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I like to call laptops “highly portable easily damaged thief attraction devices”. I have a simple rule for purchasing any electronic device: multiply the price times two, because no matter how careful you are, no matter how much cushioning your bag or case has, you’re probably going to lose or break that device at the worst possible time. Just assume you’ll have to replace the device the next day.

I’m not a pessimist, and who said I was paranoid? I’m a realist. I started using computers in the late 1970s, and I’ve seen theft, damage, and other showstoppers that can grind users to a screeching halt.

In this post, I’ll focus on how to reduce the financial misery if your laptop oi stolen. Some of these tips also apply to other small electronic devices, like cell phones, iPods, and digital cameras.

If you’re searching for the business model here, it’s based upon risk and fear. It’s the same model that sells insurance. Most companies try to minimize financial and legal risk. Many users are afraid of what might happen if they lost control of the data on the computer.

There’s an old television commercial for automobile air filters. A mechanic would describe the expensive repairs that his customer’s car required, and how the damage could have been prevented if the customer had replaced the engine’s relatively inexpensive air filter on a regular basis.

The tagline was “You can pay me now, or you can pay me later.”

Let me repeat: if you own a laptop computer, you should assume that it will be stolen or dropped at some point. According to Safeware’s estimate of 2002 reports, 72% of laptop computer losses are the result of accidents. Only 15% are from theft.

Plan to spend some extra money buying one or all of the following items:

1. Insurance≈
2. Security software
3. Security hardware
4. A cushioned bag or case
5. Warranty or service plan

Laptop computers tend to have a much shorter service life than desktop computers, because of these issues and the inherent difficulties of upgrading a highly integrated elecronic device.

At the very least, record the serial and model numbers of your device, and store them in a safe place at home. Most homeowner’s and renter’s insurance policies will allow customers to add computers and portable electronics, although sometimes there’s an additional premium and a deductible. Some business insurers offer similar coverage for corporate equipment.

Safeware is one of several companies that offer insurance for portable computers and electronic devices. It can be expensive, but if you or your business depend on these devices and cannot afford to replace them out of pocket, it’s a reasonable option.

How do you find your laptop if it’s missing?

This article from CreativeTechs discusses three different theft recovery products designed for laptops. Two of the services, Lojack and PhoneHome, are available for Windows and Mac computers. PhoneHome sends an e-mail message to a preset account, while LoJack contacts a server.

One of the Mac packages, Orbicule Undercover, will take pictures with the Mac’s biult in iSight camera. Orbicule has a student version available for US$25 for today only. The regular verrsion is only US$29.

Of course, you have to purchase, install and activate the software in advance. If you wait until the laptop is missing, it’s too late to do much about it.

All three of these packages are useless if the thief doesn’t connect the laptop to the Internet. There is a large chop-shop market for RAM, hard drives, display screens, and other computer parts.

So the security software is nice, but physical security is essential. Most thefts are crimes of convenience, so anything that you can do to slow a thief’s progress will make you a less inviting target.

I carry a Kensington MicroSaver combination lock with my laptop. These locks are avaiable in keyed editions, but I prefer the combination model. I’m afraid I’ll lose my keys.

Almost every laptop computer includes a Kensington security slot, as described at http://www.us.kensington.com/html/1356.html. I’ve seen many LCD monitors that have these slots on the back, too. The slot is a small rectangular hole, usually on the side or the back of the computer’s case.

The slot is often marked with a trademarked logo that Kensington allows manufacturers to use free of charge. That’s a smart idea in itself.

Wrap the cable around an immovable object, and clip the lock into the secuurity slot.

A lock won’t prevent a thief from removing your hard drive or RAM. Of course, a thief could carry a big pair of cable cutters and use that to clip the steel cable. It is possible to rip the lock out of the Kensington slot, but that will leave a gaping hole in the side of the computer, and the required force might damage the display and hard drive. A good cable lock will make it inconvenient, noisy and obvious if a theif is steealing your laptop.

I place Stuffbak stickers on my portable devices. These self-adhesive stickers come in a variety of sizes, and each has a unique serial number, along with a toll-free telephone number and the Stuffbak.com URL. Just add the number, along with a description of your laptop, iPod, tennis racket, or whatever, tyo your Stuffbak account. If someone finds and returns the item to Stuffbak’s Colorado office, they’ll receive $20 in Stuffbak stickers. You can offer an additional cash reward if you wish.

Be careful when you place these stickers on your device. They use a very strong adhesive. It is possible to remove the sticker, but it takes some effort, and you might scratch the case. That’s part of the sticker’s design, of course.

Also, you should avoid placing the stickers on a wear point, or over a hole or ridge. I try to use the smallest size Stuffbak sticker that I can, although if space permits, I will break out the large format stickers and use them.