, work, residence, or similar visas, permits, or other documentation.
c) A debt, insolvency, commercial failure, the repossession of any property by a title holder or any other financial cause.
d) The failure of the Member or a Covered Person to honor any contractual obligation or bond or to obey any conditions in a license.
e) Covered Persons who are nationals or permanent residents of the country in which the
Covered Event takes place.
f) Covered Events arising out of natural disasters including but not limited to earthquake, flood, fire, famine, volcanic eruption, or windstorm.
g) (i) ionizing radiations or contamination by radioactivity from any irradiated nuclear fuel or from any nuclear waste from the combustion of nuclear fuel or threat thereof;
(ii) the radioactive, toxic, explosive, or other hazardous properties of any nuclear assembly or nuclear component or threat thereof.
317 380
Item b.
h) Country exclusions as stated in the schedule.
All other terms and conditions remain unchanged.
318 381
Item b.
D. Travel Security Evacuation Extension (ASRM)
In consideration of the additional contribution and subject to the Contract terms and conditions, this Contract shall be extended to include Travel Security Evacuation as specified below, and solely in respect thereto shall read as stated below. Reference to the Schedule attaching to and
forming part of this endorsement shall determine the Limits of Liability which shall apply.
1. Definitions
a) Covered Event shall mean Travel Security Evacuation of a Covered Person or in the event of Death, his remains.
b) Travel Security Evacuation shall be a Repatriation necessitated by:
(i) officials of the Resident Country issuing for security related reasons, a
recommendation that categories of person which include the Covered Persons should leave the country in which that Covered Person engaged in travel, and/or
(ii) a Covered Person being expelled or declared persona non grata on the written authority of the recognized government of the country where the Covered Person is engaged in travel, and/or
(iii) the wholesale seizure, confiscation, or expropriation of the property, plant, and equipment of the Member located in the country where the Covered Person is engaged in travel and/or
(iv) both the Member and Control Risks agreeing that for security related
reasons Covered Persons should leave the country.
c) Repatriation shall be the return of a Covered Person to his Resident Country.
d) Resident Country shall be the country of which a Covered Person is a national or permanent resident.
2. Covered Losses:
a) Costs incurred by the Member or a Covered Person for travel to the nearest place of safety or to the Resident Country.
b) Reasonable accommodation costs incurred by the Member or a Covered Person whilst the subject of a Travel Security Evacuation for a maximum period of seven days.
c) The fees and expenses as agreed by the Fund.
d) Personal effects left behind and irrecoverably lost by the evacuated Covered Person
up to the limit shown in the Schedule.
e) Cost of tuition reimbursed by the Member to a Covered Person as a result of a Covered
319 382
Item b.
Event.
3. Conditions
a) In respect of Repatriation, the Member shall be indemnified solely for the costs of transportation by economy fares unless unavailable, clearly impractical or the risk to the life of the Covered Person is such that any other
appropriate means of transport becomes essential.
b) Coverage shall apply once per Covered Person per Covered Event.
4. Exclusions
This extension does not include Covered Losses by the Member or a Covered
Person arising from or attributable to:
a) Violation by the Member or a Covered Person of the laws or regulations of the country, state, province, territory, or local authority which gives rise to a Travel
Security Evacuation.
b) The failure of the Member or a Covered Person properly to procure or maintain
immigration, work, residence, or similar visas, permits or other documentation.
c) A debt, insolvency, commercial failure, the repossession of any property by a title holder or any other financial cause.
d) The failure of the Member or a Covered Person to honor any contractual obligation or bond or to obey any conditions in a license.
e) Repatriation of Covered Persons who are nationals or permanent residents of the country in which the Covered Event takes place.
f) Covered Events arising out of natural disasters including but not limited to earthquake, flood, fire, famine, volcanic eruption, or windstorm.
g) (i) ionizing radiations or contamination by radioactivity from any irradiated nuclear fuel or from any nuclear waste from the combustion of nuclear fuel or threat thereof;
(ii) the radioactive, toxic, explosive, or other hazardous properties of any nuclear assembly or nuclear component or threat thereof.
h) Country exclusions as specified in the Schedule.
All other terms and conditions remain unchanged.
320 383
Item b.
