Failure of computer systems and other technology may literally shut a business down. Companies typically purchase insurance to protect against loss created by damage to computers and other high-tech equipment. That damage may not only be costly to repair, but prevent the company from making money during the period required for repair.
Property insurance covers damage to the policyholder's own property.
In addition, most property policies include business-interruption coverage to protect against loss of income due to interruptions in operation and additional expenses required to run the business while the property damage is being repaired. For example, a policyholder may need to rent additional equipment and hire temporary staff to help continue operations while the policyholder's equipment is being repaired. It does not define the causes of property damage that may be covered under the insurance policy. Therefore, the property in all-risk property insurance policies cover property damage or loss from any cause except one which is specifically excluded by the policy. In contrast, a named-peril policy covers loss or damage only from those causes that are specifically identified in the policy.