This chapter provides basic instructions for completing the ACORD Electronic Data Processing Section (ACORD 148). The form has been designed to handle the basic underwriting and rating needs for issuing an EDP policy.
Individual company manuals should be consulted for unique underwriting, rating, and other information required by specific companies.
This form was designed to be used in conjunction with the Commercial Insurance Application – Applicant Information Section (ACORD 125). Refer to the chapter on the ACORD 125 for information on that form.
Most information for the Identification Section should match the data found within the Applicant Information Section of ACORD 125. However, it is still important to complete the section. Many companies, for rating purposes, separate the applications by line of business. Not completing this
portion of the application makes it difficult to keep track of the full account.
Month/day/year on which the form is completed.
Producer’s name, address and telephone number.
Applicant (First Named Insured)
First Named Insured as it appears on the ACORD 125.
Effective date on which the terms and conditions of the policy will commence.
Expiration date on which the terms and conditions of the policy will terminate unless renewed.
Indicate whether the agency or the company (direct) will bill the insured or other payor for the policy.
Indicate the plan to be used to pay the company for the policy. Use the company’s specific designation for the plan where possible (e.g., Prepaid, Annual, Semi-annual, Bi-monthly, 40-30-30).
Use this section to collect the coverage information applicable to the entire policy or to an individual location. If coverages differ by location, multiple applications must be completed.
Premises location number as found in the premises information section on the ACORD 125. If the coverage limits are blanketed, leave this section blank.
If multiple buildings exist for the above location number, enter the number assigned to this building.
For each subject of insurance, use the following fields:
Limit of Insurance
Insurance amount that this subject of insurance is to be written at. If a coinsurance percentage applies to this coverage, this is the coinsurance limit (e.g., $1 million of coverage written at 80 percent coinsurance is listed as $80,000).
Indicate which type of value was used in determining the limit of insurance.
ACV . . . . . . . . . . . . . . . . . . . . . . . . . Actual Cash Value
RC . . . . . . . . . . . . . . . . . . . . . . . . . . Replacement Cost
Other . . . . . . . . . . . . . . . . . . . . . . . . List type in the Remarks section.
Coinsurance percentage used at time of loss.
Requested deductible amount for this subject of insurance.
Forms and Conditions to Apply
All form numbers and special conditions applicable to this subject of insurance.
Subjects of Insurance
Indicate the limits, valuation types, coinsurance percentage and deductibles by the desired subjects of insurance.
Equipment (Hardware) Owned
If covering owned equipment (not leased), list the insurance limit, valuation type, coinsurance percentage and forms and conditions. This is a separate limit from the leased equipment.
Equipment (Hardware) Leased
List the Leased equipment limit separately from the Owned equipment limit. Attach a copy of the lessors contract for all leased equipment and also complete the Additional Insured section for the lessors.
Equipment (Hardware) in Transit
For coverage while equipment is in transit, complete this line.
Limit in terms of the reproduction cost of the software programs, the insured’s data and the disks and tapes on which the data is stored.
Media/Data (Software) in Transit
For coverage while the media/data is in transit, complete this line.
For the Restoration Period, enter the total number of days expected to be fully operational after a total loss.
Insurance Limit, the limit per day and number of days for coverage. For deductibles, enter the dollar amount for the deductible and the number of hours to be applied before the deductible goes into effect (waiting period hours).
Check the appropriate box to indicate whether this coverage is applicable.
Protection and Control System
List coverage information if separate limits apply to the security systems for the EDP equipment.
Complete for any additional EDP coverage.
If flood applies, check “Yes” and fill in the flood zone. Check the box that pertains to floor level where the better percentage of the EDP equipment is located. If flood coverage does not apply, check “No.”
If earthquake coverage applies, check “Yes” and fill in the earthquake zone. If earthquake coverage does not apply, check “No”.
Complete the following information as it applies to the building where the EDP equipment is located.
Building Construction Type
Construction for the building. Common construction classifications are:
- Joisted Masonry
- Masonry Non-Combustible
- Modified Fire Resistive
- Fire Resistive
Fire rating protection class for this location.
# of stories
For this building, not including any basement.
Year in which the building was first constructed.
SCHEDULE OF EQUIPMENT
Individually schedule hardware.
Location number (as found on the ACORD 125-S) for this piece of equipment.
