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September 1, 2020

Business Insurance Coverage for Computer Equipment

Business Insurance Coverage for Computer Equipment

Getting the right business insurance for your company property might seem challenging, and one of the most critical items you want to protect is your computer systems. Still, you might not know whether your business insurance will cover these expensive and sensitive machines. The good news is it can, but you must make sure you have the proper coverage. Whether you offer employees laptops only, or have a multi-machine network, we can help you get the right policy. 


What Business Insurance Covers 


Nearly all business insurance includes property coverage. It will help you repair or replace items like furniture, tools, supplies and other critical business items in case of unexpected damage. Usually, it can also cover computer equipment, but only for covered losses. It will not cover computers damaged by hazards the policy does not cover, however. 


Whether your basic property insurance is enough coverage for all computers might depend on the size of your assets. For example, if you only have a few computers in the business, then the limits of your standard property insurance will likely be enough.  


However, property insurance will likely cap how much aid it will provide for computers. As a result, you might need to buy a policy endorsement that will increase your coverage limits for computer systems. This will ensure that you receive more right coverage. You might also need to buy expanded coverage if you allow your employees to take computer equipment home with them. 


What Business Property Insurance Does Not Cover 


Coverage for property damage usually only covers physical property. So, while damaged computers might have coverage, the data within them might not. You might also have no coverage for the cost of recovering this data or compensating customers who experience ramifications of lost data.  


Therefore, if you ever face a data loss, breach, hack, ransomware attack or related incident, then you might have to look elsewhere to get covered. You might need a type of coverage called cyber liability insurance. The policy can help the business itself in recovering or replacing lost data. It can then help you cover the costs of compensating third parties, like customers, affected by the data loss. 


You will have to tailor your computer equipment’s insurance to your own business’s needs. Therefore, your agent will need to know the full picture of your computer use to be able to insure you appropriately. While they can provide you with a solid base of property insurance, they will likely need to add special endorsements to the policy. With that, they can make sure you will always have protection. 

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