Can inland marine insurance cover electronic data and equipment?

Complete Guide to Inland Marine Coverage for Electronic Data & Equipment

Why This Question Matters for Colorado and Utah Residents

With Colorado and Utah's growing tech, construction, and professional sectors, many businesses use and transport valuable electronics—often exposed to unique risks like hail, flooding, and theft. Knowing how inland marine insurance works ensures you’re not left paying out of pocket for damaged or lost devices.

• Severe Weather Risks: In 2024, Northern Colorado saw over $3.4 million in equipment damage from hailstorms, with electronics among the hardest hit.
• Transit & Mobile Workstyles: 82% of local businesses regularly move equipment between job sites, but only 35% have proper inland marine coverage.
• Specialized Needs for Tech & Data Firms: Startups and service providers in places like Fort Collins and Salt Lake City rely on laptops, servers, and sensitive devices that need more flexible protection than traditional property policies offer.

What Most People Get Wrong

Misconception: Some believe standard property insurance covers electronics everywhere. In reality, most property policies limit protection to specific addresses—leaving equipment vulnerable during transport or at temporary sites.

Limitation: Many don’t realize coverage for electronic “data” (the information itself, not just hardware) usually requires special endorsements. Restoring or recreating lost files can be costly and is rarely covered under a basic policy.

The Complete Picture

Inland marine insurance is designed for protecting moveable property—especially when it’s away from your primary location. In Colorado and Utah, policies will typically cover:

• Computers, servers, laptops, and portable electronics used off-site or while being transported
• Specialized industry gear like A/V equipment, medical devices, and prototypes
• Losses from weather (hail, flood—with proper endorsements), theft, collision, and accidental damage

However, coverage for electronic data and media (files, software, databases) is only included if specifically endorsed. Business owners should request “electronic data” endorsements—particularly in high-risk sectors or where cloud backups aren't immediate.

With average electronic equipment claims at $28,000 in recent Colorado incidents, not having the right coverage can threaten business continuity. Work with a local agent who understands the fine print and helps you tailor your inland marine policy for today’s mobile and tech-driven operations.

Making the Right Decision for Colorado and Utah Residents

Question 1: Where and how do I use my electronic equipment?

Consider:

• Will laptops, servers, or cameras regularly leave your primary office or be installed in different locations?
• Does your work require transporting gear for trade shows, client installations, or site visits around Fort Collins, Denver Tech Center, Salt Lake City, or Park City?

Question 2: What’s the true value of the electronic equipment and data?

Audit your equipment list and value not just the hardware, but also what the data inside is worth. For example, restoring lost data from a server can cost thousands—sometimes far more than the device itself.

• Check if your operations depend on unique project files or client records.
• Review if standard coverage is replacement cost or depreciated value; replacement cost is usually the better investment.

Question 3: How can I future-proof my protection?

Technology changes fast and weather patterns can be unpredictable in the Rockies and Utah Wasatch Front. Annual reviews with a knowledgeable FoCoIns advisor help you:

• Adjust coverage as your inventory and transit patterns shift
• Add flood/hail/weather endorsements as needed
• Incorporate electronic data endorsements and disaster recovery support before you need them