Insure your computer
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. . . against
mice?
It makes sense to protect a valuable asset with adequate insurance cover says John C. Vann, and he suggests some schemes for smaller computer systems.
'SPITE all efforts to improve businesses, new technology igs new risks and compuoperations are no exception. -,:omputer out of action for re than a few hours can result ..:onsiderable upset, plus the t of repair.
. certain amount of protection jiven under a maintenance tract or manufacturer's guaree. Yet it is unlikely that ler of these will pay the cost epairing damage from extersources or causes or through iligence. It is also unlikely t such contract or guarantee pay for lost profits or eenue or an increase in rking costs following an acciit involving the computer.
makes sense to protect a Jable asset with adequate inance cover. On the face of it, re might seem to be no son why a computer should be insured along with all the er contents of your business. this is almost certainly the eption to the normal way of ng things.
Thy are special arrangements lerally made for insuring riputers? It could be that the urance company covering ir normal business contents, h as equipment, fixtures, fitjs and stock, is not keen on nputer insurance and thus y not offer an attractive rtract. Computers, too, are ler special forms of equipnt and need special treatment -egards insurance.
.et us look at the cover given ler ,a computer insurance icy. There is no tariff or sten:d wording in this sphere. h firm adopts its own policy rding, terms, conditions and !mium. So what I propose to is to concentrate on a few ;urance schemes designed )cifically for the smaller cornter systems in vogue both iong hauliers and own-acit operators today.
)ne of our leading engia.ring and computer insurance -npanies, British Engine, with head office in Manchester, erates a scheme which it calls iini" and "micro" computer surance. This includes items involving micro-chip :hnology, visual display units, nters, tapes and disks.
The cover is wide. First, there a thriaterial 'damage' section. is covers loss of or damage to whole system from any accintal cause, electrical or ichanical breakdown.
Ihe second section refers to isequential loss. This covers ditional expenditure incurred order to continue the work normally done on the computer for up to six months.
Cover also applies as a result of the policyholder being denied access to the use of the computer because of loss of or damage to other property in the vicinity, or failure of the public electricity supply for more than four hours.
There is extra cover. Included are costs of re-compiling or rerecording data on tapes and disks.
Any exclusions? The first £25 of any claim has to come from the policyholder's own pocket. Also out are claims for normal wear and tear. No cover applies in relation to war risks, riot, strike, civil commotion, nuclear risks and sonic boom.
British Engine suggests that the sum insured under the material damage section should represent the new replacement value of the computer system. The policy allows for an increase of up to 10 per cent of the sum insured without notification in any one year to allow for alterations to the installation.
Another insurance scheme we can now examine breaks into two sections Microsure and Minisure. Microsure is designed for the system with a capital cost of up to £5,000, while Minisure is for multi-user systems or for a single-user system costing more than £5,000. As the nature and extent of the cover provided is identical, I will comment on Microsure only.
This is an all-risks insurance contract; hardware and software are covered for everything virtually from being struck by lightning to having a cup of coffee spilt on them. The premiums are two per cent (or occasionally less) of the capital cost of the equipment.
The cover, which is conditional on the user taking out a maintenance contract, is available from Lloyd's insurance brokers, Stewart Wrightson, and certain other brokers. The cover is underwritten by Trident General Insurance Company, a leading office in the insurance of computers.
The Microsure policy includes cover if there is accidental or malicious erasure of data. Computer abuse or computer misuse is unfortunately on the increase and can be expensive.
Near the end of last year a further computer insurance package, underwritten at Lloyd's and called Compu-Risk, was launched by insurance broker Wigham Poland. The package provides for the cost of reconstituting computer records destroyed, together with any loss of profits resulting from the loss of the information.
Several useful cover extensions are included. These are: reinstatement as new on all equipment up to five years old; automatic cover for additional equipment obtained; full cover on equipment during transit (also increased costs from any loss or damage); increased costs resulting from loss or damage to media; loss resulting from malicious interference with software or data files; increased costs or loss of profit or revenue, whichever is most appropriate, resulting from any loss or damage or denial of access to computer equipment or records; and loss resulting from failure of British Telecom local lines or public power supply.
Under this package, if you insure a Burroughs B80 computer valued at £20,000, the premium is likely to be around £200, whereas insuring an Apple II for £2,500 might mean a premium of about E25. These are guide premiums only.
Commercial Union Assurance, a well-established insurance company transacting computer cover, has given brief details of a few incidents leading to computer damage resulting in claims. There are some fascinating stories!
Are mice harmless? One mouse wasn't, because it nibbled through the cables of a computer which brought work to a halt in one firm. Tracing the fault took ages.
You might think that vending machines are harmless, too. But computers were damaged when in one incident an adjacent vending machine leaked and in another a blocked overhead drain pipe overflowed.
In another claim, an air conditioning plant failed with the result that the installation literally baked and baked computers are not much good!
Yes, computer insurance is well worth taking out For information:
British Engine Insurance, Longridge House, Manchester M60 4DT. Tel: 061-833 9282
Stewart Wrightson (East Midlands) Ltd, Computer Dept, 60 Charles Street, Leicester LE1 1FB. Tel: 0533 21875 Wigham Poland Non-Marine Ltd, Wigham House, 16-30 Wakering Road, Barking, Essex IG11 8PB. Tel: 01-5947222