Computer Repair Business Insurance

Computer install and repair business owners might assume their work is relatively low-risk. However, working with a client’s computer, sensitive data, and expensive equipment can expose your business to significant financial risk, whether you're just starting your business or are well established.

Clients often leave their devices in your care, custody, and control, and technicians frequently transport computers or tools for installation and repair work. If something goes wrong, it could lead to a costly claim or lawsuit.

Here’s a closer look at some key computer repair shop insurance products and why you should carry them:

Cyber insurance helps protect your business if sensitive client data is exposed during a cyberattack or data breach. If a client’s information is compromised while their device is in your possession or connected to your systems, this policy can help cover the cost of customer notification, credit monitoring, legal fees, and regulatory fines.

Technology errors and omissions insurance (Tech E&O), also called technology professional liability insurance, helps cover legal fees and court costs if a client claims your services caused financial harm. For example, a client might sue if a repair or installation error results in data loss, system failure, or downtime that disrupts their business.

Outside of tech E&O and cyber insurance coverage, there are a few other policies computer repair businesses should consider including in their insurance plan:

• Inland marine insurance provides coverage for business property, such as products, materials, and equipment, while it’s in transit over land or stored at an off-site location. Additionally, tools and equipment insurance helps pay for the repair or replacement of tools and equipment if they're lost, stolen, or damaged. The items typically must be less than five years old.
• Business income insurance, also known as business interruption insurance, offsets your lost income when your business is forced to close because of a covered peril, such as property damage. These funds help you cover your normal operating expenses until you can resume business operations.
• Electronic data processing (EDP) insurance covers electronic devices such as computers, storage devices, and the data they contain. Also known as computer coverage or data processing coverage, EDP insurance can help protect your business income.
• A business owner's policy (BOP) combines general liability insurance with commercial property insurance, for less than it would cost to purchase those policies individually. Should your machinery or equipment suffer a mechanical or electrical failure, equipment breakdown coverage can be added as an endorsement to your BOP, which would provide the funds to repair or replace the damaged equipment.
• Bailee coverage helps protect customer devices that are left in your care, custody, or control while you repair, store, or service them. If a client’s laptop or server is damaged, stolen, or destroyed while in your possession, this coverage can help pay for the loss.
• Hired and non-owned auto (HNOA) insurance is crucial if you or your employees drive personal vehicles to visit clients or transport equipment. It can help cover liability claims if an accident occurs while using those vehicles for business.