Larger businesses tend to supply electronic equipment such as laptops and mobile phones for their staff. They are usually covered under a block business insurance package with the technology provider. If they look carefully at how much they are paying for the insurance they might get a shock, but that is another story.
Smaller businesses though, with just a few employees, may choose to refund the cost of mobile phone bills or Internet access to their staff. Their employees will own the items, but what happens if they are stolen or damaged whilst on company business?
The chances are there is nothing in the employees contract that says you are responsible for the replacement cost. Whilst you have no legal liability for replacement, you will more than likely feel a moral obligation to do something.
One or two losses a year could add up to £1,000, straight off your bottom line profit, which is not good. It tends to be more clerical and sales staff that need this cover, so if you have an office insurance policy, you will need to refer to it to see if employees personal effects are covered.
If they are not, you can usually get this extension included. It may be that you have to specify that the machines are not owned by you but a good quality policy should be able to include this cover for around £20 a year per £1,000. The cost will go up if the equipment is likely to go within the EU or Worldwide, as the likelihood of damage or loss is increased.
You will look to pay an excess of between £50 and £100, any more and you should complain to your broker to get you better terms.