Hanover updates offering to include technology-based equipment

The Hanover Insurance Group has updated its equipment breakdown protection to include technology-based equipment such as microelectronics and cloud computing services.

John Roche, president of commercial lines at Hanover, commented: "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 update has been made to help businesses resume operations even if sensitive and complex equipment is damaged.

The new offering covers breakdowns that require microelectronics to be replaced, whether or not physical damage is visible.

It has also added coverage for cloud computing service interruption, and also covers costs for data restoration when data is lost due to a covered service interruption.

The offering also provides coverage for public relations assistance to help manage a reputation that may be damaged by an interruption of business.

“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,” Hanover said in a press release.

“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.”