Digital Signage and Insurance
You may think there is not much to insure when it comes to ‘digital signage, essentially as it’s bespoke graphics installed on a screen which is then sited at a customer premises, however there are a few important points worth considering…
Firstly, in respect of the screens themselves. If these are delivered to your own business premises rather than directly to the end customer then it is important to consider increasing your total Stock sum insured to take these into account. These screens can be pricey and should a claim occur, the total stock sum insured at your premises must be adequate to cover the replacement cost as new of these items as well as your existing stock and signs being manufactured at the premises.
Secondly, if you will be transporting the screens to the end customer yourself, then make sure the Goods In Transit sum insured on your policy and per individual vehicle is adequate. It should cover the total value of all goods carried in an individual vehicle, at any one time.
If these units get damaged in transit or the van gets broken into during delivery, if the sum insured in not adequate, it could be costly.
For Sale or Rent?
In most cases the screens are sold directly to the client.
The graphics are installed by you and updated as the client requires. The customer becomes the owner of the digital screen and they ring their insurer to add cover for this to their own insurance policy. All quite straight forward.
However, if you decide to rent the screen to your client instead of selling this to them, then please take careful note of the following.
If a screen is rented to a client, it is not possible for you to cover this screen under your own policy whilst in the customers possession. Although the unit is owned by you, there is no control what happens to the unit whilst at a customers premises, so insurers will not cover this risk.
A contract instead should be drawn up with the customer laying out the terms and conditions of the rental to them and making them responsible for any loss or damage caused to the screen whilst in their possession. The customer may then instruct their own insurers to add temporary cover for this screen to their own insurance policy as they have a rental agreement and therefore an insurable interest in the item.