Computer Retail Store Insurance

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Understanding Computer Retail Store Insurance

A computer retail store or a computer parts wholesaler sells numerous types of computer systems, accessories, connectors, parts, and disks. Claims of property damage when they occur—a customer’s phone gets pushed out of their hand and breaks as a result of getting accidentally bumped by men moving heavy equipment at the store, or a claim of negligence is raised when a computer refuses to start after being ‘delivered’ as repaired. These are threats the business is exposed to and arises out of the uncertainty of the handling of such merchandise on a daily basis.

The global computer hardware market is expected to reach US $1036.6 billion in 2023. These are products with delicate circuitry and low tolerance to rough handling. So, the role of insurance in this industry is especially significant. We provide coverage for the unique risks associated with computer retail stores, which allows them to stay in business. We customize policies to protect the business assets and client relationships:

Business and Professional Risks

Computer stores may follow risk management procedures. These actions can minimize the incidence of such risks, but no workplace can be incident-free. It could result in financial damages if negligence occurs despite the best of intentions. The computer store owner considers insurance to assess and cover exposures unique to their business.

  • Example 1: Property damage – From a fire caused by a lightning strike during a storm
  • Example 2: False advertising, slander, or libel – A store employee has mistakenly used a copyrighted image from a competitor’s campaign for the billboard. This implicates the computer store in a case of alleged false advertising.
  • Example 3: Customer bodily injury – A server is kept carelessly on a store shelf. It falls on a customer’s foot and fractures it.
  • Example 4: Theft by an employee – An employee is caught on camera stealing a laptop.
computer retail store insurance

Recommended Policies

The computer store owner deals with multiple exposures, but there are computer store insurance policies that can mitigate its risks while the owner focuses on running the business. Insurance policies with particular relevance to computer retail stores are:

General Liability Insurance

Many people visit the business establishment, making this an important coverage for the store. The safety of the computer retail store is undeniable as it follows the risk mitigation protocols laid down by the industry. And yet, uncertainties need to be covered. In case of accidents, third-party property damage, advertisement injury, bodily injury, and personal injury must be covered. If a client sustains unintentional bodily harm or damage to his property, General Liability Insurance will protect the business against his claim.

Product Liability Insurance

Product Liability is also part of the General Liability policy. It provides coverage when a client claims bodily injury or property damage from a malfunctioning product sold by the business. This coverage protects the store by paying for the legal fees or settlement amount if court awarded, arising from the accident.

Commercial Auto Insurance

The computer store transports computers and related merchandise from its premises to customer locations. If the store owns or leases vehicles or if the store’s employees use their own vehicles for business transportation, the computer store needs commercial auto insurance.

Workers’ Compensation Insurance

Medical expenses of employees are covered as well as a percentage of their lost income, in case they suffer some injury while working at the store and are unable to perform duties. Workers’ compensation also provides financial benefits for an employee’s dependents if they lose their life while working for the establishment.

Business Owner’s Policy or BOP

BOP combines general liability, property, business interruption, and extra expense coverage. Commercial Property Insurance and Business Interruption coverage are insured for similar perils that cause property damage and temporarily stall the store’s operations. The extra expense coverage pays for a company's extraordinary expenses after a disruptive event. Smaller computer retail stores, in particular, prefer this cost-effective policy.

Commercial Property Insurance

Commercial Property Insurance protects the owned structure, contents, and equipment. If the location is rented and the lease requires the store to insure the building, then the store tenant can insure it. Property insurance covers the computer store’s assets in the case of a disaster like a fire that destroys the computer shop.

Commercial Crime Insurance

This insurance covers the business from crimes such as employee theft, robbery, forgery, burglary, and fraud.

Cyber Insurance

The software of the business needs to be protected from cybercrimes. The risk is particularly high if the store sells products online.

Comprehensive Insurance costs

Computer stores, owing to the delicate nature of the products they sell and the number of people visiting their premises, have unique insurance needs. Deciding on the right plans to cover the computer retail store is a consideration of the size of the business, the number of people it employs, its location, the sizes and number of outlets it has, and its claims history. What the store’s policies will cost will be a function of this mix.

Who Benefits?

A safe functioning of the computer store is ultimately in the interest of the public, the business establishment, and the employees running the stores, and customers who visit the premises to make purchases. A good computer retail store insurance program benefits all the stakeholders of the store.

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