E. Threat Response Expense Extension
The Fund shall be liable for costs and fees incurred in respect of the Services of Control Risks Group or any other independent security firm previously agreed by the
Fund as a result of a threat or threats made by a person or a group (without an
accompanying ransom or extortion demand) to commit or attempt to :
a) inflict bodily harm to, wrongfully abduct or detain a Covered Person
b) damage, destroy or contaminate any property
c) reveal confidential or proprietary information
provided however, such threat or threats are made specifically against the Member or a
Covered Person or the Member's Property or a Covered Person(s) Property. It is further agreed that the Fund shall only be liable in respect of Covered Losses
2.c) and relevant expenses in respect of 2.d). The Fund’s liability under this extension shall not exceed the limit stated in the Schedule.
For the purpose of this extension, the following definition is added:
Services means the assessment of the threat and the temporary protection of the threatened person(s) or Property for a period not to exceed the number of days stated in
the schedule from the date the threat is received.
321 384
Item b.
F. Expatriate Security Evacuation Extension
In consideration of the additional contribution and subject to the Contract terms and conditions, this Contract shall be extended to include Expatriate Security Evacuation as specified below, and solely in respect thereto shall read as stated below. Reference
to the schedule attaching to and forming part of this endorsement shall determine the Limits of Liability which shall apply.
1. Definitions
a) Covered Event shall be the Expatriate Security Evacuation of a Covered Person or in the
event of death, his remains.
b) Expatriate Security Evacuation shall be a Repatriation necessitated by:
(i) officials of the Resident Country issuing for security related reasons, a recommendation that categories of person which include the
Covered Persons should leave the country in which that Covered
Person is temporarily resident and/or
(ii) a Covered Person being expelled or declared persona non grata on
the written authority of the recognized government of the country where temporarily resident, and/or
(iii) the wholesale seizure, confiscation, or expropriation of the property, plant, and equipment of the Member located in the country where the Covered Person is temporarily resident and/or
(iv) both the Member and Control Risks agreeing that for security related reasons Covered Persons should leave the country.
c) Repatriation shall be the return of a Covered Person to his Resident Country.
d) Relocation shall be the return of a Covered Person who has been the subject of an Expatriate Security Evacuation to the country from which he had been repatriated.
e) Resident Country shall be the country of which a Covered Person is a national or permanent resident.
2. Covered Losses
a) Costs incurred by the Member or a Covered Person for travel to the nearest place of safety or to the Resident Country.
b) Reasonable accommodation costs incurred by the Member or a Covered Person whilst the subject of an Expatriate Security Evacuation for a maximum period of seven days.
c) Economy class fares on any licensed common carrier operating from a published timetable
incurred by the Member or a Covered Person in the Relocation of a Covered Person.
322 385
Item b.
d) The gross salary, including any bonuses and allowances, paid by the
Member to a Covered Person temporarily resident, immediately prior to
the Covered Event, this salary shall be reimbursed for a maximum period of three months following the Expatriate Security Evacuation, or until the date of Relocation, whichever shall first occur.
e) The fees and expenses as agreed by the Fund.
f) Personal effects left behind and irrecoverably lost by the evacuated Covered Person up to the limit stated in the schedule.
3. Conditions
a) In respect Expatriate Security Evacuation, the Member shall be indemnified solely for the costs of transportation by economy fares unless unavailable, clearly impractical or the risk to the life of the Covered Person is such that any other appropriate means of transport becomes essential.
b) Coverage shall apply once per Covered Person per Covered Event.
4. Exclusions This endorsement does not include Covered Losses by the Member or a Covered Person arising from or attributable to:
a) Violation by the Member or a Covered Person of the laws or regulations of
the country of which they are a national or a resident.
b) The failure of the Member or a Covered Person properly to procure or maintain immigration, work, residence, or similar visas, permits, or other documentation.
c) A debt, insolvency, commercial failure, the repossession of any property by a title holder or any other financial cause.
d) The failure of the Member or a Covered Person to honor any contractual obligation or bond or to obey any conditions in a license.
e) Covered Persons who are nationals or permanent residents of the country in which the
Covered Event takes place.
f) Covered Events arising out of natural disasters including but not limited to earthquake, flood, fire, famine, volcanic eruption, or windstorm.
g) (i) ionizing radiations or contamination by radioactivity from any irradiated nuclear fuel or from any nuclear waste from the combustion of nuclear fuel or threat thereof; (ii) the radioactive, toxic, explosive, or other hazardous properties of any nuclear assembly or nuclear component or threat thereof.
323 386
Item b.
h) Country exclusions as stated in the schedule.
