Today, it’s almost impossible to imagine any kind of business, no matter how large or small, that does not rely on electronics in one way or another. Sometimes business owners are not specifically aware of the fact that many devices and electronic equipment are not always covered by standard business insurance policies. Risks and perils associated with electronic equipment and devices has entered a new era where loss or damage can be excluded for various of reasons.
It is important to seek professional sound advice through your broker who will be skilled with the knowledge of suitable products available to the consumer. Policies vary from one insurer to another. Some policies are cheaper than others, but price should not always be the deciding factor. Make sure your policy provides the right spectrum of cover and extensions for your specific business to avoid being exposed.
Without a doubt technology and our dependency thereon is advancing at a fast pace. It is happening so fast that supporting innovative insurance products, are trying to keep abreast and make policies more compatible for this new era. Electronic Equipment Insurance is a core product which will play a significant role in the short-term insurance industry.
What is Electronic Equipment Insurance? (EEI)
Electronic Equipment Insurance is designed to cover most types of electronic equipment from large data processing installations to specialised installations such as medical scanners, airport radar systems or electronic simulators. The EEI policy will cover physical loss or damage of these electronics.
Often these pieces of equipment come with a substantial price tag that some businesses aren’t always able to replace immediately and by not doing so, it can impact production, productivity and ultimately the bottom line.
Causes of loss or damage that EEI covers:
• Elemental perils such as flood, wind, earthquake, lightning etc.
• Accidental damage.
• Power surge (Breakdown).
• Operational failure.
• Theft and / or malicious damage.
Some exclusions to loss or damage:
• Fraud or dishonesty.
• Consequential loss (unless otherwise provided for elsewhere in the Policy)
• Maintenance agreement.
• Wear & tear.
• Confiscation or abandonment.
• Cybercrime and liability.
Source: Consort Technical Underwriting Managers