Almost every day people get to have their personal computer or phone fixed. If you run a PC and cell phone repair business, then you ought to know how complicated it can be to get these types of devices fixed. Even though you can make good money offering these services, many risks come with operating this kind of business.
These repair facilities typically maintain, service, and fix computers, phones and peripherals such as printers for businesses and individuals. The service can be located in individual shops, in a home basement or garage, in a department store or computer store where the electronics were originally purchased, or at the manufacturer’s premises.
These items you take into your possession for repairs are very valuable to their owners and tend to contain sensitive information that must be protected. Additionally, computer and phone owners are often highly inconvenienced when they must part with a PC, laptop or cell phone in order for it to be fixed. You need to get the work done right, quickly, with no errors.
Think of all the things that can go wrong whether you are working in your shop or even in a customer’s home. You can trip and land while holding a computer, crushing it to pieces. Your shop employee can drop and break a cell phone while it is in your shop. Your shop can catch fire, damaging everything inside.
Just like any other retailer or shop owner, the possibility of damage to your building and business property, or your customers’ property, is endless. That is why you need adequate insurance to protect your business.
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Types of Insurance You Need to Protect Yourself When Running a PC and Cell Phone Repair Business
As a PC and cell phone repair business owner, it is very crucial to consider purchasing the following insurance policies:
Commercial General Liability Insurance
If you cause injury and property damage to a third party, your business will be protected by this type of insurance. If you mistakenly spill coffee on a client’s computer or device, general liability will cover the damages.
Professional Liability Insurance
This insurance policy is also known as errors and omissions (E&O) coverage. If a customer sues you over a perceived work mistake, this coverage will protect you. For instance, if you install an anti-virus software and your client suffers a virus that caused them data loss, this insurance will kick in and pay legal fees and court costs.
Have it in mind that a breach of data is very possible when you are working on a client’s device, that is why it’s pertinent for you to have this type of insurance for your business. A client can sue you if you lose their data which this insurance also protects you from.
Business Property Insurance
You also have to ensure the buildings you use for your business stay protected which is why having business property insurance is crucial. The building(s) you use for the operation of your business are at risk of being destroyed by things like fire, weather, smoke, vandalism and other types of damages which make having this insurance a valuable part of your operation.
Inland Marine Coverage
This insurance coverage protects tools, equipment and supplies that you bring off-site to make repairs. Commercial property and commercial auto policies typically exclude coverage for those items once they leave your business premises.
Business Interruption Coverage
Also note that there are situations when you may need to stop the operation of your business. When this is the case, you’ll need to have business interruption coverage in place. Destruction of your business because of a natural disaster may force you to have to relocate which is why this insurance policy is necessary. Note that this insurance covers any financial support required during this period.
Most electronics repair businesses will want to consider bailee’s coverage. Since standard business property and liability policies only cover your own business property, you need special coverage for your customers’ property that is in your possession. Bailee’s coverage insures property that is stored at your shop or is in your possession.
If you have people working for you, then it’s pertinent to have workers compensation. Even though it is mandatory in most states for non-owner employees, it is still needed to protect you and your business. Workers comp protects your employees while they are working for you. Anything associated with the injury such as medical bills is covered when you have this type of insurance.
In summary, you need adequate insurance to protect yourself when running a PC and cell phone repair business in the United States. However, note that PC and cell phone repair businesses come in all shapes and sizes, and their business insurance should reflect that. You need customized business insurance, not a one-size-fits-all solution. In order to find the best combination of coverage at a fair price, you need to work with an independent insurance agent who knows your business.