ISO Farm Program Computer Coverage-Form FP 04 08

FP 04 08─ISO FARM PROGRAM COMPUTER COVERAGE FORM

(April 2020)

This form modifies FP 00 12–Farm Property–Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form or FP 00 13– Farm Property–Farm Personal Property Coverage Form.

It provides coverage for computer hardware, software, and media. It is organized like any other coverage part, with space to schedule covered items, an explanation of coverage, information on ineligible property, the causes of loss that apply, coverage extensions, conditions and definitions. This form cannot stand alone and must be used with FP 10 60–Farm Property–Causes of Loss Form and FP 00 90–Farm Property–Other Farm Provisions Form–Additional Coverages, Conditions and Definitions and the Coverage Form to which it is attached.

SCHEDULE

The form has a four-part schedule:

· The first part requires entries of Scheduled Electronic Data Processing Equipment. Required information includes the location of the equipment, a listing, and description of the equipment, and the limit of insurance that applies.

· The second part is for scheduling electronic media and records. The location number and the limit of insurance are the only required entries. There is no space available to include a description of covered property.

· The third part is a space to list and describe the blanket electronic data processing equipment and to insert the limit. There is no information provided on how to complete this space. Because there is no coinsurance requirement, it may be best to make the description as broad as possible and include all computer equipment, household personal property, and farming personal property. The limit selected should be sufficient to cover the total values of the computers.

· The fourth part is the location where blanket media and records information is recorded. In the same way as blanket equipment, the broadest and most comprehensive description possible should be entered along with the appropriate limit of insurance.

COVERAGE

Coverage is available for tangible loss or damage to electronic data processing equipment and electronic media and records. Coverage applies only to the equipment and media listed on the schedule and only at the location entered. Coverage on similar equipment at other locations is permitted and can be listed and shown on the endorsement. The equipment and media can be owned or leased by the insured. Coverage also extends to property that belongs to other parties, but which is in the insured’s control (custody or care). If damaged or lost property is either leased or belongs to another party, loss settlement is made with the owner of the equipment.

Equipment and media covered under this form is not covered under other farm policy forms. Once coverage is provided under this coverage form, it is no longer covered under FP 00 12–Farm Property–Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form or Form FP 00 13, Farm Property–Farm Personal Property Coverage Form.

Note: It is important to deduct the value of this property from the limit of insurance on the Farm Property declarations and to leave the computer and related software item blank in order to prevent duplication of premium even though there is no duplication of coverage.

PROPERTY NOT COVERED

Coverage does not apply to property held as product samples or leased or rented to others. In addition, there is no coverage for equipment installed or intended to be installed in aircraft, watercraft or vehicles requiring motor vehicle registration. Records such as bills, and accounts receivable are not covered unless in an electronic document format. In other words, hard copy records (including valuable papers) are not eligible under this coverage form.

COVERAGE EXTENSIONS

Property Away from Insured Location

Coverage for computer equipment and records off premises applies for a period of 90 days. An exception applies to duplicate records stored more than 100 feet away from premises. Such duplicate records are covered for the entire term of the policy.

The maximum coverage amount is 25% of the limit of insurance on the schedule. This is a coverage cap or maximum and not an additional amount of insurance. This is another way of saying that whatever is paid for this property reduces the amount of coverage available to other classes of property lost or damaged in the same loss.

Property in Transit

Electronic equipment and media are covered when in transit. The limit is $100,000 or the limit of insurance on the policy declarations, whichever is less. This is not an additional amount of insurance.

While covered equipment is being transported, the form’s earth movement and water exclusions are suspended, so coverage applies if loss is created by either source.

COVERED CAUSES OF LOSS AND EXCLUSIONS

All equipment covered under this endorsement is subject to FP 10 60– Farm Property–Covered Causes of Loss Form.

The Special Causes of Loss applies, and all exclusions and limitations apply, except as modified below:

· Exclusion s. (1) Artificially Generated Electric Current is amended by removing the exception for sudden and accidental damage to certain devices. It then excludes artificially generated electric current damage or loss to electronic media and records. However, this new exclusion does not apply to electronic data processing equipment.

· Exclusion w. (6) Mechanical breakdown is amended to reflect that electronic media and records are covered if damaged or destroyed during a mechanical breakdown of the electronic data processing equipment.

