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INSURANCE REQUIREMENTS

SEARS AUTHORIZED RETAIL DEALER STORES

CERTIFICATE OF LIABILITY INSURANCE REFLECTING:

Insurance Company Rating

            Must be rated by A.M. Best with a rating of A- VII or better.

Commercial General Liability

$1,000,000 per occurence/$2,000,000 aggregate for bodily injury and property damage. Coverage must include premises operations, products/completed operations, personal/advertising injury and contractual liability.   Sears Authorized Hometown Stores, LLC shall be named as an Additional Insured with respect to all operations.

Must contain a Waiver of Subrogation in favor of Sears Authorized Hometown Stores, LLC.

Must contain 30 Day Cancellation Clause.

Automobile Liability

$1,000,000 Combined Single Limit of Liability including Owned Vehicles, Non-Owned and Hired Vehicles used in the business.

Worker's Compensation and Employer's Liability Coverage

Worker's compensation policy must provide coverage for all Statutory Benefits and liabilities for "employees" of the dealer as defined under state worker's compensation statutes and laws.  

Employer's Liability coverage must provide the following limits of coverage:

 $500,000/Person                         Accident

$500,000/Person                         Disease

$500,000 Policy Aggregate           Disease

Must contain a Waiver of Subrogation in favor of Sears Authorized Hometown Stores, LLC (unless prohibited by the state's laws).

Must contain 30 Day Cancellation Clause.

EVIDENCE OF PROPERTY INSURANCE REFLECTING:

Insurance Company Rating

            Must be rated by A.M. Best with A- VII or better.

Property Coverage  

Dealer must provide property coverage in the amount equal to the Full Replacement Cost of all property including fixtures, equipment and merchandise/inventory (Minimum limit must equal the current limit of inventory per agreement with Sears Authorized Hometown Stores, LLC)

The cause of loss form must be "Special" form coverage with an Agreed Amount endorsement.

Dealer must provide proof of $50,000 Employee Dishonesty coverage/fidelity bond.  

Sears Authorized Hometown Stores, LLC shall be named as Loss Payee as their interests may appear.

Must contain a Waiver of Subrogation in favor of Sears Authorized Hometown Stores, LLC.

Must contain 30 Day Cancellation Clause.

Flood Coverage

Proof of flood insurance is required if property is in a flood zone.

Earthquake Coverage

Proof of earthquake insurance is required if property is in an earthquake zone. Earthquake coverage is mandatory in the states of California, Oregon, and Washington.

HOLDER SHOULD READ ON BOTH CERTIFICATE OF INSURANCE AND EVIDENCE OF PROPERTY:

                                    Sears Authorized Hometown Stores, LLC

                                    Attn: Norma J. Morgan

                                    National Contract Manager

                                    3333 Beverly Road B4-153B

                                    Hoffman Estates, IL 60179