THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PREMIUM BASE ENDORSEMENT – ENERGY
This endorsement modifies insurance provided by the Coverage Part(s) checked below:
All Coverage Parts or
Only the following checked Coverage Part(s)
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COVERAGE PART A - COMMERCIAL GENERAL LIABILITY
COVERAGE PART B - CONTRACTOR’S POLLUTION LIABILITY
COVERAGE PART C - PROFESSIONAL LIABILITY
COVERAGE PART D - SITE ENVIRONMENTAL LIABILITY
COVERAGE PART E - PRODUCTS POLLUTION LIABILITY
COVERAGE PART F - OTHER
Solely with respect to coverage afforded by the Coverage Part(s) checked above:
“Acre” means:
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One or more of the following may be entered as the Bases of Premium on the Declarations Page or the
Composite Rate Endorsement of this Policy. These Bases of Premium designate the base used for
determining your premium. The rates will apply as shown below unless shown differently on the
Composite Rate Endorsement attached to this Policy. The following are definitions of these Bases of
Premium.
A total number of acres owned or controlled by the Named insured. An “Acre” is a measure
of land equal to 43,560 square feet.
The rates apply per each “acre”.
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"Area" means:
The total number of square feet of floor space at the insured premises, computed as
follows:
For entire buildings, by multiplying the product of the horizontal dimensions of the outside
of the outer building walls by the number of floors, including basements but do not use the
area of the following:
1. Courts and mezzanine types of floor openings.
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2. Portions of basements or floors where 50% or more of the area is used for shop or storage for
building maintenance, dwelling by building maintenance employees, heating units, power
plants or air-conditioning equipment.
3. For tenants, determine the area they occupy in the same manner as for the entire buildings.
The rates apply per 1,000 square feet of “area”.
“Barrels” means:
The total annual number of “barrels” of liquid product. For purposes of this definition there are 42
gallons in a barrel.
The rates apply per 10,000 “barrels”.
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“BOE (Barrels of Oil Equivalent)” means:
The total annual amount of natural gas converted to an equivalent measure of crude oil. 6 MCF of
natural gas equal 1 barrel of crude oil. 1 MCF equals 1,000 cubic feet.
The rates apply per 10,000 “BOE” “barrels”.
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"Each" means:
The basis of premium involves units of exposure, and the quantity comprising each unit of
exposure is indicated in the Declarations such as "per person."
The rates apply per “unit” of “exposure”.
“Gallons” means:
The total annual number of “gallons” of product. There are 128 fluid ounces in a gallon.
The rates apply per 10,000 “gallons”.
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“Gross Over Water Payroll” means:
“Gross over water payroll” includes:
1.
Annual, marine (payroll subject to Jones Act, & General Maritime Law) and wet, over water,
non-marine (payroll subject to United States and Longshoreman’s and Harbor Workers Act)
remuneration which includes money or substitutes for money;
2. Commissions, bonuses, pay for holidays, vacations or periods of illness;
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3. Extra pay for overtime;
4.
Payments by the “insured(s)” or amounts otherwise required by law to be paid by employees
to statutory insurance or pension plans, such as Federal Social Security Act;
5.
The value of store certificates, merchandise, credits or any other substitute for money
received by employees as part of their pay.
“Payroll” does not include:
1. Tips and other gratuities received by employees;
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2. Payments by the “insured(s)” to group insurance or group pension plans for employees in
accordance with the manuals in use by us;
3. The value of special rewards for individual invention or discovery;
4. Dismissal or severance payments except for time worked or accrued vacation.
The rates apply per $1,000 of “gross over water payroll”.
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"Gross Payroll" means:
1.
Annual remuneration, which includes money or substitutes for money.
2.
“Gross Payroll” includes:
a. Commissions, bonuses, pay for holidays, vacations or periods of illness;
b. Extra pay for overtime;
Payments by an employer or amounts otherwise required by law to be paid by
employees to statutory insurance or pension plans, such as Federal Social Security
Act;
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c.
d. Payment to employees on any basis other than time worked, such as
piece work, profit sharing or incentive plans;
e. Payment or allowance for hand tools or power tools used by hand
provided by employees and used in their work or operations for the
insured;
f.
The rental value of an apartment or a house provided for an employee
based on comparable accommodations;
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g. Value of meals and lodging other than an apartment or house received
by employees as part of their pay;
h. The value of store certificates, merchandise, credits or any other
substitute for money received by employees as part of their pay;
The payroll of all drivers, mobile equipment operators and their helpers,
whether or not the operators are designated or licensed to operate
automobiles. If the operators and their helpers are provided to the
insured along with equipment hired under contract and their actual
payroll is not known, use 1/3 of the total amount paid out by the insured
for the hire of the equipment;
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i.
3.
j.
The payroll of executive officers and individual insureds and co-partners;
k.
Fees paid to employment agencies for temporary personnel provided to the
insured.
“Gross Payroll” does not include:
a. Tips and other gratuities received by employees;
b. Payments by an employer to group insurance or group pension plans for
employees in accordance with the manuals in use by us;
The value of special rewards for individual invention or discovery;
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c.
d. Dismissal or severance payments except for time worked or accrued vacation.
The rates apply per $1,000 of “gross payroll”.
"Gross Domestic Sales" or "Gross Domestic Receipts" means:
1.
The annual gross amount charged by the named insured, concessionaires of the named
insured or by others trading under the insured's name for:
a. All services, goods, or products, provided, sold or distributed for use in the United
States;
b. Operations performed during the policy period;
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c. Rentals; and
d. Dues or fees.
2.
Inclusions
The following items shall not be deducted from gross domestic sales or receipts:
a. Freight allowance to customers;
b. Total sales of consigned goods and warehouse receipts;
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c. Trade or cash discounts;
d. Bad debts; and
e. Repossession of items sold on installments (amount actually collected).
3.
Exclusions
The following items shall be deducted from gross domestic sales or receipts:
a. Sales or receipts from services, goods, or products, provided, sold or distributed for use
in other then the United States;
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b. Operations performed outside the United States during the policy period;
c. Rentals obtained from operations or services conducted outside the United States;
d. Dues or fees obtained from operations or services conducted outside the United States;
e. Foreign exchange discounts;
f. Sales or excise taxes which are collected and submitted to a foreign governmental
division;
g. Credits for repossessed merchandise and products returned that were sold for use
outside the United States;
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h. Allowances for damaged and spoiled goods that were sold for use outside the United
States;
i. Finance charges for items sold on installments outside the United States;
j. Overseas Freight charges on sales if freight is charged as a separate item on customers
invoice; and
k. Royalty income from patent rights or copyrights which are not product sales.
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Unless otherwise agreed to by us, “Accrual Accounting” will apply to this premium base. “Accrual
Accounting” means a method of accounting that recognizes expenses when incurred and revenue when
earned rather than when payment is made or received.
The rates apply per $1,000 of “gross domestic sales” or “gross domestic receipts”.
"Gross World Wide Sales" or "Gross World Wide Receipts" or “Gross Receipts” means:
1.
The annual gross amount charged by the named insured, concessionaires of the named
insured or by others trading under the insured's name on a world wide basis for:
a. All goods or products, sold or distributed;
b. Operations performed during the policy period;
c. Rentals; and
d. Dues or fees.
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2.
Inclusions
The following items shall not be deducted from gross world wide sales or receipts:
a. Foreign exchange discounts;
b. Freight allowance to customers;
c. Total sales of consigned goods and warehouse receipts;
d. Trade or cash discounts;
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e. Bad debts; and
f. Repossession of items sold on installments (amount actually collected).
3.
