Computer Electronic Repair Insurance Policy Information
Computer Electronic Repair Insurance. Almost every day a person or business may need to have their computers fixed. If you run a computer repair business, you know how complicated it can be to get these types of devices fixed. Although you can make money, many risks come with operating this kind of business.
Computer repair facilities maintain, service, and fix computers and peripherals such as printers for businesses and individual consumers. The service can be located in individual shops, in a home basement or garage, in the department store or computer store where the computer was originally purchased, or at the manufacturer's premises.
A store or manufacturer may contract with an outside operation to provide service to its customers. The operation may make repairs at customers' premises or offer pick-up and delivery services.
Something as simple as lost of data can put you in financial hot water. With the number of risks involved in this business, having computer electronic repair insurance is a must.
Computer electronic repair insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked computer electronic repair insurance questions:
- What Is Computer Electronic Repair Insurance?
- How Much Does Computer Repair Insurance Cost?
- Why Do Computer Electronic Repair Businesses Need Insurance?
- What Type Of Insurance Do Computer Repair Businesses Need?
- What Does Computer Electronic Repair Insurance Cover & Pay For?
What Is Computer Electronic Repair Insurance?
Computer electronic repair service insurance is a type of insurance that covers the risks associated with repairing and servicing electronic devices such as computers, laptops, tablets, and smartphones.
This type of insurance may provide coverage for damages or losses incurred during the repair process, as well as liability protection for any harm or injury caused by the repaired device. It may also cover lost income or business interruption if the repair service is forced to shut down due to a covered event.
How Much Does Computer Repair Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small computer and electronic repair businesses ranges from $27 to $39 per month based on location, size, payroll, sales and experience.
Why Do Computer Electronic Repair Businesses Need Insurance?
There are several reasons why computer and electronic repair services may need insurance:
First, insurance can provide financial protection in the event that something goes wrong during the repair process. For example, if a repair technician accidentally damages a customer's device, the repair service may be held liable for the cost of the damages. Computer electronic repair insurance can help cover the cost of repairing or replacing the damaged device, as well as any legal fees that may be incurred.
Second, insurance can protect the repair service itself in the event of a disaster or other unexpected event. For example, if a fire or natural disaster destroys the repair service's equipment or premises, insurance can help cover the cost of replacing or repairing the damaged property.
Finally, insurance can also help protect the repair service's employees. If an employee is injured on the job, insurance can help cover the cost of medical treatment and lost wages.
Overall, insurance is an important consideration for any business, and computer and electronic repair services are no exception. It can provide financial protection in the event of unexpected events and help ensure that the repair service is able to continue operating smoothly.
Below we'll take a look at some of the different insurance policies you can get to protect your business.
What Type Of Insurance Do Computer Repair Businesses Need?
As a computer and electronic repair shop, you need to consider purchasing the following computer electronic repair insurance policies:
Commercial General Liability Insurance: If you cause injury and property damaged to a third party, then your business is protected by this type of insurance. Your business is protected from a broad range of liability risks with this type of computer electronic repair insurance. If you spill coffee on a client's computer or device, general liability will cover the damages.
Professional Liability Insurance: Also know as errors and omissions (E&O) coverage. If a customer sues you over a perceived work mistake, this coverage will protect you. For example, if you install and anti-virus software and your client suffers a virus that causes a data loss, E and O will kick in and pay legal fees and court costs.
Cyber Liability: A breach of data is possible when you are working on a client's device which is why it's important for you to have this type of insurance for your business. A client can sue you if you lose their data which this insurance also protects you from.
Business Property Insurance: You should also ensure the buildings you use for your business stay protected which is why having business property insurance is important. The building(s) you use for the operation of your business are at risk of being destroyed by things like fire, weather, smoke, vandalism and other types of damages which make having this insurance a valuable part of your operation.
Business Interruption Coverage: There are times when you may need to stop the operation of your business. When this is the case, you'll need to have business interruption coverage in place. Destruction of your business because of a natural disaster may force you to have to relocate which is why this insurance policy is necessary.