· Exclusions u. (7) Dampness or dryness and (8) Changes in temperature are amended to provide coverage for dampness and/or dryness and changes in temperature if the reason for the damage is the failure of air conditioning or humidity control equipment used with the covered electronic equipment.

· Exclusions t. Smoke, u. (3) Smog and u. (5) Nesting and infestation are deleted. This means that coverage applies to loss or damage from smoke from agricultural and industrial smudging. Coverage also applies to smog and loss or damage from waste, nesting, and infestation of birds, vermin, rodents, insects, and domestic animals.

· Exclusion E. 6. Utility Services is deleted with respect to electronic data services. This means that coverage applies for loss or damage due to failure of utility services.

In addition to the remaining exclusions in FP 10 60, coverage is also barred for loss or damage resulting from the following:

· Human error that occurs while information is being processed or stored

Example: Eddy of “E-Fix-It” was called in to look at Barb’s desktop that contained her farm’s computer records. Barb was worried that her system might have a virus as it had operated very sluggishly the last couple of days. Eddy runs the virus cleaning software he created. Later, Barb’s computer runs lightning fast, but her accounting and inventory records, including the software programs, are gone. This loss is ineligible for coverage.

· Failure or malfunction of software, unless due to a mechanical breakdown of the computer

· Installation, testing, repair or any other servicing of the equipment or the media

· Electronic or magnetic injury, unless caused by lightning or mechanical breakdown.

However, if any of the four new exclusions above result in fire or explosion, coverage applies to loss or damage from the ensuing fire or explosion.

LIMITATION

Any loss due to electronic or magnetic erasure of electronic records is limited to $2,500, in excess of any deductible that applies. No limitation applies if damage is caused by lightning or by mechanical breakdown of the computer.

ADDITIONAL COVERAGES (04 16 change)

Of the seven additional coverages found in FP 00 90–Farm Property-Other Farm Provisions Form, the only item that does not apply to this coverage is Pollution Clean Up and Removal.

Note: The new Glass or Safety Glazing Material Additional coverage was added with the 04 16 edition.

Both Additional Coverages in Form FP 00 13–Farm Property–Farm Personal Property Coverage Form, apply to this coverage. The Extra Expense Additional Coverage is amended to show a specific limit of $2,500.

DEDUCTIBLE

The form states that the deductible section in the FP 00 90–Farm Property-Other Farm Provisions Form applies to this coverage.

CONDITIONS

All the Common Conditions in the IL 00 17 apply. In addition, conditions from other forms also apply.

· All conditions in the FP 00 90–Farm Property – Other Farm Provisions Form – Additional Coverages, Conditions, Definitions apply except that the Other Insurance Loss Condition is changed so that this policy always responds on an excess when other insurance is available.

Note: This other insurance condition is referring to insurance on another policy, not insurance that is provided within the coverage form to which this endorsement is attached. At the start of this endorsement, it is clearly stated that when this endorsement is purchased all electronic data processing equipment and electronic media and records coverage is eliminated from both FP 00 13-Farm Property – Farm Personal Property Coverage Form and FP 00 12–Farm Property – Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form.

· The only condition in the FP 00 13–Farm Property – Farm Personal Property Coverage Form that applies to this endorsement is the Coverage E coverage territory in the Loss Conditions. The territory is the United States, Canada, and Puerto Rico.

· This endorsement has its own valuation condition.

Electronic equipment is valued at actual cash value or the cost to repair or replace, whichever is less.
Electronic media and records, not including the stored data, are valued at the replacement value as prepackaged software or blank.
Stored Data is valued at the limit specified under the Cost of Restoring Farm Operations Records Additional coverage.

DEFINITIONS

The following additional definitions are included for this coverage only:

Converted Data–Information taken from verbal or hardcopy media and placed into an electronic media, where it can be used and /or transmitted through the electronic data processing equipment.

Electronic data processing equipment–Property that can be programmed and used to store, retrieve, and process data. This includes peripheral equipment because it facilitates data processing operations.

Electronic media and records–Any data that can be transmitted electronically, including data stored on disks, films, tapes, and similar storage-type devices. It includes the data and the media on which the data is stored.