The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re, has launched HSB TechAdvantage, an equipment breakdown and technology insurance that covers losses resulting from microelectronic failures.
Microelectronics, with circuitry thousands of times smaller than a human hair, is critical to almost all systems, equipment and technology. Yet, these technologies are prone to failures where physical damage is undetectable, as well as non-physical failures because of firmware or software. Most equipment breakdown and property insurance options in the marketplace require evidence of physical damage to cover losses, and do not adequately address today’s microelectronic risks.
“With the proliferation of miniaturized technologies that drive virtually all commercial operations, businesses need coverage to stay ahead of today’s equipment failures,” said Marc Saulsbury, vice president of HSB. “Now, we are applying our technical and engineering knowledge to managing and insuring new technology in a changing world.”
HSB TechAdvantage expands equipment breakdown coverage beyond evidence of physical damage to circuit boards, computer chips and other micro-circuitry. It helps policyholders recover from damage to systems or equipment that cannot easily be traced and recoup the costs of a microelectronic failure, including business interruption, data loss and reputational damage.
To address additional emerging technologies, HSB TechAdvantage includes enhancements to existing service-interruption coverage for cloud computing services and adds data restoration coverage for data lost due to a utility service interruption, such as loss of electrical power. It also offers off-premises business income and extra expense coverage for mobile equipment and technology, and new public-relations coverage to help commercial entities overcome business interruption and reputational issues from equipment failures.
HSB’s microelectronics coverage, among other coverage additions and enhancements, will be available within HSB TechAdvantage policies this year (subject to state approvals).
Hartford Steam Boiler (HSB) is an engineering and technical risk insurer providing equipment breakdown insurance products, other specialty coverages, and related inspection services and engineering consulting.
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