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American Association of Insurance Services (AAIS) Form

Summary: EDP coverage is intended to provide special perils coverage for computer hardware, software and website servers. Software includes data and media. In addition, the form can provide time element coverage that arises from direct losses to data processing equipment. EDP coverage usually includes two causes of loss that commonly damage computer equipment—electrical disturbance and mechanical breakdown. These two causes of loss are excluded from standard property coverage forms and are among the major reasons for purchasing special EDP coverage as opposed to insuring computer systems on a property policy. Therefore, when placing coverage, it is important to look for forms that incorporate coverage for electrical disturbances and mechanical breakdown. This treatment discusses two forms published by the American Association of Insurance Services (AAIS). EDP form IM 7200 is intended to provide broad special perils coverage for risks with total values over $250,000, at scheduled locations with scheduled limits. EDP form 7202 provides the same coverage for risks with total values over $250,000, but with blanket limits applying to all scheduled locations.

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