Improving technology has provided the business with better means of running the day to day activities efficiently and conveniently. Not only business data can be easily recorded and collected using electronic equipment such as a computer, but it also enables workers to communicate efficiently and become more productive in their work.
Since businesses are very much dependent on these types of equipment, it is wise to provide a method to cover losses or business interruption which might occur when these equipment are exposed to unforeseen risks.
What can be insured?
The Electronic Equipment Insurance covers loss or damage to the electronic equipment/computer and its data-carrying media. The costs of the rebuilding of the data following damage to the computer and with the option to cover business interruption arising from damage to the computer can be covered. On business interruption, the coverage could be in respect of the increased cost of working, loss of revenue, or loss of gross profit.
The equipment that is within the range of low and medium power are included but not limited to:
Electronic data processing systems and equipment
Electrical and radiation (electro-medical) such as body scanners
Communication facilities – media equipment, telephone exchanges
Types of covers
Section I: Material Damage/Physical Damage:
This section provides cover on all risks basis to any physical loss or damage to the items insured unless specifically excluded
Section II: Data Media Cover:
This section provides cover on a first loss basis for both the material value of the data media and the costs of reprocessing and restoring lost information due to physical loss or damage.
Section III: Increase Cost of Working/Extra Expense Cover
The section covers for expenses such as hire charges, transport charges for data media and personnel, expenses for accommodation away from base, out of business hours’ charges or work on holidays.