The Hanover Insurance Group has introduced new enhancements to its equipment breakdown protection to include modern, technology-based equipment, including microelectronics and cloud computing services, to help businesses resume operations even if sensitive and complex equipment is damaged.
Small and midsized businesses long have relied on traditional equipment breakdown insurance to protect things such as boilers, heating systems or refrigeration units against sudden and accidental physical damage that required equipment to be replaced.
However, the more modern equipment risks of today contain sensitive and fragile technology that can be easily damaged, along with expanding system complexity and interdependency, which can increase the likelihood of a breakdown.
The Hanover commercial lines president John C. Roche said: “Any equipment breakdown insurance can cover the traditional equipment risks.”
"For most businesses, though, that doesn't provide the comprehensive protection they truly need. We've exceeded the traditional coverages by adding protection for the modern, complex equipment that is a critical component of many businesses."
The company has expanded its robust traditional equipment breakdown protection to include the following coverages, making The Hanover one of the first carriers to bring these new offerings to market:
Microelectronics: Covers breakdowns that require microelectronics to be replaced, whether or not physical damage is visible
Cloud computing service interruption: Adds cloud computing services to service interruption coverage
Service interruption data restoration: Covers cost for data restoration when data is lost due to a covered service interruption
Off premises business income, extra expense and data restoration: Extends payment for off-premises equipment breakdown to include business income, extra expense and data restoration, in addition to physical damage
The company has also added coverage for public relations assistance to help manage a reputation that may be damaged by an interruption of business.
In addition to the new enhancements, the company partners with Hartford Steam Boiler (HSB) to provide jurisdictional inspections of boilers and pressure vessels as a value-add service for customers.
Since inspections are required by many state and local governments, this built-in benefit saves clients from the added cost of local fees in many jurisdictions. The company also partners with HSB to offer infrared technology surveys to help customers detect problems in their electrical equipment.
These enhancements are already available for The Hanover's agent partners on business owner's policies and will be included on commercial package property and monoline property policies with effective dates on or after Dec. 15.