All other terms and conditions remain unchanged.
324 387
Item b.
G. Disappearance Investigation and Expense Extension
Subject as far as applicable to all Contract terms and conditions, this Contract shall be extended to cover Disappearance Investigation and Expense and solely in respect thereto, shall read as stated below. Reference to the Schedule attaching to and forming
part of this endorsement shall determine the Limits of Liability which shall apply. The Fund shall be liable for costs and fees incurred in respect of the Services agreed
to by the Fund in the event of the disappearance of a Covered Person for a period exceeding forty-eight (48) hours from the last confirmed contact with said Covered
Person.
It is further agreed that The Fund shall only be liable in respect of Covered Losses 2.c) and relevant expenses in respect of 2.d). For the purpose of this extension, the
following definition is added:
Services means the investigation and relevant expenses resulting from the
disappearance of a Covered Person for a period not to exceed the indemnity period as stated on the Schedule page from the date the disappearance was first reported to or discovered by the Member.
325 388
Item b.
H. Express Kidnap Extension (Enhanced)
In consideration of the additional contribution and subject to the Contract terms and conditions, this Contract shall be extended to include Express Kidnap as specified below, and solely in respect thereto shall be read as stated below. Reference to the
schedule attaching to and forming part of this endorsement shall determine the Limits of Liability which shall apply.
The Fund shall be liable in respect of Covered Losses 2.a), 2.c), 2.f) and relevant expenses in respect of 2.d) in the event of an Express Kidnap.
For the purpose of this extension, the following definition is added:
Express Kidnap means the Hijack or Kidnap of a Covered Person(s) for a period of
less than 24 hours by persons who demand or intend to demand specifically from the assets of a Covered Person(s) a Ransom as a condition of their release.
For the purpose of this extension, the following exclusion is deleted in its entirety: 4.a) The surrender of a Ransom in any face-to-face encounter, unless surrendered by a person who is in
possession of such a Ransom at the time of such surrender for the sole purpose of conveying it to pay a previously communicated Ransom demand. The Fund’s liability shall be as stated in the schedule. All other terms and conditions remain unchanged.
326 389
Item b.
I. Child Abduction Extension (K-12 ONLY)
Subject as far as applicable to all Contract terms and conditions, this Contract shall be extended to cover Child Abduction and solely in respect thereto, shall read as follows:
Definition 1.e) is amended to read:
Detention shall be the holding of a Child without prior consent from a Legal
Guardian taken from the Member's Premises or whilst attending or participating in
an activity organized or sponsored by the school for a period in excess of six (6) hours, for whatever reason and whether by authorities legally constituted in the place of custody or by others. With respect to salary payments only, the Fund’s
liability shall be for a period of 72 months or until 60 days after the date on which the
Detention ceases, whichever shall first occur.
Child is defined as a Covered Person who has a Legal Guardian.
Legal Guardian is defined as a person who has legal responsibility for the care and management of a child.
327 390
Item b.
J. Hostage Crisis Extension
In consideration of the actual contribution and subject to the Contract terms and conditions, this Contract shall be extended to include a Hostage Crisis as specified below, and solely in respect thereto shall be read as stated below. Reference to the
schedule attaching to and forming part of this endorsement shall determine the Limits of Liability which shall apply.
The Fund shall only be liable in respect of Covered Losses 2.a), 2.c), 2.e), 2.f) and relevant expenses in respect of 2.d) in the event of a Hostage Crisis lasting for a period exceeding one (1) hour.
For the purpose of this extension, the following definition is added:
Hostage Crisis means the illegal holding of a Covered Person by one party in a conflict as security that specified terms will be met by the opposing party and where the opposing party is in the immediate proximity of the Covered Person.
For the purpose of this extension, exclusions 4.a) 4.b) are deleted in their entirety.
All other terms and conditions remain unchanged.
328 391
Item b.
K. Customer Identity Threat Extension In consideration of the additional contribution and subject to the Contract terms and conditions, this Contract shall be extended to include Customer Identity Threat as specified below, and solely in respect thereto shall read as stated below. Reference to the schedule attaching to and forming part of this endorsement shall determine the
Limits of Liability which shall apply. The Fund shall be liable in respect of Covered Losses 2.a), 2.b), 2.c), 2.e), 2.f) and relevant expenses in respect of 2.d) in the event of a Customer Identity Threat. Definition 1.f) Extortion, is amended to include:
(v) disseminate, divulge, or utilize customer identity information by persons who then demand a Ransom as a condition of not carrying out such
threats.
