In return for “your” payment of the required premium, “we” provide the coverage described herein subject to all the “terms” of the Computer Coverage. This coverage is also subject to the “schedule of coverages” and additional policy conditions relating to assignment or transfer of rights or duties, cancellation, changes or modifications, inspections, and examination of books and records.

Analysis

Like the other two forms, the 7201 promises to provide the coverage described in exchange for payment of the premium. The only difference is that this form talks about “computer coverage” rather than “electronic data processing coverage.”

Definitions

3.     ”Business” means the usual business operations occurring at a premises described on the “schedule of coverages”.

9.     ”Hardware” . . .

b.     Hardware Does Not Include—“Hardware” does not include:

1)     ”software”; and

2)     ”off-site server” and “on-site server”.

19.     ”Restoration period” means:

a.     the time it should reasonably take to resume “your” “business” to a similar level of service starting from the date of a physical loss of or damage to covered property at a premises described on the “schedule of coverages” that is caused by a covered peril and ending on the date:

1)     the property should be rebuilt, repaired, or replaced; or

2)     ”business” is resumed at a new permanent location.

     This is not limited by the expiration date of the policy.

b.     The “restoration period” also means the increased time required to comply with the enforcement of any ordinance, law, or decree that:

1)     regulates the construction, use, or repair of any property; or

2)     requires the demolition of any property, in part or in whole, not damaged by a covered peril.

     The ordinance, law, or decree must be in force at the time of loss.

     ”Restoration period” does not mean the increased time required to comply with the enforcement of any ordinance, law, or decree that requires “you” or anyone else to test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize or in any way respond to or assess the effects of “pollutants”.

c.     Only as regards coverage described under Off Premises Utility Service Interruption; Interruption of Web Site (if added to this coverage part by endorsement); and Property In Transit in the Supplemental Income Coverages, “restoration period” also means the time it should reasonably take to resume “your” “business” starting from the date of direct physical loss of or damage caused by a covered peril to:

1)     property not located at a premises described on the “schedule of coverages” and that is owned by a utility, a landlord, or another utility supplier;

2)     ”your” Web site operation that is being maintained or operated by and that is located at the premises of an independent contractor or Internet service provider; and

3)     property in transit;

     and ending on the date the property should be rebuilt, repaired, or replaced. This is not limited by the expiration date of the policy.

Analysis

Business and restoration period are defined terms in the 7201, but are not in the 7200 or 7202. Since this form covers scheduled locations only, it is important to know what is going on at each location. That is the reason for the inclusion of the definition of business.

A definition of restoration period is added because this form covers loss of income when covered property is damaged by a covered peril. The restoration period defines how long the insurer will pay business income.

The definition of hardware differs from the other two forms in that it only specifies two items as not being hardware—software and servers.