Managing Insurance Risks

3. Equipment

3.1 Computers represent a major risk for most businesses.

• Back up all computer data regularly (daily if possible). Store back-up disks off-site.
• Consider installing a back-up or duplicate system. If one computer fails, you can switch to another without loss of data.
• Install an 'uninterruptible power supply', (or, at least, surge protectors). Otherwise, fluctuations or cuts in the power supply can cause loss of data. You may also want to consider getting lightning protection.
• Ban employees from installing software or importing data (eg from a disk) until it has been virus-checked. Computer viruses can wipe out your entire system.
• If you have an Internet connection, consider installing a firewall. Keep your anti-virus software and spyware up to date.

3.2 Any capital assets you use to provide or manufacture your product or service should be regularly checked to ensure that they are in full working order.

For example, manufacturing businesses should ensure all parts of their production lines are functioning correctly and at their maximum efficiency.

• Equipment failure can mean late delivery, lost orders and cashflow problems.