Equipment Insurance Analyisis Essays

2911 Words Sep 26th, 2012 12 Pages
Computer and
Electronic Equipment Insurance Policy (ITSC)

TABLE OF CONTENTS I. Executive summary p.2 II. Policy benefit and depreciation p.3-4 III. Premium Estimation p.5 IV. interesting findings p.6-8 1. Trend of sum insured and cloud computing 2. New risk exposure 3. Relatiopship with property all-risk policy V. Hypothetical case p.9-10

Executive Summary
Computer and Electronic Equipment Policy is an all-risk policy. It covers unforeseen and sudden physical loss or damage from any cause other than those specifically excluded. There are extended coverage in this policy to cover loss or damage due to theft, hurricane, cyclone,
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Then we discuss the possible deviation of the estimate qualitatively.
After analyzing the current policy, we point out some interesting findings. We compared the amount of sum insured from 2003 till now. It was decreasing but suddenly increased starting from 2010. We believe this is because of the new service, cloud computing, provided by ITSC.
In addition, data loss becomes increasingly important worldwide. With the provision of cloud computing service, it is also important to ITSC. However, the reinstatement of data condition only shares an extremely small percentage of the sum insured of the policy. We suggest ITSC should pay more attention on it.
One should not be confused this policy by the property all-risk policy. Their coverage is in fact different. Moreover, ITSC has a special role of initiator and coordinator of Hong Kong Internet Exchange (HKIX). This fuels the importance of having a special computer and electronic equipment policy solely for ITSC, in addition to the property all-risk policy covering university-wide properties.
Last but not least, we end our report by a hypothetical case illustration. It mainly illustrates the coverage and claim amount calculation.

Policy benefit and depreciation
Deductible
If the loss is due to theft or water damage, a deductible of US$250 applies.
Principle of Indemnity
According to this principle, the insurer agrees to pay no more than the actual amount of the loss. This is to prevent the

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