Electronic Data Processing Equipment/Media Coverage

EDP coverage is intended to provide special perils coverage for computer hardware and software. Software includes data and media. In addition, the form can provide time element coverage that arises from direct losses to data processing equipment. EDP coverage usually includes two causes of loss that commonly damage computer equipment--electrical disturbance and mechanical breakdown. These two causes of loss are excluded from standard property coverage forms and are among the major reasons for purchasing special EDP coverage as opposed to insuring computer systems on a property policy.

Perils Insured Against
The policy covers all risks of direct physical loss unless the loss is limited or caused by a peril that is excluded.

Perils Excluded

1. "We" do not pay for loss if one or more of the following exclusions apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events.
1. Civil Authority - "We" do not pay for loss caused by order of any civil authority, including seizure, confiscation, destruction, or quarantine of property. "We" do pay for loss resulting from acts of destruction by the civil authority to prevent the spread of fire, unless the fire is caused by a peril excluded under this coverage.
2. Nuclear Hazard - "We" do not pay for loss caused by or resulting from a nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. "We" do pay for direct loss by fire resulting from the nuclear hazard.
3. War - "We" do not pay for loss caused by war. This means:
1. declared war, undeclared war, civil war, insurrection, rebellion, or revolution;
2. a warlike act by a military force or by military personnel;
3. the destruction, seizure, or use of the property for a military purpose; or
4. the discharge of a nuclear weapon even if it is accidental.
2. "We" do not pay for loss or damage if one or more of the following exclusions apply to the loss.
1. Criminal, Fraudulent, or Dishonest Acts - "We" do not pay for loss caused by or resulting from criminal, fraudulent, dishonest, or illegal acts alone or in collusion with another by:
1. "you";
2. others who have an interest in the property;
3. others to whom "you" entrust the property;
4. "your" partners, officers, directors, trustees, or joint adventurers; or
5. the employees or agents of 1), 2), 3), or 4) above, whether or not they are at work. This exclusion does not apply to acts of destruction by "your" employees, but "we" do not pay for theft by employees.  This exclusion does not apply to covered property in the custody of a carrier for hire.
2. Deterioration, Fault or Weakness - "We" do not pay for deterioration; decay; or any quality, fault, or weakness in the covered property that causes it to damage or destroy itself. This exclusion does not apply to loss caused by "mechanical breakdown".
3. Electrical Disturbance - "We" do not pay for loss caused by "electrical disturbance" if the cause of such disturbance took place more than 500 feet from the premises where the loss occurred.
4. Lease Terms - "We" do not pay for loss caused by a covered peril for which "you" are not responsible under the terms of any lease or rental agreement.
5. Loss of Use - "We" do not pay for loss caused by or resulting from loss of use, business interruption, delay, or loss of market. This exclusion does not apply to Extra Expense coverage as provided under Additional Coverages.
6. Pollutants - "We" do not pay for loss caused by or resulting from release, discharge, seepage, migration, dispersal, or escape of "pollutants" unless the release, discharge, seepage, migration, dispersal, or escape is caused by a "specified peril". "We" do pay for any resulting loss caused by a "specified peril".
7. Power Supply Disturbance - "We" do not pay for loss caused by "power supply disturbance" if the cause of such disturbance took place more than 500 feet from the premises where the loss occurred.
8. Temperature, Humidity, Corrosion, or Rust - "We" do not pay for loss caused by corrosion, rust, humidity, dampness, dryness, or changes in or extremes of temperature.  But "we" do pay for loss to covered property that results from a direct physical loss, caused by a covered peril, to the air conditioning system that services covered "hardware".
9. Wear and Tear, or Obsolescence - "We" do not pay for loss caused by wear and tear, depreciation, or obsolescence.
3. "We" do not pay for extra expenses that "you" incur if one or more of the following exclusions apply.
1. Error or Omission - "We" do not pay for extra expense caused by error or omission in programming or incorrect instructions to "hardware".
2. Leases, Licenses, Contracts, or Orders - "We" do not pay for any increase in extra expenses due to the suspension, lapse, or cancellation of leases, licenses, contracts, or orders. However, "we" do cover loss during the "restoration period" if the suspension, lapse, or cancellation results directly from the interruption of "your" "operations".  "We" do not cover any extra expense beyond the "restoration period" caused by the suspension, lapse, or cancellation of leases, licenses, contracts, or orders.
3. Strikes, Protests, or Interference - "We" do not pay for any increase in extra expenses due to interference by strikers or other persons at a premises described on the "declarations". This applies to interference with rebuilding, repairing, or replacing covered property or with the resumption of "operations".

Valuation

1. Actual Cash Value: The value of covered property is based on the actual cash value at the time of loss (replacements value with a deduction for depreciation) except as provided in paragraphs 2., 3., and 4. under Valuation.
2. Replacement Cost:  When replacement cost is indicated on the "declarations", the value of covered property will be based on the replacement cost without any deduction for depreciation.  The replacement cost is limited to the cost of repair or replacement with similar materials on the same site and used for the same purpose. The payment shall not exceed the amount "you" spend to repair or replace the damaged or destroyed property.  Replacement cost valuation does not apply until the damaged or destroyed property is repaired or replaced. "You" may make a claim for actual cash value before repair or replacement takes place, and later for the replacement cost if "you" notify "us" of "your" intent within 180 days after the loss.
3. Pair or Set:  The value of a lost or damaged article which is part of a pair or set is based on a reasonable proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set.  However, this provision does not apply to "software" that comes in sets. If part of a "software" set cannot be replaced, the loss is considered a total loss of the set.
4. Loss to Parts: The value of a lost or damaged part of an item that consists of several parts when it is complete is based on the value of only the lost or damaged part or the cost to repair or replace it.