Exclusions
The following items shall be deducted from gross world wide sales or receipts:
a. Sales or excise taxes which are collected and submitted to a governmental division;
b. Credits for repossessed merchandise and products returned;
c. Allowances for damaged and spoiled goods;
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d. Finance charges for items sold on installments;
e. Freight charges on sales if freight is charged as a separate item on customers invoice;
and
f. Royalty income from patent rights or copyrights which are not product sales.
Unless otherwise agreed to by us, “Accrual Accounting” will apply to this premium base. “Accrual
Accounting” means a method of accounting that recognizes expenses when incurred and revenue when
earned rather than when payment is made or received.
The rates apply per $1,000 of “gross world wide sales” or “gross world wide receipts”.
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“KWH” means:
The total annual “KWH” (Kilowatt Hours) generated. A “KWH” equals 1000 watts operating for one
hour.
The rates apply per 1,000 “KWH”.
“Linear/Lineal Foot” means:
A distance of 12 inches measured in a line along a surface.
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The rates apply per 1,000 linear/lineal feet.
“Marginal Revenue” means:
The total annual “gross sales” or “receipts” as defined above minus cost of goods sold.
Unless otherwise agreed to by us, “Accrual Accounting” will apply to this premium base. “Accrual
Accounting” means a method of accounting that recognizes expenses when incurred and revenue when
earned rather than when payment is made or received.
The rates apply per $1,000 of “marginal revenue.”
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“MCF of Natural Gas” means:
The total annual “MCF” of natural gas not converted to “BOE.” 1 MCF equals 1,000 cubic feet of
natural gas.
The rates apply per 10,000 “MCF” of natural gas.
“MKWH” means:
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The total annual “MKWH” (Mega Kilowatt Hours) generated. A “MKW” equals 1,000,000 watts
operating for one hour.
The rates apply per 10,000 “MKWH”.
“Miles” means:
The total number of “miles” of pipeline in which the named insured has an economic interest. A
mile is a measure equal to 1,760 yards or 5,280 feet. A Pipeline may include but not be limited to,
gathering systems, transmission systems and or distribution systems.
“Standard Cubic Feet”
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The rates apply per mile.
The total annual number of “standard cubic feet” of gaseous product. For purposes of this
definition a standard cubic foot is a cubic foot of volume at 60 degrees Fahrenheit and 14.7
pounds per square inch (PSI) of pressure.
The rates apply per 1,000 “standard cubic feet”.
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Thru Put at the Fence Line” means:
The total annual “gallons” or “barrels” of product that exits the premises at the fence line.
The rates apply per 10,000 of total “gallons” or “barrels” or “BOE” of product unless noted otherwise on the
Composite Rate Endorsement.
Ton Variables
“Clean Ton” means:
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Coal that has been treated for waste, processed, or washed.
“Metric Ton” means:
A “Ton - Metric” equals 2,200 pounds.
“Raw Ton” means:
Coal recovered from a mine, prior to any treatment for waste, processing, or washed.
“US Short Ton” or “Standard Ton” or “Ton” means:
A “Ton - US Short” or “Ton – Standard Ton” or “Ton” equals 2,000 pounds.
The rates for the above defined tons are on a per 100 ton basis.
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"Total Cost" means:
The “total cost” of all work let or sublet in connection with each specific project including:
1. The cost of all labor, materials and equipment furnished, used or delivered for use in the
execution of the work.
2. All fees, bonuses or commissions made, paid or due.
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Unless otherwise agreed to by us, “Accrual Accounting” will apply to this premium base. “Accrual
Accounting” means a method of accounting that recognizes expenses when incurred and revenue when
earned rather than when payment is made or received.
The rates apply per $1,000 of total cost.
"Unit" means:
A single room or group of rooms intended for occupancy as separate living quarters by a family,
by a group of unrelated persons living together, or by a person living alone.
“Well” means:
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The rates apply per each “unit”.
An existing ”well” or “well” to be drilled, in which the named insured has an economic interest.
The rates apply per each “well”.
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ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
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