Additional coverages include coverage for extra expense required to avoid or reduce interruption of data processing operations, debris removal, emergency removal, pollutant cleanup, and property in transit.

Endorsements can be attached to increase the already-broad coverage provided.

Following is a discussion of the form.

Topics covered:

Definitions

Property covered; property not covered

Extra expense coverage

Coverage extensions

Supplemental coverages

Exclusions

Duties in event of loss; valuation

Loss settlement

Other conditions

Endorsements

Definitions

Many of the coverage form's definitions are common to other insurance forms—such as “you” and “your” and so they will not be discussed here. Some, however, are unique to the form or are more all-encompassing than those found in other similar coverage forms.

Business. The usual business operations conducted at the described premises on the schedule of coverages.

Catastrophe limit. This is the amount of coverage applicable to all losses at all locations during each twelve-month policy period. This time is limited to the expiration or anniversary date.

Computer hacking. An unauthorized intrusion by an individual or group of individuals, whether employees of the insured or not, into the named insured's hardware or software. The resulting damage includes, but is not limited to: deletion, destruction, alteration, contamination, corruption, degradation, or modification of software or of hardware; scanning or otherwise copying data or proprietary information; or denial of access or denial or service from the named insured's hardware or computer network.

Computer virus. The introduction of any malicious, self-replicating electronic data processing code into the named insured's hardware or software with similar resulting damage as described under “computer hacking.”

Hardware. Hardware is a network of electronic machine components (microprocessors) capable of accepting instructions and information, processing the information, and producing the desired results. Hardware includes mainframe and mid-range computers, network servers, PCs, laptops, handheld devices, notebook PCs, multimedia projectors, and peripherals such as keyboards, monitors, modems, and printers. This is not an all-inclusive list; however, not included is any software or off-site or on-site server.

Mechanical breakdown. This is the malfunction or failure of moving or electronic parts, component failure, faulty installation, or blowout. A definition similar to this has frequently been used to refer to boiler and machinery; the definition has been appropriated to refer to computer coverage.

Media. This is the processing, recording or storage media used with hardware. The term includes, but is not limited to, films, tapes, cards, discs, drums, cartridges, cells, or flash drives.

Off-site server and on-site server. An off-site server is a server for the insured's Web site that is maintained off the premises shown in the schedule of coverages, and is being maintained and/or operated by an independent contractor acting as Web host or service provider; an on-site server is similar equipment maintained or operated on the insured's premises. In this instance, the server may be maintained and/or operated by the named insured or an independent contractor acting as the named insured's Web site consultant.

Programs and applications; proprietary programs. The first of these refers to programs and applications the insured either purchases and stores on media, or that have been pre-installed and stored on the insured's hardware. Proprietary programs are those the insured has developed in-house for the business's own use, and has stored on media or installed on hardware.

Software. This means media, data records (such as files, documents, and information stored in electronic format on media or hardware), programs and applications, and proprietary programs.

Specified perils. These are: aircraft, civil commotion; explosion; falling objects; fire; hail; leakage from fire extinguishing equipment; lightning; riot; sinkhole collapse; smoke; sonic boom; vandalism; vehicles; volcanic action (airborne shock waves, ash, or lava); water damage; weight of ice, snow, or sleet; and windstorm.

Web site server and Web site software. The first of these refers to either an off-site or on-site server as defined; the second to media, data records, programs and proprietary programs either purchased and installed or developed in-house and installed.