COMMERCIAL PROPERTY CP 10 30 06 95 CAUSES OF LOSS – SPECIAL FORM Words and phrases that appear in quotation marks have special meaning. Refer to Section F. – Definitions. A. COVERED CAUSES OF LOSS (2) Volcanic eruption, explosion or effusion. When Special is shown in the Declarations, Cov- But if volcanic eruption, explosion or ered Causes of Loss means RISKS OF DIRECT effusion results in fire, building glass PHYSICAL LOSS unless the loss is: breakage or Volcanic Action, we will pay for the loss or damage caused by that 1. Excluded in Section B., Exclusions; or fire, building glass breakage or Volcanic 2. Limited in Section C., Limitations; Action. that follow. Volcanic action means direct loss or damage resulting from the eruption of a B. EXCLUSIONS volcano when the loss or damage is 1. We will not pay for loss or damage caused caused by: directly or indirectly by any of the following. (a) Airborne volcanic blast or airborne Such loss or damage is excluded regardless of shock waves; any other cause or event that contributes con- currently or in any sequence to the loss. (b) Ash, dust or particulate matter; or a. Ordinance or Law (c) Lava flow. The enforcement of any ordinance or law: All volcanic eruptions that occur within any 168 hour period will constitute a (1) Regulating the construction, use or single occurrence. repair of any property; or Volcanic action does not include the (2) Requiring the tearing down of any prop- cost to remove ash, dust or particulate erty, including the cost of removing its matter that does not cause direct physi- debris. cal loss or damage to the described This exclusion, Ordinance or Law, applies property. whether the loss results from: c. Governmental Action (1) An ordinance or law that is enforced Seizure or destruction of property by order even if the property has not been dam- of governmental authority. aged; or But we will pay for loss or damage caused (2) The increased costs incurred to comply by or resulting from acts of destruction or- with an ordinance or law in the course of dered by governmental authority and taken construction, repair, renovation, re- at the time of a fire to prevent its spread, if modeling or demolition of property, or the fire would be covered under this Cov- removal of its debris, following a physi- erage Part. cal loss to that property. d. Nuclear Hazard b. Earth Movement SAMPLE Nuclear reaction or radiation, or radioactive (1) Any earth movement (other than sink- contamination, however caused. hole collapse), such as an earthquake, landslide, mine subsidence or earth But if nuclear reaction or radiation, or ra- sinking, rising or shifting. But if earth dioactive contamination, results in fire, we movement results in fire or explosion, will pay for the loss or damage caused by we will pay for the loss or damage that fire. caused by that fire or explosion. CP 10 30 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 7 o e. Utility Services But if artificially generated electrical current The failure of power or other utility service results in fire, we will pay for the loss or supplied to the described premises, how- damage caused by that fire. ever caused, if the failure occurs away b. Delay, loss of use or loss of market. from the described premises. c. Smoke, vapor or gas from agricultural But if the failure of power or other utility smudging or industrial operations. service results in a Covered Cause of Loss, d. (1) Wear and tear; we will pay for the loss or damage caused by that Covered Cause of Loss. (2) Rust, corrosion, fungus, decay, deterio- ration, hidden or latent defect or any This exclusion does not apply to the Busi- quality in property that causes it to ness Income coverage or to Extra Expense damage or destroy itself; coverage. Instead, the Special Exclusion in paragraph B.4.a.(1) applies to these cover- (3) Smog; ages. (4) Settling, cracking, shrinking or expan- sion; f. War And Military Action (1) War, including undeclared or civil war; (5) Nesting or infestation, or discharge or release of waste products or secretions, (2) Warlike action by a military force, in- by insects, birds, rodents or other ani- cluding action in hindering or defending mals. against an actual or expected attack, by any government, sovereign or other (6) Mechanical breakdown, including rup- authority using military personnel or ture or bursting caused by centrifugal other agents; or force. But if mechanical breakdown re- sults in elevator collision, we will pay for (3) Insurrection, rebellion, revolution, the loss or damage caused by that ele- usurped power, or action taken by gov- vator collision. ernmental authority in hindering or de- fending against any of