Corresponding building number for where this piece of equipment is located.
A unique number assigned to this piece of hardware by the insured. Numbers are usually sequential, starting with one (1).
Model name or number.
Serial Number assigned to this piece of equipment by the manufacturer.
Leased or Owned
Ownership status of this piece of equipment as “Leased” or “Owned.”
Current Full 100% Value
The amount it would currently cost to replace this piece of equipment with the exact same model. Due to the nature of computer equipment, this value may be substantially less than the applicant’s original purchase price.
Amount of Insur. (Coinsurance %)
Amount the piece of equipment is to be insured for at its coinsurance level and requested valuation type.
Total of the current full value column and the amount of insurance column.
Provide any additional information required for underwriting or rating.
Provide additional information for any questions answered “Yes”. The following overview lists information that should be added to the remarks section for “Yes” responses.
1. If a major or total loss occurs, could you return to operation within one week?
Outline steps you have taken to prepare to return to work within one week.
2. Do you have an arrangement for the use of other equipment?
Outline with whom and from where you have arranged to obtain equipment. Indicate whether or not any emergency arrangement has been successfully tested.
3. Is your equipment manufacturer in a position to replace your equipment promptly?
Outline any arrangements you have made with the manufacturer to replace equipment in case of a loss.
4. Is your equipment under manufacturer’s warranty?
List expiration dates of the manufacturer’s warranty.
5. Do you have a service or maintenance contract with a manufacturer or other service contractor?
List the establishment with which you have the contract, contract numbers and expiration dates.
6. Is the equipment shipped by common carrier?
List the common carrier’s name that is contracted to handle your shipping needs.
7. Is the equipment shipped by company vehicle?
List the shipping vehicle.
8. Is the media/data shipped by common carrier?
List the common carrier’s name.
9. Is the media/data shipped by company vehicle?
List the shipping vehicle.
10. Does the premises have a burglar alarm?
Describe the alarm system.
11. Does the applicant have any of the following devices to protect the hardware from power line problems?
Check each type of device used.
COMPUTER ROOM INFORMATION
1. Is the data processing equipment located in a specifically designated room?
Briefly describe the computer room, security controls and environment controls.
2. Is access to the room restricted?
Describe security controls that restrict non-authorized personnel.
3. Is the equipment controlled by a master shutdown switch?
Describe where the switch is located.
4. Is there a separate air-conditioning system designed to specifically protect the EDP equipment?
List the make and model of the air-conditioner and if it operates on an uninterruptible power supply.
5. Computer room protection systems
Indicate all fire protection systems used in the computer room.
6. Floor construction type
If the computer room has a raised pedestal floor, check the appropriate boxes for both the floor construction type and the type of fire protection for the space below the floor.
7. Alarm Type
Indicate any applicable alarm types for each of the listed alarm systems: Temperature, Humidity, Smoke, Fire.
MEDIA AND DATA (SOFTWARE) INFORMATION
1. Are anti-viral safeguards in effect?
Indicate what type of anti-viral safeguards are used, such as closed system or use of virus checker programs.
2. Are duplicates of software maintained?
Software is the operating program(s) and program codes. If backups are kept, complete the software duplicates and Data Backup Storage section.
3. How often is data backed up?
Indicate how often data is backed up by checking the appropriate box. Data is the variable information entered into the software program.
SOFTWARE DUPLICATES & DATA BACKUP STORAGE
Indicate the location where duplicates of all software are kept. If off premises, list name and address of site below.
Indicate the location where backups of all data are kept. If off premises, list the name and address of the site below.
On Premises Location Information
Indicate the location where the duplicate software and data backups are stored on site.
Collect information on any additional interest and/or receiver of Certificates of Insurance.
Check all boxes that apply to the additional interest. If other than the listed options, check the last box and list the interest type after it.
Name and Address
List the additional interest’s name and mailing address.
Interest in Item
Designate what the additional interest has an interest in (e.g., Location 2, Building 3, Item 7 [as per schedule]).
If the additional interest has an interest in multiple items, such as a lienholder on multiple pieces of computer hardware, list all of the numbers associated with the additional interest.
If a Certificate of Insurance is required, check this box.
List any reference number, such as a loan number, that may successfully tie the additional interest to item.
Provide any additional information required for underwriting or rating.