Electronic Store Insurance: Cost & Quotes From $11/mo

Homepage > Business Insurance  >  Electronic Store Insurance: Cost & Quotes From $11/mo

Like any other retail business, your electronics store face risks unique to it.

A customer might complain and file a claim after receiving an unstable gaming rig assembled by your computer technician. The delivery of supplies might be disrupted and this can result in complaints from the IT company who bought a large batch of printers, wires, and other items from your business. Software used for selling and tracking inventory can get corrupted and open the possibility of employee theft. 

Purchase electronics store insurance. This is an insurance package consisting of general liability, commercial property, and other business insurance policies that cover the risks exclusive to your business. 

Who Needs Electronic Store Insurance?

When we think of electronic store insurance, the mind quickly clicks on insurance for the conventional electronics shop. That's true, but other electronic businesses also benefit from this type of insurance coverage. They include:

• Electronics repair technicians

• Wholesale electronics distributors

• Electronic component manufacturers

• Smart home technology companies

• Medical electronics companies

• Online electronic stores 

Generally, any business that retails or repairs electronic devices and equipment should consider electronic store insurance to mitigate the financial risks lurking around their business operations. The electronics you sell are valuable products that can easily attract thieves. This type of insurance protects against losses due to damage or theft and covers the financial implications that may arise due to customers' liability claims. 

Electronic Store Liability Insurance 

General liability, professional liability, and product liability policies are the different types of electronic store liability insurance. All grant protection against lawsuits in situations where your business can be held liable by customers and other third parties.

General Liability Insurance for Electronics Stores

Electronic store general liability coverage is meant to cover your electronics business from financial loss arising from:

• Claims or lawsuits that a customer/member of the public may file against your store for property damages or bodily injuries that occur on your property

• Advertising injuries (copyright infringement, slander, or libel)

In What Situations Can Your Electronics Store Use General Liability Insurance?

These are some of the situations where general liability insurance can help your electronic store:

• A customer slips and falls on a wet floor and suffers a dislocated wrist

• The TV suddenly exploded during a demo and the customer sustained an eye injury 

• A rushing employee hits a customer

• A customer falls from a height while traversing the stairs leading to your electronic store’s second floor

• Your computer technician caused further damage to a customer’s laptop instead of fixing it 

Will General Liability Insurance Help If the Property of Clients Get Damaged While in My Custody?

You can introduce a customer property endorsement to general liability insurance. By doing this, the policy will cover costs if the computers, cellphones, and other electronic gadgets to be repaired get damaged or lost while in the custody of your electronic store. 

What Are the Usual Limits of the General Liability Insurance for Electronics Stores?

General liability insurance for electronics stores has a $1 million-$2 million per occurrence and aggregate limit. 

It's worth noting that the amount of liability coverage needed depends on your store's specific characteristics, such as the size of the store and the types of products and services you offer.

For example, a store that sells and assembles gaming rigs, laptops, and cameras may need more liability insurance than a store that sells keyboards, mouse, USB, and other low-end electronics.

Product Liability Insurance for Electronics Stores 

Product liability insurance will help if your electronics store unintentionally sold defective items that inflict bodily injuries or property damage to buyers. You will find this policy automatically included in general liability insurance. 

You use product liability insurance to cover medical treatments, reimbursements for property damage, legal defense, and extra costs for product recall. Here are some situations where the coverage of this insurance can apply:

• The client files a claim after his gaming rig is fried by a defective PSU bought from your electronics store

• The client demands compensation after the television bought from your electronics store exploded and caused a small fire in their house 

Professional Liability Insurance for Electronics Stores

Get professional liability insurance if your electronics store provides cell phone or computer repair, assembly, reprogramming, and other services. This insurance will reimburse the financial losses and cover the costs of defending yourself in court if the customer files a claim because:

• The computer was assembled hastily, and the components installed don’t match the quote you provided

• Your electronic store forgot to backup the client’s data before reprogramming his computer

• Your electronic store released the client’s repaired laptop or computer to another individual by mistake 

Can Professional Liability Insurance Help If a Client Accuses My Electronic Store’s Technician of Viewing and Sharing Sensitive Files and Videos From a Computer or Phone?

Coverage applies in this case. It’s because the act of doing something with a customer’s phone or computer and sharing the sensitive pictures or videos stored with other parties can be considered a breach of confidentiality, which is a covered peril in the language of professional liability insurance.

Commercial Property Insurance for Electronics Stores

Commercial property insurance will reimburse your losses if damage or destruction happens to your electronic store’s owned, rented, or leased space. Coverage applies if your loss is caused by fire, theft, vandalism, civil commotion, riot, falling objects, weather, and other covered perils. Use the table above to see which insurance company offers the best commercial property insurance.

