We are so dependent on our electronics these days that we tend to place more faith in the reliability of our systems than they deserve. Crashes and power outages do happen, and even if your data is scrupulously backed-up and safeguarded, the operational delay while the problem is fixed is bound to be costly. This risk is insurable, but policies differ greatly, and you should always get the help of a trusted expert when arranging your cover.
Risks that Affect Electronic Equipment Insurance
- Breakdown during normal operation. Nothing’s perfect. Sometimes those boxes we depend on just break!
- Damage caused by human error, whether through inadequate training or negligence.
- Damage caused by the supplier of the equipment; either through faulty design, manufacture or installation Damage caused by fluctuations in the continuity or quality of the electricity supply. Electronic equipment depends heavily on a continuous supply of phased alternating current. Voltage spikes and phase displacement, events completely outside the control of the electricity user, can seriously damage certain kinds of electronic equipment.
Categories of Reimbursement
- Professional IT services; where a network or server problem defeats the efforts of your in-house IT team to fix it, you will need to hire IT professionals to resolve the issue.
- Business Disruption; breakdown of your electronic equipment will almost certainly impair your productivity, or interrupt it completely. Working around the problem while the repair is performed may require costly use of additional labour. A good insurance policy can defray these costs, and reimburse you for gross revenue lost due to operational down time.
- Temporary replacement of hardware; often limited operation can be restored quickly by hiring temporary equipment. Such loss-minimisation measures can be supported by a policy which provides for reimbursement of emergency equipment hire.