iLok - Software Licence Insurance Coverage -

[Howardk]

I finally heard news from my insurance agent and the insurance company I currenty use for my studio equipment will not cover a loss of a software licence on an iLok. Their written explanation is pending, but in a nutshell they do not consider the licence real property (it is a token) and therefore will not insure it. The thinking is that if you lost the paper deed for your house then they would have to pay an insurance claim on the total value of the house. . . . and besides if this were the case, one could put the deed in a safety deposit box. . . we can not do that with iLok.

This means either risking it by not being insured (risky because the ilok is a tiny and very expensive item to have lost or stolen) or switching to another carrier. At present I am paying an annual premium of 1% of the equipment value and other insurance carrier options appear to me more expensive up here in Canada. Switching carriers has the potential to cost me about $1000 a year in added operating costs. . . ridiculous. Why is this my problem? The software companies and iLok should offer this insurance coverage as part of their zero-downtime fee at no additional cost.

[RobMacki]

I don't understand why they (you) can't insure the iLok itself for a declared value.
It also sounds like zdt would be a better way to insure it.

[Howardk]

As I understand it zdt (zero down time) only provides replacement licences if the iLok is damaged or fails. . . so it is not really insurance paying for new licences, but agreement with the software companies to issue replacement licences at no cost. I believe that one must be able to physically produce the iLok and provide it to Pace. This does not help for a loss due to fire, theft or actually loosing the tiny but very licence expensive thing when you go mobile. Am I mis-informed?

[RobMacki]

sorry. i didn't know you wanted to insure for loss or theft. i must have missed that.

[Vaphoron]

I think this really needs to be addressed somehow and I really think that PACE should offer optional insurance for us.

[Lee Blaske]

This means either risking it by not being insured (risky because the ilok is a tiny and very expensive item to have lost or stolen) or switching to another carrier. At present I am paying an annual premium of 1% of the equipment value and other insurance carrier options appear to me more expensive up here in Canada. Switching carriers has the potential to cost me about $1000 a year in added operating costs. . . ridiculous.

Is it certain that the other insurance carrier will cover the iLok? I'd be willing to bet that a lot of companies still don't fully understand such a device, and it might only become a problem when you have a loss and attempt to collect. I think it would also be good to have a clarification if the iLok is only covered when it's on your premises, as opposed to at some other location away from your facility.

Lee Blaske

[Lee Blaske]

I think this really needs to be addressed somehow and I really think that PACE should offer optional insurance for us.

Yeah, that's a great idea. We can pay them even MORE money by buying insurance from them, and if we have a loss, it costs them $0 to replace our authorizations. It's a wonderful business for them, but we're the ones who get screwed.

What's needed is a system that allows us to protect our assets without more and more creative fees and charges. That's exactly what we get from other software suppliers. If someone stole my computer with thousands of dollars of NI based sample libraries (EWQLSO, etc., etc., etc.), all I do is go to the NI registration site, de-activate the license on the stolen computer, and authorize my new replacement computer. I lose nothing, and I pay nothing for insurance or the service needed to maintain the account. That's the way customers should be treated.

Lee Blaske

[jjw9]

Perhaps I am missing something but on the zdt page on the ilok website it says it if your ilok is "broken, lost, or stolen". Is this true or false advertising? Has anyone actually had to try it out. Sorry if I'm not understanding.

[TiPo]

What's needed is a system that allows us to protect our assets without more and more creative fees and charges. That's exactly what we get from other software suppliers. If someone stole my computer with thousands of dollars of NI based sample libraries (EWQLSO, etc., etc., etc.), all I do is go to the NI registration site, de-activate the license on the stolen computer, and authorize my new replacement computer. I lose nothing, and I pay nothing for insurance or the service needed to maintain the account. That's the way customers should be treated.

Lee Blaske

Very good point Lee!

[Lee Blaske]

Perhaps I am missing something but on the zdt page on the ilok website it says it if your ilok is "broken, lost, or stolen". Is this true or false advertising?

I believe what that means is that you get temporary assets with zero down time, which allows you to keep up and running while you buy new copies of the software (hopefully with your insurance settlement money). If the iLok is broken or damaged, you get real assets after you return the damaged iLok and Pace has an opportunity to examine it. Nowhere in the ZDT info on the iLok site does it say you'll get new permanent assets in the event the iLok is lost or stolen.

So, it's not exactly false advertising, but could be misleading if you infer the wrong thing from it (potentially disastrous if it lulls you into a state of feeling secure so that you don't insure the assets). They are sly devils. I wonder how many people who have purchased ZDT actually think they are protected against loss or theft.

Lee Blaske