When 6 million transistors—the heart of integrated circuits—can fit onto the head of a pin, microcircuitry damage is so small as to be undetectable. Hartford Steam Boiler’s equipment breakdown and technology coverage is designed to cover such “invisible” risks.
PRODUCT: Equipment breakdown and technology coverage
COMPANY: The Hartford Steam Boiler Inspection and Insurance Company, part of Munich RE
BEST RATING: A++ (Superior)
AVAILABILITY: Coverage is available monoline via agents and brokers and embedded in property coverage with many carriers.
FOCUS: Historically, equipment breakdown coverage has required evidence of physical damage. But when 6 million transistors—which are the heart of integrated circuits—can fit onto the head of a pin, microcircuitry damage is so small as to be undetectable. A claims adjuster would need an electron microscope to see it. And sometimes the damage isn’t even physical. Traditional equipment breakdown coverage doesn’t adequately address today’s microelectronic risks.
Hartford Steam Boiler’s TechAdvantage™ equipment breakdown and technology is designed to cover such “invisible” risks.
Founded in 1866, Hartford Steam Boiler (HSB) is an engineering and technical risk insurer, providing equipment breakdown coverage and related inspection services. “TechAdvantage expands equipment breakdown coverage beyond evidence of physical damage to circuit boards, computer chips and other micro-circuitry,” says Marc Saulsbury, vice president, strategic products, who explains that TechAdvantage is the newest version of HSB’s equipment breakdown product and the biggest enhancement to the product in more than a decade.
Saulsbury says HSB can provide agents and brokers with educational and marketing materials that will help them identify and discuss the benefits and risks that new equipment and technologies present for their clients.
UNDERWRITING: Microelectronics coverage covers failures when physical damage is not detectable or when firmware or software failure causes nonphysical damage. Coverage is triggered when covered equipment suddenly stops functioning and replacing that equipment or a part containing electronic circuitry restores functionality. Customers do not have to prove physical damage.
Environmental, safety and efficiency coverage pays up to 150% of the loss payable for upgrades to more energy-efficient, safe or environmentally friendly equipment. Additional coverage benefits include green equipment breakdown up to $25,000 in addition to energy-efficient upgrade coverage; $25,000 of mold coverage; anchor location contingent business income; civil authority contingent business income; and data loss, business interruption, extra expense and reputation management services. Cloud computing enhancement also covers business interruption and data loss.
MINIMUM PREMIUM: $250 for monoline equipment breakdown accounts.
TARGET: TechAdvantage coverages are applicable to all insureds who currently have equipment breakdown coverage, and all businesses, large and small, that use equipment of any kind. “It is equally applicable for the point-of-sale systems and electronic controls on refrigeration equipment in a flower shop as it is for the sophisticated production machinery at a manufacturer,” Saulsbury says.
COVERAGE TERRITORY: All U.S. states, territories and possessions, as well as Puerto Rico and Canada.
CONTACT: Marc Saulsbury, vice president, strategic products; The Hartford Steam Boiler Inspection and Insurance Company, part of Munich RE, One State Street, P.O. Box 5024, Hartford, CT 06102-5024; 860-722-1866.
Ronimarie Acord is an IA contributor.
