Category: Engineering specialty · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-05
Electronic equipment insurance (EEI) is the engineering insurance sub-class providing first-party indemnity for sudden and accidental physical damage to electronic equipment from both internal breakdown and certain external causes (impact, malicious damage, certain natural perils), broader in scope than basic computer breakdown insurance and suitable for specialist electronic and instrumentation installations.
Category: Engineering specialty Also known as: EEI, all risks electronic cover First codified: UK market practice from c.1980s Related legislation: Insurance Act 2015 [1]; Health and Safety at Work etc. Act 1974 [2]; Electricity at Work Regulations 1989 [3]
Electronic equipment insurance covers a wider scope of electronic equipment than basic computer breakdown insurance and is structured as an ‘all risks’ wording responding to sudden and accidental physical damage from a wide range of causes. The cover extends to [4][5]:
Computer and IT equipment — including servers, workstations, laptops, network equipment, telecommunications and associated peripherals.
Specialist electronic instrumentation — including medical electronic equipment (CT scanners, MRI machines, ultrasound equipment, laboratory analysers), broadcast electronic equipment, audio/video production equipment, surveying and measurement equipment.
Industrial electronic controls — including programmable logic controllers, drives, sensors, control systems and instrumentation in process industries.
Telecommunications equipment — including base stations, switches, routers, satellite equipment and fibre optic infrastructure.
The ‘all risks’ character of EEI distinguishes it from the narrower ‘sudden and accidental breakdown’ wording typical of basic computer breakdown insurance. EEI responds for losses from impact (dropping, collision), accidental damage from external causes (spilled liquid, falling object), short circuits from external causes (lightning, mains surge), theft and (in some wordings) certain natural perils. Standard exclusions include wear and tear, gradual deterioration, faulty maintenance, war and nuclear perils [4][5].
EEI is particularly used by sectors with high-value electronic equipment exposures: healthcare (with substantial diagnostic imaging and laboratory equipment values), broadcast and media (with specialist production equipment), telecommunications and broadcasting (with widely distributed infrastructure), and high-tech manufacturing (with extensive process automation and control equipment). For these sectors, the broader EEI wording typically provides better-fitting cover than either standard computer breakdown or general property insurance [4][5].
Electronic equipment insurance is governed by the general law of insurance contract in the UK, modified by the Insurance Act 2015 for non-consumer business. There is no specific statutory inspection regime for electronic equipment equivalent to that for boilers, lifting equipment or electrical installations, although electronic equipment installations are subject to the general electrical safety requirements under the Electricity at Work Regulations 1989 [1][2][3].
For medical electronic equipment, additional regulatory requirements apply. The Medical Devices Regulations 2002 (and the post-Brexit retained EU Medical Devices Regulation framework) impose conformity assessment requirements on medical devices placed on the market. The Medicines and Healthcare products Regulatory Agency (MHRA) is the principal UK regulator for medical devices. Healthcare providers using medical electronic equipment are typically required by NHS or private healthcare regulatory standards to maintain equipment in calibrated and safe condition, with EEI providing financial protection for sudden and accidental damage [6].
For broadcast and telecommunications equipment, regulatory requirements under the Wireless Telegraphy Act 2006, the Communications Act 2003 and various Ofcom regulations apply to operations using radio spectrum and providing communications services. The regulatory regime does not directly require specific insurance but contractual arrangements between operators and equipment owners often include insurance requirements [7][8].
For industrial electronic control systems falling within COMAH-regulated facilities, the safety case regime under the Control of Major Accident Hazards Regulations 2015 requires demonstration that risks have been reduced to ALARP, including risks from electronic control system failures. EEI provides financial protection for the operator but does not affect the underlying COMAH regulatory obligations [9].
A UK customer with substantial electronic equipment exposure arranges EEI through a commercial broker, with the placement typically going to one of the specialist engineering insurers or to Lloyd’s syndicates for larger or more specialised placements. The cover is on a schedule of insured items basis (with major equipment scheduled at agreed values) or on a ‘blanket’ basis (with cover for all electronic equipment up to an aggregate limit) [4][5].
Underwriters assess EEI risk based on the type of equipment covered, its value distribution, the operating environment, claims experience, the operator’s risk management arrangements (controlled access, environmental controls, surge protection, backup and redundancy arrangements) and the cyclical state of the market. Premium rates vary widely by equipment class and operating environment, from low rates for office IT equipment to substantially higher rates for medical imaging equipment in busy healthcare environments [4][5].
Claims handling for EEI typically involves the engineering loss adjuster working alongside the equipment manufacturer’s support services and the operator’s technical staff. Common claims include accidental damage during installation or maintenance work, spilled liquid damage, lightning and surge damage, theft of mobile equipment, and (for medical equipment) damage from clinical use or transport [4][5].
The broader ‘all risks’ wording of EEI typically means that claims fall within cover more often than under narrower breakdown wordings, but claims investigation is correspondingly more detailed. Causation disputes can arise where the damage results from a sequence of events (a surge causing a power supply failure followed by mechanical breakdown, for example) and the cause cluster engages different exclusions or sub-limits within the wording [4][5].
Standard EEI: all risks cover for scheduled electronic equipment.
Medical electronic equipment cover: tailored EEI for healthcare providers with substantial diagnostic and treatment equipment values. Often includes specific extensions for radiopharmaceuticals, isotope contamination and similar healthcare-specific exposures.
Broadcast and media equipment cover: tailored EEI for production companies, broadcasters and outside broadcast operations. Often includes specific extensions for transport between locations.
Telecommunications equipment cover: cover for fixed and mobile telecommunications infrastructure. Often integrated with the operator’s broader property and BI programmes.
Process control system cover: cover for industrial PLCs, drives, sensors and control systems in process industries.
Audio-visual equipment cover: tailored cover for hotels, conference centres and event facilities with substantial AV equipment.
Electronic instrumentation cover: cover for laboratory and research equipment, often in academic and government research contexts.
Solar PV inverter and electronic balance of plant: cover for the electronic components of solar PV installations, complementing the broader solar farm insurance for the wider installation.
A UK private hospital group operates a portfolio of diagnostic imaging equipment including 4 MRI scanners (each valued at approximately £1.8m), 6 CT scanners (£1.2m each) and substantial ultrasound, X-ray and laboratory analyser equipment across multiple sites. The group arranges electronic equipment insurance with limits of £15m per occurrence and £35m in the annual aggregate, with specific scheduling of the major imaging items at agreed values. Annual premium for the EEI cover is approximately £120,000 (significantly higher than would apply to standard computer equipment of equivalent value, reflecting the specialist nature of the medical equipment and the higher repair and replacement costs). During the policy year, accidental damage during a routine maintenance visit causes £180,000 of damage to one of the MRI machines; the EEI cover responds for the repair cost. Figures in this example are illustrative.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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