Electronic Equipment Insurance in the UAE

Electronic Equipment Insurance is an engineering insurance product intended for businesses and organisations that use electronic systems in their operations. It may cover eligible sudden and accidental physical loss or damage to equipment declared in the policy schedule, subject to the issued wording, limits, deductibles, conditions and exclusions.

Depending on the insured business, the equipment may include computers, servers, communication systems, medical equipment, security systems, laboratory devices, control systems or other specialised electronic equipment. Items are not automatically insured simply because they are electronic. Their descriptions, values, locations and uses should be declared and accepted by the insurer.

What Electronic Equipment Insurance May Cover

The policy may include one or more of the following sections:

1. Material damage: Eligible sudden and accidental physical loss or damage to insured electronic equipment while it is at the declared location.
2. External data media: The cost of restoring or replacing insured external data media following covered physical damage, when this section is expressly included.
3. Increased cost of working: Reasonable additional operating costs arising from the temporary use of substitute equipment after insured physical damage, subject to an agreed indemnity period and limit.

Causes such as accidental damage, fire, water damage, electrical events, theft or other external events may be covered only when they fall within the issued policy wording and are not excluded. The term “all risks” or broad product descriptions should not be understood as covering every possible event.

Equipment That May Be Considered

Depending on the business and underwriting assessment, declared equipment may include:

1. Computer systems, servers and data-processing equipment.
2. Telecommunication and network equipment.
3. Electronic medical or diagnostic equipment.
4. Security, access-control and surveillance systems.
5. Laboratory, testing and measuring equipment.
6. Electronic control, monitoring and automation systems.
7. Printing, broadcasting or audio-visual equipment.

Portable equipment, equipment used away from the declared premises, mobile phones, tablets and personal devices may be excluded or may require specific agreement. Any off-site use, transit or territorial requirements should be disclosed when requesting a quotation.

Important Policy Conditions

1. Declared equipment: The equipment description, serial number, value and location should be accurately recorded where requested.
2. Insured values: Values may need to reflect the applicable replacement cost, including freight, duties and installation expenses where required by the policy basis.
3. Maintenance: Equipment should be operated and maintained in accordance with manufacturer recommendations and applicable safety procedures.
4. Protective measures: Required surge protection, cooling, fire protection, security, backups and environmental controls should remain operational.
5. Material changes: Changes in equipment, values, locations, activities or operating conditions should be disclosed to the insurer.

External Data Media and Data Restoration

Physical equipment cover does not automatically insure the value of information stored on the equipment. When external data media cover is included, the policy may respond to reasonable restoration or reproduction costs following insured physical damage to the declared media.

The commercial value of data, loss of intellectual property, cyber incidents, privacy liabilities, ransomware, unauthorised access and loss caused solely by software errors or malware may not be covered. Separate cyber insurance may be required for these exposures.

Increased Cost of Working

Increased cost of working cover may reimburse eligible additional expenses reasonably incurred to continue business operations after insured physical damage. Examples may include hiring substitute equipment or using an alternative processing facility.

This section does not automatically cover loss of revenue, loss of profit, contractual penalties or every form of business interruption. Cover is subject to the agreed daily or total limit, indemnity period, time excess and policy conditions.

Common Exclusions and Limitations

Electronic Equipment Insurance may exclude or restrict losses involving:

1. Wear and tear: Gradual deterioration, corrosion, ageing or lack of maintenance.
2. Known defects: Defects or damage known before the policy began.
3. Consumable parts: Components such as batteries, bulbs, tubes, belts or fuses, except where the wording provides otherwise.
4. Software and cyber events: Programming errors, viruses, malware, cyberattacks or loss of data without insured physical damage.
5. Consequential loss: Loss of revenue, profit, market, contracts or penalties unless expressly insured under a separate section.
6. Excluded events: War, nuclear risks, deliberate acts, confiscation and other exclusions stated in the policy.

Mechanical or electrical breakdown may be covered, restricted or excluded depending on the issued wording and the cause of damage. The policy schedule, exclusions and endorsements should therefore be reviewed carefully.

What to Do After an Incident

1. Take reasonable steps to prevent further damage and protect the equipment.
2. Disconnect unsafe equipment where it is safe and appropriate to do so.
3. Notify Al Buhaira Insurance as soon as reasonably possible.
4. Keep the damaged equipment and parts available for inspection.
5. Retain photographs, technical reports, invoices and maintenance records.
6. Do not authorise major repairs or disposal without prior agreement, except for urgent safety measures.

How to Request a Quotation

Businesses can submit their initial details through Al Buhaira Insurance’s dedicated Electronic Equipment Insurance quotation page. The assessment may consider the type of equipment, values, age, use, location, maintenance arrangements, operating environment, security controls and previous claims.

A quotation does not confirm that insurance cover has started. Cover begins only after the required information has been reviewed, the terms have been accepted and the applicable policy documents have been issued.

Documents Required

The insurer may request documents and information such as:

1. Completed proposal or quotation form
2. Trade licence and company details
3. Electronic equipment schedule
4. Equipment descriptions, makes, models and serial numbers
5. Replacement values and purchase invoices
6. Equipment locations and site details
7. Details of portable or off-site equipment
8. Maintenance agreements and service records
9. Security, fire-protection and environmental-control details
10. Data-backup and recovery arrangements
11. Requested external data media limits
12. Requested increased cost of working limits
13. Previous insurance details and claims history

Why Choose Al Buhaira Insurance?

1. Engineering insurance product: Electronic Equipment Insurance is available within Al Buhaira Insurance’s engineering insurance range.
2. Dedicated quotation page: Businesses can submit initial equipment and company details online.
3. Risk-based assessment: Quotations can consider the declared equipment, values, locations, activities and requested sections of cover.
4. Policy enquiries: Customers may contact Al Buhaira Insurance regarding issued schedules, conditions, limits and endorsements.
5. Claims enquiries: Policyholders can report incidents and provide supporting information for assessment under the issued policy.

Frequently Asked Questions