Electronic Equipment*

Electronic equipment insurance covers the cost to repair or replace specified electronic equipment following a breakdown. You can also choose to insure the additional costs to your business or business interruption expenses caused by a breakdown of electronic equipment.

Did you know?

  1. You can usually select the following types of cover:
  • BREAKDOWN (ie sudden and unexpected electronic, electrical or mechanical failure of electronic equipment, arising from internal defects causing sudden stoppage, which requires repair or replacement to enable normal operation to continue)
  • RESTORATION OF ELECTRONIC DATA (ie the discs or tapes used in the computer to store the electronic data)
  • ADDITIONAL INCREASED COST OF WORKING
  1. You will also generally have a responsibility to:
  • Take all reasonable steps to minimise the extent of the loss
  • Preserve any damaged or defective electronic equipment and/or electronic data and make them available to the insurer for inspection

What’s typically covered?

BREAKDOWN

If this option is selected, an insurer will generally pay the cost of replacement or repairs necessary to return the electronic equipment to its former state of operation, including:

  • The cost of dismantling and reconstruction of electronic equipment;
  • Removal of debris
  • The cost of temporary repairs and/or hire of a replacement item during the time taken to repair damage to any insured item

RESTORATION OF ELECTRONIC DATA

If this option is selected, an insurer will generally cover the cost to replace or reconstruct your electronic data and media that has been lost or damaged as a result of a breakdown to electronic equipment.

ADDITIONAL COST OF WORKING

If this option is selected, an insurer will generally cover the additional costs incurred by you to prevent a reduction in your turnover as a result of an electronic equipment breakdown.

What’s typically NOT covered?

An insurer will typically not pay for loss or damage caused by:

  • Storm, wind, water or flood
  • Water escaping, discharged or leaking from any source which is external to the electronic equipment insured
  • Theft or attempted theft
  • Intentional or malicious damage
  • Consequential loss of any kind or description whatsoever unless your insurance certificate shows that you have taken out cover for ‘Additional increased cost of working’
  • Maintenance work or repairs
  • Computer viruses
  • Fire
  • Damage caused by atmospheric conditions, moisture or changes in temperature unless directly resulting from damage to or malfunction of air conditioning equipment
  • The cost of:
    1. replacement of expendable items such as batteries, valves, x-ray and picture tubes, belts, chains, tapes, cards, ribbons, filters, tubes, electric heating elements or electrical contacts
    2. replacement of component parts worn through normal use or operation; unless necessary as part of the rectification of insured damage not otherwise excluded by the policy
    3. Damage which is covered under by building insurance

 

RESTORATION OF ELECTRONIC DATA

  • Loss or distortion caused by computer virus
  • Loss or damage caused by atmospheric conditions, moisture or changes in temperature unless directly resulting from damage to air-conditioning equipment
  • Consequential loss of any kind or description whatsoever unless your insurance certificate shows that you have taken out cover for ‘Additional increased cost of working’
  • The cost of restoring electronic data unless the data has been backed up on alternative disks or tapes and stored off-site in the 30 days prior to the occurrence causing the loss.

ADDITIONAL COST OF WORKING

  • The costs incurred during interruption due to the carrying out of alterations, additions, cleaning, adjustment or improvements to the electronic equipment
  • Additional costs incurred where the interruption period is increased beyond 4 weeks due to delay in the repair or replacement of items manufactured outside Australia
* As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

Things to consider

  1. Is your business reliant on computers or other important electronic equipment to operate?
  2. Does your business have the cash-flow to fund the repair and replacement of electronic breakdown?