Electronic Equipment

These days there is hardly a business which does not use data, electronic equipment and analytics. If any of these items are destroyed, there can be a major loss, resulting in both financial drainage as well as elevation in stress level. Electronic Equipment Insurance (EEI) offers comprehensive coverage to loss of electronic goods and helps the policyholder save on unavoidable costs.

Type of Insurance

The electronic equipment insurance offers coverage under three sections in order to meet various requirements of people. The three categories are:

  1. All Risks: The policy covers both fire and manual perils. While fire, storms and landslides are some examples under natural calamities; damage caused by terrorism, riots and strikes are manual perils.
  2. External Data Media: This covers the expenses caused due to loss of data on external media devices like cassettes, discs and magnetic drives.
  3. Increased Cost of Working (ICOW): This is the cover for substituted data processing unit. When the insured equipment gets lost or damaged and an alternative tool or additional workers are used to carry on the work, the expenses are covered by electronic equipment insurance.


Electronic equipment insurance is a must for people who deal with electronic equipment. A flexible insurance policy, the plan covers most of the damage or loss caused to the equipment due to the following causes:

  1. Coverage on damaged equipment: Replacement expenses of the insured property, like freight, erection cost and customs duty
  2. Coverage on damaged data media: Expenses involved in restoring the external data media; lost information, damaged or lost data media
  3. Cost of working: Increase in manual work due to loss or damage of electronic equipment, the expenses involved in employing more workers is included in the electronic equipment insurance the personal and transportation costs borne by the company for this reason is also covered
  4. Software damage: This kind of insurance policy also covers loss or damage to software which was the effect of hardware issue
  5. Electronic equipment for data processing (Electronic Data Processing) or commonly known as computer tools.
  6. Electronic equipment for medical purposes, health therapy, diagnostics used by hospitals, laboratories, doctor’s offices and others.
  7. Communication equipment
  8. Film equipment
  9. Office equipment
  10. Printing equipment
  11. Equipment and materials for research


The electronic equipment insurance offers various types of coverage; however, there are certain issues which do not come under the insurance, also called exclusions. Some of these points for which you can’t make claims are:

  1. Normal wear and tear which takes place with time
  2. Damage caused due to overhauling and modification of data or equipment
  3. Manual disruptions like nuclear explosions and wars
  4. Intentional negligence of the policy holder during use and maintenance of the equipment
  5. Aesthetic defects which already existed in the insured equipment
  6. Consequential loss which takes place on the equipment
  7. Damage done by pressure waves of aircraft or other aerial devices

Expenses for loss of data will not be covered if

Minimum Data Requirement

The data required by an Underwriter, namely:

  1. The condition of the Electronic equipment includes Type, Brand, Type, Year of Manufacture, Manufacturer.
  2. Warranty from the manufacturer (Manufacturer).
  3. Use and area/location where the tools are used.
  4. System Maintenance and Maintenance carried out.
  5. Experience Loss that has been experienced.
  6. Machine operator experience.
  7. Moral Hazard of the Insured Candidate.

Claim Procedures

To get the claim amount for sudden and unforeseen physical or software damage or loss of electronic equipment, below mentioned documents need to be submitted:

  1. Duly filled in claim settlement form
  2. Detail chronology of incident.
  3. Photographs depicting the affected equipment took immediate after the incident discovered.
  4. Bills and documents, if any repair work is done on the damaged equipment
  5. Other supporting documents

The Insurer may appoint a surveyor/loss adjuster to inspect and verify the loss.