Electronic data processing equipment is tangible hardware that accumulates, processes and stores data. Computers, laptops, tablets, phones, servers, mainframes and networks are all examples of EDP equipment.
Most businesses are computer-dependent, and only the smallest retailer can operate without a computer cash register. Embedded chips and computers operate manufacturing equipment, contractors' equipment and equipment found in hospital operating rooms. Rather than insuring computers as office or manufacturing equipment, the Electronic Data Processing (EDP) insurance coverage form commonly covers:
How EDP coverage applies depends upon the policy definitions of key terms, including "computer hacking," "computer virus," "data records," "media," "telecommunications equipment" and others. EDP policies have many defined terms because technology is dynamic. Liberal use of specific policy language helps to preserve an EDP policy's intended coverage.
Coverage generally is available for:
Typically, coverage is provided against a specific list of events that can cause tangible loss to electronic equipment. Different coverage applies to major areas of EDP, such as hardware, software and Website servers. Covered businesses usually must comply with certain provisions to qualify for coverage, such as properly creating and storing back-up programs.
There are certain types of property that, generally, are ineligible for coverage under an EDP policy, such as: