Search
 

Abstract Interpretations

Modern technology and outages complicate the relatively simple process of determining coverage of buildings and personal property.

By Susan Massmann | Updated on July 27, 2012
It is usually fairly simple to divide buildings and personal property into two separate categories for insurance purposes: covered property and property not covered. Most forms provide a list of the property that is not covered. A commercial property or homeowners’ policy is probably going to cover the building or dwelling and personal property. Land and lawns will most likely fall in the “not covered” category.

So where do unauthorized satellite transmissions fall? Or how about electricity? Or, as some FC&S subscribers have inquired, phone time? Recently, an FC&S subscriber described his client’s phone woes: 

We have a client who suffered a lightning strike, which disabled the phone system. While the firewall was down, an outside party hacked into the system and used it to place a large number of metered, per-minute international long distance calls to the tune of $25,000.The client is insured under a Businessowners policy with an endorsement that provides up to $5,000 for computer fraud. The carrier has denied the claim for the phone charges on the basis the charges  are not “covered property.”   

The computer fraud coverage states that the insurer “will pay up to $5,000 in any one occurrence for physical loss of or physical damage to ‘money’, ‘securities’, and other property having intrinsic value resulting directly from computer fraud. Computer fraud means any act of stealing property following and directly related to the use of any computer to fraudulently cause a transfer of that property from inside your premises or from a banking institution or similar safe depository, to a person (other than a ‘messenger’) outside those premises or to a place outside those premises.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2025 ALM Global, LLC. All Rights Reserved.