Customers who seek computer repair services benefit by selecting fully insured providers. If accidental damage occurs, this type of coverage offers some degree of financial protection for the firm and its clients against losses. Today, a growing number of repair companies purchase insurance. This brief article explores the topic of computer repairer insurance policies.

Errors & Omissions

Most IT professionals in the United States seek liability insurance coverage often described as “Errors & Omissions” (or “E&O”). This type of insurance policy safeguards innocent third parties against damages stemming from a repairer’s good faith mistakes or negligence. Ultimately, it helps protect the repair firm’s customers if they sustain losses while obtaining repair services for malfunctioning computers.

A liability insurance policy won’t cover intentional damage to a customer’s computer, of course. However, it may offer assistance in a multitude of situations in which unforeseen accidents occur. For example, if a repair technician slips on an icy sidewalk while carrying a customer’s computer and the device sustains additional damage as a result of this mishap, then an E&O policy may provide some level of financial compensation. Accidents occur unexpectedly in a wide array of settings. By maintaining liability insurance, professionals who repair computers seek to safeguard themselves and their customers against these types of unforeseen events.

The Nuts And Bolts of Repair Technician Insurance

Just like other types of liability policies, E&O coverage typically requires the payment of a deductible. An insured must usually pay monthly, quarterly, or annual premiums in order to maintain coverage. These expenses constitute one of the recurring costs of doing business for most repair firms.

This type of policy usually reimburses an insured for the costs of defending a spurious lawsuit. For instance, if a plaintiff confuses the name of two repair businesses and mistakenly sues the wrong company, causing the repairer to incur legal expenses and possibly other harm, its E&O policy assists the injured repair business in defending against the legal action.

A Rapidly Developing Field

Today, some repair firms purchase general commercial liability insurance policies. Other seek specialized E&O coverage offered by companies specializing in that niche market. Both types of coverage essentially further the same goals.

Insurance companies in different jurisdictions typically tailor the available policy terms and provisions to fit any applicable state requirements. For questions concerning insurance, consider consulting a licensed insurance agent in your state.