Does a BOP Cover Electronics?

A BOP will contain a few critical elements of insurance for businesses. Among them, policyholders will likely find commercial property insurance. Commercial property insurance covers the physical assets of your business in case of damage or loss due to fire, wind, hail, lightning, smoke, theft, vandalism and other incidents. 

Though property coverage usually applies first to your business’s structure, it will usually cover possessions as well.  

Should a mishap damage or destroy business possessions, you might be able to make a property insurance claim to recoup your losses. You can repair or replace items without putting operations or income on the line. Among the possessions you might be able to claim are electronics, including:  

• Computers and monitors 
• Tablets 
• TVs 
• Hard drives and data systems 
• Cameras and recording equipment  

Not all business owners policies are created equal and many have exclusions or limitations. 

Work with your agent to get full value coverage for your electronics and data systems. In most cases, BOPs will provide coverage for the replacement cost of the electronics. This means you will be able to buy a new system at the price it would cost you today. Keep in mind, some policies might also pay different total limits for different items. For example, some will place separate limits on computers compared to other items. Expensive items may be harder or more expensive to insure, especially when it comes to electronics. 

Keep in mind, you’ll also want to insure the data within your systems. You’ll likely need:  

• Electronic data loss insurance: Coverage can help you recover or replace data lost due to covered incidents. You might be able to make claims after fires, system theft, virus attacks and other hazards. 
• Cyber liability coverage: A loss of data, might put your customers in the way of identity theft and other losses. You can use this coverage to pay for data recovery and monitoring services to protect clients’ personal security. Coverage might also protect you against lawsuits levied by regulators or clients.  

Keep in mind that many BOPs do not automatically include cyber liability insurance. It is crucial to safeguard your business’ physical assets as well as any information stored through your systems. Make sure you have a reliable safeguard and only give trusted employees access to important information and items to avoid further damage or theft. 

Speak with your BOP insurance agent to protect your business’ electronics today.