Which business insurance policies cover computers and laptops?

While there's no individual policy named laptop insurance, protection for your work computer and other business assets is included in your commercial property insurance. It's also included in a business owner's policy (BOP), which bundles property insurance with general liability insurance.

Commercial property insurance covers standard perils, such as theft or damage to computers. Insurance companies pay for the repair or replacement of the broken, damaged, or stolen equipment, up to your policy limits.

When you purchase a new computer, you can include a manufacturer’s warranty or an extended warranty to protect against common mechanical failures and breakdowns. But many laptop failures aren’t covered by the original manufacturer’s warranty.

Laptop insurance plans go beyond the stipulations of a warranty. They cover issues like loss of data, in addition to theft, vandalism, and accidental damage. That's why tech companies should consider property insurance in addition to their warranty.

Tech businesses may find laptop protection included in the following policies:

Commercial property insurance: Your property insurance policies cover business equipment, such as laptops used primarily for work and the software on them. If your laptop is damaged, lost, or stolen, property insurance pays for the cost of repairing or replacing it.

Errors and omissions insurance (E&O): 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 computer. If, for example, you open an email that contains a virus and that virus infects your clients’ computers, you could be held liable for damages.

E&O insurance helps cover lawsuits related to professional mistakes. This policy is typically bundled with cyber liability insurance to protect against mistakes that lead to cyberattacks or data breaches that affect a client.

Your business laptop insurance plan should provide coverage for a range of possible incidents. Your commercial property policy should cover losses such as:

• Cracked screens
• Liquid spills and water damage
• Accidental damage (drops)
• Theft and vandalism
• Fire and storm damage
• Power surges

Laptop insurance policies include laptop theft insurance. Since a laptop computer has a 1-in-10 chance of being stolen, your small business needs to protect itself. Once stolen, 98% of laptops are never recovered. Having protections that reimburse you for lost assets is essential.

Business laptop insurance plans have limits that determine how much your insurance company will pay on a claim. Make sure you read your policy documents carefully, as some exclusions may apply. These may include:

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 that could occur at your business.

New devices: If you expand your business or purchase new equipment, you’ll need to update your insurance policy as well. Talk to your agent to expand your coverage when the time comes.

Damage beyond policy limits: Purchasing too little coverage can harm your business in the long run. Have your agent help you determine an appropriate coverage limit based on your business property.

Insurance for laptops is often included in policy bundles, making it affordable for small businesses. But the type of protection and level of coverage you choose ultimately determines the cost of your premium, your deductible, and how much you'll be reimbursed for in a covered loss.

As an example, TechInsurance customers pay an average of $57 per month for a business owner's policy.

Laptop insurance policies cover common perils, such as theft or damage. They will reimburse you for your financial losses up to policy limits.

Property losses are paid out in a couple of different ways. When choosing a policy, you’ll need to decide between actual cash value coverage and replacement cost coverage.

Actual cash value coverage: Depreciation is taken into account when determining policy payouts. Even if you spent over $1,000 on your laptop a few years ago, due to depreciation, your insurance company will only cover its current value when you file a claim.

Replacement cost coverage: If you need higher protection than actual cash value, you can get coverage that provides for the cost of a replacement laptop of similar make and model, at current market costs. Premiums are more expensive, but the payout is higher if you make a claim.

No matter your policy type, you will be required to pay a deductible. A deductible is the amount you are responsible for paying before your insurance company will pay any expenses.

TechInsurance helps small business owners compare business insurance quotes with one easy online application. Start an application today to find the right policy at the most affordable price for your business.