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The Importance of Electronic Equipment Insurance for Small Businesses
Business depends on electronic equipment, whether it’s servers, office-based imaging equipment for doctors or portable monitoring equipment for sound engineers.
If it’s lost, damaged, breaks down or is stolen, it’s usually essential that the item be repaired or replaced as soon as possible. There’s also the potential for loss of income.
Electronic equipment insurance provides cover for these costs and can also protect lost income.
Most Electronic Equipment policies are packages that cover several sections, such as:
- Equipment Breakdown: covering the cost to repair or replace electronic or electrical items or equipment damaged due to sudden and accidental internal derangement, as well as resulting damage. This section also covers expediting costs (overtime, airfreight etc) to ensure repairs are undertaken as quickly as possible; temporary hire costs to keep the business operating until the equipment is repaired or replaced; and data restoration costs, to restore data lost or damaged due to the breakdown.
- Fire & Specified Perils: this section covers equipment damaged due to fire, storm, wind, rain, theft, explosion or malicious damage.
- Transit damage for Portable Equipment: this section covers portable electrical or electronic items taken away from the business premises, such as monitoring equipment or laptops. Cover is for theft, breakdown, damage if the vehicle carrying the item is involved in an accident etc.
- Business Interruption – loss of Gross Profit: covering Net Profit and Continuing normal operating and payroll expenses, being everyday expenses in operating your business and premises. This includes stationery, renting premises and purchase of trading stock, as well as employing people (salary, wages, super FBT etc.). It can sometimes take weeks or months to replace, reinstall and rebuild premises and equipment, so this section provides ongoing payments to ensure staff and ongoing bills are paid.
- Business Interruption – Additional Expenses Only: these are additional or increased expenses incurred due to the breakdown or damage. This is more limited than the full Gross Profit cover and, therefore a lower premium.
Things that aren’t covered are usual wear and tear, leaks or consumables.
Contact us today if you’d like to discuss your needs and if Electronic Equipment insurance is the right type of cover for your business.