Electronic Equipment Insurance (EEI) covers all types of business electronics against sudden physical damage or breakdown — on an all-risks basis, going beyond the named perils of standard fire policies.EEI covers data processing equipment, medical devices and communication systems. Portable equipment used off-site is included. Data reconstruction costs can be covered. A Business Interruption extension covers revenue loss during downtime. Hired or leased equipment is also insurable.EEI covers what fire policies miss — accidental damage, short circuits, component failure and mechanical breakdown. Sum insured is based on reinstatement value, not depreciated cost. Software reloading costs fall under the data restoration extension. Wear, tear and gradual deterioration are excluded.
Standard fire and burglary insurance protects against specific named perils. Electronic Equipment Insurance covers the vast majority of scenarios that actually cause electronic equipment to fail — accidental drops, power fluctuations, short circuits, mechanical breakdown and internal component failure — providing far more comprehensive protection for your technology assets.
When a server or storage device fails, the cost of reconstructing or recreating lost data can exceed the hardware replacement cost. EEI policies can be extended to cover data reconstruction expenses, covering the cost of restoring data from backups or recreating it from source documents — a critical benefit for data-intensive businesses.
Laptops, tablets, mobile workstations and portable medical devices that travel outside the office premises are particularly vulnerable to damage and theft. EEI can be structured to cover portable equipment both at the business premises and away from it, providing comprehensive protection for a mobile workforce.
When critical electronic equipment fails, operations can grind to a halt. EEI can be extended with a Business Interruption (BI) component that covers loss of gross profit during the period the equipment is being repaired or replaced, ensuring that the financial impact of downtime is also managed.
Many businesses operate leased servers, rented AV equipment or cloud hardware under lease agreements. EEI can be structured to cover hired and leased electronic equipment, protecting the business from liability to the lessor and ensuring continuity of operations even when third-party equipment is involved.
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Electronic equipment may have basic coverage under a standard fire policy for fire-related perils, but it will not cover accidental damage, mechanical breakdown, short circuits or component failure. Electronic Equipment Insurance provides comprehensive all-risks coverage specifically designed for electronics.
Standard EEI policies cover business-owned electronic equipment. Employee-owned devices (BYOD) used for business purposes require specific endorsements or separate coverage. It is advisable to clarify the scope of coverage with your insurer when employees use personal devices for work.
No. EEI covers sudden and unforeseen damage or breakdown. Gradual deterioration, wear and tear, and equipment failure due to lack of maintenance are typically excluded. The policy is designed for unexpected events rather than expected performance degradation over time.
The sum insured is typically based on the replacement value of the equipment with a new unit of similar specification (reinstatement value), not the depreciated market value. This ensures that in the event of a total loss, the business can replace the equipment without bearing a financial shortfall.
The cost of reloading or reinstalling licensed software following an insured hardware failure can typically be covered under the data restoration extension of an EEI policy. The cost of the software licence itself, however, is usually not covered as it is not a physical asset.
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