Sony Corporation of America – 2014Property summary
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Sony Corporation of America
PropertyCoverage Summary
Named Insured:
Sony Corporation of America, Sony Electronics Inc., Sony Latin America Inc., SEG Travel LLC, Sony Online Entertainment LLC, Sony Network Entertainment International LLC., Sony Music Entertainment, Sony DADC US Inc., Sony/ ATV Music Publishing LLC, Sony Computer Entertainment America LLC, Sony Music Holdings, Inc., Famous Music LLC, Extreme Music, Game Entertainment Subsidiary LLC, Sony Biotechnology Inc. Micronics Inc., Sony Americas Holding Inc., Orchard Media, Inc., Gaikai Inc., Sony Pictures Entertainment Inc. and all affiliated, subsidiary, associated, and allied companies, operations, divisions, firms, persons and/or corporations and/ or limited liability companies and the insured’s interest in partnerships and joint ventures, entities and enterprises as now exist or may hereafter be constituted or acquired and any party in interest which the insured is responsible to insure.
Policy Term: April 1, 2014- April 1, 2015
Coverage Summary:
Real and Personal Property, Business Interruption (Gross Earnings, 365 days Extended Period of Indemnity, including ordinary payroll), Contingent Time Element, Extra Expense, Rental Value, Royalties, Service Interruption, Ingress/Egress, Civil/ Military Authority, Valuable Papers and Records, Accounts Receivable, Expediting Expenses, Transit, Leasehold Interest, Debris Removal, Demolition & Increased Cost of Construction, Consequential Loss, Professional Fees, and as more fully described in the policy form
Limits:$1,000,000,000 per occurrenceexcept;
100% Ground Up Sub-Limits per occurrence (applicable to all loss or damage)
Boiler & Machinery, Per Accident$100,000,000
Ammonia Contamination$10,000,000
Consequential Damage$10,000,000
Expediting Expense$10,000,000
Hazardous Substances$10,000,000
Water Damage$10,000,000
Accounts Receivable$70,000,000
Builder’s Risk$50,000,000
Business InterruptionIncluded
Certified Terrorism of Insurance$400,000,000
Civil Authority – not to exceed 60 days Included
Ingress/Egress – not to exceed 60 daysIncluded
Coinsurance Deficiency$25,000,000
Contingent Time Element as respects to Sony
Pictures Entertainment Inc. any one occurrence
not to exceed:$75,000,000
International Suppliers and Customers$50,000,000
Contingent Time Element as respects to all other
Entities any one loss or occurrence not exceed:$60,000,000
Contingent Time Element applying to
Hon Hai/Foxconn/Wistron direct suppliers
to a Sony Group Company$60,000,000
Contingent Time Element - losses
Caused by Earthquake and Flood$40,000,000
Contingent Time Element – 2nd Tier
Suppliers & Customers only$20,000,000
Contingent Time Element-Thailand Flood &
Japan Tsunami are excluded
Currency Devaluation $25,000,000
Debris Removal Included
Defense Costs$5,000,000 except $10,000,000 for SPE
Deferred PaymentsIncluded
Demolition & Increased Cost of ConstructionIncluded
Difference in Conditions for Coverage Included in MUL Limit
EDP MediaIncluded
Errors & Omissions$50,000,000
Expediting Expense $70,000,000
Extra Expense$70,000,000
Extended Period of Indemnity365 days
Fine ArtsIncluded
Jewelry, Precious and Semi-Precious Stones,$10,000,000
Fur, Fur Trimmed Garments, watches, pearls,
gold,silver, platinum, other precious metals and
alloys, coins, bullion, notes, securities, stamps,
letters ofcredit, tickets, accounts, bills, deeds
& evidence of debt
Leasehold InterestIncluded
Logistics Extra Cost$5,000,000
(not to exceed 200% of normal cost, not to exceed 180 days)
Miscellaneous Unnamed Locations$50,000,000
Newly Acquired Locations$50,000,000
Pollution and Contamination Clean-Up$5,000,000
Property in transit (per conveyance); $15,000,000
Each railroad car or trailer shall be considered
a separate conveyance
Rental ValueIncluded
Research and Development$70,000,000
Claims Preparation Costs$70,000,000
Crisis Management (via endorsement)$500,000
Risk Improvement Coverage (per occ./ann. agg.)10% of PD loss not to exceed$1,000,000
Royalties$70,000,000
Service Interruption (Time Element)$70,000,000
Soft Cost$25,000,000
Tax LiabilityIncluded
Tax Treatment of Profits$25,000,000
Tenants & Neighbors LiabilityIncluded
Valuable Papers & Records$70,000,000
Cyber (via endorsement) including Defense Costs$5,000,000
Tsunami at locations in Japan for SPE only$10,000,000
Scenery, costumes, theatrical props, property
Of others and/or misc. equipment used in connection
With a film production while off-site locations$50,000,000
And as more fully described in the policy form
Earthquake:
The Policy Aggregate Limit of Liability for All Loss or Damage by Earthquake Shall Not Exceed $250,000,000 in any one policy year except:
The Policy aggregate limit of liability for all loss or damage by Earthquake – California shall not exceed $150,000,000 in any one occurrence
The peril of EQ in Japan is excluded for any and all coverages.
