Valuable Papers and Records Coverage

ADJUSTERSINTERNATIONAL.COM 3 in the accompanying causes of loss form, up to an internal sublimit for each insured location unless a higher limit was indicated in the declarations. By the early 2000s, ISO had essentially split coverage for loss to records into two coverages. The coverage extension for valuable papers and records was retained — but only on a named perils basis — and rewritten to explicitly exclude coverage for loss to records existing as electronic data. Coverage for the costs of replacing or restoring electronic records was shifted to a new, built-in additional coverage for electronic data. That coverage was also provided under a per-location sublimit on a named perils basis —with viruses, harmful coding and similar hazards added as insured perils. Losses caused by employees, persons or entities retained by the insured were excluded. Under both provisions, coverage for collapse loss was limited to correspond to the collapse coverage provided in the policy’s causes of loss form. The distinction between coverage for valuable papers and records and that for electronic data was carried over into the ISO Businessowners (BOP) Coverage Form, with one potentially important difference: in the 2012 ISO BOP, the valuable papers and records subject to coverage are defined as documents, manuscripts or records that are “inscribed, printed, or written.”There is no explicit exclusion of electronic records. Other Coverage For some businesses, especially those with a long history, the built-in coverage provided in base property forms can be inadequate to cover the full costs of restoring valuable papers/records or electronic data, so other means of insuring losses to them have been implemented and expanded. One traditional method of doing so has been the use of separate inland marine insurance forms. Valuable papers and records (VPR) coverage has long been recognized as an inland marine “class” and VPR policies were developed to provide open-perils coverage for an exposure that might otherwise be subject to named perils and scheduled internal limits. Inland marine insurance also includes “electronic data processing” (EDP) coverage. This coverage emerged at a time when the “hardware” costs of data In special circumstances, fine arts ‘floaters’ are another form of inland marine coverage appropriate for insuring valuable documents.

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