Electronic Equipment Insurance Policy from HDFC ERGO

Posted on: Jan 8, 2019 | 3 mins | Written by: HDFC ERGO Team

Electronic Equipment Insurance Policy from HDFC ERGO

No other technology has had such a profound impact on mankind like Information Technology. In today’s world, the electronics and information revolution has changed the landscape of the industry. It has dramatically changed the way the business is done. Technology-driven tools such as Data, Analytics, Electronic Equipment are some of the vital components that give competitive edge to the businesses.Electronic equipment have replaced a number of manual processes involved in carrying out businesses and helped in reducing costs substantially, making products and services more affordable to consumers. The dependence of businesses on Electronic Equipment has grown so much that it is not possible to deliver products or sell services without them.

Just imagine the consequences if anything happened to that data or your computers and other Electronic Equipment were irreparably destroyed.However, given the sensitive nature of Electronic Equipment, they are prone to disruptions due to accidents and malfunctions. Any loss or damage to the Data or Electronic Equipment used in day-to-business can be devastating for the business owner. It is best to protect Electronic Equipment against any damage that can put business in jeopardy.

HDFC ERGO General Insurance Company’s Electronic Equipment Insurance Policy is the safeguard you need to cover the assets so vital to keeping your business functioning smoothly. This policy provides comprehensive coverage for Electronic Equipment for businesses. It includes physical loss or damage to all Electronic Equipment and External Data Media, as well as the increased cost of working resulting from an Accidental and unforeseen physical loss or damage to the electronic equipment.

For a nominal additional premium, the Electronic Equipment Insurance Policy can be extended to cover the Electronic Equipment against the risk of terrorism. The premium this policy depends upon value, nature and use of equipment including maintenance agreement and provisions of equipment. The Sum Insured for this policy, depends on the object to be insured as follows:

Equipment: New replacement cost of the insured property including freight, erection cost and customs duty, if any
External data Media: Cost of restoring the external data media by replacing lost or damaged data media with new material and lost information
Increased Cost of Working: The Sum Insured should represent the hiring charges per hour for Substitute equipment to ensure continued data processing for the period of indemnity specified, including personnel and transportation charges

Like most other non-life insurance policies,ELECTRONIC EQUIPMENT INSURANCE POLICY comes with certain set of exclusions. Some of the major exclusions under this policy are as follows:

War perils
Nuclear Reaction, Nuclear radiation or radioactive contamination
Willful act or willful negligence of the Insured or his representative
Cessation of work whether total or partial
Derangement of the Insured property not accompanied by damage otherwise covered by this policy
Loss of or damage to the property covered under this policy falling under the terms of the Maintenance Agreement
Loss destruction or damage directly occasioned by pressure wave caused by aircraft and other aerial devices traveling at Sonic or Supersonic speeds
Excess as mentioned in the policy schedule
loss or damage caused by any faults or defects existing at the time of commencement of the policy
Loss or damage as a direct consequence of the continual influence of operation or of gradual deterioration due to atmospheric conditions
Consequential loss or liability of any kind or description