Computer repair businesses are exposed to a number of common liabilities, particularly related to dealing with client property and hosting clients on business premises. From professional negligence lawsuits to third-party property damage or injury, your business could be sued for a variety of risks. The right commercial insurance policy package can help protect your business and ensure that you have the financial backing to recover from any unfortunate events.

What insurance coverage do I need for my computer repair business?

There are many types of insurance coverage to consider, but these policies are particularly relevant to computer repair companies:

Professional Liability Insurance

Computers and other electronics can be complex and expensive. They often hold crucial software and data that your clients rely on. No matter how careful you are, it’s always possible that a mistake could be made in the repair process, and you could be held liable for significant damages. If a client feels that your work caused them financial loss, you could be sued, even if you did nothing wrong. Professional liability insurance can financially protect your company from lawsuits and damages brought by dissatisfied clients.

Example:

• A company asks you to repair several computers in their network. During the repairs, your technicians mistakenly delete client data from the network, which prevents several of the company’s projects from being completed on time. The company sues you for damages.

General Liability Insurance

Most companies have some level of general liability risk, but it’s a particularly important coverage for computer repair companies to consider. Clients likely bring computers to your location to have them repaired, and you may also send employees to other homes and offices to complete repairs onsite. If one of your customers is injured while on your property or one of your employees damages a client’s property in the course of their work, you could be held liable. General liability insurance covers these third-party bodily injury and property damage risks. It also features a personal and advertising injury component, which covers several risks, including libel, slander, and copyright infringement.

Examples:

• Property damage: Your employee visits a client’s home to perform repairs. He trips on a step and falls against a table with an expensive vase on it, knocking over and breaking the vase. Your general liability insurance would pay for the damage.
• Bodily injury: A client comes to your offices to have a computer repaired. The client slips and falls on ice that has developed in your entryway, severely twisting her knee. Your general liability insurance would pay for medical expenses and legal fees if the client sues.
• Personal and advertising injury: A blog post on your computer repair company’s website suggests that a competitor’s employees have stolen private data from customers whose computers they were repairing. Your competitor sues for libel. Your general liability insurance would pay for the legal defense and any settlements.

Cyber Liability Insurance

Most modern companies have some level of cyber liability because they often rely on computer systems to store critical information. Since cybercriminals are always developing new methods of breaking into digital systems, there’s always a risk of hacking, no matter how carefully you manage your cybersecurity. If hackers are able to access private data through your systems, you could be held liable. The costs of recovery can be high, and news of a cyberattack can damage your reputation. Cyber liability insurance can provide financial protection to help your company deal with cyberattacks, and insurers often provide resources to help you prevent incidents as well.

Example:

• Hackers break into your computer systems and steal your customer information, which includes credit card numbers, phone numbers, and email addresses. They threaten to release the data unless you pay them a ransom. Your insurer would provide experts to help you deal with the situation and would pay the ransom if necessary.

Commercial Property Insurance

Your computer repair company probably operates in a location you rent or own, and you may also have specialized tools or expensive equipment for use in repairs. If an unexpected disaster strikes, recovery can be difficult and costly. In some cases, it may be impossible to continue operating your business after a catastrophe destroys or damages your property.

Commercial property insurance covers the following:

• Buildings belonging to or leased by your company
• Contents of the building
• Property of others while it is under your care, custody, or control

It’s important to note that the property of others portion of commercial property insurance typically has a low limit. It is likely not sufficient coverage for computers and other electronics that are in your custody to be repaired.

Example:

• An electrical fire breaks out at your company’s offices, causing significant damage to your building and equipment. Your insurer will pay for repairs to the building and replace your equipment.

Bailee’s Insurance

Bailee’s insurance is particularly crucial for computer repair businesses since they often have customers’ computers in their possession while they are being repaired. When customers give their property into your care, they expect it to be returned safely, and you could be held liable if it is damaged, stolen, or destroyed. Bailee’s coverage will cover your business for losses to customer property.

Example:

• Someone breaks into your business and steals dozens of laptops that were in the process of being repaired or waiting to be picked up. Your bailee’s coverage will pay for the value of the laptops, covering customer claims.

Commercial Auto Insurance

Many computer repair companies own a fleet of vehicles for mobile repairs. If your company owns one or more vehicles titled under the company’s name, you’ll need to get commercial auto insurance. This covers bodily injury and property damage if the driver of the vehicle is at fault in an accident, as well as the value of the vehicle itself if it’s damaged by a collision or another peril.

Example:

• While driving a company van on a rainy day, one of your repair technicians hydroplanes and collides with another car. Your insurer would pay for the damage to both vehicles and medical expenses if anyone is injured.

Additional Coverage

• A business owner’s policy combines general liability, property, business income, and extra expense coverage into a single package. For small or midsize companies, this type of insurance could help you obtain a wide range of coverage. Premiums for a business owner’s policy are typically cheaper than the cost of buying each coverage separately.
• Business income coverage will reimburse you for lost income and operating expenses if your business is forced to close due to a covered peril, such as fire, storm damage, or other property damage.
• Workers’ compensation insurance is legally required for companies with employees in most states. It covers the medical expenses and lost income of employees who are injured or fall ill while working.

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a computer repair shop with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for IT businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

When you operate a computer repair business, you could be held liable for a variety of risks. It’s important to consider your business’s needs and purchase a range of insurance that will financially protect you from a number of liabilities, including losses due to property damage, a lawsuit brought by a dissatisfied customer, or a slip and fall injury that takes place in your offices. This will ensure that if an unexpected disaster occurs, you and your clients will feel confident that your business will recover.