Electronic Equipment Insurance

Most businesses today heavily rely on electronic equipment for running their daily operations. Be it cash registers, barcoding systems, software or even printers, businesses cannot survive without electronic equipment. This makes it very important to protect all electronic equipment utilised by a business. The Electronic Equipment Insurance policy is a protecting solution that provides comprehensive coverage against damage to electronic equipment used for your organization’s operations.

It includes physical loss or damage to all electronic equipment and data media. This policy also covers the increased in cost of operations resulting from damage to electronic equipment.

This includes protection from damages caused by operation, electrical energy (short circuit, excess voltage, induction), faulty operation, faulty design, defects in material etc.

What equipment is covered under an Electronic Equipment Insurance Policy?

• Computer and allied peripherals
• Auxiliary equipment like UPS, Voltage Stabilizer etc.
• Medical, Bio-medical, Equipment e.g. Cath Lab, X‐ray Machine, Ultrasound machines, MRI, CAT scan Machines
• Audio/Visual equipment
• Electronic control panels
• Telecommunication and navigational equipment
• Electronic equipment for research and material testing

What is covered under an Electronic Equipment Insurance Policy?

• Breakdown

  The cost to restore equipment to its original state after an electrical or mechanical breakdown can be expensive – an electronic equipment insurance policy can help cover costs of the same. This includes cost of dismantling electronic equipment and removal of debris. It also includes custom duty, if any.

• Cost of restoring damaged data

  In case of an eventuality that has led to damage of electronic equipment and if a back-up system is available, consultants can be hired to recover lost data or repair damaged data. An Electronic Equipment Insurance Policy will cover the cost of restoring lost or damaged data.

• Increased cost of working (ICOW) 

  With electronic equipment damaged, employees might have to resort to manual operations which is most likely to increase cost of working. Such a spike in operations cost can be covered under an Electronic Equipment Insurance Plan.

This policy can cover damages caused by acts of terrorism, if an extension is requested at an additional premium.

What is not covered under an Electronic Equipment Insurance Policy?

An Electronic Equipment Insurance Policy does not cover costs of financial losses in case of –

• Damages caused to electronic equipment due to atmospheric conditions like temperature or humidity.
• Regular maintenance and repair costs like replacing batteries, valves, picture tubes, filters etc.
• Replacement of parts that have worn out through prolonged usage.
• Losses due to eventualities and accidental damage

  Fire	Lightning
  Explosion/Implosion	Aircraft Damage
  Riot	Strike
  Malicious and Terrorism Damage	Storm
  Cyclone	Typhoon
  Tempest	Hurricane
  Tornado	Flood and Inundation
  Impact Damage	Subsidence Land slide
  Rock slide	Bursting and/or overflowing of Water Tanks
  Apparatus and Pipes	Missile Testing operations
  Leakage from Automatic Sprinkler Installations	Bush Fire (Fire & Allied Perils)
  Burglary & Theft	Negligence, Lack of Skill, Carelessness

Sum Insured and Premium

The sum insured for an Electronic Equipment Insurance Policy is determined on the basis of replacement cost of equipment, cost of restoring external data and increased cost of working.

The premium for an Electronic Equipment Insurance Policy will be determined basis the value of the equipment and nature of its usage.