EDP Inventory: EDP Coverage Enhancements Require Member Action

February 04, 2019

A single updated EDP inventory is due April 30 to MCIT. It must include all EDP equipment a member wants covered—from all departments—including replacement cost values.

With the 2019 enhancements for electronic data processing coverage comes increased importance on the member’s role in developing and maintaining a single EDP inventory of covered electronic equipment.

MCIT’s EDP coverage is designed to provide physical damage coverage specific to the unique exposures of sensitive electronic equipment.

Examples of EDP equipment include:

  • desktop, laptop and tablet computers
  • servers and monitors
  • electronic voting equipment
  • network-connected printers and copiers
  • 800 MHz/ARMER equipment
  • GPS and GIS systems

Unlike building and automobile coverage, members are not required to schedule each piece of EDP equipment with MCIT for coverage to apply. Instead, as a convenience, coverage is provided to members on a “blanket” basis. This means that the member’s coverage limit and scope of items covered is determined by the total of all equipment listed on the internal EDP inventory.

MCIT requires an updated EDP inventory annually, which establishes the equipment covered and the blanket limit of coverage available in the event of a loss.

“EDP inventory” is a defined term in the Coverage Document. It places importance on the member’s role in maintaining an accurate list of all EDP equipment it wants covered under its blanket limit.

Updating the EDP Inventory

On April 1, MCIT will request an updated EDP inventory from each member’s primary contact. The inventory must include all EDP equipment—from all departments—that it wants covered, including its replacement cost value.

Most members currently maintain a single EDP inventory; however, some members have submitted multiple EDP inventories for individual departments (e.g., sheriff’s office, highway, revenue).

In 2019 all EDP equipment must be consolidated into a single EDP inventory and be provided to MCIT by April 30, and on an annual basis upon request.

Suggested Next Steps to Prepare for April 1 Request

Review and update the existing EDP/asset inventories. Pay close attention to each item’s replacement cost value.

Review the 2019 Inland Marine schedules (provided in the 2019 Coverage Document) to account for and consolidate all EDP equipment into a single inventory. Due to changes in coverage, MCIT will no longer:

  • accommodate scheduling items individually because they were permanently placed/stored at a nonmember location (this is no longer required).
  • allow individual departments to schedule their equipment separately (e.g., sheriff’s office and 800 MHz/ARMER equipment; highway department and survey equipment; land department and GPS mapping system).
  • allow equipment to be scheduled individually.

Record and include the following information for each EDP item when available:

  • item description (make, model, manufacturer)
  • product identification number or serial
  • acquisition date
  • department or location
  • replacement cost value
  • total value of all equipment

Members can submit their updated EDP inventory any time before April 30, and they can submit an updated inventory multiple times a year to ensure that the blanket limit of coverage accurately reflects the covered EDP equipment and current replacement cost values.

Questions can be directed to MCIT Underwriting Manager Gary Severson at or 1.866.547.6516.

Coverage Changes

EDP coverage has been enhanced for 2019 at no additional cost to members:

  • Removes the $50,000 sublimit for EDP equipment while in transit or stored at a temporary location. Coverage now extends to EDP equipment at any location.
  • Eliminates requirement to separately schedule EDP equipment that is permanently placed, mounted to or stored at a nonmember location.
  • Covers damaged software subject to a $100,000 sublimit.
  • Increases the “extra expense” sublimit to $50,000 per claim.
  • Removes the scheduled “no one item to exceed” underwriting requirement.