With homeowner’s insurance, your policy covers any damage done to your home and the items inside. But what about a business? Many businesses have property, general liability, and business income insurance. Another type of coverage that a business can choose is Electronic Equipment Insurance (EEI).
The most important thing for your business and the employees that work for you is making sure that the equipment you use works right every time you use it. Damaged equipment can often stop your business in its tracks, or at least make the process harder and more expensive.
Fortunately, an EEI policy for your business can help mitigate the cost of such a breakdown.
What Is Electronic Equipment Insurance?
An EEI policy is designed to provide comprehensive coverage for the electronic devices used by your business. This can include laptops and desktops, point-of-sale devices, cash registers, and any other electronic equipment that you use in your daily business dealings.
In addition to helping to replace damaged, faulty, or lost equipment, EEI can also cover the cost of restoring lost data due to equipment failure, as well as other costs associated with a business interruption caused by a breakdown of your electronic equipment.
What Type of Damage Is Covered by Electronic Equipment Insurance?
Running a business is hard enough without having to worry about a breakdown in your electronic equipment. Usually, such incidents lead to increased work hours for your employees, at least until you can get the broken equipment repaired or replaced.
EEI comes in a variety of coverage types to help account for the increased costs associated with equipment breakdown or loss, including:
Breakdown: With this coverage, the insurance company pays for the cost of repairing or replacing the equipment.
Restoration of electronic data: If you lose data as a result of a damaged piece of electronic equipment, this type of coverage will pay to have it replaced or restored, if possible.
** Additional increased cost of working**: Usually, when a piece of electronic equipment breaks down, it requires additional work on the part of employees. This type of coverage pays for these extra costs.
What Are Common Exclusions to an Electronic Equipment Insurance Policy?
For the most part, your EEI policy will pay to repair or replace your electronic equipment as long as the equipment breakdown is from a covered peril. The common perils covered by EEI include:
- Aircraft damage
- Malicious and terrorism damage / storm
- Cyclone, typhoon, tempest, hurricane, tornado damage
- Flood and inundation
- Impact damage
- Subsidence, including landslides and rock slides
- Bursting and/or overflowing of water tanks, apparatus, and pipes
- Missile testing operations
- Leakage from automatic sprinkler installations
- Bush fire damage
- Electrical and mechanical breakdowns
- Burglary and theft
In addition to covered risks, EEI also has some very specific exclusions under which it won’t pay to repair or replace damaged or lost electronic equipment. These exclusions include:
- War or warlike operations
- Nuclear perils
- Willful act or willful negligence
- Wear and tear or gradual deterioration due to atmospheric conditions
- Aesthetic defects
- Consequential losses
By keeping your electronic equipment covered by an EEI policy, you can ensure the continued operation of your business. And even if a piece of equipment breaks down, the policy should cover any extra costs you incur as a result.
The best way to prevent a breakdown is to properly train your employees in equipment use and to perform regular maintenance on your electronic equipment. But in instances where even these measures don’t help, an EEI policy can help get your business back on track in no time.