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In today’s digital age, Computer business insurance is vital.It protects companies from risks like cyberattacks, data breaches, and equipment failures. Cybercrime costs are projected to reach $13.8 trillion annually by 2028.
In light of this data, this article explores computer business insurance ,its cost and the various policies available and the best companies offering this policy.
Computer shop insurance pertains to an insurance program whose terms absolutely relate to the risks that computer businesses face. It helps the policyholder reverse the financial drawbacks of lawsuits, damage to stocks, business interruption, crime, and business property damage.
The first risk most computer businesses think about are personal injury lawsuits customers might file against them. Facing a personal injury lawsuit and losing one’s defense can be very taxing as it might result in million dollar payments.
Personal injuries happening to computer shops in the United States isn’t rare. It’s estimated that 9,300 people suffer from computer related injuries.
General liability coverage in computer shop insurance pays for the cost of personal injury settlement as well as the policyholder’s attorney fees. Even a basic general liability coverage is already helpful because the policy holder can claim $500,000 up to $2 million upon asking the carrier for help.
Aside from personal injuries they may cause, computer shops also worry about the repercussion of selling a defective product to a customer. This is especially true for those that specialize in selling desktops, computer parts, and other related accessories.
Computer parts such as solid states drives, hard drives, central processing units, motherboards, AIO coolers, power supplies, graphic cards, and random access memories can cause significant damages if defective such as:
Injuries arising from product defects are costly. If the aggrieved person brings things to court, a computer shop business might have to pay $45,282 up to $68,431 in settlement.
Computers are not only dangerous to customers. Employees repairing or assembling them also face risks.
Most employees who work with computers agree that electrocution is an accident they experience from time to time.
Employees might need money for treatment and to recuperate any work-related injuries.
Computer shop employees can request their employers to pay for the cost of treatment as well the cost of lost days at work. Employers can use their own money. However, it’s better to sort things out with workers comp coverage.
Cyber liability insurance is another policy under your computer shop insurance. As a computer shop or business owner, it is important to note that your assets are more than your hardware and employees.
It would help if you also protected the software of your computer business. This is why it is essential to get a cyber liability insurance for computer business.
It protects your business against cybercrimes, such as fraud or viruses on your computer. With cyber liability insurance, you have legal and financial protection against such cases.
If you use vehicles in your computer business operations, you need a commercial auto insurance policy. You could be using vehicles to deliver packages for your clients or pick up new items for your computer store daily.
While vehicles are efficient, they come with risks. For instance, your company vehicle could get involved in an accident and cause severe injuries to the victim. In that case, commercial auto insurance will help cover the costs.
Business stocks and content is the policy that answers for any loss and damage resulting from theft. This can reimburse the policyholder a fraction or the full amount of the total projected value of stocks stolen.
Additionally, business stocks and contents insurance will also pay for the personal tools or equipment of computer shop employees such as volt meters, soldering rods, etc. Thus, it ascertains the policyholder won’t have to invest money so that employees remain efficient with their tasks.
Computer shops should be very vigilant about this. A good way to practice vigilance is to get computer shop insurance with goods in transit coverage.
Goods in transit coverage will reimburse the policyholder a percentage or full amount of the total value of stolen or damaged goods while on the way to customers, warehouse, or branch store.
This policy not only works for products delivered by a freighter or truck but also delivered by a ship. In case of delivery through ships, goods in transit will help policyholders make payment if the shipping carrier declares a general average.
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Independent professionals who assemble, program, and repair computers can decide to get coverages in computer technician insurance. Computer technician policies commonly offer general liability, fidelity bonds, equipment breakdown, and commercial auto coverages.
Fidelity bonds coverage in computer technician insurance will provide money if a client accuses the computer technician of theft or any other form of dishonestly such as:
Here are some reviews of the best insurance companies for computer shops and technicians. Read to know their pros, cons, and pricing for a $1 million general liability coverage.
The Hartford offers protection to computer shops with its business insurance for electronic companies. Coverage of its insurance policy are general liability, commercial property, and business interruption.
There are optional coverages such as OPUS coverage works the same way as business interruption but faster, data breach coverage, computer and electronic equipment coverage, and transit insurance coverage.
BBB and AM Best rates The Hartford with A+.
Average cost: $35 per month
Our rating : 10/10
While Next doesn’t insure computer shops, its computer technician insurance is worth the try. Next’s insurance for computer technicians comes as a business owners policy that allows the customer to enjoy a 5% discount on their premiums.
General liability and commercial property coverages compose the BOP. NEXT is accredited by BBB, has an A+ rating.
Average cost: $40 per month
Our rating : 10/10
Progressive offers computer business insurance with its Technology and IT services program, which protects computer manufacturers and retailers. Coverages are professional liability and professional indemnity. Optional policies are workers comp and commercial auto.
Average cost: $60 per month
Our rating : 8/10
If not Next, then computer technicians can go to Thimble for insurance . Thimble helps protect technicians from risks with its professional services insurance, which provides coverage to all independent licensed professionals. Coverages Thimble gives are general liability, professional liability, equipment, and commercial auto.
Average cost: $110.53 per month
Our rating : 8/10
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Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
