Ben had just finished repairing a stack of laptops for a local school district when he saw an email from his landlord. He figured it was about parking or maybe a rent reminder since his lease was about to renew. But the message was short and to the point.
“Please send over a copy of your General Liability Insurance by the end of the month.”
Ben froze for a second. He knew he had insurance, but he didn’t really know what kind. He had just gotten some business insurance policy online. He wasn’t even sure what General Liability coverage did or where to find it in those long documents.
Was it just for big companies? Did he already have it and not realize? He ran a clean shop, had never had a customer injury, and had never been sued. Still, something about the request made him pause. He decided to figure out what this coverage was actually for if he had it.
General Liability Protects You If Someone Gets Hurt At Your Shop
Ben’s shop in Amarillo was small. The front area had a tight counter, a couple of chairs, and shelves lined with parts and cables. It was neat, but it didn’t take much for it to feel crowded if he had more than one customer there at a time.
As he learned more about General Liability Insurance, he discovered that one of the main things it covers is bodily injury to a visitor or customer to his small shop. That means if someone walks into his shop, trips over a power cord, and breaks their wrist, the insurance company will help with the medical expenses incurred as a result of the trip.
The medical costs, lost wages, or even legal defense costs from a lawsuit could land on Ben’s shoulders. General Liability policies cover those costs instead of his business. It could pay for the injured person’s doctor visits, physical therapy, or a settlement if a legal claim went to court.
Ben had never had an accident like that before, but now he could imagine how fast something simple could get expensive. That got him thinking about what would happen if he caused damage to something instead of someone.
Does It Cover Property Damage Of Others?
A few months ago, Ben had made a service call to a client’s office to help with a slow network. While sliding behind a desk to get to the modem, he bumped a table and sent a monitor crashing to the floor. Luckily, the client brushed it off and had a spare.
But what if they hadn’t? What if that monitor had been brand new? What if it had been a high priced desktop computer with important data on the hard drive? What if?
General Liability Insurance helps cover damage to other people’s property that happens during your business operations. So in that case, if the monitor needed to be replaced, the insurance could help pay for it if it was more than the deductible amount on the liability insurance policy.
But Ben was informed of something important while talking to one of the agents at Insurance For Texans. If a customer brings their laptop into his shop and he damages it due to a mistake while working on it, General Liability insurance coverage won’t help. That’s considered damage to property in your care, custody or control. That needs a special type of coverage called Bailee’s Coverage. This distinction made him nervous about his business owners policy that he had bought online.
Legal Costs Are Costly!
Ben didn’t like to think about lawsuits, but he had to admit that anything could happen. It was easy to think about a customer getting hurt in his store or having property damage for their gear. And he realized people can always sue—even if he didn’t do anything wrong.
Going to court costs money. Lawyers, court fees, and settlements all add up fast making the costs of lawsuits seem overwhelming. General Liability Insurance helps with all of those costs. It can cover attorney fees and help pay out if a judge rules against you. Now insurance costs didn't seem quite so expensive.
Ben figured it was unlikely, but now he understood why his landlord wanted proof. It protected the landlord too, in case something happened inside the space and he was named in the lawsuit as well. That helped Ben see that General Liability wasn’t just about what might go wrong, it was also about a peace of mind for both he and the landlord.
It doesn’t cover mistakes in your work
Ben once worked on a laptop where he meant to delete junk files, but accidentally erased a folder full of accounting records. The client was upset, but understanding. He did have a backup of the folder. But still, it shook him. He wondered if he had coverages for these types of damage.
If Ben makes an error while doing his job, it is not covered by General Liability Insurance. Ben learned that if he messes up during a repair, like causing data loss or installing the wrong component, he’d need Errors and Omissions Insurance (E&O) to be protected. This is often called professional liability insurance coverage.
Now it began to feel much more confusing than the website he had used to secure his common business insurance policy. He realized he needed someone who could help put it all together. He was glad he had called Insurance For Texans.
Help From A Professional Who Understands Texas Tech Businesses
Instead of guessing, Ben was able to speak with a commercial insurance agent who specializes in coverage for Texas Tech Shops. The experienced agent walked him through every piece of his business liability insurance policy. He started by asking questions about his operations so that appropriate recommendations could be made about General Liability Coverage, Professional Liability Coverage, and Bailee’s Coverage. Ben felt better as he understood what each one did and why it mattered.
Ben found the True Texas Technology Insurance program from Insurance For Texans to be built specifically for tech-focused businesses like his computer shop. It wasn’t just a one-size-fits-all plan like he found online. It was a customized solution to cover the real risks of working in computers, networking, and repair.
Now Ben has the protection he needs and the confidence to keep growing his shop, knowing one accident won’t put him out of business.
Click the button below to get started with True Texas Technology Insurance.