Electronic Equipment
Insurance.

Electronic equipment insurance is designed to cover the cost of repairing or replacing your computers, servers, diagnostic systems, scientific instruments, broadcasting equipment and other specialist electronic systems when they suffer sudden and unforeseen damage or breakdown. If your business depends on specialist electronic systems, this cover is designed for you. It can also include data reinstatement cover and an increased cost of working extension if electronic downtime directly affects your operations.

Electronic equipment insurance does not typically cover gradual deterioration, wear and tear or pre-existing faults known to the insured before the policy was arranged. Damage caused by software viruses or hacking is generally a matter for cyber liability insurance rather than an electronic equipment policy. Theft is commonly excluded unless a specific extension is arranged. Consumables and accessories are also generally excluded. Conditions and exclusions vary by policy.

There is no general law requiring businesses to hold electronic equipment insurance in Australia. Some finance agreements or lease arrangements may require evidence of cover for specific equipment. Requirements vary by industry and individual arrangement.

A wide range of electronic equipment can be insured under an electronic equipment policy. Common examples include computers and workstations, servers and network infrastructure, specialist medical and diagnostic equipment, broadcasting and audio-visual systems, scientific instruments, POS systems and electronic switchboards. Get in touch and we can confirm what equipment may be insurable and any conditions that apply to specific item types.

The cost of electronic equipment insurance varies depending on the total value and nature of the equipment insured, the industry and risk profile and the scope of cover including any data reinstatement or increased cost of working extensions. Lower risk equipment in well-maintained environments can attract modest premiums relative to the replacement value. Specialist or high-value systems may attract higher rates. Every situation is different. The only way to get an accurate figure is to talk through your specific equipment and circumstances with us.

Electronic equipment claims vary widely. Replacing a server or workstation may involve several thousand dollars. Damage to a specialist diagnostic system, broadcasting rig or scientific instrument can run into hundreds of thousands of dollars. Data reinstatement following a covered loss can also add significantly to the total claim cost, particularly where large volumes of data must be reconstructed from incomplete backup sources.

Data reinstatement cover is designed to meet the reasonable cost of recreating or restoring data that is lost or corrupted as a direct result of a covered damage event to the hardware on which it was stored. It does not typically cover the cost of data lost due to cyber attacks, software errors or failure to maintain adequate backups. The scope and limits of data reinstatement cover vary by policy. It is a separate matter from cyber liability insurance, which addresses data breach and network security events.

Electronic equipment insurance covers the physical hardware: the cost of repairing or replacing equipment that is damaged or breaks down due to a sudden event. Cyber liability insurance addresses losses arising from data breaches, hacking, ransomware and other cyber-related events that affect your data, systems or third parties. The two covers address different risk scenarios. Your business may consider whether both covers are relevant to your situation.

Machinery breakdown insurance is typically used to cover mechanical and electrical failure of industrial plant and machinery such as production equipment, boilers and compressors. Electronic equipment insurance is designed for office, IT, medical, scientific and specialist electronic systems. Some insurers combine both covers under a single policy for businesses that operate both industrial plant and electronic systems. Get in touch and we can help work out the appropriate product or combination of products for your equipment.

Some business pack policies include a section for office contents or portable equipment that may provide some cover for electronic devices. However, the scope and limits can be restricted and may not extend to specialist or high-value systems or include data reinstatement cover. A standalone electronic equipment policy is typically more comprehensive for businesses that operate significant or specialist electronic infrastructure. Get in touch and we can help work out which approach is right for your situation.

Insurers typically ask for a schedule of electronic equipment to be insured including item descriptions and replacement values, the nature of business operations and how the equipment is used, the age and maintenance history of key items, whether data reinstatement cover is required and the volume of data held, whether an increased cost of working extension is required and any prior damage or breakdown events. When you get in touch, we will guide you through what we need and present your risk to our insurer panel.

Notify us as soon as possible after the event. Do not authorise major repairs or dispose of damaged equipment without first consulting us, as an assessment may be required. Retain documentation of the event including any error reports, maintenance records and photographs of damaged equipment. For losses involving data, document the extent of data loss and what backup systems were in place. We will be actively involved throughout the claims process.

A decline from a standard insurer does not mean cover is unavailable. We have access to a wider range of insurers beyond the standard market, including options for older equipment, specialist systems and businesses with prior loss history. Get in touch and we can identify what options are available for your situation.