If I insure my laptop, which risks must I consider?

Sunday, May 10th, 2009 | laptops, security

Insurance companies calculate insurance premiums on the basis of risk – the higher the risk, the higher the premium.  You can bring your premiums down by excluding some of the risks – those that you believe to be minimal or not relevant to your situation.

What are the risks that you must think about? 

The greatest risk you probably face is theft.  We live in a crime ridden society.  A great advantage of a laptop is its portability – this also makes it vulnerable.  A thief could carry a laptop away with ease.   Since there is a market for laptops they are quickly converted into cash.  If you think you will frequently carry your laptop around with you, or leave it unattended, theft should be the number one risk to include in an insurance policy.  Of course, theft is also a high risk to the insurance company – be prepared that this may account for a big portion of the insurance premium.

You are at risk of losing the machine.  You may forget it on the bus or in the coffee shop.  This risk is also related to the frequency with which you will take the laptop outside of your home or place of employment. 

A smaller risk is that you will accidentally damage it.  You may drop it, or someone may knock it off the table.  What is the likelihood that this may happen?  Are you accident prone by nature?  If you use it in your classroom there is always the danger of a clumsy child bumping against it.

Household insurance policies often cover fire and water damage risks.  If you live in an informal settlement, these may be high risk items – in other cases you may conclude that fire and flooding are unlikely to happen in your home.  But keep in mind that dropping a cup of coffee on your laptop also constitutes water damage – how likely is it that this will happen to you?

If you insure your laptop against all of these risks, expect a heavy insurance premium.  But if you are sure that you can take personal responsibility for some of these risks, you may be able to settle for a more affordable premium, while still being secure against the most likely risks you are facing.

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Tags: cost, insurance, laptops, laptops, security