Let's examine some specific coverage issues, based on advice from Aaron Margolies of Diversified Insurance Industries and David Gould of American Claims Management Services, both of Baltimore. Standard homeowners' policies generally do not offer adequate protection for business and sometimes even home computers. These policies, without special riders, also generally do not cover business computers and the related possible business interruption. Keep your equipment and software schedule current.
Insurers are sticklers about paying only for items insured.
In many businesses, data processing equipment is constantly changing through additions and retirements. Also, the replacement value of the equipment rapidly changes. To best use insurance for data processing equipment, you must keep the schedule current and up to date. Note that this is your responsibility, not your insurance agent's. This would include temporarily obtaining space and equipment while replacing or repairing the damaged systems.