Equipment Breakdown Coverage Enhancements
Rapidly evolving technology drives the systems, equipment and operations of businesses, industries and public institutions as diverse as retail stores, medical services and home construction. Technology trends such as miniaturization, portability and cloud computing are creating different, costly and complicated new risks for business owners.
HSB TechAdvantage™ is equipment breakdown and technology coverage that protects against losses caused by these increasingly common technology-related failures.
Advances in technology have created opportunities and exposures never before seen for businesses of every kind. HSB TechAdvantage™ provides innovative solutions and coverage to help businesses leverage technology’s benefits while reducing its risks.
With microelectronics, damage can be invisible
Today’s systems, equipment and technologies contain microelectronics - miniaturized circuitry with microscopic parts and connections prone to damage that is so tiny, damage is virtually undetectable. And when firmware or software failures stop systems and equipment from functioning, the damage isn’t even physical.
However, traditional equipment breakdown policies require proof of physical damage to trigger coverage, which can leave insureds without coverage for repair or replacement, business interruption and data loss caused by technology failures.
The miniaturization of technology makes portability possible. As equipment with fragile components travels around the world, breakdown risks and impact on business operations and income both increase.
More portability means more risk
Cloud computing is not fail safe
The number of small businesses using cloud computing is expected to more than double by 2020, from 37 to nearly 80 percent. A recent study reveals that 48 percent of small-to-midsize business users have experienced cloud service interruptions, with more than half of those losing business functions at least once.
Critical data can be lost during a service interruption or corrupted if a data center experiences a breakdown, adding reputation damage to downtime losses.
HSB TechAdvantage™ expands the scope of equipment breakdown coverage
- HSB TechAdvantage™ significantly expands the scope of equipment breakdown coverage.
- Electronic Circuitry Impairment covers failures when microelectronic physical damage is not detectable or nonphysical damage such as firmware corruption or software failure result in breakdown. Triggered when covered equipment suddenly stops functioning as it had been and that equipment or a part containing electronic circuitry must be replaced.
- No special sublimits or deductibles – pays just as if there had been an equipment breakdown accident. Subject to certain exclusions for: Conditions remedied by normal maintenance, rebooting, reloading, or providing necessary power or supply; software or equipment incompatibility within 30 days of install; failure caused by insufficient size or capacity; exposure to adverse environmental conditions unless these conditions cause a loss of functionality.
- Adds cloud computing services to service interruption coverage – pays for data research, repair and restoration services, business interruption and extra expense when insured’s service provider experiences an outage due to an accident. Subject to service interruption sublimit and waiting period or deductible.
- Adds data restoration coverage for data lost when there is a covered service interruption, such as a loss of electrical power. Subject to data restoration sublimit.
- Extends payment for off-premises and mobile equipment breakdown beyond physical damage to include business interruption and extra expense.
- Pays for public relations assistance to help manage a reputation that may be damaged by business interruption or data loss – limited to $5,000.
In addition to Equipment Breakdown coverage, HSB offers Identity Recovery and Data Compromise coverages as an optional and affordable bundle to add to an HSB TechAdvantage™ policy:
- Identity Recovery coverage addresses the threat of the fraudulent misuse of business owners’ or partners’ personal identity and credit records. It covers certain expenses you incur in restoring your identity and credit records and includes professional services to assist you in the process.
- Data Compromise coverage insures businesses for the expense of notifying their customers and for the cost of services to assist customers, such as credit monitoring or identity restoration, for clients who become victims of identity theft helping you to preserve your clients' trust.