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DocuSign Envelope ID: D9F8096F-FD8F-4DEF-97BC-32AEDC172lF9 <br /> Occurrence means an accident, including continuous or repeated exposure to substantially the same general harmful <br /> conditions. <br /> Payload means equipment that is capable of enhancing the utility of the aircraft component of an unmanned aircraft system <br /> on which it may or may not be installed,the value of which is to be treated separately from that of a scheduled aircraft and <br /> not included in the insured value thereof. However,payload shall not include dispensable loads. <br /> Physical damage: <br /> (a) Means direct,physical, and accidental: <br /> (1) Loss of,or <br /> (2) Damage to <br /> all or part of the property insured under PART 2—PHYSICAL DAMAGE. <br /> (b) Does not include any of the following,however caused: <br /> (1) Loss of use. <br /> (2) Any residual decrease in value after repairs are completed. <br /> (3) Loss of the aircraft component of an unmanned aircraft system that has disappeared after the commencement <br /> of a flight you permitted until it has been missing and not reported for thirty(30)days. <br /> (4) The damage confined to wear and tear, freezing, depletion, rust, corrosion, erosion, or any other form of <br /> gradual deterioration. <br /> (5) The damage confined to mechanical or electrical breakdown, failure, or malfunction <br /> (6) The damage confined to an aircraft engine or auxiliary power unit or any component, accessory, or part <br /> thereof resulting from mechanical or electrical breakdown,failure,or malfunction of any of its components, <br /> accessories, or parts <br /> (7) Heat damage to an aircraft engine or auxiliary power unit or any component,accessory,or part thereof which <br /> occurs during the operation, attempted operation,or shutdown of the engine or unit. <br /> (8) The damage to an aircraft engine or auxiliary power unit or any component, accessory, or part thereof that <br /> has been contacted by a foreign object except where such damage is the result of a single recorded incident <br /> sustained during the policy period which is of sufficient severity,when such damage is discovered,to require <br /> immediate repairs in compliance with the requirements of the engine or unit manufacturer. <br /> Pilot in command means the pilot responsible for the operation and safety of the aircraft. <br /> Property damage means: <br /> (a) Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall <br /> be deemed to occur at the time of the physical injury that caused it; or <br /> (b) Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at <br /> the time of the occurrence that caused it. <br /> UAS (June 15,2018) Page 19 of 20 <br /> Includes copyrighted material of Insurance Services Office,Inc.,with its permission. <br />