Most businesses today are completely dependent on electronic equipment, from Point of Sale Hard and Software Systems to Cash Registers, Printers, Computer Systems and Barcoding Systems, Laptops and Servers. Many businesses can’t run without this equipment, and any loss or damage to it will have a severe impact on the business’ day-to-day operations and consequently, its profits.

This equipment can be insured to minimise your business’ risk of being affected if it stops working.

What is Electronic Equipment Insurance?

Electronic Equipment Insurance provides comprehensive cover for unforeseen and sudden physical loss or damage to the electronic equipment and data media. This damage must occur due to a peril that is not specifically excluded under the policy.

What are the Benefits of an Electronic Equipment Insurance Policy?

An Electronic Equipment Insurance policy provides protection against unforeseen events that cause the breakdown and physical damage of installed electronic equipment in a business.

It is extremely useful insurance cover for businesses that rely on the aforementioned pieces of equipment, as it protects from incurring excessive expenses in the event that the equipment is damaged and data media has to be restored.

Who can take out Electronic Equipment Insurance?

Electronic Equipment Insurance can be taken out by the following parties:

• The owner or owners of the equipment
• The business leasing the equipment
• Jointly, where financial interest can be established for more than one party. For example bankers’ financiers.

What May be Covered Under Electronic Equipment Insurance?

Electronic Equipment Insurance provides coverage against unforeseen and sudden physical loss or damage to electronic equipment and data media. Every policy is different, but there are three sections that are typically covered:

• Repair or replacement of the equipment as a result of material damage
• Loss of and restoration of data media, including data stored on the equipment
• Increased cost of working as a result of damage to the equipment

What Is Not Covered Under Electronic Equipment Insurance?

There are certain circumstances in which your electronic may be damaged that are not covered under the policy. Damaged caused by the following perils will typically be excluded in an Electronic Equipment Insurance policy:

• 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

Bear in mind that list is not exhaustive and you will be provided with a full list of exclusions from your insurance provider.

Depending on your business and use of electronic equipment, it’s important to source the appropriate cover to protect your assets and business as a whole. Speak to your broker for more information on this cover.

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.