Computer Repair Shop Insurance

Small business insurance is often required by law for computer repair businesses, depending on certain factors. You may also need specific policies depending on your clients, commercial space requirements, or lenders.

Most small computer repair businesses start with a general liability insurance policy, which covers many common business risks, such as customer injuries, third-party property damage, and advertising injuries.

Here are examples of situations where computer repair professionals may need other policies besides general liability coverage:

• You have a business-owned vehicle. Companies with vehicles are required to carry commercial auto insurance in most states. If you're using rented, leased, or personal vehicles, you'll need hired and non-owned auto (HNOA) coverage.
• You have employees. Most states require workers' compensation insurance after hiring your first employee. Sole proprietors are generally not required to carry workers' comp, but it's highly recommended to protect against common injuries and illnesses that personal health insurance may not cover.
• You apply for a business loan or rent a commercial space. Landlords and lenders often require general liability insurance in order to sign a contract.
• Your customers or partners request coverage. Clients and partners may refuse to work with your computer repair business unless you carry certain types of insurance. E&O insurance and a fidelity bond are common requests from clients.

Even very small businesses are not immune to the same lawsuits and liabilities that some of the biggest companies face, so having the right policies is critically important.

You can speak with a licensed insurance agent if you have questions about the best insurance policies for your computer repair business needs.

Computer repair businesses often invest in additional policies to cover a wide range of insurance claims.

You may want to consider the following:

• Tools and equipment insurance, also called inland marine insurance, provides coverage for company property while it’s in transit over land or stored at an off-site location. This coverage helps pay for the repair or replacement of tools and equipment if they're lost, stolen, or damaged.
• Electronic data processing (EDP) insurance protects your electronic equipment, including diagnostic machines and computers, if you experience data loss due to a power surge, fire, or covered natural disasters.
• Business interruption insurance helps cover lost income and other financial losses resulting from a covered property loss, such as damage from a fire or natural disaster. It's also called business income insurance.
• Business owner's policy (BOP) combines a general liability insurance policy with a commercial property policy to cover many of the most common liability risks, as well as your business property. You can also add equipment breakdown insurance as an endorsement to help your business recover from machinery failure.
• Hired and non-owned auto (HNOA) insurance covers your business from vehicle accidents if you or your employees are using personal, leased, or rented vehicles.
• Bailee coverage protects customer devices that are left in your care, custody, or control for service or repair. If a client’s property is damaged, stolen, or destroyed while in your possession, this policy can help pay for the loss.

Having the right policies and a certificate of insurance (COI) for your policies can help keep your business safe.

It's easy to save money on business insurance through a few simple steps:

• Shop around. Get quotes from several insurance companies to find pricing that matches your budget. TechInsurance makes this possible with one easy online application.
• Bundle policies. When you buy policies from the same provider, it's often possible to combine coverages for a discount. The most common bundles are a business owner's policy and a tech E&O policy.
• Pay the annual premium. Insurers offer two options for paying your premium: monthly or annual. Paying the full annual amount usually costs less.
• Risk management. Avoid costly claims that can increase your premiums by reducing your risks. Eliminate clutter around your computer repair business that could cause accidents and bodily injuries, use detailed written contracts, and include redundancy in your systems.
• Implement cybersecurity measures. Using safety measures, such as multi-factor authentication, to protect from digital vulnerabilities can keep your business safe from potential cybersecurity incidents.
• Personalize your coverage for your needs. Picking lower coverage limits or a higher deductible can reduce your premium. However, it's important that you pick a deductible you can afford to pay in the event of a claim.