Most networks make use of a cable type which uses sets of “twisted pairs” to eliminate (1) electrical noise entering into and/or radiating from the cable and (2) “cross-talk” (signals leaking between wires in a cable). When computers are stolen, the cables are often pulled prior to being cut. This results in the twisted pairs being stretched such that the shielding effect is reduced, or eliminated. Such cable should be replaced.

Excessive costs can arise for other reasons, however. Many businesses have undocumented networks which have grown in a disorderly manner over time. Without proper documentation, cables are often replaced because sorting out the network typology and cabling runs is more expensive than simply replacing cables and network appliances.

Strictly speaking, documenting the network after the fact is a cost of proving the loss which the insured will often download to the insurer by replacing portions of the network. Differentiating between indemnification and costs associated with proving the loss can be used to force the insured to properly document their network, and thus, their claim. This can result in a lowering of the quantum of the loss as well as a reduced underwriting risk in the future.