Recovery for Loss of Valuable Papers May Be Applied to Computerized System

We are working on a total loss claim for a hot tub wholesaler that has over 5,000 customer files. The insured would like to upgrade to a computerized recordkeeping system. Under a BOP with valuable loss of papers coverage, does the insurance company owe to reproduce the files? If it costs less to reproduce them in printed form, do they owe at least what it would cost to reproduce full printed files, and the insured could apply that to the increased cost of the new system?

Ohio Subscriber

The carrier owes the cost to reproduce the information on paper up to the limit. If the carrier agrees, that amount could be paid, and the insured could apply it to a computerized recordkeeping system.

 

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis