What it does
IL 09 35 modifies the Commercial Inland Marine, Commercial Property and Crime and Fidelity coverage parts and the Standard Property Policy. It excludes loss caused directly or indirectly by:
- Failure, malfunction or inadequacy of computer hardware, software, operating systems, networks, microprocessors or other computerized or electronic equipment, or of products and services relying on them, due to an inability to correctly recognize, process, distinguish, interpret or accept dates or times. The endorsement gives the year 2000 problem as its example.
- Advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision done to find, fix or test for such problems.
The exclusion applies regardless of any other cause or event contributing concurrently or in any sequence.
Exceptions
- If the excluded event results in a "specified cause of loss" (or elevator collision from mechanical breakdown) under the Special form, or in a covered cause under the Basic or Broad forms, the resulting loss is covered.
- Repair or modification of the computer items to correct deficiencies is never covered.
Quoting and selling notes
- This is a legacy form from the Y2K period, but it still appears on many current policies. It is narrow: it addresses date and time recognition failures, not hacking or malware.
- For modern cyber events, look for the Cyber Incident Exclusion (CP 10 75) and coordinate with a cyber policy.
