================================================================================ HARBORFRONT LOGISTICS COMMERCIAL LOSS CLAIM — POLICY & ENDORSEMENT AUDIT PACK CONFIDENTIAL CLAIMS WORK-PRODUCT & COVERAGE DETERMINATION DOSSIER SYNTHETIC DEMONSTRATION RECORD FOR LOCAL COVERAGE RECONCILIATION ================================================================================ RECORD 1: COMMERCIAL GENERAL LIABILITY (CGL) COVERAGE FORM (EXCERPT) Policy No.: CGL-2025-HL-9941 Named Insured: Harborfront Logistics Services LLC (Savannah, GA) Carrier: Atlantic Maritime & Commercial Underwriters Inc. Policy Period: 2025-10-01 to 2026-10-01 Base Form: Invented teaching excerpt (not an authentic ISO form) SECTION I — COVERAGES COVERAGE A — BODILY INJURY AND PROPERTY DAMAGE LIABILITY 1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; (2) The "bodily injury" or "property damage" occurs during the policy period. 2. Exclusions (Baseline) g. Aircraft, Auto Or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". Exception to Exclusion g: This exclusion does not apply to: (1) A watercraft while ashore on premises you own or rent; (2) A watercraft you do not own that is: (a) Less than 26 feet long; and (b) Not being used to carry persons or property for a charge. ================================================================================ RECORD 2: MANUSCRIPT ENDORSEMENT NO. 14 — SPECIAL CONDITIONS & EXCLUSIONS Endorsement Attached to and Forming Part of Policy No.: CGL-2025-HL-9941 Effective Date of Endorsement: 2025-10-01 Title: Endorsement No. 14 — Subcontractor Warranty, Water Damage Limitation, and Defense Within Limits THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 1. SUB-LIMIT & SUBCONTRACTOR WARRANTY CLAUSE It is a condition precedent to coverage under this Policy that with respect to any work performed on behalf of the Named Insured by independent contractors or subcontractors: a. The Named Insured must obtain a written hold harmless and indemnity agreement from the subcontractor running in favor of the Named Insured prior to commencement of any work; b. The Named Insured must collect and verify Certificates of Insurance evidencing Commercial General Liability coverage maintained by the subcontractor with limits equal to or greater than $1,000,000 Each Occurrence, naming the Named Insured as an Additional Insured on a primary and non-contributory basis; c. FAILURE TO SATISFY SUB-SECTIONS (a) OR (b) SHALL NULLIFY AND VOID ALL COVERAGE, INCLUDING DEFENSE AND INDEMNITY, FOR ANY CLAIM ARISING DIRECTLY OR INDIRECTLY FROM WORK PERFORMED BY SUCH SUBCONTRACTOR. 2. WATER DAMAGE EXCLUSION & WAREHOUSE EXCEPTION Exclusion 2(k) of Coverage A is deleted and replaced with the following: This insurance does not apply to any "property damage" arising directly or indirectly out of: a. Flood, surface water, waves, tidal water, overflow of any body of water, or spray from any of these, whether driven by wind or not; b. Water or water-borne material which backs up through sewers or drains or overflows from a sump or sump pump; EXCEPTION TO EXCLUSION 2(k): This exclusion does not apply to "property damage" occurring inside an enclosed warehouse facility owned or leased by the Named Insured, caused solely by sudden and accidental bursting or rupture of an internal municipal fire suppression sprinkler system, provided the system has undergone certified inspection within the 180 days preceding the loss. 3. DEFENSE WITHIN LIMITS (ERODING LIMITS) Notwithstanding anything in Section I to the contrary, all Legal Expenses, investigative fees, and Defense Costs incurred by the Company shall be paid from and shall reduce the Each Occurrence and General Aggregate Limits of Insurance available under this Policy. ================================================================================ RECORD 3: SENIOR ADJUSTER FIELD INVESTIGATION REPORT & RESERVATION OF RIGHTS Claim No.: CLM-2026-90412 Date of Loss: 2026-06-18 Loss Location: Warehouse Pier 4, Savannah River Terminal, Savannah, GA Adjuster: Gregory Vance, Senior Executive General Adjuster Claimant: Southeastern Cold Logistics LLC (Cargo Owner) Loss Description: Severe water inundation damaging 420 pallets of imported temperature-sensitive pharmaceutical goods stored under bailment. 1. INVESTIGATION FINDINGS & ROOT CAUSE ANALYSIS 1.1 Physical Cause of Loss: On 2026-06-18 at approximately 03:15 hours, a major rupture occurred in the internal 6-inch wet-pipe fire suppression overhead riser located inside Bay C of Warehouse Pier 4. Over 140,000 gallons of municipal water flooded the primary cold-storage bay. 1.2 Sprinkler System Maintenance History: Review of facilities documentation indicates the fire suppression system was inspected and recertified by Coastal Fire Safety LLC on 2026-01-10 (159 days prior to the date of loss). Inspection satisfies the 180-day certified inspection condition under Endorsement No. 14, Section 2 Exception. 1.3 Subcontractor Infiltration & Breach of Warranty: The rupture occurred while an unvetted third-party electrical contractor, Delta Apex Mechanical Services, was executing overhead conduit installation near the riser. Harborfront Logistics admitted during interview that: a. No written indemnity agreement was executed with Delta Apex prior to commencing work; b. Harborfront failed to obtain a Certificate of Insurance from Delta Apex naming Harborfront as Additional Insured. 1.4 Coverage Assessment: While the loss occurred inside an enclosed warehouse due to a sudden sprinkler burst (meeting the exception in Endorsement 14 Section 2), the complete failure of the Insured to comply with the mandatory Subcontractor Warranty in Endorsement 14 Section 1 triggers the total forfeiture and nullification of coverage for any claim arising from work performed by Delta Apex. 1.5 Action Recommended: Issue formal Reservation of Rights Notice asserting breach of warranty under Endorsement 14, Section 1(c).