electronic equipment

ELECTRONIC EQUIPMENT INSURANCE
Extract

WHAT CAN BE INSURED?

Computers, peripherals, telephones, faxes, photocopiers, cell phones, communication equipment, sophisticated medical and lab equipment.  Can be owned or leased, mobile or stationary.  Mostly, INS considers depreciation on a straight-line basis over 5 years, thus it is not worthwhile to insure old items.  Except for mobile equipment, coverage extends within a specified premises.

WHAT PERILS CAN BE INSURED?

Coverage “A” - Fire, lightning, explosion, implosion,  smoke, soot, corrosive liquids or gases, weather,    short circuits, electrical fluctuations, civil unrest.
Coverage “B” - Theft.
Coverage “C” - Quakes, tremors, volcanoes.
Coverage “D” -  Hurricane, cyclone, floods, landslides. 
Coverage “E” - Only covers mobile equipment against the same perils as ABCD.  Coverages A+B are basic; others cost extra. 
Deductible: up to 20% (25% for coverage E); minimum is usually C.20,000 per event.

REQUIRED PROTECTION

Surge protectors, grounded circuits, security against theft, lightning rods (businesses only), fire protection (equipment valued at C.1,000,000 or more.)   There are other minor, common-sense requirements.  If security is inadequate, B coverage (theft) is refused.

REQUIREMENTS FOR APPLICATIONS

A list of equipment, with makes, models, serial numbers, years of manufacture, and replacement value (for new).  Agent visits the premises where equipment is, applicant signs forms, insurance company accepts risk and verifies premium, applicant pays. It usually takes 1-2 weeks for policy to come into effect.

COST

Premium is a percentage of replacement value (for new equipment as similar as possible). Exact percentages depend on the type of building where the equipment is, on its security, on the type of business. To the premiums calculated with rates below, add 13% Sales Tax.

Rev 04/08