It is surprising to learn that in
most states, mover's insurance amounts to no more than $0.60 a pound, about the
same as traveling with your luggage on an airline. When planning the
relocation of IT equipment , you essentially have four choices:
Accept the mover's
insurance. We find this choice totally unacceptable.
Obtain a rider onto your
existing insurance policy to cover the value of the equipment being
For larger companies, you can
Use vendor insurance if
available. Note that very few vendors offer insurance and for those
that do, its expensive.
If your company is large enough to
have a risk assessment person, contact that person and have them advise you on
how to insure the move. Choice #2 above is often the best choice.
One hint on moving IT equipment is
to not let all of your equipment ride in one truck. Split up the load and,
split the risk. On large moves, we never let too much equipment ride on
one truck. It takes more trucks and the relocation event takes longer but
we choose to minimize the risk. On one recent move, where the total value
of the server room equipment was $35 million, the insurance rider was written to
cover $10 million. Thus, we used 5 trucks. Additionally, the
insurance company was concerned enough about the shipments that they had an
unmarked car with two security officers trail each of the five trucks.
Very few vendors offer relocation
insurance. Two that do are IBM and DEC (although DEC may have changed wit
their sale to Compaq). IBM will offer different kinds of insurance
including a type that will provide complete and immediate replacement of the
machine. On rare jobs, we have seen IBM tie up a like piece of mainframe
equipment that was for sale for 60 days. That "hold" option was
part of the insurance quote. Of course, IBM had control of the
entire move event for their own equipment. We are not aware of any other
equipment manufacturer that offers that level of insurance. In our
last conversation with Sun Microsystems regarding the relocation of their large
Sun systems, they don't offer any insurance. They defer to their movers
and you already know what the mover's insurance will provide. Some movers,
however, do have rider insurance.
Contact us at www.abrconsulting.com
Phone: 925.872.5523 Fax: 916.478.2814