It’s been twelve years since I’ve been a property and casualty insurance agent but when a client contacted me about replacing or repairing a damaged newly purchased laptop I found that my insurance cap still fit. In short, off site a staff person had somehow damaged the screen on a three week old laptop and my initial response was to contact the manufacturer and see if they would assess the damage and repair or replace the machine. Second, I suggested that she should see what her insurance company would cover for the damage.
I have no intention of going back into the insurance business but this incident got me thinking, my client with this latest purchase now has approximately 20 laptops assigned to various staff persons who work not only from home but also numerous other official and unofficial locations and the fact the only two machines have been damaged in the last 4 years is a miracle. Whether your company has 50 staff members or one, with the large number of laptops and mobile phones in circulation the possibility of damage, loss, or theft is inevitable. Beyond the loss of data and security risks from missing devises is the cost of replacing which is always a financial hit. For large companies this is the cost of doing business but for small companies the replacement of computers, time lost while recovering data and the loss of critical information can be devastating. An insurance policy that replaces the laptop or telephone can help easy that blow.
Not only for laptops, but as a business person when was the last time you reviewed your insurance policies, I’ve made a list of several areas that you should review for the New Year:
- Warranties: I always purchase at least 3 year warranties and support packages on all servers I install; the primary issue for me is down time. I may be able to fix a certain computer issue but if I can save time then I’m also saving my client money with less aggravation. Personally, since my laptops are my business I initially purchase 3 year warranties as I buy new equipment it reduces the headaches.
- Business Personal Property: Many of us now work from home either as consultants, Solopreneur, or just telecommuters. What’s covered by your home owners’ policy? Do you need a separate business policy? Not just your laptop but what about printers, furniture, etc. Although some things will be covered by your home owners’ policy, I suggest that you make a list of your business assets and talk with your homeowners/renter policy Insurance agent.
- Business Liability: Are potential clients coming to your home or office (I’ve deliberately excluded coffee shops!). If they slip and fall are you liable? Is your homeowners/renters’ policy going cover a liability issue for a business meeting? Also, if you work on client property in your home or office, “care, custody, and control”, what is the extent of your responsibility and how you are covered?
- Errors and Omissions: Whether you are installing networks, creating and maintaining web sites, organizing someone’s office or giving financial advice please check regarding you vulnerability when working with clients whose expectation about the completed project may differ from yours.
- Loss of Use/loss of wages: This could be a big issue in the event of a major natural disaster or local catastrophe, if you have expectations for FEMA or some governmental agency rescuing you in this scenario, I think this is another item to discuss with your insurance broker. If you are truly doing disaster planning this should be incorporated in how fast you can recover and return to business.
As I said from the beginning, the New Year is a good time to look at how you will do business for the future and disaster planning is more than is your data backed up. Here’s wishing you a happy and prosperous New Year!
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