To understand the Act of God Coverage included with the TAMCO technology as a service program, let’s first consider one step customers should take when they have new technology equipment installed regardless of how they pay for it. They add that equipment to the assets under their normal business insurance coverage. In the event that equipment is damaged by an Act of God such as a lightning strike, flood, or other natural disasters, their insurance will cover the damage. Of course, there is almost always a deductible which is still the financial responsibility of the customer.
However, if customers acquire solutions with the TAMCO technology as a service program, this is where TAMCO’s Act of God coverage can help. This protection is designed to reimburse customers for their insurance deductible expenses up to a maximum of $5,000 per contract term.
As a quick example, a customer experiences a lightning strike that causes $20,000 of damage to the equipment in their technology as a service solution. Their insurance company will cover the damaged equipment with a $3,000 deductible being the responsibility of the customer. The customer submits the details of the incident to TAMCO and we reimburse the customer their $3,000 deductible expense. In the same incident, if the deductible associated with the damaged equipment had been $4,000 then TAMCO would have reimbursed $4,000. TAMCO would reimburse whatever the deductible expense is, up to a maximum of $5,000.
So to be clear, TAMCO’s Act of God coverage is not insurance. It is deductible reimbursement protection. While it is not a feature you want to use, all the customers that have used it really appreciated this added benefit of the TAMCO technology as a service program.