This computer electronic repair insurance covers any financial support required during this period. Whatever it is that causes your business to stop operations is covered by this insurance.
Workers' Compensation: If you have people working for your then it's important to have workers comp - and required in most states for any non-owner employees. workers comp protects your employees while they are working for you. Anything associated with the injury such as medical bills is covered when you have this type of insurance.
Computer Maintenance Repair Risks & Exposures
Premises liability exposure at the repair shop can be moderate if customers visit the premises. Customers should not be permitted in the repair area. There should be adequate aisle space, no frayed or worn spots on the carpet, and no cracks or holes in the flooring. The number of exits should be sufficient, well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
If the shop conducts repairs at the customer's home or place of business, repair persons should be trained in proper procedures to prevent premises damage such as fire while working on faulty appliances.
Personal injury exposures include assault and invasion of privacy. Failure of the shop to run background checks and review references on employees both increases the hazard and reduces available defenses.
Products liability exposure is generally low. The use of faulty components or improperly repaired appliances can cause electrical problems that could result in fire or other property damage. Employees should be trained in proper repair procedures. Improper work can nullify warranties and transfer the responsibility for properly working products from the manufacturer to the repair shop. The products liability exposure increases if used and refurbished items are sold. Professional liability coverage may be required if the shop performs any type of software design.
Workers compensation exposures include electrical shock, cuts, puncture wounds, eye fatigue, foreign objects in the eye, repetitive motion injuries, and burns and splashes during soldering operations. Back, hernia and other lifting injuries may occur from moving heavy computer equipment and peripherals such as printers. Off-premises injuries, including trips, falls, automobile accidents, and animal attacks, can result from repairpersons traveling to customers' premises.
Property exposure generally includes an office, servicing area, and storage space for supplies and customers' items awaiting pickup. Ignition sources include electrical wiring, heating and air conditioning systems, and overheating of equipment used to repair computers and peripherals. Computer repair may include the use of flammable cleaning solvents, soldering, electrical wiring, and repair of plastic cabinets. Flammables and combustibles need to be used away from soldering operations. Solvents should be properly stored in fireproof cabinets or rooms.
Theft can be a concern as computers are target items. Appropriate security controls should be taken including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station or the police department.
Crime exposure comes from employee dishonesty and money and securities, particularly if repair persons collect payment at the time of service. There must be receipt procedures and monitoring to encourage accurate reporting and collection. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. Employees may have access to customers' passwords. The potential for identity theft is high. If there is off-site work, there is also the possibility of employees taking clients' property. Background checks should be conducted before permitting any employee to visit clients.
Inland marine exposures include accounts receivable if the shop offers credit, bailees customers, computers, tool floater, and valuable papers and records for customers' and suppliers' information. Bailees include the goods of customers while being repaired or if the operation offers pick-up or delivery service. Items should be padded and tied down during transit to prevent damage.
There must be documentation of computers received and records kept of who owns each item. Security should be appropriate for the type of computers being worked on. Off-site exposures can be high due to the tools, equipment, and supplies carried to and possibly stored at customers' premises.
Commercial auto exposure may be limited to hired and nonownership. The exposure increases if the shop offers pick-up and delivery service to its customers or repairs computers at the client's premises. Custom or specially designed equipment may be installed in vehicles. Drivers should have appropriate licenses with acceptable MVRs. All vehicles must be well maintained with documentation kept in a central location. If vehicles are provided to employees, there should be a written policy regarding personal use by employees and their family members.
What Does Computer Electronic Repair Insurance Cover & Pay For?
The specific reasons why a computer electronic repair service may be sued can vary depending on the circumstances, but here are some common examples:
Damage to customer's property: If a computer electronic repair service damages a customer's property, such as a computer or other electronic device, during the repair process, the customer may sue for damages. This can include costs to repair or replace the damaged property, as well as any associated financial losses incurred by the customer.
