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Why do PC builders need insurance?
Your clients expect their workstations and gaming rigs to perform flawlessly, which is why insurance is essential. A system crash could cause costly losses, or a data breach could expose sensitive data. Business insurance covers lawsuits and losses caused by technical problems, along with injuries, theft, fires, and other risks small businesses face.
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Insureon helps independent PC builders and startups find insurance quotes that match their unique risks.
Get free expert advice and peace of mind knowing you have the right type of coverage to protect against common financial losses.
What types of insurance do PC building businesses need?
These insurance policies cover the most common risks faced by PC builders.
General liability insurance
This policy covers third-party accidents and defective products, such as a fire caused by a faulty power supply. Add bailee coverage to protect against accidental damage to customers' PCs.
BEST FOR
- Slip-and-fall injuries in your shop
- Accidental damage during a build or repair
- Defective computer parts
Technology errors and omissions insurance
Tech E&O covers lawsuits related to the quality of your work, such as a new PC that short circuits because of excess thermal paste. It's also called professional liability insurance.
BEST FOR
- Failure to deliver a new PC on time
- Insecure app that leads to a data breach
- Hardware that does not meet client specifications
Cyber insurance
This policy covers costs related to a data breach on your own computer system. It’s recommended for companies that handle credit cards, email addresses, and other personal information.
BEST FOR
- Customer notification expenses
- Fraud monitoring services
- Data breach investigations
Tools and equipment insurance
This type of inland marine insurance protects screwdriver sets, computer cleaning supplies, and similar items that you bring to clients' homes and offices.
BEST FOR
- Tools valued at under $2,500
- Newer equipment
- Mobile tools brought to worksites
Workers’ compensation insurance
Most states require workers' comp for PC building businesses that have employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
BEST FOR
- Medical expenses from job injuries
- Disability benefits
- Lawsuits from employee injuries
Fidelity bonds
A fidelity bond provides financial compensation for your clients if one of your employees steals from them or commits fraud. It's also called an employee dishonesty bond.
BEST FOR
- Employee theft
- Employee fraud
- Unlawful data access
Looking for different coverage? See more policies.
How much does business insurance for a PC building service cost?
A PC builder who works independently won't have to pay a lot for insurance.
Average insurance costs for tech companies include:
- General liability: $30 per month
- E&O insurance: $67 per month
- Cyber insurance: $148 per month
The following factors can affect premiums during the underwriting process:
- Products offered, such as PC cases, graphics cards, cooling systems, and operating systems
- Value of your tools and business property
- Business size and annual revenue
- Number of employees
- Policy limits and deductibles
- Claims history
How do I get PC building insurance?
It's easy to get insurance for PC builders and computer repair shops if you have your company information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policies and download a certificate.
Insureon's licensed agents work with top-rated U.S. insurance companies to find the right coverage for your custom PC building business, whether you work as a sole proprietor or hire employees.
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
"PC builders need a couple of unique coverages for their risks. Inland marine insurance covers tools they bring to worksites, while bailee coverage will provide protection if they accidentally damage a client’s computer during a build."
– Steve Goecke, Account Management Director, Insureon
FAQs about PC building business insurance
Review answers to frequently asked questions about business insurance for contractors and companies that build PCs.
Does PC builder insurance cover customer property in your possession?
Yes, bailee insurance covers accidental damage to customer items in your care, custody, or control. You can add it to your general liability policy as an endorsement.
Bailee coverage would provide financial protection in these situations:
- A PC builder spills coffee on a customer's laptop
- A screwdriver is dropped inside a case and damages a motherboard
- Excessive force during assembly breaks a delicate latch or slot
Keep in mind, you'll also need coverage for your own possessions that travel to clients' homes and offices.
Tools and equipment insurance, a type of inland marine insurance, covers movable property, such as tools brought to jobsites or computer parts stored off site. Property insurance only covers items stored at your business address, which is why you may need this coverage.
Do PC builders need professional liability insurance?
Professional liability insurance is another term for errors and omissions insurance (E&O). It's often required in contracts, as it protects your clients from potential losses related to your services.
Professional liability provides crucial protection against lawsuits related to professional negligence. It's often bundled with third-party cyber insurance in a package called tech E&O, or technology professional liability insurance.
