What it does
CM 66 04 modifies the Accounts Receivable Coverage Form (CM 00 66). The insured agrees to duplicate at least the percentage of its receivable records shown in the declarations and to keep the duplicates at least 6 months. The exclusion for electrical or magnetic erasure is rewritten to apply only to programming errors or faulty machine instructions and faulty installation or maintenance of data processing equipment, so erasure from occurrences or power disturbances more than 100 feet away is no longer excluded; lightning remains covered.
Who needs it
Businesses with disciplined backup routines, typically those using accounting software with offsite or cloud backup, who can earn broader coverage (and often better rates) by warranting duplication.
Quoting and selling notes
The duplication percentage is a condition the insured must actually meet; document how and where backups are kept. Pair with CM 66 06 when receivables fluctuate.
