For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
In 2021, consumers all over the world have bought about 465.8 million computer devices, mainly laptops, desktop computers, and tablets. In 2025, experts estimate that higher demands for electronics will result in a 17.7 million increase.
The present is the perfect time for computer businesses to thrive. The shift to work-from-home pushed companies to buy numerous batches of laptops, mobile phones, or desktop computers for their employees. Aside from work, entertainment medialike video games, for example, heightened the popularity of computers, even if some consumers don’t essentially need them.
But still, computer businesses are exposed to risks no matter how profitable things might seem. For these risks, insurance can help a lot though not necessarily giving the guarantee that things will absolutely end well. In this discussion, learn about computer business insurance and its importance.
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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. Using this figure, we can say that computers injure 2 every 100,000 US citizens in any given year. On the other hand, the most common causes of injuries are:
Tripping on computer wires
Snagging one’s body part on the edges and other sharp spots of the computer case
Electrocution
Computer bursting in flames
The table below shows the most common computer-related injuries and their settlement cost in personal injury lawsuits.
| Type of Injury | Settlement Cost |
|---|---|
| Cuts and lacerations | $5,471 |
| Concussions and contusions | $20,746 |
| Burns | $50,369 |
| Leg fracture and arm fracture | $60,581 |
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:
AIO Cooler - causes air bubbles and leakage when defective, resulting to the complete breakdown of the entire computer unit
Central processing units - can overheat and cause the computer to ignite in flames
Graphic cards - can suffer from artifacting defects, overheating defects, and stuttering
Motherboards - can cause system freeze, sudden crashing and turning off, and blue screens
Power supply - can cause electricity to leak to the pc case and shock the user
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. Note that customers can really file a lawsuit after buying a defective product considering that the above mentioned parts are very expensive right now. For example, the cheapest GPU - and one that’s not even so great in terms of performance - sells for $500 or more.
Computers are not only dangerous to customers. Employees repairing or assembling them also face peril.
Most employees who work with computers agree that electrocution is an accident they experience from time to time. Electrocution, even though minor, can numb or burn their hands. And if frequently experienced, it may cause a periodic painful sensation to the hands and fingers.
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.
There’s no set amount how much workers comp can give. But one thing’s for sure, this policy will answer payments for employee medical costs and lost compensation no matter how expensive.
Getting workers comp is important for computer shops. Most states in the US treat the failure to get this coverage as a punishable offense. The cost of penalty depends on how long a computer business operates without workers comp. For example, not having workers comp for one year can result in a penalty amounting to $72,000.
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. The risk of these crimes is high, especially if you run your business store online. Similarly, your business is also at risk if you have a company website. 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. This will go a long way in saving your business money. It also lets you focus on your business and not worry about various risks.
As we said earlier, the value of computer units and computer parts are so high right now that they sell more for their actual worth. And because of this, theft is an issue that computer shops will certainly face sooner or later.
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.
Stocks and contents insurance will also take care of equipment essential for the continuation of a computer shop’s operation such as generators, automated money handling system, software , and many more. For these things, stock and contents insurance help by giving the policyholder money for repair, replacement, or reprogramming.
A very interesting news story just came out recently. Accordingly, a trailer full of EVGA 30-series GPUs (a graphics processing unit that’s very expensive right now) was hijacked by unknown men. The company, EVGA, states that the cost of each product was between $329.99 to 1,959.99 per unit.
What happened to EVGA’s stocks absolutely states that stock theft in transit can happen anywhere and anytime. 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 the coverages in computer technician insurance. Computer technician policies commonly offer general liability, fidelity bonds, equipment breakdown, and commercial auto coverages.
One thing that computer technicians worry the most about is what they can do if they get injured and fail to work. Carpal tunnel and musculoskeletal injuries are common among computer technicians and these take long to fully heal.
Some carriers offer sole proprietors workers comp policy in their computer technician insurance. Sole proprietor’s workers comp works the same way as standard workers comp. The only difference is that the policyholder isn’t required to have a business or employees.
