Los Angeles Claims Adjuster Property and Causality Practice Exam

Which act or violation is NOT covered under insurance provisions related to electronic data?

1. Accessing stolen data

2. Corruption of data

3. Loss of data

4. Damage from physical accidents

The correct answer is: Damage from physical accidents

The reason "damage from physical accidents" is not covered under insurance provisions related to electronic data is that most electronic data coverage specifically pertains to issues that arise from data breaches, data corruption, or data loss, which are inherently digital concerns. Physical accidents typically relate to tangible assets rather than electronic information itself. For instance, if a physical accident occurs—such as a fire or flood affecting a facility—it may lead to the loss or damage of physical equipment storing data, but the incident itself doesn't directly relate to the electronic data provisions. These types of policies focus more on risks specifically tied to the handling, storage, or transmission of electronic data, distinguishing them from losses arising from physical incidents. In contrast, accessing stolen data, corruption of data, and loss of data all directly relate to risks and threats associated with electronic data management, thereby falling within the domain of the insurance coverage designed to address those specific concerns.