Computer Coverage

April, 2003

American Association of Insurance Services (AAIS) Form

Summary: In addition to the EDP form described earlier in this section, see Electronic Data Processing (EDP) Coverage, AAIS publishes form IM 7201 for risks with total hardware and software values up to $250,000. Form IM 7201 provides coverage for hardware, software, and income coverage (earnings and extra expenses) at scheduled locations and with scheduled limits for each location. Much of the language in the 7201 is identical to that in the 7200 and 7202. This treatment will note the differences.
Topics covered Insuring agreement Definitions Property covered Income coverage Property not covered Coverage extensions Supplemental coverages Income coverage extensions Supplemental income coverages Perils covered and exclusions What must be done in case of a loss Valuation How much we pay Loss payment Other conditions

Insuring Agreement

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.”

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