Electronics Repair Business Insurance
Getting insurance for your electronics repair business is essential.
Electronics repair businesses need financial protection against claims such as intellectual property infringement, personal injury, or property damage.
For example, one of your employees negligently damages a customer’s radio while attempting to repair it, or a customer claims that your business did not sufficiently repair their items.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an Electronics Repair Business
General liability insurance is — generally speaking — one of the most important insurance policies for electronics repair businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
It’s routine for electronics repair businesses to carry several other policies besides general liability, such as:
- Commercial property insurance
- Workers’ compensation insurance
- Product liability insurance
- Commercial umbrella insurance
If you’ve been looking for business insurance for any length of time, you’ve noticed that business insurance companies generally fall into two main categories:
- Traditional brick-and-mortar insurers — This refers to companies like The Hartford and Nationwide that are well established and have physical offices where agents sell insurance.
- Online insurers — This refers to companies like Next and Tivly that sell policies online using AI. They’re cheaper and can offer more flexible coverage that’s still high quality, so we recommend them for small businesses. As a bonus, you’ll get your insurance faster with an online provider.
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Cost of General Liability Insurance
On average, electronics repair businesses in America spend between $350 - $900 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an electronics repair business to other professional industries using the graph below
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for an Electronics Repair Business
Example 1: An overnight storm tears a hole in the roof of your building, allowing rain to soak some high-end electronics a customer left with you to repair. General liability insurance would cover the cost to replace the customer’s damaged property.
Example 2: While bringing a television in for repair, a customer trips in your entryway, breaks an ankle, and decides to sue your business. General liability insurance would pay for your legal defense and any required settlement.
Example 3: After slipping and falling on some wet flooring in your restroom, a customer demands your business pay for her medical treatment. General liability insurance would cover her medical bills.
Other Types of Coverage Electronics Repair Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
You made a major investment in the supplies and equipment you use to repair electronics. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials you store there.
Professional Liability Insurance
While you strive to deliver the highest level of service for your clients, there’s always a chance someone might claim your professional services caused them harm. If a customer sues your business, claiming you made a mistake, professional liability insurance would cover your legal fees and any required settlement.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your electronics repair business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Electronics Repair Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
We urge every electronics repair business to purchase adequate business insurance before opening so they’re financially protected. States want workers and vehicles to be covered as well, which is why most of them require companies to at least purchase workers’ compensation and commercial auto insurance.
Not necessarily. Certain exceptions may be written directly into your electronics repair business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.