Mobile devices are often targets of theft due to their portability and high value. However, mobile device insurance only accounts for the value of the hardware, and does not sufficiently account for the value of the information contained on the devices. Instead of purchasing mobile device insurance, focus resources on physical security, data encryption, and remote data deletion.

Typical Policy Only Covers Hardware

Most providers of mobile device insurance refer to coverage resulting to from losses associated with hardware. For example, Safeware, an insurance agency specializing in insuring electronic equipment, provides policies where hardware replacement is "based on like kind and quality equipment available on the retail market at the time of claim adjudication."

Furthermore, even some of the hardware coverage is incomplete. Many exclusion clauses typically exempt coverage of losses stemming from common situations. Often, a loss is not covered if the device was left in plain sight in an unattended vehicle. Similarly, if the laptop...