Importance of Laboratory Electronic Equipment Insurance

Modern laboratories are equipped with highly sophisticated and costly instruments like HPLC’s, GC’s, LC – MS, GC – MS, AAS, ICP – MS, ICP – OES and HPTLC. Besides these instruments laboratories also install a network of IT servers and
terminals for integrating laboratory activities and networking with clients. When any electronic equipment stalls, operations come to a standstill leading to pecuniary losses and goodwill among clients. Laboratory Equipment Insurance policy helps to hedge against such risks. You can hire another piece of equipment until the stalled piece gets repaired and the insurer agrees to bear the hiring expenses.
Protection available
The policy protects the lab when its electronic equipment breaks down or sustains damage. It can be invoked when a fortuitous peril leads to the said breakdown or damage, subject to certain exclusions. As a result, the lab does not have to spend heavily to restore the damaged equipment to its original condition.
Features of the policy : 
  • Covers material damage to the equipment
  • Covers external data media too, the data stored therein included
  • Covers any escalation in working cost, occasioned by material damage
Caveats to note while buying the policy
The policy does not protect the lab from the risk of consequential losses, wear and tear caused to the equipment by atmospheric conditions and aesthetic defects. This is in addition to the usual caveats that keep out perils like war, nuclear perils and wilful negligence.
Add-on covers
Fortunately add-on covers are available in respect of the following:
  • Hike in sum insured
  • Express freight
  • Holiday and overtime rates of wages
  • Air freight
  • Property that surrounds the lab
  • Third party liability
  • Additional customs duty
  • Terrorism
Points to remember while furnishing the sum insured:
The lab will do well to remember the following while computing the sum insured:
  • In respect of equipment, its replacement cost, including freight, dues and customs duties, if any, and erection costs should be reckoned.
  • In respect of data media, the expenses to be incurred for restoring the insured external data media should be reckoned
  • In respect of working cost escalation arising from material damage to the equipment, rentals payable for the substitute equipment to continue data processing for the specified indemnity period, including personnel and transportation charges should be reckoned.
Please do share your experiences in case you have ever claimed such insurance relief and offer your valued comments.


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