CONTRACT COMMERCIAL PROPERTY

1 Page 1 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/SpecialtyContract COMMERCIAL PROPERTY OVERVIEW .. 3 APPLICATION REQUIREMENTS .. 3 List of Applications and Questionnaires .. 3 AUTHORITY .. 3 Submission Requirements .. 3 New Business Submission Requirements .. 4 Renewal Submission Requirements .. 4 Prohibited .. 5 BLANKET .. 5 BOUND BUSINESS NOTIFICATION .. 6 CAUSES OF LOSS .. 6 Basic Causes of 6 Broad Causes of Loss .. 6 Special Causes of 6 CONSTRUCTION CODES AND DEFINITIONS .. 6 Frame (Code #1).. 6 Joisted Masonry (Code #2).

2 6 Non-Combustible (Code #3) .. 7 Masonry Non-Combustible (Code #4).. 7 Modified Fire Resistive (Code #5) .. 7 Fire Resistive (Code #6) .. 7 COVERAGE AND VALUATION RATING guidelines .. 7 Agreed Value .. 7 Building Ordinance or Law Building Owner .. 7 Building Ordinance or Law Building Owner (A, B, C Combined Sublimit) .. 8 Building Ordinance or Law Tenant s Improvements and 8 Building PROPERTY Coverage for Tenant s Policy .. 9 Buildings .. 9 Business Income .. 9 Extended Period of Indemnity Rate Modification Factors .. 10 Business Personal PROPERTY (Contents).

3 10 COMMERCIAL PROPERTY Extension .. 10 Debris Removal Additional Insurance .. 11 Discharge From Sewer, Drain or Sump (Not Flood-Related).. 11 Equipment Breakdown .. 12 First 14 Functional Building Valuation/Functional Business Personal PROPERTY Valuation .. 16 Glass .. 16 Historic Register Buildings .. 16 CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 2 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/SpecialtyHousehold Personal PROPERTY .. 16 Legal Liability Coverage .. 16 Outdoor Signs .. 17 Outdoor Trees, Shrubs and Plants.

4 17 Peak Season .. 17 Personal PROPERTY of Others .. 18 PROPERTY in the Open .. 18 Replacement Cost .. 18 Solar Panels .. 18 Spoilage .. 18 Sprinkler Leakage .. 19 Tenant s Improvements and Betterments .. 19 Theft .. 19 Triple Net Lease .. 20 Utility Services .. 20 Vandalism And Malicious Mischief .. 21 Wildfire Conditions .. 21 Windstorm or Hail .. 21 CREDITS & SURCHARGES .. 22 FORMS .. 22 Fill-In Forms and Endorsements .. 22 Required Non-Admitted Forms and Endorsements .. 23 Optional Forms and Endorsements .. 24 INSPECTIONS .. 26 LIMITS.

5 26 MINIMUM POLICY PREMIUM .. 26 PROBABLE MAXIMUM LOSS (PML) .. 27 RATES .. 27 SIGNATURE-REQUIRED ENDORSEMENTS .. 27 TERRITORIES .. 27 WARRANTY ENDORSEMENTS .. 29 CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 3 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/SpecialtyOVERVIEW Our intent is to provide general guidelines for the different classes and coverages that are within your authority. It is not possible to address every coverage situation in this guide. Please contact your E&S/Specialty underwriter for questions and referrals.

6 If a risk is eligible for one of our programs, program guidelines and rates must be used for Liability and PROPERTY sections, subject to state exceptions. Submit any deviations. All guidelines and requirements specified in the Classification and Topical Guide, CONTRACT Underwriting Guides and CONTRACT State Information pages apply to program business, unless otherwise indicated in the individual programs. Use ExpressConnect to submit, rate, quote, issue and endorse CONTRACT P&C programs, ISO, Inland Marine and Crime. CONTRACT COMMERCIAL P&C business, whether Program or ISO, is to be written on a non-admitted basis, subject to state exceptions.

7 The applicable companies are: STATE COMPANY All States except Ohio, Arizona and Delaware Scottsdale Insurance Company (SIC) Ohio Scottsdale Surplus Lines Insurance Company (SSLIC) Arizona & Delaware Scottsdale Indemnity Company (SIN) APPLICATION REQUIREMENTS Application requirements are as follows, unless otherwise indicated in the Classification and Topical Guide, program(s), or as requested by an E&S/Specialty Underwriter. All New Business: Use applicable ACORD Application(s), along with supplemental applications as required per program or the Classification and Topical Guide.

8 Renewals: New completed application(s) is required every three years, or if there has been a material change to the risk. New Locations: If a new location is added mid-term, a PROPERTY application is required for that location. List of Applications and Questionnaires Applications and questionnaires can be accessed under the Forms and Applications/Questionnaires section of the Underwriting Tools Home page. There are also links to program and class specific applications and questionnaires within the Classification and Topical Guide and programs.

9 AUTHORITY Submission Requirements When submitting items for approval, we must be furnished the following information which will allow us to underwrite and improve our response time on submissions: Completed ACORD application(s) and supplemental application(s)/questionnaire(s), if applicable Detailed description of operations and explanation of each named insured ExpressConnect rating or rating worksheets if not rated in ExpressConnect CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 4 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/Specialty Prior loss experience with detailed description of losses, including loss prevention measures on any one loss of $10,000 or greater Prior carrier and, if possible.

10 Historical premium by line of business Reason for submission Target pricing Date quotation is needed New Business Submission Requirements PROPERTY premium in excess of $35,000 Risks with a loss in excess of $50,000, or more than two losses in the last three years regardless of amount Accounts indicated as S (Submit) in the Classification and Topical Guide or as submit in a program Any deviation to a program Risks that do not fall within your specific binding authority (The total amount of coverage for PROPERTY and Inland Marine coverages should not exceed your individual binding authority)