What Type of Insurance Does Your Business's Equipment Need?
by Stephanie Faris on Monday, July 27 6:00
Yet many business leaders fail to take out insurance on some of their most valuable assets. Your business may have insurance on the property in the event of a natural disaster or theft, but what about the many other disasters that could befall a business s equipment? Here are a few types of insurance you should consider for your own equipment.
Business Interruption Insurance
If some type of disaster hits your business, you ll likely be unable to operate for a certain length of time. Business interruption insurance covers the money you ll lose as you attempt to purchase new equipment and get your office space up and running again. This is especially important if your business relies on having a physical location, such as a storefront or a shipping facility. Estimate how long you feel it would take you to become operational again and search for insurance that will cover that length of time.
When it s time to move your end-user equipment or servers, what happens if a piece of equipment becomes damaged? Will you have to pay to replace that equipment out of your already-strapped budget? Your general insurance policy likely won t cover damage to equipment that occurs as part of a move, so it s important to check into such coverage as part of the move planning process. If you re using professional server movers, chances are that damage will be covered as part of their insurance coverage.
Electronic Data Processing Insurance
For more specific coverage, there s Electronic Data Processing (EDP) insurance, which covers your equipment, media, and data. The most important coverage to purchase in one of these plans is the data component, since that is one item that can t be easily replaced. Check with your insurance company to find out whether EDP policies are offered and ask for a cost estimate. You may be able to get a better deal from another insurer, so price around if you find your own insurer s costs are high.
Mobile Device Loss Insurance
Mobile devices can easily be lost or stolen, since they leave your office each day. Whether you purchase the device insurance offered by your mobile carrier is up to you. Often you may find that paying to replace the devices as they re lost is cheaper than paying a monthly fee for all of your devices. Ask for a deal and determine whether you could simply set money aside each month and replace the items yourself if something should happen.
Your equipment is one of your business s most important assets. By putting an insurance policy in place, you ll be able to protect your business from significant financial loss if one or more of your devices is damaged, lost, or stolen.