Electronic Equipment Insurance
Businesses today are completely dependent on electronic data and electronic equipment like Laptops, Desktops, servers, diagnostic equipments etc. Any loss or damage to such electronic equipment will severely impact the day to day operation and subsequently the business. The Electronic Equipment Insurance Policy provides comprehensive coverage against unforeseen and sudden physical loss or damage to the electronic equipment and data media that occurs owing to perils other than those specifically excluded under the policy.
What are the key benefits of Electronic Equipment Insurance?
The Electronic Equipment Insurance Policy mainly provides protection against unforeseen events leading to breakdowns and physical damages to electronic equipment installed in an industry. This is an All Risk Insurance Cover against many fortuitous perils subject to certain specified exclusions. It is extremely useful insurance cover to protect manufacturing industry against heavy expenses necessitated in restoring the damaged equipment & data media to its working condition and also to maintain business continuity.
Who can take the Insurance?
- The owner(s) of the machinery
- Lessor /Lessee of the machinery
- Jointly where financial interest can be established for more than one party such as bankers financiers.
What does Electronic Equipment Insurance cover?
The policy provides coverage against unforeseen and sudden physical loss or damage to the electronic equipment and data media that occurs owing to perils other than those specifically excluded. There are three sections providing the desired coverage :
Section I : Material damage (equipment)
Section II: External data media, including data stored thereon
Section III: Increased cost of working resulting from accidental loss and/or damage to the
electronic equipment covered under section I.
What does Electronic Equipment Insurance not cover?
This policy excludes loss or damage due to the following causes/perils :
- War or warlike operations
- Nuclear perils
- Willful act or willful negligence
- Wear and tear or gradual deterioration due to atmospheric conditions
- Aesthetic defects
- Consequential losses
This is not an exhaustive list. For a detailed list of exclusions, please refer to our policy terms and conditions.
What are the add-on covers under Electronic Equipment Insurance?
- Escalation of sum insured
- Express freight
- Holiday and overtime rates of wages
- Air freight
- Owners surrounding property
- Third party liability
- Additional customs duty
Basis of Sum Insured
Section I : The sum insured shall be equal to its replacement cost, including freight, dues and customs duties, if any, and erection costs.
Section II : The sum insured shall be the amount required for restoring the insured external data media by replacing lost or damaged data media by new material and reproducing lost information.
Section III : The sum insured should represent the rental charges for substitute equipment to ensure continued data processing for the specified indemnity period, including personnel and transportation charges.
Note:- These are indicative details of the Policy. Exact terms, conditions, coverages and exclusions are as per the wordings of standard Machinery Breakdown Insurance.