Public Storage 2010 Annual Report Download - page 24

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10
Our bank and senior unsecured debt agreements contain various customary financial covenants, including
limitations on the level of indebtedness and the prohibition of the payment of dividends upon the occurrence of
defined events of default.
Employees
We have approximately 4,900 employees in the U.S. at December 31, 2010 who render services on behalf
of the Company, primarily personnel engaged in property operations.
Seasonality
We experience minor seasonal fluctuations in the occupancy levels of self-storage facilities with
occupancies generally higher in the summer months than in the winter months. We believe that these fluctuations
result in part from increased moving activity during the summer months.
Insurance
We have historically carried customary property, earthquake, general liability and workers compensation
coverage through internationally recognized insurance carriers, subject to customary levels of deductibles. The
aggregate limits on these policies of $75 million for property coverage and $102 million for general liability are
higher than estimates of maximum probable loss that could occur from individual catastrophic events determined in
recent engineering and actuarial studies; however, in case of multiple catastrophic events, these limits could be
exhausted.
Our tenant insurance program reinsures a program that provides insurance to certificate holders against
claims for property losses due to specific named perils (earthquakes and floods are not covered by these policies) to
goods stored by tenants at our self-storage facilities for individual limits up to a maximum of $5,000. We have
third-party insurance coverage for claims paid exceeding $1,000,000 resulting from any one individual event, to a
limit of $25,000,000. At December 31, 2010, there were approximately 621,000 certificate holders held by our
tenants participating in this program, representing aggregate coverage of approximately $1.4 billion. Because each
certificate represents insurance of goods held by a tenant at our self-storage facilities, the geographic concentration
of this $1.4 billion in coverage is dispersed throughout all of our U.S. facilities. We rely on a third-party insurance
company to provide the insurance and are subject to licensing requirements and regulations in several states.