Property Insurance
Electronic Equipment Insurance (EEI)
Electronic Equipment Insurance (EEI) is a specialized insurance policy designed to protect businesses and individuals against financial loss due to accidental damage, breakdown, or theft of electronic equipment. This includes computers, servers, medical equipment, broadcasting devices, industrial electronics, and other high-tech devices that are crucial for business operations.
Why is Electronic Equipment Insurance Essential?
- Covers Expensive and Sensitive Devices
- Protects Against Data Loss & Downtime
- Covers Sudden and Unforeseen Risks
- Protection Against Theft & Burglary
Important Things You Should Note
- Covers Accidental Damage, Not Wear & Tear – Insurance does not cover gradual deterioration or aging of devices.
- Regular Maintenance is Essential – Claims may be denied if the equipment was not properly maintained.
- Data Recovery Costs May Be Limited – Some policies have caps on data restoration expenses.
- Must Declare All Covered Equipment – Businesses should list all insured devices to avoid claim disputes.
- Coverage for Mobile Equipment is Different – Equipment that is frequently moved (e.g., laptops, cameras) may require special coverage.
What is Covered & What is Not Covered?
What is Covered?
- Accidental Damage – Covers physical damage from drops, falls, or mishandling.
- Electrical & Mechanical Breakdown – Covers power surges, short circuits, and component failures.
- Theft or Burglary – Covers stolen equipment if there are visible signs of forced entry.
- Fire, Explosions, & Natural Disasters – Covers damage due to fire, floods, storms, earthquakes, and lightning.
- Data Restoration & Increased Working Costs – Some policies compensate for data recovery expenses and temporary replacement equipment.
What is Not Covered (Exclusions)?
- Normal Wear & Tear – Gradual deterioration, corrosion, or aging is not covered.
- Intentional Damage or Negligence – If damage occurs due to improper handling or lack of maintenance, the claim may be rejected.
- Damage from War, Riots, or Civil Unrest – Losses due to terrorism or political unrest are usually not covered.
- Pre-existing Faults – Malfunctions that existed before purchasing the policy are excluded.
- Loss Without Forced Entry – If an item is lost or misplaced (rather than stolen with forced entry), it may not be covered.
Frequently Asked Questions (FAQs)
Can I cover my personal laptop and mobile devices?
Yes, but personal devices often require a separate coverage plan under portable electronic insurance.
How does the claim process work?
In case of damage, theft, or malfunction:
Report the loss to the insurer.
Provide a repair report from an authorized service centre.
Submit necessary documents, including invoices, FIR (if stolen), and photographs of damage.
Does this policy cover software and data loss?
Some policies partially cover data recovery costs but not software replacements. It’s best to check with the insurer for details.
Is there a limit on the claim amount?
Yes, the policy specifies maximum coverage per device or a total sum insured. Always review your coverage limits.
Can I extend coverage for outdoor use?
Yes, many insurers offer add-ons for mobile devices used outside business premises, such as laptops, tablets, and cameras.
