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Business Insurance

Business Insurance against the Common Computer Cold

By March 16, 2010 February 26th, 2019 No Comments

Does your business have computers?  Does your business depend on those computers?  Is your business insured against those computers getting sick?  Computers, just like the rest of us, can catch a virus.  The damage caused to your business as a result of that virtual “runny nose” may be severe.

Many property insurance policies provide coverage on your computers if they burn in a fire or get stolen.  However, that policy probably does not provide coverage against computer viruses, or the coverage might be limited.

Some insurance companies offer a special kind of coverage designed specifically for risks inherent with computers.  It is often called “Electronic Data Processing (EDP).”  This coverage usually provides insurance against computer viruses.  But it also provides much more!

Computers can be susceptible to breaking down, either mechanically or electrically.  This could include malfunction, short circuit, blow-out, electrical or magnetic injury, or even accidental erasure of data caused by electrical or magnetic injury.  An EDP policy would normally provide coverage for these types of losses.  (Typically not covered is electrical damage which originates more than 1500 feet from your property.)

Also provided in a typical EDP form would be coverage on your portable computers, such as laptops, notebooks or handheld computers while away from your property.  This equipment may have limited coverage on your standard business insurance policy.

So, if your business depends on computers you may want to consider looking into whether your business insurance company can offer you this type of protection.

Think of it as a handkerchief for your PC.