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WHEATON, Ill., Dec. 30, 2004—Property/casualty
insurers that write commercial inland marine coverage now have access to
a new standardized form that provides streamlined computer coverage for
small businesses.
The American Association of Insurance Services
(AAIS) recently released a new "Business Computer Coverage"
form for commercial risks with total hardware and software values of
$100,000 or less. The form is provided as part of the electronic data
processing section of the AAIS Inland Marine Guide, a leading
source of policy forms, rating procedures, underwriting guidelines, and
other information.
Although the Guide is devoted to the
traditionally nonfiled classes of inland marine insurance, the Business
Computer Coverage form, like other policy forms provided in the Guide,
is being filed in more than 20 jurisdictions that do not exempt inland
marine forms from filing requirements.
Requested by insurers currently using the Guide,
the new Business Computer Coverage form provides physical damage and
extra expense coverage for computer hardware and software at scheduled
locations.
"Standard computer coverage has become more
complex in recent years with the development of separate limits for
different types of software and hardware," says Robert Guevara,
AAIS vice president for inland marine. "This new form reintroduces
a relatively simple set of limits for small risks, but incorporates the
latest definitions, valuation provisions, and other features."
Coverage extensions are provided in the form for
mechanical breakdown, electrical and power supply disturbance, emergency
removal, and debris removal; supplemental coverages are provided for new
hardware and acquired locations, pollutant cleanup and removal, and
property in transit and off-site.
The innovation of the form, however, is that it
features fewer built-in coverage extensions and supplemental coverages,
and at lower limits, than heretofore standard computer forms. Instead,
the new form is streamlined to allow the carrier and insured to add
coverages as needed.
Several endorsement options have been developed or
revised and, where necessary, filed to provide coverages not
automatically included in the new Business Computer Form. These include:
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A revised "Web Site Server Coverage and
Interruption of Web Site" endorsement. This adds coverage up to
a separate limit for a Web site server (on- or off-site) and for
loss of earnings due to an interruption of the site.
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A new "Business Computer - Income Coverage
Part" that adds coverage up to a separate limit for loss of
earnings. It includes supplemental coverages for acquired locations
and property in transit, plus coverage extensions for interruption
by civil authority and period of loss extension.
Other endorsements are available for providing
additional coverages, including virus and hacking coverage, and coverage
extensions. An endorsement is provided for covering losses arising from
earthquake, flood, or sewer backup.
Companies affiliated with AAIS for use of the Inland
Marine Guide also received coverage schedules to accompany the forms
and endorsements, plus side-by-side comparisons of new and existing
forms.
AAIS is a national advisory organization and
statistical agent that develops policy forms and rating information used
by more than 600 property/casualty companies throughout the United
States. Nearly 300 national, regional, and specialty carriers use the Inland
Marine Guide as their inland marine product platform or as a
reference.
For information on affiliating with AAIS for use of
the Inland Marine Guide, contact Rick Maka, director of
marketing, at rickm@AAISonline.com
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