Insuring your iPod, iPad, or Tablet
Back up your devices and data in your electronic equipment. Consider the coverage under your policy for such items as they can travel outside of your home and outside of your auto. Consider ID theft coverage under your homeowners policy. If you are a business owner and these items have been purchased by your business, used for your business and contain personal information of your employees and or customers, consider a cyber / privacy liability policy. Contact our office and speak with one of our insurance professionals.
“Insuring MP3 Players and PDAs”
Abstract: If you’re a typical American with a family, chances are you have one or more PDAs, MP3 players, or
other electronic media gadgets in your household. Needless to say, these devices can cost several hundred
dollars, not to mention the value of the information, songs or other media, and the cost to restore this electronic
information if damaged or destroyed. Are you insured? Is insurance really the answer?
Mobile information devices like PDAs and MP3 players occupy the bags and pockets of tens of millions of
Americans. These devices can be pricey, often costing hundreds of dollars. The cost to obtain the information
programmed on these gizmos can be exponentially more. If your portable device is damaged or stolen, will these
costs be covered by your insurance?
Consider the iPod. Their owners span every demographic. For some, the iPod is as important to getting through
the day as morning coffee or sunshine.
This pervasive product ranges in cost—usually a few hundred bucks or less depending on bells and whistles—
and that’s just for the hardware. Downloading music can cost a dollar a song, videos and “podcasts” even more.
Add in time spent collecting this information and you’ve got thousands of dollars invested in this thing. The same
is true for other portable devices.
The good news is that most homeowners policies cover personal property while it is anywhere in the world—a
positive considering the nature of these devices. The bad news is that coverage is limited—meaning the check
you receive after the loss may not be what you expect.
While many believe their iPod is “worth” thousands of dollars, a homeowners insurance policy is designed to
cover “direct physical loss” to property. Therefore, a typical policy will cover the cost of the device itself but not the
cost of the information stored on the device. Some homeowner policies include coverage for loss to “personal
records,” which may include information stored on a portable device. However, not all will do so and those that do
likely limit coverage to a relatively small amount. If you have questions, consult your Trusted Choice® insurance
More and more people are using PDAs, such as BlackBerrys, Treos and iPhones, to conduct business on the fly.
These devices keep them wirelessly connected to their work through email, Internet and phone.
If you own the device personally and use it for business, coverage under your homeowners insurance policy is
less generous. Personal property used for business may not be covered worldwide and is subject to an amount of
insurance that is lower than other personal property. A further restriction is that any limited coverage available for
“personal records” does not apply to business records.
If the device is owned by your employer, it’s likely covered under a business insurance policy. Such policies
contain similar limitations for loss of information. Business owners should call their Trusted Choice® independent
insurance agent for information about electronic data coverage.
Back it Up
Whether used for business, personal, or both, cost to replace the device itself is likely the extent your insurance
will pay if it is damaged or stolen. The best way to protect the information contained in the device is to back-up
data periodically. Then, even if you have to replace the device, you won’t have to start from scratch.
Please call our office if you have questions or we can help you in any way.
Copyright 2008 by the Independent Insurance Agents & Brokers of America, Inc. All rights reserved.
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NOTE: Policy coverages and circumstances can change at any time, so the information above may not be
accurate at the time of reprinting or subsequently to that time. IIABA does not assume and has no responsibility
for liability or damage which may result from the use of any of this information. The most current, up to date
version of this article can be found at IIABA’s Virtual University at http://www.iiaba.net/VU.