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Electronic Equipment

This covers your insured computers or other insured electronic equipment against loss, damage or breakdown as defined under your policy.

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 us for inspection

What’s typically covered?

BREAKDOWN

An insurer will generally will pay the cost of replacement or repairs necessary to return the electronic equipment to its former state of operation, including:

  • The cost of dismantling, re-erection of electronic equipment and removal of debris
  • Charges for overtime and work on public holidays where necessarily and reasonably incurred
  • Express freight within Australia by any recognised freight service
  • Overseas air freight by any recognised scheduled service
  • Overseas labour
  • The cost of temporary repairs and/or hire of a replacement item during the time taken to repair damage to any insured item
  • Any customs duties and dues

RESTORATION OF ELECTRONIC DATA

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

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?

BREAKDOWN

An insurer will typically not pay for:

  • Damage to electronic data unless you have insured computers and selected cover for ‘Restoration of electronic data’ and they are noted on your insurance certificate
  • 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 under this section
    3. Damage which is covered under the building and contents section of the policy
  • Maintenance work
  • Alterations, additions, improvements or overhauls
  • Replacement or repair following gradual deterioration
  • Temporary repairs unless they constitute part of the final repairs and do not increase the total repair costs
  • Repairs of scratches to painted or polished surfaces
  • Any loss where you are entitled to recover the costs of labour or parts under a maintenance agreement, warranty, guarantee or indemnity in your favour by the manufacturer of the relevant insured item or any other person.

Or loss or damage caused by:

  • Computer viruses or other disruptive programming techniques, and/or the failure of any program or system to deal with information related to any date or date change
  • Fire, smoke or soot
  • Extinguishing a fire including subsequent demolition or repair work
  • Lightning
  • Explosion (other than explosion of flue gas in boilers)
  • Impact of land borne vehicles, aircraft or watercraft
  • Earthquake, subterranean fire or volcanic eruption
  • Landslip or subsidence
  • 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’

RESTORATION OF ELECTRONIC DATA

  • Loss or distortion caused by computer virus
  • Failure of any electronic data or electronic equipment to correctly process or deal with information related to any date or date change
  • 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
  • Unapproved work undertaken other than for minor or provisional repairs.
  • 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

  • Additional costs incurred during the first 48 hours following breakdown
  • 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

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?