1. INTEREST INSURED: In consideration of the payment of premium , this policy is hereby extended to cover goods and/or merchandise as described in the policy, the property of the Assured or held by them in trust or on commission or on consignment or in storage or sold but not delivered or removed, or on joint account with or belonging to others, (providing an order to insure is given in writing prior to the attachment of the risk here under), and for which the Assured may be liable in the event of loss while stored inside warehouse(s) and only at the approved warehouse(s) listed below, subject to the terms and conditions set forth in this endorsement.
  2. INSURING CONDITIONS: Goods and/or merchandise covered under this endorsement shall be insured against All Risks of physical loss or physical damages from any external cause irrespective of percentage, but excluding those risks shown in the Paramount Warranties clause of the policy and any other warranties, exclusions and /or limitations as set forth in the policy or “All-Peril” Replacement Value Insurance Coverage Quote & Endorsement any endorsements thereto, except to the extent that such risks are specifically covered by any said endorsement so attached to and made a part of the policy.
  3. EXCLUSIONS: Unless otherwise agreed by this Company, this endorsement does not insure:
    1. loss or damage due to wear and tear, inherent vice, latent defect or gradual deterioration;
    2. loss or damage due to insects, vermin, freezing or extremes of temperature;
    3. loss or damage due to delay, loss of market, loss of use, interruption of business or consequential loss of any nature, howsoever caused;
    4. loss or damage due to unexplained loss, mysterious disappearance or inventory shortage;
    5. loss or damage resulting from misappropriation, secretion, conversion, infidelity or any dishonest act done by or at the instigation of the Assured or by the Assured or other party of interest, or their employees or agents;
    6. accounts, bills, deed, evidences of debt, notes, securities, currency, money, coins, stamps, jewelry, precious stones, fine arts, bullion, specie or other precious metals;
    7. loss or damage to property stored in the open and/or outside yard of the approved warehouse location;
    8. loss or damage to property stored in the basement of the approved warehouse location;
    9. loss or damage to property held at retail locations;
    10. loss or damage by nuclear reaction or radioactive contamination, all whether controlled or uncontrolled, or due to any act or condition incident to any of the foregoing whether such loss be direct or indirect, proximate or remote, or be in whole or part caused by, contributed to or aggravated by any of the perils insured against by this endorsement, however, subject to the foregoing and all provisions of this endorsement, if this endorsement insures against the peril of fire, then direct loss by fire resulting from nuclear reaction, or nuclear radiation or radioactive contamination is insured against by this endorsement;
    11. loss or damage due to any process or while actually being worked upon and resulting there from;
    12. loss or damage resulting from the perils of earthquake, flood and windstorm (see definitions below) at all UNNAMED locations.
  4. OTHER INSURANCE: In the event the Assured shall also have placed specific insurance at any location covered by this endorsement, this insurance shall not apply with respect to any peril which at the time of loss is covered by such specific insurance, until the liability of such other insurance has been exhausted, and then shall cover only such loss as may exceed the amount of such other insurance (whether collectible or not) after application of any contribution, coinsurance, average or distribution or other clauses contained in such other insurance affecting the amount collectible there under; not, however, to exceed the limits of liability set forth elsewhere hereunder.
  5. VALUATION: Merchandise at risk under this endorsement shall be valued As per Declarations. Obsolete and/or Returned Merchandise at risk under this endorsement shall be valued at actual cash value at time and place of loss.
  6. REPORTING/COINSURANCE: This Policy is Subject to Monthly Reporting – The Assured agrees to furnish reports in writing to the Company not later than thirty (30) days after the last day of each calendar month, showing the value at risk (and if there are no values at risk the report shall so state), upon the basis provided, “All-Peril” Replacement Value Insurance Coverage Quote & Endorsement of such merchandise in storage at each location and the amount of all specific insurance in force at each of such locations on the last day of each calendar month, and to pay additional premium on such value, less the amount of specific insurance, if any, at rates As per Declarations. If the total value at risk at any location exceeds the limit of liability agreed to, or as may be agreed upon hereafter by this Company, the Assured shall, nevertheless, report to the Company the full amount at risk at such location and pay premium thereon, and this Company shall be liable for the full amount of the loss up to but not exceeding the limit of liability in force at the time of loss under this endorsement or its amendments, if any. If at the time of any loss the Assured has failed to file with this Company reports of values as above required, this endorsement, subject otherwise to all of its terms and conditions and to the terms and conditions of the policy, shall cover only at the locations and for not more than the amounts included in the last report of values less the amount specific reported, if any, filed prior to the loss. Nothing herein shall be construed to amend the limit of liability set forth elsewhere in this endorsement.
  7. INSPECTION OF RECORDS: The Assured agrees to keep an accurate record of the values of property at risk hereunder and to open such records to the inspection of this Company or its Agent at any time during business hours as long as this endorsement remains in force and for 12 months thereafter.
  8. BAILEE: This insurance shall not inure directly to the benefit of any bailee.
  9. CANCELLATION: In the event of cancellation of the policy to which this endorsement is attached, coverage under this endorsement shall automatically terminate as of the effective date of such policy cancellation. Notwithstanding anything to the contrary contained in this policy or in endorsements attached thereto, it is understood and agreed that in the event of cancellation of the S.R. & C.C. (Strikes, Riots and Civil Commotions) coverage under this policy, coverage in respect thereof under this endorsement is automatically terminated as of the date of such policy cancellation.

PRIMARY EXCLUSIONS SUMMARY: Most of the exclusions are based on loss or damage due to: wear and tear, inherent vice, latent defect or gradual deterioration, insects, vermin, freezing or extremes of temperature, delay, loss of market, loss of use, interruption of business or consequential loss of any nature, howsoever caused, unexplained loss, mysterious disappearance or inventory shortage, misappropriation, secretion, conversion, infidelity or any dishonest act done by or at the instigation of the Assured (Intelligent) or other party of interest (anyone else). Specifically excluded items are accounts, bills, deed, evidences of debt, notes, securities, currency, money, coins, stamps, jewelry, precious stones, fine arts, bullion, specie or other precious metals. Specifically excluded coverage is also based on locations, such property stored in the open and/or outside yard of the approved warehouse location; stored in the basement of the approved warehouse location (we don’t have basements); and, held at retail locations (has to be located in a non-retail warehouse). Some extreme environmental causes are also not covered: damage by nuclear reaction or radioactive contamination, controlled or uncontrolled, direct or indirect, proximate or remote; and loss or damage resulting from the perils of earthquake (any earth movement other than sinkhole collapse), volcanic eruption/ explosion/ effusion, flood and windstorm (separate policies would be required for this coverage). However, loss or damage by plain fire (the most common claim) or explosion is covered. Finally, this activity is not covered: loss or damage due to any process or while actually being worked upon and resulting there from (products not covered during assembly or manufacturing activities).