I Run an Online Electronics Store From Home. Do I Still Need Commercial Property Insurance?

Yes. Commercial property insurance is still useful even though you don’t have a commercial space. It’s because aside from insuring a building, you can also use this insurance to protect the inventory.

In other words, this will reimburse your financial losses if computer components, keyboards, USBs, television, and other products to be sold get lost or damaged. In some instances, policyholders who operate a home-based online electronics store can even use commercial property insurance as coverage for their house.

Some Products of My Electronic Store Got Damaged by Mice and Rats. Can Commercial Property Insurance Help?

No. Damage to inventory caused by vermin is excluded. Nonetheless, coverage can apply if you purchase an endorsement that’s specially underwritten to cover this exposure.

Business Owner’s Policy for Electronic Stores

You can get liability insurance, commercial property insurance, and business interruption insurance in one policy called a business owner's policy (BOP).

This policy is designed to provide comprehensive coverage for small to medium-sized businesses, such as electronic stores. A BOP simultaneously covers:

• Claims for bodily injuries, property damage, slander, libel, and copyright infringement

• Damage or destruction of your business’s physical space and inventory

• Operational costs you’ll need to pay if the electronic store needs to close temporarily because of an economic crisis, relocation, or renovation

Why Purchase a BOP for Your Electronic Store?

The following are the advantages of a BOP, which you can’t enjoy if you buy the policies included in it as stand-alone policies:

• Quick claims filing-You don’t need to make separate insurance claims since all of your coverage are bundled in one insurance product

• Enjoy a discount-An advantage of purchasing a BOP is the bundle discount. Many insurance companies offer discounts when a business purchases multiple types of coverage through a BOP rather than purchasing each policy separately. That enables you to make huge annual savings for your business

Tools and Equipment Insurance for Electronic Stores

Tools and equipment insurance can help cover the repair or replacement of point-of-sale systems, telephones, printers, CCTVs, store television, and power generators in case these get damaged or lost due to electrical surge, electrical breakdown, theft, and vandalism.

Most insurance companies allow electronic stores to avail this policy as an add-on to general liability insurance. Use the table above to see which insurance company offers the best tools and equipment insurance.

Commercial Auto Insurance for Electronic Stores

Commercial auto insurance is a coverage for the car of your electronic store that’s used to deliver sold products, haul supplies, or take employees to important meetings. This offers the following:

• Auto liability coverage-This inclusion in commercial auto insurance allows you to cover the medical treatment of third parties who got injured in an accident caused by your electronic store’s commercial vehicle

• Physical damage coverage (collision and comprehensive)-Allows you to cover the repair or replacement of parts if your electronic store’s vehicle sustains damage because of theft, fire, vandalism, weather, and other covered perils

• Uninsured/underinsured motorist coverage-This will get the drivers and passengers treated if your electronic store’s vehicle gets involved in an accident caused by an uninsured/underinsured driver

• Personal injury protection-Covers the medical treatment and hospitalization of your commercial vehicle’s passenger and driver regardless of who is at fault
  

Workers' Compensation Insurance for Electronic Stores

Bad things can happen to the employees of your retail store. The inventory manager might slip and fall while doing his daily checks. Your computer technician can get electrocuted or burned while fixing a laptop, desktop, or phone. Clerks might sustain carpal tunnel or back pains due to hectic office work.

It’s not a bad idea to purchase workers' compensation insurance. Workers' compensation insurance will cover an injured or sick employee's medical treatment, hospitalization, rehabilitation, and lost wages. In case of death, then this insurance will cover funeral expenses and grant an allowance to dependents.

Employee Dishonesty Insurance for Electronic Stores

Employee dishonesty insurance will cover your losses if an employee commits theft, social engineering, embezzlement, fraudulent refunds, unauthorized fund transfer, and other dishonest acts. While available as a stand-alone policy, most insurance companies offer this as an add-on to commercial property insurance.

Cyber Liability Insurance for Electronic Stores

Purchase cyber liability insurance to protect yourself if the point of sale system, website, or mobile app of your electronic store becomes a target of cyber criminals. Cyber liability insurance will cover these cost if you experience a data breach, ransomware, phishing, malware, and other types of cyber attacks:

• Professional services for containing and fixing the cyber attack

• Recovery of lost data

• Credit and fraud monitoring

• Legal defense

Electronic Store Insurance Cost

The average electronic store insurance cost is $46 per month or $552 per year for a $1 million general liability insurance. The cost of insurance for an electronic store varies depending on a number of factors, such as:

• Size of the store

• Business location

• Types of electronic products you sell

• Specific coverage needed

• The number of employees

• Per-incident coverage limit

• General aggregate limit

In connection, here’s another table that shows the cost of the $1 million general liability insurance from the best electronic store insurance companies: