Just renewed my professional liability and completed operations insurance policy with First Specialty Insurance Corp. out of Overland Park, Kansas and it now includes a two page endorsement exluding "Year 2000 computer-related and other electronic problems" claims.

(snip) 2. Exclusions

This insurance does not apply to "bodily injury" or "property damage" included in the "products-completed operations hazards" definitions and arising directly or indirectly out of:

a. Any actual or alleged failure, malfunction or inadequacy of:

(1) Any of the following, whether belonging to any insured or to others:

(a) Computer hardware, including microprocessors:

(b) Computer application software

(c) Computer operating systems and related software

(d) Computer networks

(e) Microprocessors (computer chips) not part of any computer system; or

(f) Any other computerized or electronic equipment or components; or

(2) Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph 2.a.(1) of this endorsement due to the inability to correctly recognized (their typo), process, distinguish, interpret or accept any date including but not limited to the year 2000 and beyond.

b. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in Paragraph 2.a. of this endorsement (end snip)

Sorry for the long post, couldn't provide a link to my (literal) desktop so wanted to make sure it was complete. I plan to call them on Monday and ask them to tell me what I am paying $2000 per year for (I provide elderly clients with personal emergency response systems and/or a computerized medication delivery system). Argh......

-- Kristi (securx@succeed.net), July 17, 1999

Answers

Looks like you are paying them about $1,000 per page of things excluded.

-- kozak (kozak@formerusaf.guv), July 17, 1999.

Geez! At $1,000 a page I would send it back with the typos and errors marked. At the price you're paying, they should be able to afford a spelling and grammer checker!

-- J (jart5@bellsouth.net), July 17, 1999.

Yikes....talk about typos! I see I botched up "exclusion/exclude" a few times! :)

-- Kristi (securx@succeed.net), July 17, 1999.

I received a similar letter from my business insurance carrier. With everything now having some type of relation to a computer, I wonder what is covered. Even the heavy equipment I work on has embedded systems, ECM's and the like. Interesting times a comin'.

-- dozerdoctor (dozerdoc@yahoo.com), July 17, 1999.

I wonder if these exclusions extend to structural damage caused by frozen water pipes bursting as a result of failure of both electrical power and the water supply. Or to damage or injury caused by an accidental discharge of some hazardous material due to some Y2K glitch.

-- Tom Carey (tomcarey@mindspring.com), July 17, 1999.