Common use of Property Insurance, Public and Products Liability Insurance Clause in Contracts

Property Insurance, Public and Products Liability Insurance. The Companies shall maintain insurance (a) on all insurable tangible property against fire, flood, casualty and such other hazards (including, without limitation, extended coverage, workmen's compensation, boiler and machinery, with inflation coverage by endorsement) and (b) against public liability, product liability and business interruption, in each case in such amounts, with such deductibles and with such insurers as are customarily used by companies operating in the same industry as the Companies. In the event the Companies fail to procure or cause to be procured any such insurance or to timely pay or cause to be paid the premium(s) on any such insurance, Secured Party may do so for the Companies, but the Companies shall continue to be liable for the same and any amounts so advanced shall be part of the Obligations. The Companies hereby appoint Secured Party as the Companies' attorney-in-fact, exercisable at Secured Party's option to endorse any check which may be payable to the Companies in order to collect the proceeds of such insurance and any amount or amounts collected by Secured Party pursuant to the provisions of this Section may be applied by Secured Party, in its sole discretion, to any Obligations or to repair, reconstruct or replace the loss of or damage to Collateral as Secured Party in its discretion may from time to time determine. The Companies further covenants that all insurance premiums owing under its current policies have been paid. The Companies shall notify Secured Party, immediately, upon the Companies' receipt of a notice of termination, cancellation, or non-renewal from its insurance company of any such policy.