Definition 1.d) Covered Person, v. is amended to additionally read: (v) With respects to threats to disseminate, divulge or utilize customer identity information by persons who then demand a Ransom, any customer for whom the Member holds proprietary or confidential information.
329 392
Item b.
L. Assault Expense Extension
In consideration of the additional contribution and subject to the Contract terms and conditions, this Contract shall be extended to include Assault Expense as specified below, and solely in respect thereto shall read as stated below. Reference to the Declarations
attaching to and forming part of this endorsement shall determine the Limits of Liability which shall apply.
The Fund shall only be liable in respect of Covered Losses 2.c), 2.f), relevant expenses in respect of 2.d) as a result of a physical attack by person(s) who are armed with a Weapon against a Covered Person that results in the serious physical injury, death, or dismemberment of ai Covered Person occurring on the Member's Premises or during an activity sponsored by the Member that results in regional print or televised media coverage within forty-eight (48) hours of the incident.
For the purpose of this extension, the following definition is added:
Weapon means a tool which is specifically manufactured to injure, kill, or incapacitate a person.
All other terms and conditions remain unchanged.
330 393
Item b.
From:Stephanie Heintzleman
To:David Christianson
Cc:Chris Carey; Stephanie Brown
Bcc:Stephanie Heintzleman
Subject:RE: Town of Leesburg - Request for Clarification - RFP No. 100161-FY23-36 (Town Liability Insurance)
Date:Friday, March 17, 2023 2:51:00 PM
Attachments:image001.png
Mr. Christianson, thank you for your email. We appreciate the opportunity to provide clarification on these two points:
1. Inland Marine-Your proposal shows a limit of $2,261,170. This limit is different than what was requested in thespecifications. Please clarify limit.
VAcorp provides automatic coverage for property classes shown on the town’s schedule, including Fine Arts($10,000,000 limit or as scheduled), Valuable Papers, ($100,000 limit or as scheduled), and Property in Transit($5,000,000 limit). There is no additional charge for these automatic coverages. Also, VAcorp provides coverage foryour trailers under Inland Marine property coverage. When your trailer is pulled by a covered vehicle, Auto Liabilitycoverage is included.
2. Excess Liability-Does coverage apply as excess over the underlying Employers’ Liability limits? Please clarify.
Yes, Excess Liability coverage applies as excess over the underlying Employers’ Liability limits.
Please let us know if additional information would be helpful. Thank you!
Hope you have a happy St. Patrick’s day and a great weekend!
Stephanie HeintzlemanMember Services Directorwww.vacorp.org1819 Electric Rd, Suite CRoanoke, VA 24018Main: 844.986.2705 x106Direct: 540.986.2706
From: David Christianson <DCHRISTIANSON@leesburgva.gov>
Sent: Wednesday, March 15, 2023 10:20 AM
To: Stephanie Heintzleman <SHeintzleman@riskprograms.com>
Subject: [EXTERNAL EMAIL] Town of Leesburg - Request for Clarification - RFP No. 100161-FY23-36 (Town Liability Insurance)
Greetings,
Thank you for your firm’s proposal submitted in response to the subject RFP. The Town is currently reviewing the proposal and
requests the following clarifications:
1. Inland Marine-Your proposal shows a limit of $2,261,170. This limit is different than what was requested in thespecifications. Please clarify limit.2. Excess Liability-Does coverage apply as excess over the underlying Employers’ Liability limits? Please clarify.
An email back with the above clarifications is sufficient. A revised proposal is not required at this time. Please provide your
response/clarifications by 3pm on Monday, March 20th. Call with any questions. Thank you.
David
David A. Christianson, NIGP-CPPB
Deputy Procurement Officer
Town of Leesburg, Virginia
(703) 771-2711
(571) 291-5119
✉ dchristianson@leesburgva.gov
http://www.leesburgva.gov/bidboard
394
Item b.
From:Stephanie Heintzleman
To:David Christianson
Cc:Stephanie Brown; Chris Carey
Bcc:Stephanie Heintzleman
Subject:RE: Town of Leesburg - Request for Clarification - RFP No. 100161-FY23-36 (Town Liability Insurance)
Date:Tuesday, March 28, 2023 2:56:00 PM
Mr. Christianson,
Thank you for your email. Below please find the requested clarification:
Environmental Liability-Please confirm whether your coverage is claims made or occurrence.If it is claims made, can you provide a retro date of 7/1/2011? If not, what retro date applies?VAcorp Environmental Liability coverage is occurrence based.