We mentioned fidelity bonds coverage but what is it? 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:
Accessing private information stored on a computer the technician is working on
Switching a part of the computer with a similar but defective part
The technician states a computer can’t be repaired, buys it, then repairs it, and resells it for profit
Computer assembly and repair isn’t an easy job. In computer assembly, a technician can easily damage a computer by simply failing to use anti-static equipment. As for computer repair, a technician can do further damage to a client's rig by simply misdiagnosing defects.
Due to how expensive computers are right now, clients won’t think twice about filing a lawsuit against a technician to get compensation for damages. In most cases, negligence will be the main reason for the lawsuit and sorting things out can incur costs between $1,000 up to $15,276.
Technician liability insurance with professional liability coverage is very useful for lawsuits accusing a technician of causing damage by sheer negligence. Professional liability coverage gives the technician a total or $1 million up to $2 million to pay for attorney fees and compensation to the aggrieved client.
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The average computer shop insurance cost is roughly $33 per month or $396 per year provided the policyholder only wants to get $1 million general liability coverage. However, if the policyholder wants to add products liability to their general liability, then the cost of insurance for computer shops scale to $45 a month or $540 a year
Computer shops pay $40.75 a month or $489 a year for their workers comp coverage
Those who want protection against theft while stock is in transit pay $22.78 a month or $273.51 a year for goods in transit coverage
Business stocks and content insurance cost $18 a month or $216 a year for a starting computer shop
Technicians pay a median of $22.34 a month or $268.08 a year for their professional liability coverage
| Company | Cost per month | Cost per year | Best for |
|---|---|---|---|
| The Hartford | $35.00 | $420.00 | Computer shops with an annual revenue of more than $1 million |
| NEXT | $40.00 | $480.00 | Computer technicians who provide home service |
| Thimble | $110.53 | $1,326.36 | Computer shops with an annual revenue of less than $1 million |
| Progressive | $60.00 | $720.00 | Greenhorn computer technicians |
Insurance costs always vary depending on multiple factors such as the size of your business, your years in business, claim history, location and more. To get the most value for your money, simply click the “Get Quotes” button, complete the questionnaire, and compare computer business insurance quotes online from the best computer business insurance companies in the market, and find the best coverage options for the cheapest rates!
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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. Nonetheless, these aren’t what customers can only get as 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+.
OPUS coverage quickly provides money in case of business interruption
Protects a lot of electronic equipment and stocks of the computer shop
Trusty BBB and AM Best rating
Resolves disputes with customers
The Hartford won’t resolve disputes unless the customer is very determined for it
Best for : Computer shops with an annual revenue of more than $1 million
Average cost: $35 per month for a $1 million general liability coverage
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. However, the customer can opt to get workers comp and commercial auto as optional policies.
NEXT is accredited by BBB, has an A+ rating, and only received 13 complaints on the BBB website in the past year.
Offers electronic certificate of insurance
Online transactions that can be fulfilled without any calls
Discounts for bundling policies
Doesn’t provide insurance for computer shops
Best for : Computer technicians who provide home service
Average cost: $40 per month for a $1 million general liability coverage
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. It’s surprising that progressive’s insurance for computer shops don’t include general liability and business interruption coverage. Perhaps, they want customers to get this as stand alone policies.
Covers a lot of business that make money through computers
Comes with cyber security coverage
No general liability and business interruption
Best for : Computer shops with an annual revenue of less than $1 million
Average cost: $60 per month for a $1 million general liability coverage
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. Computer technicians can only enjoy all or any of these four as there are no optional coverages available.
Simple coverages that computer technicians absolutely need
Online certificate of insurance
Insures the work equipment of technicians
No optional computer technician insurance coverages for more protection
Best for : Greenhorn computer technicians
Average cost: $110.53 per month for a $1 million general liability coverage
Our rating : 8/10
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
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Very good experience
Terrific experience with their construction business insurance! 10/10! Thank you!
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