And of course, you should include high-quality surge protectors or UPSs on all high-tech equipment for protection against power surges and lightning strikes.

You can replace computer equipment, but that costs money. And if your business is out of commission for a month or two while you rebuild from a fire, you won't be earning anything along the way. That problem can destroy a company that might withstand the physical damage caused by a disaster.

Generally, insurance is the best safeguard against financial ruin. Standard property insurance will cover the loss of hardware, but is essential if you want a safety net to preserve your company against lost sales.