LODA- Please confirm whether your coverage is claims made or occurrence. If it is claimsmade, can you provide a retro date of 7/1/2007? If not, what retro date applies?
VAcorp LODA coverage is occurrence based.
Cyber- Please confirm whether your coverage is claims made or occurrence. If it is claimsmade, can you provide full prior acts or what retro date applies?VAcorp Cyber Risk coverage is claims made. The retro date is 7/1/2013.
Please let us know if you have additional questions. Thank you for your consideration!
Stephanie HeintzlemanMember Services DirectorMain: 844.986.2705 x106Direct: 540.986.2706
From: David Christianson <DCHRISTIANSON@leesburgva.gov>
Sent: Monday, March 27, 2023 4:58 PM
To: Stephanie Heintzleman <SHeintzleman@riskprograms.com>
Cc: Stephanie Brown <SBrown@riskprograms.com>; Chris Carey <CCarey@riskprograms.com>
Subject: [EXTERNAL EMAIL] Town of Leesburg - Request for Clarification - RFP No. 100161-FY23-36
(Town Liability Insurance)
Greetings,
Thank you for your prompt response to the Town’s previous request for clarification. The Town
requests additional clarification regarding the following:
Environmental Liability-Please confirm whether your coverage is claims made or occurrence.If it is claims made, can you provide a retro date of 7/1/2011? If not, what retro date applies?LODA- Please confirm whether your coverage is claims made or occurrence. If it is claimsmade, can you provide a retro date of 7/1/2007? If not, what retro date applies?Cyber- Please confirm whether your coverage is claims made or occurrence. If it is claimsmade, can you provide full prior acts or what retro date applies?
An email back with the above clarifications is sufficient. A revised proposal is not required at this
time. Please provide your response/clarifications by 3pm on Wednesday, March 29th. Call with any
questions. Thank you.
David
395
Item b.
David A. Christianson, NIGP-CPPB
Deputy Procurement Officer
Town of Leesburg, Virginia
(703) 771-2711
(571) 291-5119
✉ dchristianson@leesburgva.gov
http://www.leesburgva.gov/bidboard
396
Item b.
From:Stephanie Heintzleman
To:David Christianson
Cc:Chris Carey; Stephanie Brown
Bcc:Stephanie Heintzleman
Subject:RE: Town of Leesburg - Request for Clarification - RFP No. 100161-FY23-36 (Town Liability Insurance)
Date:Monday, April 3, 2023 3:42:00 PM
Attachments:image001.png
Mr. Christianson,
Thank you for your email. Below please find responses to your questions/request for clarification on VAcorp coverage and cost:
1.Please clarify/confirm that your LODA premium of $28,658 is accurate.
VAcorp provides LODA coverage to more covered persons than any other provider – by more than double. This has
allowed VAcorp to create the largest LODA Trust Fund in Virginia and to maintain stable and consistent LODA rates
since the state transferred the cost of this coverage to local governments in 2011. VAcorp uses the same rate for all
members, who pay on a per person basis for covered paid staff and/or volunteers.
2.The Cyber coverage for the Town of Leesburg is currently written by Cowbell (Palomar Excess & Surplus Insurance
Co.). Are you able to also approach this market for a Cyber quote?
VAcorp would prefer to provide Cyber coverage through the same facility used for all VAcorp customers. However, it is
possible for VAcorp to accept a broker of record letter and approach this market (or any other) for Cyber coverage.
Please reach out if you have additional questions. Thank you for your consideration.
Hope you have a great week!
Stephanie HeintzlemanMember Services Directorwww.vacorp.org1819 Electric Rd, Suite CRoanoke, VA 24018Main: 844.986.2705 x106Direct: 540.986.2706
From: David Christianson <DCHRISTIANSON@leesburgva.gov>
Sent: Monday, April 3, 2023 1:12 PM
To: Stephanie Heintzleman <SHeintzleman@riskprograms.com>
Cc: Chris Carey <CCarey@riskprograms.com>; Stephanie Brown <SBrown@riskprograms.com>
Subject: [EXTERNAL EMAIL] Town of Leesburg - Request for Clarification - RFP No. 100161-FY23-36 (Town Liability Insurance)
Greetings,
We hope you’re doing well. Thank you for your previous clarifications relative to your organization’s proposal. We requested
the following additional clarifications:
Please clarify/confirm that your LODA premium of $28,658 is accurate.
