3d rendering of futuristic blue circuit board
© HSB Canada


The equipment breakdown standard

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    Today, rapidly evolving technology presents risks never before seen. And new TechAdvantage® takes them on with enterprising solutions no other insurance company offers.

    Microelectronics have become the brains that drive business

    Examples: computers, elevators, retail checkout systems, telecommunications, heating and cooling, diagnostic testing. If equipment uses electrical energy, it contains microelectronics.

    How small is small?

    A micro-circuit no bigger than a 2 millimeter square can contain millions of components so tiny, that thousands could fit on a cross section of a single human hair.

    This means businesses of every kind depend on increasingly fragile technology which gets smaller and more complex every day, and fails frequently. We have tracked and analyzed the data: claims grow as electronic technology shrinks.

    Picture this scenario: Equipment suddenly stops functioning for no apparent reason, with no apparent physical damage. Only time consuming, costly forensic failure analysis can find the microelectronic impairment - not a practical claims approach for insureds and insurance companies.
    Yet while traditional equipment breakdown policies require evidence of physical damage for coverage to apply, microelectronic damage is not detectible.
    Integrated circuitry is constructed at the molecular level: if a wire that is one micron wide breaks, it’s virtually undetectable.

    New TechAdvantage® is redefining equipment breakdown coverage. It’s more than equipment breakdown, it’s technology breakdown.
    When it comes to microelectronics, customers no longer have to prove physical damage.
    If covered equipment suddenly losses its ability to function and that equipment or part containing electronic circuitry must be replaced to restore functionality, it’s covered.

    What’s at stake when microcircuits fail?

    Picture this: A law firm’s server goes down. Two days later a circuit board is swapped out and the server starts working. But that billable time is lost. What does that cost? And what critical data was lost? What’s the cost of data restoration? And what’s the cost to repair a damaged reputation?
    TechAdvantage® not only breaks new ground with microelectronics coverage, it even includes coverage for services from reputation management professionals like a PR firm, when a breakdown poses a risk to a business’s good standing.

    Off-premises transportable equipment coverage

    The miniaturization of technology has spawned another important trend. Equipment is more portable and more frequently used off premises where it’s exposed to greater risk of damage.
    For example, first responders can save lives using portable defibrillators and other electronic devices for emergency treatment at the scene. Small but sophisticated video equipment travels easily with reporters and videographers, wherever news and events take them.

    All kinds of mobile equipment are at risk. And it can be more difficult, costly and take more time to recover when a breakdown occurs at a remote location. Now, in addition to physical damage costs, TechAdvantage® mobile equipment coverage includes business interruption and extra expense.

    Cloud Computing

    Another major tech trend we’ve tackled is cloud computing.
    The cloud is fast becoming a new utility, yet service providers, data centres with enormous computing capability and storage capacity, do experience unplanned outages.
    In fact, a recent study of U.S. based data centres revealed that the average data centre had 2 complete outages, 6 localized shutdowns, and 10 limited outages in the last 24 months.

    Whether an outage is caused by backup power failure, I.T. equipment failure, or other equipment breakdown, these outages expose cloud users to business interruption and data loss. Our new cloud computing enhancement has them covered.

    In today’s world we’re surrounded by advances in technology and enjoying its benefits. Yet, as technologies evolve and intertwine, so do the risks of breakdown.
    HSB Canada has always been at the forefront in studying technological change. Now, we’re applying our engineering mindset to managing and insuring new technology risks in a changing world.

    You can count on HSB Canada to help you stay ahead of the technology curve, with coverages designed for today’s and tomorrow’s risks. For more details about any risk or coverages we’ve looked at today, please contact your HSB Canada representative.