What is business equipment insurance?

If your business couldn't function without expensive items of equipment like these, having sufficient business equipment insurance cover in place is essential.

Is business equipment insurance different from contents insurance?

Business equipment insurance and regular contents insurance represent two separate types of policy, but they are very similar on the surface. However, while business equipment insurance is designed specifically for business, contents insurance tends to be for individuals.

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) 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:

• Fire
  If a fire occurs at your business premises, damaging or destroying essential business equipment.
• Lightning
  If lightning strikes your workplace and causes any equipment to become damaged or destroyed.
• Explosion
  If an explosion inside or outside your business premises damages or destroys essential business equipment.
• Malicious persons (other than thieves)
  If criminal damage at your business premises leads to essential business equipment becoming vandalised, damaged or destroyed.
• Storm/flooding
  If your business premises are impacted by a storm or flooding, leading to individual pieces of equipment becoming damaged or destroyed.
  
• Escape of water from any tank, apparatus or pipe
  If a plumbing accident leads to the damage of vital business equipment.
• Impact by any road vehicle or animal
  If your business premises are disturbed by a wild animal or hit by a road vehicle, and any damage occurs to equipment needed to run your business.
• Earthquakes
  If an earthquake impacts your business premises and its contents are damaged.
• Subterranean fires
  If an underground fire leads to the damage or destruction of essential business equipment.
• 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.

Can you insure business equipment left in a car?

Yes. As we touch on above, our ‘all risks’ policy covers any specified business equipment that is taken out of your place of work. This includes important items of business equipment left in a car if you are travelling on business but only as long as you comply with policy conditions such as making sure the item is in a locked boot out of sight.

What is the difference between business equipment insurance and business interruption insurance?

Business equipment insurance 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 .

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.

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.

How much does equipment insurance cost?

The cost of equipment insurance depends on the level of cover you need. That’s why here at Markel Direct we provide tailored policies designed to best suit your business’ needs. Our specialist business and equipment cover starts from as little as £6 a month.

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 0371 705 1433.