ENDORSEMENT #
This endorsement, effective 12:01 a.m.,
Policy No.
by
forms a part of
issued to
.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BUSINESS INTERRUPTION ENDORSEMENT – COMPUTER VIOLATION
This endorsement modifies insurance provided under the following:
COMPREHENSIVE KIDNAP, RANSOM & EXTORTION CRISIS POLICY
In consideration of the premium charged, the Policy is amended as set forth below. References in the Declarations
to which this endorsement is attached shall determine the applicable Limits of Liability, Indemnity Period and/or
Waiting Period for the coverage provided.
I.
COVERAGE
The Company agrees to indemnify the Named Insured(s) for Business Interruption losses sustained
directly because of an Insured Event(s). The coverage provided by this endorsement applies to Insured
Event(s) that first occur during the Period of Insurance as Insured Loss(es).
The Company’s obligation to indemnify for Insured Loss(es) pursuant to this endorsement is limited to:
II.
A.
Business Interruption directly resulting from the interruption of the Named Insured’s business
operations as a result of an Insured Event(s) following the Waiting Period but not exceeding the
Limits of Liability and the Indemnity Period set forth in the Declarations.
B.
Fees and expenses of the Company approved forensic accountants.
C.
All other reasonable expenses incurred by the Named Insured with the prior approval of the
Company during the interruption of business operations.
EXCLUSIONS
The following exclusions are added to the Policy such that the Company shall not be liable pursuant to this
endorsement in respect of:
A.
B.
UKT 401 1013
Any Business Interruption sustained after the earlier of:
(1)
the resumption of business activities by the Named Insured; or
(2)
the expiration of the Indemnity Period.
Any consequential damages that may accompany any Business Interruption loss including, but
not limited to, damages attributable to loss of market share, harm to business reputation or loss of
goodwill.
© 2013 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
Page 1 of 3
C.
III.
Any loss or damages, fees or expenses, arising out of cancellation, suspension, abrogation or
breach of a contract to which the Named Insured is a party.
DEFINITIONS
1.
For the purposes of this endorsement, Section III. DEFINITIONS, the definition of Insured
Event(s) is deleted in its entirety and replaced with the following:
Insured Event(s) means a singular act of Extortion to adulterate or destroy any computer system
or network by a Computer Violation, or a series of connected acts thereof. If it is evident from
such Extortion that the series of connected acts are or were carried out in furtherance of one
another, or of a common scheme or plan, they shall be deemed to be connected and to constitute a
single Insured Event(s).
2.
IV.
For the purposes of this endorsement, the following words and phrases in bold have the meanings
set forth below:
A.
Business Interruption means the net profit plus payroll expenses, taxes, interest, rents,
and other operating expenses unavoidably incurred by the Named Insured during the
temporary interruption or closure of all or part of the Named Insured’s business operations
or activities, plus Extra Expense incurred by the Named Insured, solely because of an
Insured Event(s).
B.
Extra Expense means the excess of the total cost of conducting business activities during
the period necessary to sustain business operations at the location, owned or operated by
the Named Insured, where the Insured Event(s) occurred for the sole purpose of
reducing the loss. This Policy only covers those Extra Expenses which are over and
above the cost of such activities during the same period of time had no Insured Event(s)
occurred.
C.
Indemnity Period means the maximum number of days for which business interruption
costs will be reimbursed as set forth in the Declarations.
CONDITIONS
The following Conditions are added to the Policy for the purposes of the coverage afforded by this
endorsement:
A.
In the event of an Insured Loss(es), any claims for payment shall be made to the Company as
soon as practicable and shall be accompanied by a computation of loss, prepared by a Company
approved firm of forensic accountants using standard accounting procedures, which sets out in
detail the how the loss has been calculated and what assumptions have been made.
B.
The Company approved forensic accountants shall review the Named Insured’s claim for
payment and determine the amount of the Insured Loss(es) taking into account any savings or
recoveries or offsetting of losses which have been made or which the Named Insured could
reasonably have been expected to make, and the ability of the Named Insured to resume
business operations and activities.
C.
Business Interruption loss for any period of interruption shall be arrived at by the projection of
earnings for the affected business operations and activities for the two years immediately
preceding that interruption.
D.
The Named Insured shall produce any documentary evidence, books of accounts, bills, invoices
and other vouchers and copies of the same which the Company approved forensic accountants
may require and shall afford them every assistance in their investigations including reasonable
access to the Named Insured’s property.
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© 2013 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
Page 2 of 3
E.
In the event that the Company approved forensic accountants declare that they are unable to act
in this capacity for any reason including potential conflict of interest, the Company will appoint
another firm of similar standing in the accounting profession.
All other terms and conditions of the Policy remain unchanged.
UKT 401 1013
© 2013 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
Page 3 of 3