April 27, 2016 by Canadian Underwriter
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:
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.