Electronic data processing (EDP) insurance covers what kind of exposures?

• A. It covers only hardware like servers.
• B. It covers cyber liability for third-party data breaches.
• C. It covers computer equipment, networks, websites, security systems, and similar information technology exposures.
• D. It covers employee benefit plans.

Answer: (C)

Electronic data processing insurance covers the kinds of technology and related assets a organization relies on to process information. It protects computer equipment, networks, websites, security systems, and other information technology exposures. This means it’s not limited to just hardware, and it includes the systems and data that support IT operations. It’s broader than a cyber liability policy that focuses mainly on data breaches, and it’s not about employee benefit plans. So the best fit is coverage that explicitly lists computer equipment, networks, websites, security systems, and similar IT exposures.