A guide to insure your organization’s electronic equipment

Electronic Equipment Insurance

Electronic Equipment Insurance is an insurance policy that applies to low power/voltage equipment. It covers the owner, hirer or the lessor for the cost of accidental or unforeseen material damages to the said equipment(s).

What equipment can be covered under an EEI policy?

The policy owner must understand that the insurance covers only a particular set of electronic equipment. Many insurance companies call these equipment “silent” operating systems because the internal parts do not make much noise under operation. Examples of such “silent” electronic equipment include:

  • Power management equipment like Voltage stabilizers, UPS, etc.
  • Computer and related peripherals
  • Medical equipment like an X-ray machine, Ultrasound Machines, Cath Lab, etc.
  • Telecommunications equipment
  • Control panels
  • Televisual equipment
  • Navigational equipment
  • Electronic equipment for research

The Electronic Equipment policy not only covers hardware but also the cost of software that was installed on the machine. Thus, having Electronic Equipment insurance will help the organization safeguard its capital from unexpected losses.

Electronic Equipment Insurance

To get adequate coverage, providing detailed information up front about the equipment to be insured and how and where they are being operated is essential. The following is the list of specifics that the insurance companies typically ask from the organization to determine coverage and premium amounts:

  • The model and make of the equipment
  • Type of machinery
  • Type of industry
  • Experience of the industry
  • Replacement value of the equipment
  • Application and/or usage of the machinery
  • Estimated cost of the restoration of data
  • Professional experience of the workers handling the equipment
  • Standard of management

What events can result in a claim under an Electronic Equipment Insurance policy?

When you choose Electronic Equipment Insurance, it is critical that you know what types of damages are covered against the policy. Let us review the types of damage that are typically covered by EE insurance.

  • Fire, lightning, and explosion
  • Mechanical or electrical breakdown
  • Flood or water damage
  • Smoke or corrosive gasses
  • Electrical damages like short circuits
  • Natural calamities like storms, cyclones, or any other atmospheric disturbances
  • Theft or burglary
  • Damage caused by the failure of air conditioning equipment
  • Human errors like faulty operation, careless/negligent operations
  • Riot, strikes and malicious damage
  • Environmental factors like water, humidity and environmental contamination

In case of a claim, the Electronic Equipment Insurance covers the replacement of the parts, the cost of the total work hours spent on repairs, cost incurred to restore information/data and even freight charges. There are different levels of these plans, so based on the type of the insurance that you choose, the benefits will vary.

Who is it for?

After reviewing the basics of Electronic Equipment Insurance, it is clear that the insurance policy is beneficial for organizations that house several electronic machines. Since the majority of industries today use electronic machines like computers to streamline and coordinate projects, it is advised that you cover them with a robust insurance plan.

If you are wondering whether you should insure your electronic equipment or in the process of selecting Electronic Equipment Insurance for your organization, let us review the specific variables in your case and help you make a decision.

Workmen’s Compensation or Group Life: which to choose and why?

Workmen's Compensation Insurance

Workmen’s compensation and group life insurance policies are essentially rewarded packages that are beneficial for both the employees and employers as it helps employees to replace income at minimal cost to employers at the time of need. We will describe the benefits of both workmen’s compensation and group life insurance and highlight the differences so you are able to assess what reward package makes the most sense for your company.

Workmen's Compensation Insurance

What is Workmen’s Compensation Insurance?

Workmen’s Compensation Insurance also known as Employer’s Liability insurance is a liability policy to compensate employees for bodily injury or death due to accidents or occupational disease arising out of and during the course of employment.

In the UAE, the Federal Law has mandated employers to provide employees with medical, disability and death benefits for any accident, injury or death caused at or by the workplace. Without adequate cover, your company may be liable for large payouts encompassing medical, loss of earnings and related costs.

At the time of a claim, the payout of the policy depends on the medical bills and other claim documents submitted to the insurance company subject to the agreed terms and conditions stipulated in the policy.

What is Group Life Insurance?

Group life insurance policy is a life insurance product to cover a group of people under a single contract. Just like workmen’s compensation policy, in a group insurance contract, the policy owner is the employer or an organization, and the policy covers employees or members of that particular organization.