Insurance coverage: General liability insurance can protect a computer electronic repair service from such lawsuits. It may cover the costs of repairing or replacing the customer's property, as well as any associated financial losses. The repair service would need to file a claim with their insurance provider, and subject to the terms and conditions of the insurance policy, the insurance provider may pay out the covered damages.
Data loss or breach: If a computer electronic repair service loses or compromises a customer's data during the repair process, the customer may sue for damages. This can include costs to recover or restore the lost data, as well as any associated financial losses or damages resulting from a data breach.
Insurance coverage: Cyber liability insurance can provide coverage for data loss or breach incidents. It may cover the costs of data recovery, legal fees, and any damages awarded to the customer. Again, the repair service would need to file a claim with their insurance provider, and subject to the terms and conditions of the insurance policy, the insurance provider may pay out the covered damages.
Professional negligence: If a computer electronic repair service fails to provide competent and professional services, resulting in harm or financial loss to the customer, the customer may sue for damages. This can include allegations of mistakes, errors, or omissions in the repair process that led to further damage or financial harm.
Insurance coverage: Professional liability insurance, also known as errors and omissions (E&O) insurance, can protect a computer electronic repair service from such lawsuits. It may cover the costs of defending against the allegations of professional negligence, as well as any damages awarded to the customer. The repair service would need to file a claim with their insurance provider, and subject to the terms and conditions of the insurance policy, the insurance provider may pay out the covered damages.
It's important to note that insurance policies and coverage can vary depending on the insurance provider and the specific terms and conditions of the policy. It's recommended that computer electronic repair services work with a qualified insurance professional to review their specific needs and obtain appropriate insurance coverage to protect themselves from potential lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7378 Computer Maintenance and Repair
- NAICS CODE: Computer and Office Machine Repair and Maintenance, 811213 Communication Equipment Repair and Maintenance
- Suggested Workers Compensation Code(s): 5191 Office Machine Installation, Inspection, Adjustment, or Repair
Description for 7378: Computer Maintenance and Repair
Division I: Services | Major Group 73: Business Services | Industry Group 737: Computer Programming, Data Processing, And Other Computer Related Services
7378 Computer Maintenance and Repair: Establishments primarily engaged in the maintenance and repair of computers and computer peripheral equipment.
- Computer peripheral equipment repair and maintenance
- Computer repair and maintenance
Computer Electronic Repair Insurance - The Bottom Line
There are many things your business can be sued for which is why you should get the necessary insurance policies in place to protect it. Now that you know a little more about the type of policies available to your business the next step is speaking with an insurance professional and finding the right policies to cover your business.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Artificial Intelligence
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- eCommerce
- Electronic Data Processing
- Electronic Data Processing Equipment
- Internet Business
- Internet Service Provider
- IT Consultant
- Online Store
- Social Media
- Software Developer
- Technology Services
- Telecommunications
- Website Design
- Specialty Computer
The information technology (IT) industry is constantly evolving and adapting to new technologies and trends. It is a critical component of many businesses and organizations, as it helps them to communicate, store data, and operate efficiently. However, the IT industry also faces unique risks and challenges that can lead to financial losses, legal issues, and damage to reputation. This is why it is essential for IT businesses to have commercial insurance to protect their assets and interests.
One of the main risks that IT businesses face is data breaches and cyber attacks. Hackers can gain access to sensitive information stored on a company's servers or systems, leading to data theft, identity theft, and other crimes. Insurance can provide coverage for these types of events, helping IT companies to mitigate the financial and legal consequences.
Another risk that IT businesses face is the possibility of equipment failure or malfunction. This can result in downtime and lost productivity, which can have a significant impact on a company's bottom line. Commercial insurance can help IT businesses to cover the costs of repairs and replacements, as well as any lost revenue or expenses incurred due to the equipment failure.
IT businesses may also face legal issues, such as intellectual property disputes or contract disputes with clients. Insurance can provide coverage for legal fees and damages, helping IT companies to defend their interests and protect their reputation.
Overall, the IT industry needs business insurance to protect against the many risks and challenges it faces. Without adequate coverage, IT businesses may be vulnerable to financial losses and legal issues that could impact their operations and success.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