Flood:
The Policy Aggregate Limit of Liability For All Loss or Damage by Flood Shall Not Exceed $250,000,000 in any one policy year except;
The Policy Aggregate Limit of Liability For All Loss Or Damage By Flood in The Netherlands Shall Not Exceed $5,000,000 in any one policy year.
The German Storm Surge Shall Not Exceed $5,000,000 in any one year.
Deductibles
All losses, damages or expenses arising out of any one occurrence shall be adjusted as one loss, and from the amount of such adjusted loss shall be deducted $100,000 except:
$50,000 for Sony Pictures Entertainment locations
$100,000 per occurrence as respects Scenery, costumes, theatrical props and miscellaneous equipment (cameras, camera equipment, sound and lighting equipment, portable electrical equipment, mechanical effects equipment, grip equipment and mobile equipment) owned by the Insured or which is property of others used by the Insured and for which the Insured is legally liable, while such property is used by the Insured in connection with a production;
$25,000 per occurrence as respects Property in Transit;
5% of the actual value per unit of insurance at the time when such loss occurs at locations within the State of California for the peril of Earthquake subject to a minimum of $100,000 per occurrence.
$100,000 as respects loss or damage arising out of an "accident" except $5,000 for Sony Pictures Entertainment locations in the USA and $25,000 as respects Sony Pictures Entertainment locations outside the USA.
$10,000 as respects Film Print Coverage except $25,000 as respects Movie Houses and/or Drive Ins.
For Lexington only the following deductible applies for High Hazard Flood:
$250,000 per occurrence with respects to all locations except Sony Pictures Entrainment locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100 year flooding, as defined by the Federal Emergency Management Agency.
As respects to Sony Pictures Entertainment Locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100 year flooding, as defined by the Federal Emergency Management Agency, the maximum available limits through the National Flood Insurance Program on Real and Personal Property and 5 days waiting period for Time Element.
In any occurrence where loss or damage is caused by more than one peril insured against under this policy, the Insured shall have the right to separate the loss amount by peril for the purposes of application of the deductible(s) specified in this section, notwithstanding the above reference to two or more deductibles and the policy limits.
The deductible amounts specified above shall not apply to general average contributions, salvage charges and sue and labor expenses.
And as more fully described in the policy form.
Conditions:
Coinsurance Waiver
Sue and Labor Clause
Underlying and Excess Insurance Clause
Salvage and Recoveries Clause
Full Step-Down/Drop-Down wording to apply
And as more fully described in the policy form.
Key Exclusions
- Land; however, this exclusion shall not apply to the cost of reclaiming,
restoring or repairing land improvements. Land improvements are defined as any alteration to the natural condition of the land by grading, landscaping, earthen dikes or dams, and additions to land such as pavements, roadways, or similar works.
B.Water, except water which is normally contained within any type of tank, piping system or other process equipment;
C.Money and securities, currency, gold bullion; however precious metals used in manufacturing or incorporated into finished products shall not be excluded
D.Growing crops, standing timber, and animals except for research;
E.Watercraft, aircraft, motor vehicles licensed for highway use when not on the Insured's premises, but this exclusion shall not apply to contractor's equipment;
F.Waterborne shipments via the Panama Canal, and to and from Puerto Rico, the Virgin Islands, Hawaii, and Alaska;
- Export shipments after loading on board an overseas vessel, watercraft, or aircraft or after Ocean Marine insurance attaches, whichever occurs first; and import shipments prior to discharge from an overseas vessel, watercraft, or aircraft, or until Ocean Marine insurance terminates, whichever occurs last. This exclusion shall not apply to: ferry shipments transporting over-the-road conveyances to, from, and between countries in Continental Europe, the United Kingdom, and Ireland; air and waterborne shipments within a single country; or air and inland waterway shipments to, from, and between countries in Continental Europe.
- Furs;
- Property sold on installment, conditional sale, trust agreement or other deferred payment plan, after delivery to customers, whether or not the insured retains title to such property
- Docks, piers, wharves, underground mines, caverns, tunnels (except tunnels connecting insured location(s), railroad rolling stock, offshore property
- Bridges, roadways, dams, dikes, walks, patios and other paved surfaces (except when connecting insured location(s) and except as provided in respect of land improvements
- Cyber Risk
Notice of Claim:
As soon as practicable after any loss or damage occurring under this policy is known to the Insured's Risk Management Department, the Insured shall report such loss or damage to Marsh USA, Inc. of New York, for transmission to insurance company. Any delay by the Insured in providing notice shall not affect the Insured's right to coverage under this policy, except if and to the extent that the Company proves that it actually and substantially was prejudiced by any unreasonable delay in notice.
Notice should be sent to:
Attn: Ed Hiroshima
Marsh Property / Casualty– Claims Department
1166 Avenue of the Americas
New York, NY 10036
Attn: Julie L. DeSantis, ARM
Vice President, Risk Management
Sony Corporation of America
550 Madison Avenue, 27th Floor
New York, NY10022
Territory:
Worldwide excluding Afghanistan, Angola, Congo (The Democratic Republic of, or formally known as Zaire), Cuba, Haiti, Iran, Iraq, Kampuchea (Cambodia), Laos, Lebanon, Liberia, Libya, North Korea, Sudan, and any other country where trade relations are unlawful as determined by the Government of the United States.
This summary does not take place of or alter any of the conditions, exclusions and other terms of the policy herein summarized. It is merely a short descriptive guide to the policy for convenient reference. The policy should be consulted for any questions on coverage claims.
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