StarAdvantage ® Businessowners Program 2012 Program Enhancements Agent Presentation

2 Overview  Garage classes are now eligible for StarAdvantage BOP  New coverage enhancements apply to all BOP customers  Product enhancements apply to New Business effective on or after Nov. 1, 2012

3 Eligible Garage Classes  Body Shops  Parts & Supply Stores (Retail) with Service Bays  Car Washes (Other Than Self-service)  Gas Stations with Service Bays Full or self-service With or without car wash  Service/Repair Shops

4 Service/Repair Class Descriptions  Accessories Sales & Installation  Air Conditioning and Heating  Alarm Systems  Brake and Clutch  Decals & Pinstriping  Detailing  Electrical  General Repairs  Glass  Mufflers  Oil Change & Lubrication  Pinstriping, Waxing & Buffing  Radio/Stereo Systems  Rustproofing & Undercoating  Sun Roofs  Tires  Transmissions  Tune-ups  Upholstery & Car Tops

5 Product Eligibility  Garage Operations Size Eligibility 100,000 sq. ft. per garage location; insured must be occupant $5 million annual gross sales per garage location; off-premises limited to 25% 15 employees; total for all garage locations  Garage Operations Are Not Bindable

6 Garage vs. Non-Garage Classes ClassificationUse garage classUse NON-garage class Auto parts & supply store  With service bays  Without service bays Convenience store with gasoline  Full-service  With service bays  Self-service  Without service bays Tire dealer  With service bays  Without service bays

7 Coverage Enhancements Automatic  Primary/Non-Contributory Language Al – Manager/Lessor of Premises Al – Lessor of Leased Equipment  Business Income Ordinary Payroll Expense 12-month period of coverage (same as other BI expenses)  Damage to Rented Building Assumed through Lease or Contract $5,000  Fire Department Service Charge $25,000  Newly Acquired or Constructed Property Buildings: $1 Million BPP: $500,000

8 Coverage Enhancements Automatic  Newly Acquired Organizations (Liability) Earlier of 180 days or end of policy period  Pollutant Clean-up and Removal (Property) $25,000  Reward Coverage $25,000  Waiver of Transfer of Rights of Recovery Against Others to Us (Written Contracts)—Liability

9 Coverage Enhancements Optional  Specifically Named Additional Insureds Manager/lessor of premises Lessor of leased equipment  Per Claim PD Liability Deductibles  Gasoline Spill Liability  Aggregate Liability Limits of 3X Occurrence Limit for Both General and Products-Completed Operations Aggregates  Per Project General Aggregate  Snow and Ice Removal—Products/Completed Operations

10 Garage Coverage Automatic  Covered Property Clarification Buildings—include above- and below-ground storage tanks including piping, connections and electrical equipment BPP—includes fuel in above- and below-ground storage tanks  Customers’ Autos Coverage (GKLL) $20,000 excess legal liability comprehensive and collision for garage locations with a $250 per auto/$500 per occurrence deductible  Damage to Leased Property $20,000 per occurrence  Damage to Your Product Caused by Defective Products $250 deductible  Employees’ Tools $5,000 per occurrence/$500 per tool maximum

11 Garage Coverage Automatic  Hired and Non-Owned Auto Liability N/A in IL and VT Afforded on an excess basis and not subject to aggregate limits  Operation of Customers Autos on Insured Premises  Ordinance or Law Coverage at Garage Locations Coverage 1 Coverage 2: $50,000 Coverage 3: $50,000  Supplemental Payments Bail Bonds: $2,500/Loss of earnings: $500

12 Optional Garage Endorsements  Broad Form Endorsement (N/A in IL, VT) Broad form insured—hired auto and non-owned auto liability Hired auto liability coverage territory amendment Hired auto physical damage: $50,000 Injury to co-employee coverage—hired auto liability Knowledge or notice of occurrence or offense Unintentional failure to disclose hazards Cancellation condition—60 days notice required  Damage To Your Work (Liability)—$500 deductible

13 Garage Premium Determination  Garage Liability Rating based separately on number of full-time (FT) and number of part-time (PT) employees  All companies currently available under BOP now available for garage operations (preferred, standard, surcharged)  Minimum Premium Same minimum premium for garage segment as for other segments, except $1,250 in NJ and $1,000 in PA  Available Discounts: Central station New building Multiple location Franchisee (except not applicable to gasoline stations)

14 Thank you! Thank you for viewing this presentation on Harleysville’s StarAdvantage Businessowners Program enhancements. If you have any questions about the product, please contact your Harleysville commercial lines territory manager, business development specialist or commercial lines underwriter.