When Steve started his computer repair business a few years ago, he only had a used workbench, some tools and blanketed social media with offers of help for others. Over time, his fledgling repair shop grew into a thriving business. As he picked up steady clients, he upgraded the gear he used and began hiring techs to help out.
One afternoon while working on dreaded paperwork, Steven noticed his property insurance renewal was in the pile needing his attention. He opened the envelope that had his business insurance policy information and saw that his premiums were now about double what they were just a few years ago. It was shocking.
He hadn’t made any changes to the business insurance policy since the day he opened the doors. He was not wondering what he was paying for and how it actually protected his computer repair shop.
Steve was now on a mission to understand how his policy protected him from the common business risks he faced everyday. He started with the things he needed to know about his property coverage.
Is Storm Damage Always "Fully" Covered?
Steve has lived in Austin long enough to know that storms can roll through without much warning most any time of year. A hailstorm last spring left dents in his car and knocked out power for a day. But he had never really thought about how those same storms could affect his business assets.
As he looked closer at his commercial insurance policy, he discovered something surprising. His property insurance had a separate deductible for wind and hail damage. Worse yet, it wasn’t small. It was several times higher than the deductible for non-weather related claims like fire or theft.
As Steve began his conversation with a commercial insurance agent who specializes in computer repair shop coverage, he had a rude revelation. He learned that some Texas commercial property policies actually exclude or limit hail or wind damage. That’s a pretty big deal when your shop is in a part of the state where hailstorms are a regular thing.
Steve pictured a chunk of his roof getting ripped off in a storm or water leaking through onto his gear. He realized that without the right insurance coverage, the money would have to come out of his own pocket.
That led him to look at the rest of his shop and ask a new question. If a storm wiped out my equipment, would the insurance company actually pay enough to replace it?
You Might Be Underinsured Without Even Knowing It
Steve had upgraded a lot since opening day. He had bought a new diagnostic station that cost nearly $3,000, a backup power supply, a mobile testing setup for on-site jobs, and shelves full of spare parts and accessories. The problem was, his policy limits were based on what he had years ago when his tools fit in the trunk of his car.
When he checked the current policy limits, it still reflected those old numbers. That meant if a fire broke out or someone broke in and cleared out his gear, the insurance company wouldn’t come close to paying what he’d need to get back up and running.
Steve had made smart investments to grow his business, but he hadn’t thought about updating his business insurance coverage to match. And he’s not alone. A lot of small business owners in Texas assume their commercial property insurance keeps up with them as they grow. It doesn’t.
If you don’t update your business property values and coverage limits, your insurance can leave you stuck replacing thousands of dollars in tools and tech from your own money.
As Steve walked through the shop updating his contents inventory, something else caught his eye. He had two shelves filled with laptops waiting for repair. And that made him stop in his tracks.
Customer Equipment Isn’t Covered Unless You Ask for It
At that moment, Steve had ten devices in the shop that didn’t belong to him. A local CPA firm had dropped off half of them for updates, and a school had sent in a few tablets for repair. If something happened to any of those, Steve assumed his commercial property insurance would handle it.
But when he brought that up to the independent agent he was talking to, he got a different answer. Most commercial property policies only cover the things you own. Customer property? That’s treated differently. Even if it’s sitting on your shelf and in your care, your insurance won’t pay to replace it. You need specific types of coverage, one of which is called Bailee’s Coverage.
That was a big realization. If there was a fire, flood, or even a simple accident that damaged a client’s equipment, Steve could be on the hook to replace that customer's personal property out of pocket. And with larger business clients now trusting him with batches of high-value devices, that kind of risk was growing by the week.
He didn’t want one mistake or unexpected event to ruin everything he’d worked for. It was time to make sure his coverage wasn’t missing anything important.
Property Insurance Still Matters Whether You Rent or Own
If Steve didn't own his space, he might be tempted to skip commercial property coverage. But people who rent space in a small commercial strip or other locations still need to carry it. Many tenants think their landlord’s insurance would handle most things. But the landlord only insures the building itself, not what’s inside.
That means if the ceiling collapses from a plumbing issue or a power surge fries the outlets, the repairs to the walls might be covered, but anything else would not. This would include business property like workbenches, computers, and tools.
When Steve began to process all of this, he realized he couldn’t sort it out alone. His knowledge was limited and he needed someone who actually understood the risks a Texas computer shop faces every day.
The Right Insurance Agent Makes All the Difference
Steve decided to meet with a commercial insurance agent who had worked with other repair shops across the state. The experts at Insurance For Texans have an internal program that helps them assess the unique types of risks that a shop like his face every day. True Texas Technology Insurance was built for this.
They didn’t rush the conversation. They walked through his shop, looked at the types of jobs he was taking, talked about the kind of clients he served, and reviewed the exact risks tied to Texas weather, electronics, and customer gear. This allowed them to address both property and liability coverage with ease.
The agent pointed out a few places where Steve’s coverage was outdated and missing important pieces so that he could see the effects of the additional coverage. Together, they added Bailee’s Coverage for customer property, increased the value of his equipment, and updated the comprehensive policy to cover wind and hail the right way.
That meeting gave Steve more than just a better insurance policy. It gave him confidence that one bad day wouldn’t be the end of his business.
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