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What Does Laptop Insurance Cover? (And What’s Still Exposed?)

Monday, March 24, 2014/Categories: cyber-liability

 

For owners of small technology businesses, insuring laptops and other gadgets is not a luxury – it’s a necessity. But finding the right laptop insurance can be confusing, given the many kinds of insurance available. Here’s a guide to ensuring that you’ve got adequate laptop insurance to protect the equipment your business relies on.

Laptop Insurance for Your Business

Depending on how you use your laptop for your business, you can expect different levels of protection from different types of insurance.

·         Homeowners Insurance: If you operate your tech firm from your home, it’s possible that your laptop is covered under your Homeowner’s Insurance, especially if you use your laptop for mostly non-business activities. But be warned: if you use your laptop primarily or exclusively for your business, you likely need additional insurance. That’s because Homeowner’s Insurance often does not cover business assets, even if the business in question is operated from a home.

  • Property Insurance: Most business Property Insurance policies cover equipment such as laptops and the software on them. In the event that your laptop is damaged, lost, or stolen, Property Insurance pays for the cost of repairing or replacing it. In many cases, owners of small technology companies find that they can secure Property Insurance for a discount by purchasing a Business Owners Policy (BOP insurance), which combines General Liability and Property Insurance.
  • Cyber Liability Insurance: While Property Insurance will protect your laptop itself, it will not shield you from certain types of liability associated with the work you conduct on the laptop. If, for example, you open an email that contains a virus and that virus spreads itself to your clients’ computers, compromising their information, you could be held liable for damages. Cyber Liability Insurance protects your company for the costs related to data breaches and other cyber incidents that put your clients’ information at risk.

What Your Laptop Insurance Does Not Cover

As always, it’s just as important to understand what your laptop insurance doesn’t cover as it is to know what it does cover. As part of your ongoing risk-management efforts, be sure to consider the following…

  • Excluded perils. There is no such thing as truly comprehensive insurance coverage; every policy excludes certain events. Before choosing a laptop insurance policy, make sure it includes coverage for incidents likely to cause damage.
  • New devices. If you greatly expand your business or its equipment, you may need to update your insurance policy as well. Talk to your agent about what your plan covers.
  • Damage beyond policy limits. Purchasing too little coverage can leave you in the lurch in the event of serious damage. Have your agent help you determine an appropriate coverage limit based on your business property. 

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