Tech E&O helps pay for legal defense costs in several scenarios, such as:
- Misconfigured settings on a new PC cause a data breach
- A PC builder fails to deliver new computers by a client's deadline
- A technician misplaces a client's hard drive
- A computer isn't assembled in a way that meets industry standards
It's important to know that professional liability / E&O is a claims-made policy. To collect on a claim, this type of coverage must be active both when the incident occurred and when the claim was filed. However, it is possible to set a retroactive date to cover incidents that happened before you had coverage.
You'll also need cyber insurance, or data breach insurance, to cover data breaches and cyberattacks at your computer shop. It's a worthwhile investment for small businesses, who are often targeted because of their limited defenses. Cyber insurance helps pay for data breach investigations, ransomware attacks, and notification costs that can add up quickly.
Do PC builders who work independently need insurance?
PC builders who work independently often have the same risks and insurance requirements as bigger businesses. For that reason, they often need the same types of insurance coverage.
For example, a commercial lease, business loan, or contract might require general liability insurance, regardless of your business size. Tech E&O covers costly lawsuits from dissatisfied customers and it's often mandated by client contracts.
Keep in mind that your personal insurance policies likely won't cover commercial activities. Homeowner's insurance may offer only limited coverage for business property, which is a reason to invest in commercial property insurance or a business owner's policy (BOP), which bundles general liability and property insurance at a discount.
If you use your own vehicle for work, you should carry hired and non-owned auto insurance (HNOA). This policy provides liability coverage when you drive a personal, leased, or rented vehicle for work purposes.
Finally, though workers' compensation isn't required for sole proprietors, it's a good idea to carry this coverage. Your personal health insurance likely won't cover injuries that are related to your job.
How do first-party and third-party cyber insurance differ for PC building companies?
PC builders typically need two types of cyber insurance to fully protect their business:
- First-party cyber insurance: Also called data breach insurance, this coverage offers protection against cyber incidents at your own business, such as a data breach that exposes your customers' email addresses or other personal information stored by your company.
- Third-party cyber insurance: This covers your responsibility for cyber incidents that harm clients. For example, your PC business might install software or configure settings on client machines. If a software vulnerability or work error causes your client's data to be exposed, then your company could be held liable.
You can typically add first-party cyber coverage to general liability insurance or a business owner's policy (BOP). Third-party cyber coverage is included in tech E&O insurance, which bundles cyber insurance with errors and omissions insurance.
How do I start a PC building business?
Knowing your way around circuit boards, central processing units, and other computer parts isn’t the only thing you need to launch a PC building company. You will also need to:
- Do market research and figure out a way to stand out from competitors
- Locate sources of funding
- Write a comprehensive business plan
Better preparation improves the odds of success, no matter your specialty. Read more about how to start an IT services business.
What other types of insurance do PC builders need?
Depending on your unique risks, you may need additional coverage for your PC building business. For example, you may want to consider:
- Business owner's policy: A BOP combines general liability coverage with commercial property insurance at a lower cost than buying the policies separately.
- Commercial property insurance covers your business property and equipment if it's damaged, lost, or stolen at your fixed business location. Should your machinery or equipment suffer a mechanical or electrical failure, equipment breakdown coverage would provide the funds to repair or replace the damaged equipment.
- Electronic data processing (EDP) insurance covers electronic devices such as computers, storage devices, and the data they contain during a power surge, fire, natural disaster, or similar incident. Also known as computer coverage or data processing coverage, EDP insurance can help protect your business income against financial losses from data corruption or loss.
- Business income insurance, also known as business interruption coverage, 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.
If you need help finding the right coverage, don't hesitate to contact an agent. They can help you find cost-saving bundles, choose policies and limits, and find endorsements for any special risks.
How can I save money on computer business insurance policies?
It's easy to find affordable insurance with Insureon. Our easy online application lets you compare quotes from trusted providers to find policies that fit your budget and your business risks.
Other ways to save money on business insurance include:
- Bundle policies. You can often save money when you purchase two or more types of coverage in one package, such as a business owner's policy or tech E&O.
- Customize your coverage. Choose lower limits or higher deductibles to reduce your premium, but make sure your policy can still cover a potential claim.
- Focus on cyber risks. Cybersecurity controls, such as multi-factor authentication, protect your company from data breaches and other cyber incidents. Insurance companies often provide discounts for approved security measures.
- Avoid accidents and claims. Policyholders can prevent employee injuries and customer accidents that lead to claims by eliminating loose power cords and other tripping hazards in the office, and by providing ergonomic setups for employees.
Our agents can help you find the right insurance solutions for your budget and your needs, whether you assemble workstations for corporate clients, build high-end gaming rigs, or install operating systems and other software.