The Boiler Inspection and Insurance Company of Canada introduces coverage for invisible risks to microelectronics

The Boiler Inspection and Insurance Company of Canada (HSB BI&I), part of Munich Re, announced on Wednesday the introduction of TechAdvantage – a product the company is calling the “first equipment breakdown insurance product covering undetectable physical damage to microelectronics.”

TechAdvantage expands equipment breakdown and business interruption coverage beyond evidence of physical damage to circuit boards, computer chips and other micro-circuitry, HSB BI&I said in a press release. The new coverage is triggered when equipment containing electronic circuitry stops working but is restored when the electronic component is replaced.

Until now, HSB BI&I reported, most equipment breakdown insurance required evidence of physical damage to cover losses, “and did not adequately address today’s microelectronics risks.”

HSB BI&I said that TechAdvantage offers five new coverages: microelectronics coverage; cloud computing service interruption coverage; expanded data restoration coverage; off-premises coverage and public relations coverage.

“Technology is changing the risk landscape dramatically, creating new forms of equipment and applications for them,” said David Pivato, vice president for HSB BI&I, in the release. “Micro-circuitry, now critical to almost all equipment, is so sensitive that damage, invisible to the human eye, can cause equipment to simply stop working.”

Other highlights of the coverage include:

• It is 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; and
• Pays for public relations assistance to help manage a reputation that may be damaged by business interruption or data loss – limited to $5,000.

The Boiler Inspection and Insurance Company of Canada, a member of HSB Group and part of Munich Re’s Risk Solutions family since 2009, is a specialty insurer providing equipment breakdown, other specialty coverages, inspection services and engineering-based risk management.