As well as putting general business insurance in place, your company may also need specialist policies. If you use a lot of electronic equipment like computers, laptops and servers, then this equipment may need extra coverage to mitigate against things that can go wrong with it.
For example, you can add electronic equipment insurance to your general business policy if you wish. What does this policy cover, and what are its benefits?
What Is Electronic Equipment Insurance Cover?
Electronic insurance policies offer a range of benefits depending on the insurance provider you use. In some cases, this coverage protects your equipment against general damage, such as theft, fire or flood. It then extends cover to include specific events.
For example, a policy may also cover you for problems such as:
- The costs of repair or replacement following unexpected breakdowns caused by a defect in the equipment.
- The costs of data restoration services.
- Extra costs you incur while your equipment isn't working and is being replaced, repaired or restored.
Bear in mind that some insurers only offer additional specialist coverage in this kind of policy. They don't cover general benefits like theft or fire which might be covered in your general business coverage in any case.
Why Take Out Electronic Equipment Insurance?
Your general business contents insurance should protect your equipment against common problems like fire, flood or theft. However, you may not have any protection in place that deals with other problems that often arise with this kind of equipment.
This can leave you in a difficult situation if one or more of your computers or your server develops a problem and simply stops working. These kinds of equipment can fail for no obvious reason. There isn't a traditional insurable event that makes this happen.
So, your general insurance isn't likely to help you recover your costs here. You will have to pay out of your own pocket to repair or replace defective equipment or to recover your data if you lose it. If this takes a while and you lose key equipment, then your business turnover could also suffer.
However, if you have electronic equipment coverage, then you should have the right protection in place. As long as you meet the conditions of the policy, your insurer should cover necessary repairs, replacement, data recovery and increased operational costs.
To find out more about electronic equipment policies and how they might fit into your insurance portfolio, contact your business insurance provider.