Insurance for Cloud Computing Service Providers

General Liability Insurance: Protects against third-party risks, such as injuries to visitors at your shop or damage to customer property.

• Importance: Protects against third-party risks, such as injuries or property damage.
• Coverage: Legal fees, medical expenses, and settlements related to accidents involving non-employees on your premises.
• Best for: Slip-and-fall accidents, damaged customer property, libel, and slander lawsuits.

Technology Errors and Omissions Insurance (Tech E&O): Also known as professional liability insurance, it covers lawsuits over work quality, such as missing a repair deadline.

• Importance: Covers legal expenses related to your work performance, such as a client who sues over a service outage.
• Coverage: Legal costs, settlements, and damages resulting from errors or omissions in your services.
• Best for: Data loss from system failure, data breach lawsuits, breach of a service level agreement (SLA).

Workers’ Compensation Insurance: Covers employee injuries and illnesses related to work, mandatory in most states.

• Importance: Mandatory in most states, it protects employees and sole proprietors.
• Coverage: Medical expenses, rehabilitation costs, and lost wages.
• Best for: Employee medical expenses, disability benefits, legal costs from lawsuits.

Commercial Auto Insurance: Covers vehicles used for business purposes, protecting against accidents and damage.

• Importance: Covers vehicles used for business purposes, protecting against accidents and damage.
• Coverage: Collision repair costs, medical expenses, and liability for injuries caused to others.
• Best for: Physical damage, collision coverage, injuries caused to others, and vehicle repairs.

Cyber Insurance: Helps your business survive data breaches and cyberattacks, crucial for any business handling sensitive information.

• Importance: Helps financially survive data breaches and cyberattacks.
• Coverage: Client notification expenses, fraud monitoring costs, data breach investigations.
• Best for: Cyberattacks, data breaches, and other cyber-related incidents.

Fidelity Bonds: Provide reimbursement if an employee at your computer repair shop steals from a customer.

• Importance: Compensates your clients if one of your employees steals from them.
• Coverage: Financial protection against employee theft or fraud.
• Best for: Unlawful data access by an employee, unauthorized money transfers, other employee theft or fraud.

Depending on your business needs, consider these additional coverages:

• Commercial Umbrella Insurance: Provides additional liability coverage beyond standard policies.
• Business Owner’s Policy (BOP): Provides General Liability. Property Insurance and Business Interruption in a bundled package.