The Cyber coverage for the Town of Leesburg is currently written by Cowbell (Palomar Excess & Surplus Insurance Co.).
Are you able to also approach this market for a Cyber quote? You don’t need to request a quote (at this time), we’re
simply wondering if it’s possible.
Please provide responses to the above by 3pm on April 5th. If you need more time, please let me know. Thank you.
David
397
Item b.
David A. Christianson, NIGP-CPPB
Deputy Procurement Officer
Town of Leesburg, Virginia
(703) 771-2711
(571) 291-5119
✉ dchristianson@leesburgva.gov
http://www.leesburgva.gov/bidboard
398
Item b.
1
Stephanie Brown
From:Chris Carey
Sent:Thursday, April 20, 2023 11:34 AM
To:David Christianson
Cc:Stephanie Heintzleman
Subject:Town of Leesburg - Proposal Discussions/Demonstration
Dave:
We would like to thank you and your team for your time yesterday. I wanted to respond to the issue raised regarding
Multi‐Factor Authentication (MFA) for our member portal. I was not expecting that question and apologize that I was
unable to provide a better response. Please share this with your team as you feel necessary.
As the largest provider of Cyber Insurance to localities, we take Cyber Security measures very seriously. We currently
have almost 600 Cyber customers in Virginia with varying degrees of sophistication. We have adopted a very specific
strategy that we have been implementing for several years.
In FY21, we re‐developed our coverage document, which has been recognized nationally as the broadest Cyber
Insurance coverage available to local governments anywhere in the Country. We have even had multiple Virginia State
Agencies purchase this coverage.
In FY22, we started focusing on building out our incident response capabilities. This was necessary to provide response
measures for our many customers with varying degrees of IT awareness. Our size allowed us to develop the most
comprehensive infrastructure to respond to breaches, which includes numerous private entities and partnerships with
State Police, Homeland Security and the FBI.
In FY23, we have focused on Risk Mitigation. We enrolled all members in Dark Web IQ as well as started offering
vulnerability scanning services through BitSight and gathering information relative to member capabilities.
In FY24, we have a staged rollout of our new security model. Until this time, we have allowed customers to get up to
speed. Effective 7/1/23, members can opt for MFA on the portal login. Effective 1/1/24, we will require all members to
implement MFA to access the portal.
I hope you understand our need to take a structured approach to rolling out security measures against a broad
membership group. We believe our methods are prudent to assist as many members as possible to improve their
security profile.
I hope this provides the information you need. We appreciate your consideration.
Chris Carey
Administrator
www.vacorp.org
1819 Electric Rd, Suite C
Roanoke, VA 24018
Main: 540.345.8500 x 101
Mobile: 540-798-7942
399
Item b.
COUNCIL ACTIONS CALENDAR
Tentative/Subject to Change
MeetingDate MeetingType Name SubmittedBy
05/22/2023 Town Council Work Session DISCUSSION: Commercial Vehicle Parking in Residential Areas (P)Smith, Carmen
DISCUSSION: Downtown Parking Strategies (P)Markel, Keith
INFORMATION MEMO: Effectiveness of Clutter Ordinance Cicalese, Karen
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
INFORMATION MEMO: Reevaluation of Donation Boxes (P)
05/23/2023 Town Council Meeting CLOSED SESSION: Annexation with respect to the Joint Land Management Area (JLMA)Boeing, Eileen
CONSENT: Award Town Liability Insurance to Virginia Association of Counties Group Self-Insurance Risk Pool (VAcorp)Andrew, Octavia
CONSENT: Market Street and King Street Intersection Improvements Project - Construction Change Order (NP)Southerland, Danielle
