What it does
IH 00 75 is ISO's computer systems (EDP) floater. It covers "computer equipment", "data" and "media" the insured owns and similar property of others in its care against direct physical loss except as excluded, within the United States, its territories, Puerto Rico and Canada and while shipped by air between them. ISO publishes this form in its IH series of commercial inland marine forms. IH forms are used within the Commercial Inland Marine Coverage Part, together with the Commercial Inland Marine Conditions (CM 00 01) and the Common Policy Conditions. The description here follows the 06 14 specimen; carriers have filed a 01 18 edition.
Who needs it
Firms whose operations stop when computers fail: professional offices, banks, insurers, call centers, data processors and businesses with servers or network equipment worth insuring separately from building contents. It is also used for computer equipment the business lends or takes off site, apart from portable devices.
Key provisions
- Not covered: property leased or rented to others away from the premises, paper records unless converted to data, portable computers such as laptops and tablets (IH 75 02 adds them), stock in trade and contraband.
- Additional coverages: newly acquired premises for 60 days (lesser of 25% of scheduled limits or $100,000), debris removal (25% plus up to $10,000), preservation of property (30 days), fire suppression system recharge ($10,000) and virus, harmful code or similar instruction: restoring destroyed or corrupted electronic data, and business income if attached, up to $5,000 per policy year, not for manipulation by employees or contractors maintaining the system.
- Exclusions: delay; dishonest acts; unauthorized transfer instructions; viruses except as provided; work on the property; neglect; theft by persons entrusted; wear and tear, latent defect, insects, rust. Unlike most inland marine forms, the 06 14 text does not list mechanical breakdown or artificially generated current as exclusions.
- Valuation: computer equipment at the cost to replace with new functionally identical property if replaced, otherwise ACV; data at actual cost to reproduce (blank media value if not reproduced); media at repair or replacement cost.
Quoting and selling notes
Ask for equipment values by location, backup practices, fire suppression and HVAC protection, and whether business income for computer outages is needed (IH 99 28). The virus coverage is small; a cyber policy is needed for meaningful data, extortion and breach exposures, and the IH cyber incident exclusions preserve the form's virus additional coverage.
