Pass-Through Insurance Deductibles

Deductibles apply per occurrence, not per customer. There are two types depending on the cause of loss:

• All Other Perils (fire, theft, vandalism, lightning, etc.): $25,000 flat per occurrence. If a single event affects multiple Simple Mining facilities, only one $25,000 deductible applies across all sites.
• Wind and Hail Events: 2% of the total insured value at the affected location, with a $25,000 minimum. If a wind/hail event affects multiple facilities, a separate deductible applies at each location.

How the deductible is split among customers:

Each affected customer pays a proportional share based on their share of the total loss:

Customer's Deductible Share = (Customer's Equipment Loss ÷ Total Equipment Loss at Location) × Applicable Deductible

Customers whose equipment was not affected by the event pay nothing.

Sub-deductible losses: If the total loss at a location does not exceed the applicable deductible, the carrier makes no payment. Simple Mining has no obligation to replace equipment or compensate customers in this scenario

Example — Fire: Two customers suffer a combined $50,000 loss. Deductible: $25,000. Customer A lost $30,000 → owes $15,000. Customer B lost $20,000 → owes $10,000.

Example — Hail: Facility has $4,200,000 in insured value. Wind/Hail deductible: 2% = $84,000. Two customers suffer a combined $150,000 loss. Carrier pays $66,000. The $84,000 deductible is split proportionally between the two affected customers.