PROCLAMATION: 249th Commemoration of the Loudoun County Resolves Smith, Ann
PROCLAMATION: American Cancer Society’s Loudoun County Relay for Life Smith, Ann
PROCLAMATION: In Recognition of Nancy Ryan Alvarez, Corina
PROCLAMATION: LGBTQ Pride Month Smith, Ann
PROCLAMATION: National Gun Violence Awareness Day Smith, Ann
PROCLAMATION: Wayne’s Crossing Day Smith, Ann
06/12/2023 Town Council Work Session DISCUSSION: Air Traffic Control Services at Leesburg Executive Airport Coffman, Scott
DISCUSSION: COPA - Community Piano Program Kosin, Leah
DISCUSSION: Economic Development Plan – Project Update to Council (P)Turney, Elaine
DISCUSSION: Outdoor Performance Venue (P)Eagle, Tabitha
DISCUSSION: Zoning Ordinance Amendment to allow Congregate Housing (P)Cicalese, Karen
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
06/13/2023 Town Council Meeting CONSENT: Authorizing an Extension of the Cable Franchise between Verizon Virginia LLC and the Town for a Period of Six (6) Months Smith, Carmen
CONSENT: Plaza Street Pedestrian Improvements - Design Task Order Contract (NP)Southerland, Danielle
CONSENT: Rt 7/Battlefield Landscaping Contract Award (NP)Southerland, Danielle
CONSENT: Supplemental Appropriation for Preliminary Engineering of the Airport Runway Pavement Rehabilitation Project (NP)Southerland, Danielle
ORDINANCE: Initiate Zoning Ordinance Amendment to allow Congregate Housing (PLACEHOLDER)Cicalese, Karen
PROCLAMATION: Juneteenth Smith, Ann
PROCLAMATION: Master Gardeners Smith, Ann
PUBLIC HEARING: TLZM-2021-0006 Hamblet Rezoning (P)Cicalese, Karen
RESOLUTION: Amending the Capital Improvement Program for Air Traffic Control Tower Coffman, Scott
RESOLUTION: Traffic Study Areas - Award of Contract (P)Southerland, Danielle
5/17/202311:08 AM
400
Item a.
COUNCIL ACTIONS CALENDAR
Tentative/Subject to Change
MeetingDate MeetingType Name SubmittedBy
06/26/2023 Town Council Work Session DISCUSSION: Evaluate the Development of a Business Incubator/Entrepreneurial Program (P)Turney, Elaine
DISCUSSION: 2024 Legislative Program Markel, Keith
DISCUSSION: Legislative Aides for Council Members Berrios, Sandra
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
INFORMATION MEMO: Town Council Benefits Didawick, Josh
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
06/27/2023 Town Council Meeting CONSENT: Contract Award for UV Disinfection at Water Treatment Plant (NP)Wyks, Amy
PRESENTATION: 2021/2022 Tree Commission Annual Report Atkins, Noble
07/10/2023 Town Council Work Session DISCUSSION: Follow Up on Affordable Housing Incentives Plan (P)Cicalese, Karen
DISCUSSION: Membership Requirements for Boards and Commissions Smith, Carmen
DISCUSSION: Proclamation Process Boeing, Eileen
DISCUSSION: Traffic Intersection Route 7 Exit Ramp at Clubhouse Drive (P)LaFollette, Renee
07/11/2023 Town Council Meeting CONSENT: Contract Award Sanitary Sewer Pump Station Upgrades (NP)Wyks, Amy
CONSENT: Water Treatment Plant Roof-Top HVAC Unit Replacement (NP)Wyks, Amy
PRESENTATION: Independence Day Parade Patriot Cup Winners – TBD Boeing, Eileen
PUBLIC HEARING: Ordinance Amendment for Continuing Care Facility Parker, Scott
07/24/2023 Town Council Work Session DISCUSSION: Community Composting Program Moran, Deb
DISCUSSION: Recycling Program (P)Southerland, Danielle
DISCUSSION: Solar Panels on Public Buildings (P)Southerland, Danielle
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
INFORMATION MEMO: EV Pilot Program (P)Southerland, Danielle
INFORMATION MEMO: Green Infrastructure (P)Southerland, Danielle
07/25/2023 Town Council Meeting CONSENT: Contract Award Sanitary Sewer Manhole Lining (NP)Wyks, Amy
RESOLUTION: Adoption of the Town's Legislative Agenda (P)Belote, Tara
5/17/202311:08 AM
401
Item a.
