What it does
CR 20 21 excludes loss arising from computer hardware, software, networks, chips or other electronic equipment failing to correctly recognize or process dates or times, and from advice or work done to correct such problems. If an excluded event results in a covered loss, only the resulting loss is paid; repair or modification of the systems is never covered.
Who needs it
Carriers still attach it to stand-alone crime and fidelity policies as a standard exclusion.
How it fits the policy
An exclusion endorsement narrows the base form; it is listed among the endorsements forming part of the policy on the declarations. Because exclusions are often attached by the underwriter rather than requested, check the forms schedule on every quote and renewal and explain any added exclusion to the insured. ISO's forms index lists the current edition for 49 jurisdictions, so confirm it is approved in the insured's state.
Quoting and selling notes
- It rarely affects crime claims today but appears on many forms schedules; it does not exclude computer fraud by people.
