When does electronic equipment insurance pay out, and when not?
In short
When does it pay out? Electronic equipment insurance (Elektronikversicherung) pays for almost any sudden physical damage to devices: power surges, short circuits, water, drops, operating errors and theft. It does not pay for wear, defects the manufacturer must fix, data loss without damage to the device, or intent. You carry the deductible, usually EUR 150 to 1,000, in every case.
Typical losses to business tech in Germany and what the cover costs, from published examples.
Example
Typical range
Ultrasound probe damaged in a medical practice
about EUR 7,500 for repair or replacement
Lightning damage to practice equipment
about EUR 38,000
Deductible per claim
usually EUR 150 to 1,000
Premium for a GP practice with EUR 40,000 of equipment
about EUR 200 to 400 a year
Guide values, October 2026, from publicly quoted loss and premium examples.
Whether and how much is paid depends on your policy wording.
The amounts in the worked example are guide values from our quoting practice.
Worked example
Joinery workshop near Munich, thunderstorm at night
A grid surge destroys the office PC and network storage and damages the control panel of an edge banding machine.
Office PC and network storage, replacement value
about EUR 3,200
Control panel, repair by the manufacturer
about EUR 2,400
Restoring data from backup
about EUR 600, only with the add-on
Deductible
EUR 250
With the data and software add-on the policy pays about EUR 5,950, without it about EUR 5,350. If the panel is part of a machine, machinery insurance may be responsible instead.
When electronic equipment insurance pays
Electronic equipment insurance is all risks cover. It pays when a device is suddenly and unexpectedly damaged or destroyed, or lost through burglary or robbery. The cause does not have to be listed in the policy.
Typical cases are surges from the grid, a knocked over glass, a dropped tablet, an operating error on a practice device, vandalism or a short circuit. For partial damage the insurer pays the repair, for a total loss the replacement value of an equivalent device.
When electronic equipment insurance does not pay
Anything that happens over time is not covered: wear, fading batteries, scratches that do not affect function. Nor are defects known when you took out the policy, or damage you cause on purpose as the owner.
If the manufacturer or seller has to fix the device under warranty (Gewährleistung or Garantie), the insurance steps back. Good policies still pay first if the manufacturer disputes liability, and then recover the money from them.
Case
Does electronic equipment insurance pay?
Surge destroys the server
yes
Coffee in the keyboard
yes
Employee drops the laptop
yes, off site only with portable cover
Laptop left on the train
no, losing is not theft
Ransomware encrypts all data
no, no physical damage
Faulty update crashes the till
no, software fault
Defect within warranty period
no, the manufacturer pays first
Battery no longer holds charge
no, wear
Grey areas that lead to disputes
Many policies only pay for theft from a car if it was locked and the device was out of sight, some not at night at all. Simple theft from unlocked rooms is often limited or excluded.
With gross negligence, German law (section 81 VVG) lets the insurer reduce the payment in proportion to the fault, for example if a device keeps running despite known overheating. Good policies waive this up to a limit.
Duties you must meet to keep your cover
Many policies require maintenance as specified by the manufacturer, regular data backups and, for certain systems, surge protection. Breaching these duties (Obliegenheiten) can lead to a reduced payout.
After a loss, report it without delay, report theft to the police and keep damaged parts until the insurer has seen them.
When the data is gone but the device is fine
Electronic equipment insurance requires physical damage. If an attacker deletes or encrypts your data, no device is damaged and the policy does not pay. Only cyber insurance covers that.
The data and software add-on pays for restoring data if the storage device was damaged first by an insured event, such as a surge or water.
Step by step
Report the loss straight away, take photos, keep the parts.
Report theft to the police.
Check whether a warranty applies.
Send in a repair quote or invoice.
For data loss, show that the device was physically damaged.
Checklist
Portable devices included with the right territory
Theft from a locked car clearly regulated
Gross negligence covered up to a limit
Insurer pays first if the manufacturer disputes the warranty
Data and software add-on
Maintenance and backups documented
Common mistakes
Reporting a lost device as stolen
Throwing away damaged parts before inspection
Expecting electronics cover to pay for a cyber attack
Overlooking the manufacturer's warranty
Questions and answers
Frequently asked
Does it pay for a power surge without lightning?
Yes, this is one of the most common insured losses.
Unlike contents insurance, no lightning strike is needed.
Does it pay if an employee damages a device?
Yes, operating errors and clumsiness are covered, even sabotage by staff.
Only intent by the owner and senior management is excluded.
What about devices older than five years?
Good policies pay replacement value as long as the device is in use.
Some switch to current value after a few years, so check that clause.
Is water from a knocked over vase covered?
Yes, water from any source is covered.
Contents insurance only covers water from pipes.
How quickly must I report a claim?
Without undue delay.
Late reports can reduce the payout if they make it harder for the insurer to assess the loss.
Who can help if the insurer refuses?
A broker can go through the policy wording with you and check the reasons given.
If the dispute continues, a lawyer specialising in insurance law (Fachanwalt für
