Under BOP, which statement about computers and electronic data is accurate?

Under BOP, which statement about computers and electronic data is accurate?

• A. All computer losses are excluded.
• B. Computers and data are covered for any loss regardless of cause.
• C. Computers and data are not covered unless the loss results from a listed cause of loss, and computers permanently installed in aircraft, watercraft, or vehicles have special rules.
• D. Computers are covered only if stored off premises.

Answer: (C)

The key idea is that a Businessowners Policy uses named perils, not open-ended coverage, for property like computers and electronic data. This means computer losses aren’t automatically covered for any cause; they’re only covered if the loss results from a listed (covered) cause of loss in the policy. In addition, computers that are permanently installed in aircraft, watercraft, or vehicles have special rules that can change how or whether they’re covered (often requiring endorsements or applying different limits). So the statement that best fits is that computers and data aren’t covered unless the loss comes from a listed cause of loss, with special treatment for those installed in aircraft, watercraft, or vehicles.

The key idea is that a Businessowners Policy uses named perils, not open-ended coverage, for property like computers and electronic data. This means computer losses aren’t automatically covered for any cause; they’re only covered if the loss results from a listed (covered) cause of loss in the policy. In addition, computers that are permanently installed in aircraft, watercraft, or vehicles have special rules that can change how or whether they’re covered (often requiring endorsements or applying different limits). So the statement that best fits is that computers and data aren’t covered unless the loss comes from a listed cause of loss, with special treatment for those installed in aircraft, watercraft, or vehicles.