What is business equipment insurance?
Business equipment insurance provides cover for damage or loss to property or equipment that you use in the course of your business.
If your business couldn't function without expensive items of equipment like these, having sufficient business equipment insurance cover in place is essential.
Covering your business equipment: the options
When it comes to covering your business equipment, you will usually be asked whether you want to cover it in the confines of your office (or your home, if your business is based at home) or on a worldwide basis.
Insuring your equipment in the confines of your office ('Property Damage' cover)
If you choose to cover your business equipment in the confines of your premises, your policy provides cover for defined perils. You should check each policy individually for its defined perils, but the list of what we cover at Markel includes:
- Malicious persons (other than thieves)
- Escape of Water from any tank, apparatus or pipe
- Impact by any road vehicle or animal
- Subterranean fires
- Civil commotion
- Cover is also provided for accidental loss, destruction or damage and theft, subject to policy terms and conditions.
Insuring your equipment anywhere in the world ('all risks' cover)
All risks cover provides cover for property which shall sustain damage during the period of insurance. All risks cover applies worldwide and is not limited to property at your premises only. If your business equipment is going to be taken out of the workplace, we will always be happy to arrange 'all risks' cover for specified items from laptops to theodolites, ensuring that they are protected in any event, anywhere in the world.
Is business equipment insurance a substitute for business interruption insurance?
No. Business equipment insurance and business interruption insurance are two completely different types of cover. You should consider each cover in its own right.
Business equipment cover provides cover for property but does not provide cover for any loss of revenue you may experience if your property sustains damage or is lost. Business interruption cover provides cover for the reduction of income and/or increase in cost of working and additional trading expenses in the event of lost income which results from an insured loss of or damage to your property. It does not cover the property itself.
By way of example, imagine a fire at your premises destroys a piece of specialist equipment that you use to carry out your services. While business equipment insurance will cover the cost of replacing the equipment itself, it does not cover you against financial losses you sustain from the interruption to your business while you are waiting for the replacement to arrive. You would need business interruption cover for such financial losses.
Find out more about the importance of business interruption insurance.
How much business equipment cover do I need?
Sums insured should be based on the cost of reinstating or replacing your property on an equal basis in the event of a loss. Therefore as a guideline, you should give some thought to the total replacement cost of your equipment and set the sum insured around this sum. You may wish to only insure specific items, but make sure you arrange a sufficient level of cover. It is vitally important not to under-insure, as you could be left out of pocket if the worst were to happen.
Get an online quote in 90 seconds for business equipment insurance or, if you need some help arranging your policy, speak to one of our insurance experts on 0800 640 6600.