Which Perils Are Covered Under Electronic Equipment Insurance?

Posted on: Sep 20, 2024 | 3 mins | Written by: HDFC ERGO Team

Which Perils Are Covered Under Electronic Equipment Insurance?

Perils Covered Under Electronic Equipment Insurance

Electronic equipment or devices simplify your everyday tasks, expedite communication, and make life comfortable. Most homes, businesses, and organisations use them every day, and a problem with any of these devices can hamper work and cause financial loss. While these devices are quite handy, they are expensive and replacing them with a new one will cost you big bucks. Therefore, if you use multiple electronic equipment at your home or office, covering them under the right insurance policy can ease your worries and save you from untimely expenses. Let’s take a look at the perils covered under an electronic equipment insurance policy.

What is electronic equipment insurance?

An electronic equipment insurance policy is an insurance product that covers electronic devices against accidental damage or loss due to theft or burglary. If the covered electronic devices break down or get damaged due to an insured peril, the insurer will reimburse the repair or replacement costs. The policy also covers accidental data loss or loss of external data drives, such as hard drives, tapes and discs.

Electronic Equipment Insurance – Inclusions

The following are the inclusions of an electronic equipment insurance policy —

1. Damage due to fire:

If one or more of your covered electronic devices get damaged in an accidental fire, the insurer will cover the repair or replacement costs.

2. Damage due to a natural calamity:

An electronic equipment insurance policy also covers damage to electronic appliances in a natural calamity, such as floods, earthquakes, landslides, or cyclones.

3. Electrical or mechanical breakdown:

If your electronic equipment gets damaged due to an electrical or mechanical breakdown, the insurer will pay the repair or replacement expenses.

4. Loss of data:

If you lose data saved on external devices, such as tapes, hard drives, and discs, accidentally or due to a covered peril, the insurer will cover the cost of data restoration.

5. Increased cost of operations:

If the breakdown or loss of electronic equipment hampers your daily tasks and increases operational costs, the insurer will come to your rescue. They will compensate you for the increased cost of operations and save you from bearing the expenses from your pocket.

6. Cost of parts and fittings:

The policy may also reimburse the cost of parts and fittings of the covered electronic equipment.

Electronic Equipment Insurance – Exclusions

An electronic equipment insurance policy may not provide coverage for the following —

1. Normal wear and tear:

The policy will not cover regular wear and tear of electronic equipment.

2. Intentional negligence:

If electronic equipment gets damaged due to your wilful negligence during equipment use and maintenance, the insurer will not cover its repair or replacement bills.

3. Wilful destruction:

If you accidentally drop the television or any other electronic equipment on the floor, the insurer will not cover associated repair or replacement costs.

4. Consequential loss:

An electronic equipment insurance policy will not cover the consequential loss suffered due to the breakdown of your electronic equipment. For example, if the electronic equipment in your office breaks down and you suffer a loss due to the non-delivery of a product or service, the insurer may not compensate you for it.

5. Aesthetic defects:

The policy does not cover aesthetic defects that existed on the electronic equipment at the time of policy purchase. These may include dents, scratches, discolouration, or stains.

6. Manufacturing defects:

Insurance companies may not cover manufacturing defects in electronic equipment.

7. Manual disruptions:

The insurance provider will not cover losses suffered due to manual disruptions, such as wars and nuclear explosions.

Conclusion

If you have expensive electronic equipment in your home or office, it would be best to cover them under an adequate electronic equipment insurance policy. If one or more of these costly devices break down or get damaged due to an insured peril, the insurer will cover the repair or replacement costs. It is important to note that even if your home insurance or building insurance covers electronic equipment, the coverage may not be exhaustive. Therefore, check the same and choose a separate electronic equipment insurance policy for better financial security. Insurance companies in India also offer tv insurance, laptop insurance, AC insurance and other such dedicated plans for expensive electronic gadgets. Take some time and explore the options to make an informed purchase decision.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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