• Electronic devices or equipment make your daily activities easier, speed up communication, and enhance comfort in life. Many households, companies, and organizations utilize them daily, and any malfunction with these devices can disrupt work and lead to financial setbacks. While these devices are extremely useful, they can be costly, and purchasing replacements can be a significant expense. Thus, if you have several electronic devices at your residence or workplace, insuring them with the appropriate policy can alleviate your concerns and spare you from unexpected costs. Let’s examine the risks included in an electronic equipment insurance policy.

What is electronic equipment insurance?

• An electronic equipment insurance policy is a type of insurance coverage that protects electronic devices from accidental damages or losses caused by theft or burglary. If the insured electronic devices experience a breakdown or damage due to a covered risk, the insurer will pay for repair or replacement expenses. The policy also includes protection for accidental data loss or the loss of external data storage devices, like hard drives, tapes, and discs.

Electronic Equipment Insurance – Inclusions

The following items are included in an electronic equipment insurance policy —
1. Damage due to fire:

• If one or more of your insured electronic devices are damaged in an accidental fire, the insurer will handle the repair or replacement costs.

2. Damage due to a natural calamity:

• An electronic equipment insurance policy also covers damage to electronic devices from natural disasters, such as floods, earthquakes, landslides, or cyclones.

3. Electrical or mechanical breakdown:

• In the event that your electronic equipment suffers damage from an electrical or mechanical failure, the insurer will cover the repair or replacement costs.

4. Loss of data:

• If you experience a loss of data stored on external devices, such as tapes, hard drives, and discs, due to an accident or a covered event, the insurer will cover the expenses for data recovery.

5. Increased cost of operations:

• If the breakdown or loss of electronic equipment disrupts your regular activities and raises operational costs, the insurer will assist you. They will compensate you for the increased operational expenses and prevent you from incurring these costs out of pocket.

6. Cost of parts and fittings:

• The policy may also reimburse the expenses for parts and fittings of the covered electronic devices.

Electronic Equipment Insurance – Exclusions

An electronic equipment insurance policy might not cover the following —

1. Normal wear and tear:

• The policy does not extend coverage for the standard wear and tear of electronic devices.

2. Intentional negligence:

• If electronic equipment is damaged due to your deliberate negligence during usage or maintenance, the insurer will not cover the repair or replacement costs.

3. Wilful destruction:

• If you accidentally drop the television or any other electronic device on the floor, the insurer will not bear the related repair or replacement expenses.

4. Consequential loss:

• An electronic equipment insurance policy will not include coverage for consequential losses incurred due to the failure of your electronic equipment. For instance, if your office’s electronic equipment fails and you experience a loss from the non-delivery of a product or service, the insurer may not provide compensation for that.

5. Aesthetic defects:

• The policy excludes aesthetic defects that were present on the electronic equipment at the time of the policy purchase. These may encompass dents, scratches, discolouration, or stains.

6. Manufacturing defects:

• Insurance providers may not cover manufacturing defects found in electronic equipment.

7. Manual disruptions:

• The insurance company will not provide coverage for losses incurred due to manual disruptions, such as wars and nuclear explosions.

Conclusion

If you own valuable electronic equipment in your home or office, it would be prudent to insure them under a comprehensive electronic equipment insurance policy. If one or more of these expensive items fail or are damaged due to an insured peril, the insurer will cover the costs of repair or replacement. It is essential to understand that even if your home insurance or building insurance includes electronic equipment, the coverage might not be complete. Therefore, verify this and consider a separate electronic equipment insurance policy for enhanced financial protection. Insurance companies in India additionally provide tv insurance, laptop insurance, AC insurance, and other dedicated plans for high-value electronic devices. Dedicate some time to explore the available options to make a knowledgeable purchase decision.

Disclaimer: The information provided above is for illustrative purposes only. For additional details, please consult the policy wordings and prospectus before finalizing the sale.