An ‘all risks’ insurance covering an array of perils and accidental damage to electronic items, e.g. computers, uninterrupted power supply (UPS) units, servers, fax machines etc. The policy could be extended to cover, data carrying media, increased cost of working or even loss of gross profit.

Riot, Strikes and Civil Commotion and Terrorism covers are obtained as additional perils.

Details of Cover
The original policy has three Sections (most commonly issued policies has only the Material Damage Section), viz.:

1) Material Damage
Cover under this Section is compulsory. Insured items includes hardware installation itself, e.g. electronic data or word processing installations, central processing units (CPU’s), control consoles, power packs and similar other input/ output devises, operating or under the direct control of or connected to the CPU and associated network cabling and air-conditioning units.

2) Reinstatement of Data
This optional Section covers the cost of reinstating data lost as a result of a peril insured under Section 1. Data carrying media is included under this Section, such as, Tapes, Magnetic Cards, Disks and other material used to carry data.

3) Business Interruption (Loss of Gross Profit)
There are three (3) variations of optional covers available. Only one may be used on any one Policy. The insured should select the period of indemnity adequately which would vary from 3 months to 12 months.

- Increased cost of working, or

- Loss of Revenue, or

- Loss of Gross Profit.

Following requirements shall apply:

- This insurance class is very selectively accepted, usually, only if Fire and other similar classes of business   are also offered to the insurer.

- Detailed inventory of the items to be insured

- Maintenance Agreement with the Agents/ Suppliers

- Age of Items should be less than 5-years (unless life-span of an item can be established as longer)

Standard Exclusions

- Loss or damage caused by any faults existing at the time of commencement of the Policy

- Loss or damage directly or indirectly caused by failure/ interruption of gas, water or electricity

- Costs incurred with in connection with functional failures

- Loss or damage for which manufacturer is responsible

- Consequential losses

- Loss or damage to bulbs, valves, fuses, seals etc.

- Aesthetic defects (scratches on surface)

- War, invasion, riot, strikes and civil commotion and terrorism

- Nuclear reaction

ALL RISK

Provides cover against ‘all risks’ for, especially, portable items such as mobile phones, palmtops, laptops, cameras, projectors etc.