A group life Insurance differs from workmen’s compensation as it provides a lump sum payment, as opposed to payments based on claims with specific limits, in the event of an employee’s death or permanent disability due to accident or sickness.

While not mandated by law in the UAE, group life insurance is one of the best ways in which an employer can instill a sense of security in the minds of the employees. Most employers often pay for the basic group life insurance themselves without burdening the employees. If the employees want additional benefits like critical illness coverage, then they may pay extra for the supplemental benefit.

Another advantage of group life insurance is that it is not territorial like workmen’s compensation insurance. Employees are eligible for the coverage worldwide, including their home country. In addition, the group life covers employees 24 hours a day, 7 days a week, 365 days per week. In short, employees are covered whether they are on duty or off duty, unlike basic workmen’s compensation policies which cover employees only during working hours.

In UAE, the employer can opt for a group insurance policy provided there is a minimum of 11 members working for the company.

So what should you choose for your employees?

Workmen’s compensation in case of a work-related accident is mandatory in UAE and an insurance cover is the most cost-effective means for an employer to meet this potential liability.

However, for a low cost, your company can opt for group life insurance that enables comprehensive coverage for your employees thus strengthening your image as a caring employer which in turn helps with employee retention. There are some group life covers that can also help you meet your workmen’s compensation obligations as required by the Federal Law.

Still unsure on which insurance coverage to choose for your business? Our expert panel is here to help you sort things out. Get in touch with us or leave an email, we will get back to you promptly.

5 Most ridiculous lawsuits of all time


Mentioning lawsuits brings images of charged courtrooms buzzing with activities of Lawyers in gowns and wigs trading constitution quotations.

Grand endings of condemned prisoners waiting for henchmen or corrupt bankers being led to the black maria are other dramatic images that lawsuits conjure up in our minds.

Ever heard of ridiculous cases? Cases of seemingly irrational charges that often end up in favor of the case pursuant? You are about to be re-educated with the 5 mind-boggling lawsuits and upon reading agree with us that protecting oneself from various business risks is a need and not a good to have.

  • In 2013, Benjamin Careeathers sued against Red Bull energy drink company for false claims of ‘giving wings’ to Red Bull consumers in their adverts and apparently won the case for the American citizens. A whooping sum of 13 Million USD was settled for the settlement of the little ad clause that deceived the public just for the crime of three misinterpreted words ‘Gives You Wings’.
  • Walking into objects is a sore accident that can cost you a good amount of money for treatment but walking, texting and bumping into an orange-colored ladder in the United States can as well get you a 161,000.00 USD benefits from the jury system in the United States. Imagine the surprise of the defending company when they were ordered to pay such a ridiculous amount of money to Detoya Moody in 2011 for such a claim.
  • Cleanthi Peters sued universal studios for 15,000.00 USD for extreme fear, mental anguish, and emotional distress due to her visit to universal studios’ Halloween horror nights haunted house. Whatever she hoped to get in a Halloween haunted house?
  • Mcdonalds had a legal battle with 79-year-old Stella Leiback for making their tea too hot and when you think you have seen it all and you are clearly heartbroken…….
  • Robert Lee Brock sued himself for 5 million USD for larceny, breaking and entering, getting drunk and committing other crimes which landed him 23 years sentence. He had hoped the state would have to pay since he was in their custody (in jail) and wasn’t earning any money.

In every business, there is always that tiny possibility of answering miscellaneous charges which will likely have legal fees and possible compensation for damages if the case is sustained and won. These charges can against your business can come from within and without. and the consequences are expensive.

There are various types of corporate insurance that takes the financial responsibility of accidents/errors and resultant legal challenges that may befall companies. Some of these insurance products include professional indemnity insurance, product liability insurance, fleet insurance, worker’s compensation, and more. Any of these challenges can send a company to the brink of bankruptcy.

Ensuring assets and potential liabilities are decisions made by well-advised business owners who understand the importance of managing various risks. You can never be too prepared for accidental happenstance. One might be tempted to self-insure (saving little amount of money daily or weekly for accidents) but the figures needed to provide adequate coverage is in certain cases, way above the capacity most small businesses and in relative contrast, Insurance premiums are way cheaper to maintain.