The American Association of Insurance Services (AAIS) has filed a newly revised Commercial Output Program (COP, 3.0 version).
First introduced by AAIS in 1993, the COP is a property program that provides broad coverage for buildings, business personal property, and inland marine exposures in a single policy form, priced with a unique flexible rating system.
The COP 3.0 updates and clarifies policy language, and adds or expands several coverages.
For example, an expanded crime coverage part provides options for insuring losses arising from employee fraud and dishonesty, money and securities, computer/ telecommunications fraud, counterfeit money, forged checks, and forged credit card instruments. Coverage is provided on either a discovery or loss sustained basis.
There is also enhanced coverage for computers, with computer coverage under the COP now as broad as the coverage provided under a monoline EDP policy.
The COP 3.0 adds a new provision addressing losses from computer viruses and hacking. The building and property form now includes definitions for “computer virus” and “hacking,” incorporates a general exclusion for damage resulting from them, then adds in limited coverage under a separate sublimit.
In addition, the COP 3.0 provides endorsement options for several new coverages:
*Installment Sales (covering losses to the insured’s damaged property held by another but not yet fully paid for);
*Interruption of Web Site (covers losses that result when a server away from an insured location is damaged by a covered peril);
*Overseas Transit and Location (covers product samples, personal effects, and other marketing-related property while outside the coverage territory); and
*Research & Development Projects (covers property and investment lost when an R&D project is damaged or destroyed by a covered peril).
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