The combination of more people working from home and supply chain issues increasing the cost of computer repairs means risk managers need to take stock of insurance coverage
Risk managers must consider the implications of home or hybrid working when it comes to lost, stolen or damaged workplace technology.
New research conducted by HSB has revealed that hybrid working practices are posing increased risks to businesses in relation to computer insurance.
HSB’s survey of employed and self-employed workers found that 46% said they have lost or damaged IT work equipment.
The study found that laptops and mobiles pose the greatest risks, accounting for 64% of compromised items.
This is followed by computer accessories and desktop computers.
Typical causes of damage include wear and tear, physical damage from trips or falls, spillages and theft.
Over half (54%) of those who admitted losing or damaging their work equipment, said that it happened whilst commuting.
Supply chain issues exacerbate risks
HSB says that supply chain issues are posting new challenges for risk managers, when it comes to computer equipment.
Worldwide computer chip shortages have impacted the availability of computer equipment and parts; causing delays for repairs and replacements.
“Almost 1 in 5 respondents encountered delays of up to 4 weeks to repair or replace their equipment.”
HSB’s survey respondents indicated that 55% of computer equipment issues were resolved within a week, while it took 1-2 weeks for 26%.
However, almost 1 in 5 respondents encountered delays of up to 4 weeks to repair or replace their equipment.
What next? How to improve clarity and policies and coverage
HSB’s research also suggests some confusion and misconceptions about computer insurance cover which could leave some businesses exposed if they are not adequately covered.
Despite 54% reporting that their business insurance policy covers work equipment used at home, 13% specified that it doesn’t, while a third of respondents admitted they were unsure.
”Some businesses could be underinsured if the sum on their policy doesn’t cover the cost of replacing or repairing computer-related assets”
Commenting on the survey’s findings, Mat Prentice, Cyber Product Leader at HSB, said: “The popularity of modern working trends must be balanced with understanding the potential risks of businesses not being covered for their computer equipment.
”With the value of IT equipment having risen sharply over the past two years, some businesses could be underinsured if the sum on their policy doesn’t cover the cost of replacing or repairing computer-related assets.”
He continued: “To reduce risk, it’s vital that they review what their exposure is, and check they have adequate insurance cover for repairs and replacements to their computer equipment.”