Computer and Electronics Store Insurance

How And Why Computer And Electronic Stores Need To Protect Their Business

Being located in Canada it is likely that you do not need anyone telling you that the entire country is a mecca for technology. While it might be cold most of the year-round, mountainous, and spread out, there is a huge market for technology and electronics. In fact, the country is home to some of the most famous computer manufacturers. Right in the heart of Toronto’s business district, you’ll find everyone from IBM to Xerox. Given the unique need and access to technology in the area, there is a huge market for computer and electronic stores. Combine this with the electrical needs of the everyday citizen, and it is more than easy to see how a computer and electronic store could thrive in the area.

That being said, just because a business is potentially lucrative it doesn’t mean that it doesn’t come without risks. In fact, the most successful businesses are usually the ones that come attached with the most risks and require broad retail insurance policies. And, this would ring more than true for the computer and electronic store owner. What are the risks and what can you do to reduce them?


What General Liability And Business Owner’s Insurance Offers

With all the electronics you’ll have on-site and running at all times, there is a real potential for an electrical fire. This is, even more, so true if you plan on putting a repair or service center in your shop. While surge protectors and other safety devices are available, they won’t protect you in all unforeseeable situations. Not only this, but there is always a risk or natural disaster. Whatever the situation is, a fire, a tornado, or a huge snowstorm, all of these events could cripple your business. And, this is where most business owners make their biggest mistake.

They account for the physical damage that the event would do to the store, but they do not account for all the other potential costs. For instance, when you suffer a major fire or natural disaster, you are not only going to have to repair the costs but just think about the downtime. All the money that you are going to lose while you are closed. What about the merchandise inside the store? You stand to permanently lose customers if you can’t get back up and running.

There is a huge potential for loss in these situations just beside the physical damage to your store. And, this is exactly where a bundled policy of general liability and business owner’s insurance steps in and offers its helping hand. These policies not only protect against slip and falls, damaged business property, and potential customer injuries, but it also offers what is known as business interruptions incidents. This insurance can do all kinds of unique things like paying for the costs of renting another retail outlet while your store is being repaired. Pretty unique, right? You bet it is, but unfortunately, these are not the only risks that you are open to in the computer and electronics industry.


What Workers’ Compensation Insurance Offers

While it might be completely possible to run and operate your store alone, it would be very difficult and stressful. Not only this, but you wouldn’t really be maximizing your true potential. If you want to make the most money possible and expand, you’ll need employees helping you. While bringing in a few hired hands might not seem like a big deal, even one or two employees pose immense risks. Risks that could potentially lead to the closing of your business. How?

Well, it is not unfathomable to imagine an employee getting hurt on the job. All it takes is a simple slip and fall or a slight mishap. Either situation could result in a major lawsuit. Either situation could result in a small lawsuit, and that might be enough to force a shutdown. You’d be surprised at just how much a lawsuit requires. Not only will it suck up your time and resources, but it’ll cost you every time you are in the courthouse. It’ll cost you every time you talk to your lawyer. It’ll virtually cost you around the clock. And, it is likely that the incident will get tied up in the courts for years.

You can see where this is going, but luckily, it won’t be something you’ll have to worry about when you invest in workers’ comp insurance. This type of policy will cover your employee’s medical expenses, rehab, and mental anguish, which is usually enough, but there are times when it’s not. Some employees might want to sue when they are hurt on the job. Maybe the incident leads to permanent disability, and given that workers’ comp only protects for a certain time period, it only would make sense for the employee to pursue the case further.

Regardless, the point is that the situation could lead to a lengthy, drawn-out lawsuit. This is just another type of protection that workers’ comp offers. It’ll cover all court-related costs and well as attorney fees. There are even some situations and policies offered by providers like ProfessionalsCoverage that will cover part or all of the settlement.


What Umbrella/Excess Liability Insurance Offers

It doesn’t take a master strategist to see just how important the above policies are. And while they might seem like godsends, and they are, it is important to know that they also have their limits. This means that regardless of the provider you go with, there will only be so much coverage offered. Providers can usually only offer so much coverage, and in Canada it is usually anywhere from one to ten million dollars. 

A single incident could easily soak up one to two-million dollars. Throw in three or four more suits, and you could be looking at some major expenses out of pocket. This is exactly what umbrella insurance was designed for. It’ll take care of any excess that exceeds the original coverage. That being said, you also have to know that even this coverage has its limits. Just make sure you know what they know and how to proceed from there.


How Much Will Coverage Cost?

Now that you see all the risks, you are probably already wondering just how much it’ll cost to get adequate coverage. You’d be right to wonder this, but you have to know that this is a hard question to answer because it varies. Not only does it vary from provider to provider, but each different provider bases their rates on specific industry standards and criteria, For instance, providers like ProessionalsCoverage focus more on the types of services you offer with your location and the number of years you’ve been in business, whereas other focus more on the number of employees, your revenue, and the value of the property on-site.

This is why the same coverage costs different amounts with various providers.





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