COUNCIL ACTIONS CALENDAR
Tentative/Subject to Change
MeetingDate MeetingType Name SubmittedBy
08/07/2023 Town Council Work Session DISCUSSION: Outdoor Volleyball Courts Eagle, Tabitha
DISCUSSION: Main Street – Quarterly Update Turney, Elaine
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
INFORMATION MEMO: Thomas Balch Library Advisory Commission Annual Report Smith, Ann
INFORMATION MEMO: Quarterly Progress Report on Council Retreat Workplan Items Dentler, Kaj
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
08/08/2023 Town Council Meeting CONSENT: Airport Apron Paving Construction Contract Award (NP)Southerland, Danielle
PROCLAMATION: Childhood Cancer Awareness Month Smith, Ann
PROCLAMATION: Hunger Action Month Smith, Ann
PROCLAMATION: International Overdose Awareness Day Smith, Ann
PROCLAMATION: National Payroll Week Smith, Ann
PROCLAMATION: World Suicide Prevention Day Smith, Ann
PUBLIC HEARING: Zoning Ordinance Re-Write Commercial Inn Definition Watkins, Michael
RESOLUTION: Memorandum of Agreement for Air Traffic Control Services at Leesburg Executive Airport Coffman, Scott
09/11/2023 Town Council Work Session DISCUSSION: Town Manager Staff Report on Organizational Succession Planning (P)Belote, Tara
INFORMATION MEMO: Quarterly Budget Update Schellhase, Holland
INFORMATION MEMO: Quarterly Parking Update Schellhase, Holland
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
09/12/2023 Town Council Meeting PRESENTATION: Commission on Public Art Annual Report Kosin, Leah
PROCLAMATION: Constitution Week Smith, Ann
PROCLAMATION: National Hispanic Heritage Month Smith, Ann
5/17/202311:08 AM
402
Item a.
COUNCIL ACTIONS CALENDAR
Tentative/Subject to Change
MeetingDate MeetingType Name SubmittedBy
09/25/2023 Town Council Work Session DISCUSSION: Noise Ordinance Amendments Smith, Carmen
DISCUSSION: Summer JAMS Program (formerly Acoustics on the Green) (P)Eagle, Tabitha
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
09/26/2023 Town Council Meeting PROCLAMATION: Domestic Violence Awareness Month Smith, Ann
PROCLAMATION: Dysautonomia Awareness Month Smith, Ann
PROCLAMATION: National Arts and Humanities Month Smith, Ann
PROCLAMATION: National Bullying Prevention Month Smith, Ann
PROCLAMATION: Polish American Heritage Month Smith, Ann
RESOLUTION: Revision of Crescent District Master Plan (P)Cicalese, Karen
10/02/2023 Town Council Work Session DISCUSSION: Liberty Lot Access from South Street (NP)Southerland, Danielle
DISCUSSION: Liberty Street Parking Lot - Consideration of Remediation Study with Associated Costs (P)Belote, Tara
10/03/2023 Town Council Meeting RESOLUTION: Business Assistance Team (P)Cicalese, Karen
RESOLUTION: Liberty Street Parking Lot - Remediation Study Contract Award Belote, Tara
10/23/2023 Town Council Work Session DISCUSSION: Economic Development Plan – Adoption of Plan (P)Turney, Elaine
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
10/24/2023 Town Council Meeting PROCLAMATION: Diabetes Awareness Month Smith, Ann
PROCLAMATION: Lung Cancer Awareness Month Smith, Ann
PROCLAMATION: National American Indian Heritage Month Smith, Ann
PROCLAMATION: National Veterans and Military Families Month Smith, Ann
RESOLUTION: Adoption of Economic Development Strategic Plan (P)Turney, Elaine
11/13/2023 Town Council Work Session INFORMATION MEMO: Quarterly Progress Report on Council Retreat Workplan Items Dentler, Kaj
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
PLACEHOLDER: P&R Annual Report/Info Memo Eagle, Tabitha
11/14/2023 Town Council Meeting PROCLAMATION: Small Business Saturday Smith, Ann
11/27/2023 Town Council Work Session INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
12/11/2023 Town Council Work Session DISCUSSION: Main Street – Quarterly Update Turney, Elaine
INFORMATION MEMO: 2023 Economic Development Commission Annual Report Turney, Elaine
INFORMATION MEMO: Monthly Board and Commission Report - Activity and Attendance Smith, Ann
INFORMATION MEMO: 2023 Diversity Commission Annual Report Rodriguez, Kara
INFORMATION MEMO: Visit Loudoun Monthly Report Turney, Elaine
5/17/202311:08 AM
403
Item a.
COUNCIL ACTIONS CALENDAR
Tentative/Subject to Change
MeetingDate MeetingType Name SubmittedBy
12/12/2023 Town Council Meeting RESOLUTION: Renewal of Private Property Mural Program (P)Kosin, Leah
5/17/202311:08 AM
404
Item a.