At a glance
- Many companies don't have the correct insurance to cover their computer equipment
Computer equipment has become all pervasive in virtually every line of commercial enterprise, and yet many organisations do not have the appropriate insurance in place to protect it.
The temptation is often to cover computer equipment under a standard property policy, but this approach can have significant limitations and could leave your clients seriously out of pocket after suffering a loss.
While property policies will cover damage to computer equipment on an all-risk basis, this is only part of the story when it comes to the losses that your clients are likely to incur should something go wrong.
Companies rely on computer equipment on a daily basis, including PCs, laptops, notepads, tablets, smartphones and PDAs.
The growth in both the number of devices used in business and the reliance placed on them means it is incredibly important to cover the new risks that this creates for commercial enterprise.
What would happen, for example, should your client lose data through accidental erasure? If their equipment broke down would their property policy respond? Then there are viruses and hacking attacks to consider. Would a property policy provide cover for clients in the face of such issues?
Significant features and benefits of Zurich’s Computer cover policy:
- ‘All Risks’ cover for all types of computer equipment.
- Additional expenditure incurred in the form of increased cost of working and the cost of recompiling or restoring data.
- Additional expenditure incurred following failure of electricity or telecommunications linked to the computer equipment.
- Extends to include computer equipment in transit world-wide, subject to a limit of £5,000 in respect of theft and £25,000 in respect of all other losses.
- Flexible cover which can be tailored to Insured’s requirements.
- Completion of a proposal form is not required.
Benefits of standalone policies
It is very unlikely that a property policy will provide effective cover in these instances and there normally needs to be a material damage loss to trigger the cover. This is why it is so important to consider a standalone computer policy that is better placed to respond exactly as your clients need it to.
The computer cover on offer from Zurich has a generous wording around the equipment it covers, making sure that anything used for the electronic processing, communication and storage of data falls under the policy.
In addition, it also provides cover not just to re-instate, re-compile and replace data, but also for the additional costs of working while resolving the issue.
Cover is in place to help with the cost of investigating the cause of the problem. Indeed, this even extends to include the additional expenditure incurred following failure of electricity or telecommunications linked to the computer equipment.
There is a popular misconception that standalone policies are always more expensive, but this is not necessarily the case when it comes to computer cover. The falling cost of laptops has meant it has been possible to include cover for new devices as they have hit the market, without having to increase premiums.
Similarly, an excess of £250 has helped to lower the frequency of claims and strikes an excellent balance between a policy that responds when needed and one which is also affordable.
In many cases, we have found that brokers who have investigated a standalone computer policy for their clients have subsequently been able to put insurance in place that offers a wider level of cover and actually reduces the premium they pay.
Covering international travel
A standalone policy can also be flexible to the needs of individual clients and where they have, for example, different levels of security in place at their premises then the policy can be tailored as required.
Beyond the bounds of their premises, cover is offered for computer equipment on a global basis, to reflect both the more mobile nature of today’s technology and also the fact that people travel more.
Zurich likes to challenge the status quo and encourage its partners and their clients to look for better ways of doing things. It believes that a standalone computer policy is worth investigating and that many clients will benefit by moving the cover out of their property policy and into something altogether more suited for the purpose.
Your account executive will be able to give you further details and help you explore the benefits in full.