Which statement accurately describes the Electronic Data Processing Floater?

Which statement accurately describes the Electronic Data Processing Floater?

• A. It covers only hardware, excludes software
• B. It is written on a named peril basis
• C. It provides open perils coverage and includes protection for computer operations such as electrical and magnetic damage, mechanical breakdown, and computer viruses
• D. It excludes data and software

Answer: (C)

The Electronic Data Processing Floater insures the entire data processing system—hardware, software, data, and the computer operations that rely on them—rather than just one piece of equipment. It is typically written on an open perils basis, offering broad coverage for a wide range of risks unless specifically excluded. This policy also covers computer operations against specific hazards like electrical and magnetic damage, mechanical breakdown, and computer viruses, safeguarding both the physical components and the data processing functions. It isn’t limited to hardware, isn’t tied to a named-peril basis, and doesn’t exclude data and software, which is why this statement best describes the floater.

The Electronic Data Processing Floater insures the entire data processing system—hardware, software, data, and the computer operations that rely on them—rather than just one piece of equipment. It is typically written on an open perils basis, offering broad coverage for a wide range of risks unless specifically excluded. This policy also covers computer operations against specific hazards like electrical and magnetic damage, mechanical breakdown, and computer viruses, safeguarding both the physical components and the data processing functions. It isn’t limited to hardware, isn’t tied to a named-peril basis, and doesn’t exclude data and software, which is why this statement best describes the floater.