Electronic systems are not just equipment in a modern business.
Computers, servers, control systems, medical devices, communication infrastructure and measurement systems can form a direct part of a business's day-to-day operations.
Electronic Equipment Insurance provides for the assessment, under the terms of the policy, of sudden and unforeseen physical loss or damage that may occur to electronic equipment that has been placed in normal operation (installed and tested).
Which equipment can be covered?
Depending on the nature of a business's operations, electronic assets such as the following may be insured:
Data processing and office systems
- Computers
- Servers
- Data processing systems
- Photocopiers and office equipment
- Uninterruptible power supplies (UPS)
Communication systems
- Telephone systems
- Communication devices
- Radio systems
- Antennae and communication infrastructure
Measurement and control systems
- Test equipment
- Process control systems
- Measuring instruments
- Industrial electronic systems
Broadcasting systems
- Studio equipment
- Audio and video systems
- Broadcasting and communication devices
Medical electronic equipment
- Imaging systems
- Laboratory equipment
- Ultrasound systems
- Electronic medical equipment
- Dental equipment
Which risks can be covered?
Depending on the scope of the policy and any special conditions, the following may be covered:
- Short circuit
- High voltage
- Induction effects
- Electrical damage
- User error
- Negligence or carelessness
- Water and moisture
- Smoke and corrosive gases
- Theft
- Fire
- Lightning
- Storm
- Flood
- Landslip
- Certain physical damage arising from design, material or installation defects
Certain risks, such as earthquake, may be separately covered depending on the structure of the policy.
Electronic equipment cover is not the same as standard fire cover
Electronic equipment is not damaged by fire or theft alone.
Sudden physical damage caused by electrical fluctuation, short circuit, operating error or the equipment's technical operating conditions can be just as significant.
For this reason, electronic systems are assessed separately from the business's general property insurance, in terms of their own technical risks.
Function matters as much as value
The failure of a server, a piece of medical equipment or a process control system may involve more than just the cost of repairing the equipment.
The business's capacity to deliver services, production or operations may also be affected.
For this reason, the following factors are considered together in the assessment:
- Type of equipment
- Age
- Value
- Purpose of use
- Operating environment
- Electrical infrastructure
- Maintenance regime
- Criticality to the business
The key question in Electronic Equipment Insurance is not only how valuable the equipment is, but what role it plays in keeping the business running.