Equipment insurance refers to insurance cover for all equipment, particularly equipment required to conduct business. Equipment insurance is different from normal household contents insurance in that it is specifically designed to cover expensive equipment. Under normal household contents insurance, the goods insured in the policy would have to be specified for the full value to be claimed in the event of loss. Equipment insurance policies, being specialised, vary drastically to suit whatever equipment needs to be insured. Accordingly, the premiums and excesses will also vary according to the type of equipment insured. In addition, individuals and businesses both would be wise to take out equipment insurance on any computer equipment and ensure that the policy covers data loss. Recovering data from damaged equipment is a very specialised and costly process so it is wise to insure any business critical data.