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4th December 2023

How Can Businesses Solve The Challenges Of Bulk IT Hardware Insurance?

Steve Hill

Having the right IT hardware and software is, unfortunately, only part of the picture when it comes to arranging everything you need to run a company.

Just as you require business insurance, office insurance, public liability insurance etc., you also must have insurance for your equipment.

Proper IT hardware insurance isn’t usually covered merely by any building insurance for your office. Most businesses also have remote staff, hybrid workers, WFH employees, or simply provide portable laptops to at least some workers. The use of these devices would not be covered by office insurance since they are not only used or kept at the business premises.

In short, IT hardware insurance is yet another must-have for running a business.

All insurance can create chores, burdens, challenges, and frustrations for business owners.

Luckily, there are some solutions to make it all easier. We’re going to outline why IT hardware insurance, in particular, can create stumbling blocks for businesses and how you can neatly and efficiently solve these problems with minimal effort. 

The Challenges Of Insuring Your Business Computer Equipment

Challenge 1: High Cost of Insurance

IT hardware involves a significant financial investment, and insuring these assets can lead to substantial costs for businesses. This can be frustrating for your budgeting. It is an expenditure for an unknown eventuality that may never happen. It isn’t a profit driven investment. If you have a tight budget, it can be a significant financial challenge. Insurance companies often charge businesses considerable amounts for insuring IT hardware as they are crucial yet complex items. It can be even more expensive or difficult to find cover if you have WFH staff.

Solution: SafeGuard insurance by Hardsoft is one of the most affordable options for IT insurance on the market today. This IT insurance is from experienced IT hardware specialists and is designed with business needs in mind. The reasonable price points have won Hardsoft many clients and deals because it is so competitively priced compared to policies from traditional insurance companies. SafeGuard also has a fixed term price for three years, (which is the duration of most IT leases), in order to protect you from price rises due to inflation year on year.

Challenge 2: Increased Costs for Bulk IT Hardware

Insuring individual devices is one thing, but when it comes to bulk IT hardware, the overall cost can become overwhelming. Surprisingly, many insurance companies do not seem to take into account that businesses will need insurance for an entire fleet of devices, and this could make their policies unaffordable without special bulk deals.

Solution: Since SafeGuard is created for businesses by IT equipment suppliers, it remains affordable even for very large collections of IT hardware. It is designed to work with bulk leasing of devices and/or a more modest collection.

Challenge 3: Adding Devices to Existing Policies

As businesses grow, they frequently add new IT devices to their infrastructure. This would mean adding one or a small handful of hardware to an existing bulk collection that is already insured. Integrating these additions into existing insurance policies can be complex and time-consuming.

Solution: SafeGuard has been designed to be an incredibly flexible insurance policy. It works in tandem with other products, such as Hardsoft’s Devices For Teams, which is a Device as a Service style lease. Devices For Teams was specifically created to make scaling up or down easy. As the business grows, or dissolves a department, the size of the IT equipment lease can flex up or down as needed, or even swap hardware for a different piece of equipment. SafeGuard, therefore, has been created to work perfectly as the insurance option alongside the highly flexible Devices For Teams. Businesses needn’t worry about adding ad hoc devices to their policy. It is so simple.

 

Challenge 4: Third-Party Insurance Companies

Dealing with third-party insurance providers can lead to communication challenges, misalignment of expectations, and potential delays in the claims process. As a company that purely offers insurance, their focus will be on making a profit via the insurance policy. It also means that they are not involved in the policyholder business’s IT requirements, work style or business objectives. Using yet another third-party company creates additional red tape and delays, more exterior companies to communicate with and more separate invoices.

Solution: SafeGuard IT insurance is just one of Hardsoft’s many IT products. Our aim is to be a one-stop-shop and complete end-to-end IT supply and management solution for companies. This would mean that every aspect of your IT can come from one source, whether it is the hardware itself, the finance for the lease, the insurance, the repairs, the management, data backup, MDM, lifecycle management recycling, or absolutely anything IT related. Having all your IT services in one place means working with fewer third parties and a more streamlined system for greater efficiency and better communication.

Challenge 5: Policy Loopholes

Complex policies often come with hidden loopholes that businesses might not discover until it’s too late. If an unexpected incident occurs, it might not be included in your policy and your insurance company will then refuse to pay out for your claim. This can be a significant financial hit and render the point of taking insurance useless from your business’s perspective. Consider the example of the pandemic, which was unprecedented and many insurance companies used that as an excuse not to pay out.

Solution: SafeGuard is not designed like other insurance policies from firms that strictly provide insurance alone. It is not created to charge you as much as possible and avoid paying out. It is part of a family of IT services to help businesses get the most from their IT all-in-one package. There are no strange loopholes. The cover aims to be as comprehensive and transparent as possible.

Challenge 6: Confusing Policies and Legal Jargon

Insurance policies are notorious for their complex legal language, making it difficult for businesses to fully understand the terms and conditions.

Solution: SafeGuard was created to meet high legal standards; however, it has been designed by an IT lease supplier. Its aim is to provide good protection for the devices that Hardsoft lease to our clients. It uses simple, straightforward language and no jargon. It is always crystal clear how you are covered and your account manager is always on hand to answer any queries.

Challenge 7: The Burden of Arranging Insurance And Subsequent Downtime

Coordinating insurance for bulk IT hardware can be time-consuming and stressful, diverting focus from core business activities.

Solution: SafeGuard can be bought as an add-on at the point where you arrange your IT lease and order your hardware, so no extra downtime is lost. It is a rapid process with minimal paperwork and no red tape. The system aims to keep your downtime to a minimum. Receiving all IT services from one supplier boosts efficiency and productivity.

Challenge 8: Insufficient Coverage for All Eventualities

Many standard insurance policies might not cover all the potential risks and challenges that businesses in the tech sector face.

Solution: While SafeGuard insurance is simple to set up and use, and intuitive to understand, it is very comprehensive. SafeGuard insurance for your IT devices protects against accidental damage, including dropping of equipment, spills, and even falling objects. It also protects against incidents including fire, flood, storm, and electrical disturbances.

However, the cover goes beyond accidents and acts of nature. SafeGuard also covers you against vandalism and theft. That can be a robbery theft or current or ex-staff stealing hardware as well.

Challenge 9: Increasing Yearly Premiums Due To Making A Claim

Solution: SafeGuard is one of the few IT insurance policies that does not punish clients for making a claim. Your premiums will not increase if you make a claim the previous year. Protecting your interests and assets is exactly what insurance is for, so why would we want to punish you for using it correctly? As Hardsoft are not a pure third-party insurance firm, we do not use risk calculators in the same way. Our aim is to keep you up and running affordably.

Challenge 10: Overseas Cover

If IT hardware needs to be transported internationally for events or projects, insuring against potential damages during transit and customs clearance can be challenging.

Solution: If you are a UK based company with remote staff working overseas, or digital nomad freelancers on your payroll, you can now be confident that your IT equipment is still insured with SafeGuard.

Challenge 11: Downtime and Productivity Loss Caused By Slow Insurance Payout and Red Tape

IT hardware is often crucial for business continuity. Slow insurance payouts might lead to disruptions in operations and financial losses during downtime.

Solution: Not only is SafeGuard fast to pay out but you won’t be left hanging with fewer devices on hand. We can repair your damaged equipment, and you will be given a replacement while you wait. It will also be immediately replaced if your device is stolen. Downtime is always kept to a minimum.

As you can see, SafeGuard IT equipment insurance is unique in the insurance world and solves all of the problems usually associated with businesses arranging insurance for their IT hardware.

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