CG 04 37 provides a limited way to cover liability for electronic data loss caused by physical damage to tangible property. It is an endorsement to commercial general liability, not a replacement for cyber insurance.
What does the 12 23 edition change?
The endorsement adjusts the electronic-data exclusion and the definition of property damage. Its limited data coverage requires physical injury to tangible property; electronic data does not become tangible property itself. The actual two-page 12 23 specimen appears in Conifer's linked form library.[1]
For example, consider a contractor who accidentally damages a customer's computer hardware, causing loss of data. That is the kind of physical-loss connection to examine. It is not a coverage determination: the claim must still satisfy the insuring agreement, exclusions and remaining policy conditions.
Why does the cyber exclusion matter?
The 12 23 form excludes bodily injury or property damage arising from a defined cyber incident. Its definition addresses unauthorized system access or use, harmful code and denial-of-service attacks. Do not assume that physically damaged equipment makes a cyber-originating loss covered.[1]
A cyber policy is a separate review. Determine whether it addresses the business's own restoration costs, lost income, notification duties and liability to others. Those different costs should not be treated as one interchangeable coverage.
What should a contractor check?
Read the endorsement number and edition on the issued policy, not just a proposal's phrase “electronic data liability.” Confirm the scheduled data limit and its relationship to the each-occurrence and aggregate limits. Earlier wording may differ; this page explains the inspected 12 23 edition only.
For a contract requiring protection for customer data, ask three separate questions: what physical equipment could be damaged, whose data could be lost, and which policy responds to the resulting legal liability? Keep the written answer with the actual endorsements, rather than relying on a certificate description.
Frequently asked questions
Does CG 04 37 cover accidental deletion without damaged hardware?
Not under its physical-damage-to-data-loss provision. That provision requires the stated connection to physical injury to tangible property.
Does the scheduled data limit increase the CGL occurrence limit?
No. The 12 23 form makes its scheduled data-loss limit subject to the each-occurrence limit.
Is this insurance for restoring my own data?
It is liability coverage within the CGL. Do not treat it as a general first-party data-restoration policy.
Educational explanation in original language, not policy wording or a coverage determination. ISO identifiers are used for reference; Menlo Insurance Services is not affiliated with ISO. The issued policy and endorsements control.
References
- 1.Conifer Insurance. “CG 04 37 12 23 specimen, Michigan Hospitality Liability Forms, PDF pages 27-28.” Accessed September 5, 2026. https://coniferinsurance.com/wp-content/uploads/2024/07/Michigan-Hospitality-Liability-Forms.pdf#page=27 ↩