In years past many business owners and their insurance agents added specific computer coverage to their insurance plans. That may have been the right path at the time - it may not be right now.
A separate coverage part means a separate limit of coverage that may or may not be correct. A company that has $575,000 of coverage for business personal property and $125,000 of computer equipment coverage could be under-insured in one area and over insured in another, leaving gaps at the time of a claim. This risk was outweighed by the coverage provided by computer insurance, namely, mechanical breakdown and power surges. Many insurers now provide these perils as part of property insurance - you may not need separate computer coverage to get the extra protection.
A separate coverage section also may mean two deductibles assessed at the time of a loss. There could also be coinsurance penalties.
A separate coverage part means a separate limit of coverage that may or may not be correct. A company that has $575,000 of coverage for business personal property and $125,000 of computer equipment coverage could be under-insured in one area and over insured in another, leaving gaps at the time of a claim. This risk was outweighed by the coverage provided by computer insurance, namely, mechanical breakdown and power surges. Many insurers now provide these perils as part of property insurance - you may not need separate computer coverage to get the extra protection.
A separate coverage section also may mean two deductibles assessed at the time of a loss. There could also be coinsurance penalties.
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