Best Insurance for Electronics Businesses

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Contributor, Benzinga
October 13, 2020

If you work with electronics, it’s essential to have the right insurance. Even a relatively small issue like a minor water leak could cost your business thousands of dollars. Learn what electronics insurance you should have in place to protect your business. 

Best Electronics Insurance

Your insurance is only as good as the company you purchase it from. Here are the best providers for electronics insurance, and you can get a quote with just a few clicks. 

How Electronics Insurance Works

There’s no single type of insurance that covers electronics businesses completely. Instead, you’ll want to look at the risks associated with your business and decide which types of coverage make the most sense for you. 

General liability, commercial property and business interruption insurance are all standard for most businesses and can be bundled into a business owner’s policy. If you have employees, you’ll need workers’ compensation coverage, and if you do business-related driving, commercial auto is worth considering as well. 

Many insurance companies offer discounts for buying multiple policies, so it’s best to get all your coverage from one insurer. Many companies can also help you assess the risks associated with your business so you don’t buy too much or too little coverage. 

Types of Electronics Insurance

To ensure your electronics business is protected, consider these types of insurance

Electronic Device Insurance

Electronic device insurance covers the company devices you and your employees use every day, including phones, laptops and tablets. You can purchase device coverage through the company that sold you the device or a policy sold by a 3rd-party. 

These policies vary significantly, but typically include coverage for accidental damage and theft. There may also be a deductible, which is the amount you pay before coverage starts. 

General Liability Insurance

General liability is an essential type of business insurance. It covers liability claims for:

  • Bodily injury: This is when someone is injured in an incident related to your business. It helps to cover their medical costs and any damages they may be rewarded.
  • Property damage: This is when someone’s property is damaged in an incident related to your business. It also covers damages to property you’re renting.
  • Advertising injury: If your business is accused of false advertising, general liability would help with your defense and with the cost of any damages awarded.

It also helps to cover the costs of a legal defense related to bodily injury and property damage claims. 

Commercial Property Insurance

This insurance covers your building, equipment, inventory, tools and personal belongings. It helps to pay for losses due to fire, theft, smoke damage, wind, hail and vandalism. Earthquakes and floods aren’t usually covered by commercial property insurance, so if those are areas of concern, you’ll need to purchase additional coverage. 

Business Income Insurance

If your business is damaged, it takes time to repair, and that time costs money. Business income insurance or business interruption insurance helps you to recover the costs of being shut down. 

It covers losses due to fire, wind and theft. In addition to your lost income, your policy may also help with the extra expenses associated with recovery. For example, you may need to temporarily rent storage space for your inventory while your building is repaired. 

Business Owner’s Policy

A business owner’s policy combines general liability, commercial property and business income insurance into one policy. This makes it a simple coverage option for small businesses and sole proprietors. Bundling coverage into a single policy is typically less expensive than buying each type of coverage on its own. 

An experienced insurance agent can help you determine which option is best for your electronics business. 

Workers’ Compensation

Workers’ compensation insurance is required in most states if you have employees. This insurance pays employee claims from on-the-job injuries or illnesses. It helps to pay their medical costs as well as lost wages. 

This insurance also protects you from lawsuits relating to employee injuries. Most states levy fines against employers who don’t carry workers’ comp insurance, so this coverage is essential. 

Commercial Auto Insurance

If you use vehicles for your business, including running errands, delivering electronics or meeting with clients, you may need commercial auto insurance. 

Commercial auto insurance is similar to personal auto insurance in that it has different levels of coverage, and you can select the options that best meet your needs. In general, you’ll want liability insurance, which covers damages to other parties in an accident caused by you or one of your employees. You may also want uninsured/underinsured motorist coverage, and comprehensive and collision coverage. 

Uninsured motorist coverage covers you if you or your employee is involved in an accident with an uninsured or hit-and-run driver. Comprehensive coverage helps cover the costs of damage to your work vehicles that are caused by incidents other than a collision, like theft and fire. Collision repairs your vehicle if it’s involved in an accident. 

Commercial Umbrella

Electronics insurance policies all have limits. You choose the limit when you purchase your policy, and it’s based on factors like the size of your business and the likelihood of having that type of claim. 

Commercial umbrella insurance provides extra coverage. Once you hit the limits of an associated policy, the umbrella policy picks up and pays up to its policy limits. 

Let’s say you have a general liability policy with a $500,000 limit. A client slips and falls on your premises and is badly injured. That client is a surgeon, so the lost wages associated with the claim are substantial. If the medical costs and lost wages come to $600,000, you’re responsible for the $100,000 that isn’t covered by your liability policy unless you have umbrella insurance. If you have an umbrella policy, it will cover the difference. 

Since it provides coverage in coordination with other policies, it’s typically purchased from the same insurer that holds your general liability, commercial property or business owner’s policies. 

Cybersecurity/Data Breach

Cybersecurity insurance is an essential coverage for all businesses. Electronics businesses should especially consider this coverage to ensure client data is protected. 

This insurance helps businesses recover from losses due to cybersecurity attacks, including data breaches, network damage and interruptions to your business. 

Small businesses are especially vulnerable to cybersecurity threats. Cybersecurity insurance can help you recover from any losses. It’s an important part of a comprehensive cybersecurity plan. 

Cost of Electronics Insurance

Many factors go into the cost of electronics insurance. These include:

  • The size of your business
  • The location of your business
  • The number of employees
  • Your claims history

Here are the average costs of electronics insurance coverage:

PolicyAnnual PremiumCoverage Limit
Electronic Device Insurance$73 for a laptop$850
General Liability Insurance$350$2 million
Commercial Property Insurance$755$60,000
Business Income Insurance$500-$1,500Based on business income
Business Owner’s Policy$800-$2,000$1 million per occurence/$2 million per policy term
Workers’ Compensation$560n/a
Commercial Auto Insurance$1,700$1 million
Commercial Umbrella$500-$1,500$1 million
Cybersecurity/Data Breach$1,500$1 million

Buying Electronics Insurance

Buying electronics insurance might seem complex. It’s easy to get started, though. Get quotes from multiple insurance companies and review each quote carefully. Consider the reputation of each provider and the coverage limits and deductibles. Choose an insurance company that offers excellent service and reasonable premiums.