How much does insurance cost for a computer repair business?

Computer repair businesses pay an average of $89 per month, or $1,073 annually, for tech E&O insurance. This policy bundles errors and omissions insurance with cyber insurance at a lower cost than buying the policies separately.

Errors and omissions insurance, also known as professional liability insurance, provides financial protection against claims of professional negligence. For example, a technician might fail to repair a client's computer by the promised deadline, which could result in a lawsuit.

Tech E&O adds third-party cyber insurance to this coverage, which extends protection in case your mistake or oversight leads to a data breach or cyberattack at a client's business.

This is the average E&O insurance for computer repair technicians who buy from Insureon:

Insurance premium: $89 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $2,500

The cost of errors and omissions insurance depends on factors such as the coverage limits you choose, the size of your business, and the repair services you offer.

Small computer repair shops pay an average of $145 per month, or $1,735 annually, for cyber insurance. This policy is vital for businesses that store customer information, such as credit card numbers, Social Security numbers, and email addresses.

Cyber insurance covers the cost of complying with your state's data breach laws after a cyber incident. It can pay for legal fees, customer notification costs, and data recovery efforts related to a data breach or cyberattack. You may also see this policy referred to as cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance primarily depends on the amount of personal information handled by your computer repair shop.

Computer repair stores pay an average of $37 per month, or $440 annually, for general liability insurance.

A general liability policy helps pay for legal costs from accidents that harm a customer or damage a customer’s property, along with advertising injuries. For example, it would cover costs if a customer trips over a loose cable in your shop and suffers a concussion or other bodily injury.

Most policies include product liability insurance, which covers costs related to faulty motherboards and other defective products. You may need to add bailee coverage to protect against accidental damage to customers' computers and other electronic devices in your care, custody, or control.

This is the average general liability coverage for computer repair businesses that buy from Insureon:

Premium: $37 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Insureon’s licensed agents typically recommend a business owner’s policy (BOP), which combines general liability insurance with commercial property insurance at a discount to protect your repair tools, replacement hard drives, and other business property.

For computer repair shops, the average premium for a business owner's policy is $62 per month or $742 annually. You can also add business interruption insurance to protect against financial losses from a forced closure due to a fire or storm.

The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

The average cost of a fidelity bond is $103 per month for computer repair shops, or $1,241 annually. Some clients, especially in the financial services industry, may require a bond before they will trust your business with their PCs, laptops, or other equipment.

Fidelity bonds reimburse your client if one of your employees commits fraud, theft, or forgery, including illegal electronic funds transfer. This amount must be paid back to the company that issued the bond.

The cost of a fidelity bond is typically a small percentage of the bond amount.

Computer repair technicians and businesses pay an average of $55 per month, or $657 annually, for workers' compensation insurance.

This policy covers medical expenses and disability benefits when you or an employee suffers a work-related injury or illness. For example, a screwdriver could slip and stab you in the hand during a repair job, or you could get a back injury from lifting a heavy PC.

Computer repair shops that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties. It's also recommended for sole proprietors, as health insurance plans can deny claims for injuries related to your job.

Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

The cost of workers' comp depends on the number of employees and their occupational risks, among other factors.

Computer repair and installation businesses pay an average of $260 per month, or $3,118 annually, for commercial auto insurance. This policy can pay for property damage and medical bills in an accident involving a vehicle owned by your repair shop. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, coverage options, the value of your vehicle, and the driving records of anyone permitted to drive.