these. (7) The following causes of loss to personal property: g. Water (a) Dampness or dryness of atmos- (1) Flood, surface water, waves, tides, tidal phere; waves, overflow of any body of water, or their spray, all whether driven by (b) Changes in or extremes of tempera- wind or not; ture; or (2) Mudslide or mudflow; (c) Marring or scratching. (3) Water that backs up or overflows from a But if an excluded cause of loss that is sewer, drain or sump; or listed in 2.d. (1) through (7) results in a "specified cause of loss" or building glass (4) Water under the ground surface press- breakage, we will pay for the loss or dam- ing on, or flowing or seeping through: age caused by that "specified cause of (a) Foundations, walls, floors or paved loss" or building glass breakage. surfaces; e. Explosion of steam boilers, steam pipes, (b) Basements, whether paved or not; or steam engines or steam turbines owned or (c) Doors, windows or other openings.SAMPLEleased by you, or operated under your con- trol. But if explosion of steam boilers, But if Water, as described in g.(1) through steam pipes, steam engines or steam tur- g.(4) above, results in fire, explosion or bines results in fire or combustion explo- sprinkler leakage, we will pay for the loss or sion, we will pay for the loss or damage damage caused by that fire, explosion or caused by that fire or combustion explo- sprinkler leakage. sion. We will also pay for loss or damage 2. We will not pay for loss or damage caused by caused by or resulting from the explosion or resulting from any of the following: of gases or fuel within the furnace of any fired vessel or within the flues or passages a. Artificially generated electrical current, through which the gases of combustion including electric arcing, that disturbs elec- pass. trical devices, appliances or wires. Page 2 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 10 30 06 95 o f. Continuous or repeated seepage or leakage 3. We will not pay for loss or damage caused by of water that occurs over a period of 14 or resulting from any of the following, 3.a. days or more. through 3.c. But if an excluded cause of loss g. Water, other liquids, powder or molten that is listed in 3.a. through 3.c. results in a material that leaks or flows from plumbing, Covered Cause of Loss, we will pay for the heating, air conditioning or other equipment loss or damage caused by that Covered Cause (except fire protective systems) caused by of Loss. or resulting from freezing, unless: a. Weather conditions. But this exclusion only (1) You do your best to maintain heat in the applies if weather conditions contribute in building or structure; or any way with a cause or event excluded in paragraph 1. above to produce the loss or (2) You drain the equipment and shut off damage. the supply if the heat is not maintained. b. Acts or decisions, including the failure to h. Dishonest or criminal act by you, any of act or decide, of any person, group, organi- your partners, employees (including leased zation or governmental body. employees), directors, trustees, authorized representatives or anyone to whom you c. Faulty, inadequate or defective: entrust the property for any purpose: (1) Planning, zoning, development, survey- (1) Acting alone or in collusion with others; ing, siting; or (2) Design, specifications, workmanship, (2) Whether or not occurring during the repair, construction, renovation, re- hours of employment. modeling, grading, compaction; This exclusion does not apply to acts of (3) Materials used in repair, construction, destruction by your employees (including renovation or remodeling; or leased employees); but theft by employees (4) Maintenance; (including leased employees) is not cov- of part or all of any property on or off the ered. described premises. i. Voluntary parting with any property by you 4. Special Exclusions or anyone else to whom you have entrusted the property if induced to do so by any The following provisions apply only to the fraudulent scheme, trick, device or false specified Coverage Forms. pretense. a. Business Income (And Extra Expense) j. Rain, snow, ice or sleet to personal prop- Coverage Form, Business Income erty in the open. (Without Extra Expense) Coverage Form, or Extra Expense Coverage Form k. Collapse, except as provided below in the Additional Coverage for Collapse. But if We will not pay for: collapse results in a Covered Cause of (1) Any loss caused directly or indirectly by Loss at the described premises, we will pay the failure of power or other utility serv- for the loss or damage caused by that Cov- ice supplied to the described premises, ered Cause of Loss. however caused, if the failure occurs l.