Stu owns a small but busy computer shop in Austin. He’s been fixing laptops, restoring hard drives, and solving tech problems for local businesses for years. Most of his clients are other small business owners, and they count on him to keep their systems running. One Tuesday morning, a client called and asked, “Hey Stu, can you send over proof of insurance for the job this week?”
At first, Stu didn’t think much of it. “Yeah, I’ve got insurance,” he said. But then he paused. What kind of insurance was the client talking about? Did his current policy actually cover the kind of work he did?
Stu does a lot of work digging into broken machines and fixing corrupted files. He is also responsible for backup and recovery for servers and machines. What started as a small question from that client was beginning to feel like a big deal. So Stu decided to look into it with his insurance agent.
Insurance That Covers Your Work
When Stu called us, he was reminded about something called Errors and Omissions insurance, or E&O for short. While it sounds complicated, the idea is simple. This type of insurance helps when you make a mistake while doing your job, which is why many people refer to it as professional liability insurance. This hit close to home. Stu remembered a time he accidentally overwrote data on a client’s hard drive. The client was understanding, but what if they hadn’t been?
With a Tech E&O Policy, if a mistake happens the policy helps pay to fix the property damage incurred. It might cover the cost of restoring lost files, replacing damaged equipment, or paying a customer back for lost time if it is determined that you committed professional negligence. Stu realized it didn’t matter how careful he was. When you work with technology, there’s always a chance something goes wrong. That got him thinking about the insurance he already had.
Why General Liability Coverage Isn’t Enough
Stu had a general liability insurance policy. He figured that meant he was covered against any general liability claims made against his business. But his agent pointed out that general liability doesn’t help with mistakes made during the actual repair work. It mostly covers third party accidents like someone slipping on a wet floor in the shop or bumping into a sharp corner. That has nothing to do with his consulting or repair services.
What if Stu installed the wrong part? What if he gave bad advice that caused a network to go down? That wouldn’t be covered under his general liability coverage.
The more he learned, the more he realized that E&O insurance filled in a big gap. He started thinking about what it would be like if a client actually filed a lawsuit.
Simple Jobs Can Lead To A Legal Fight
Stu had never been sued before, and he hoped he never would be. But the more he thought about it, the more he saw how easy it could happen. One mistake during a repair job. One misunderstanding with a client. One lost file. That’s all it might take. And suddenly, he’d be stuck dealing with lawyers, court dates, legal costs and maybe even paying damages.
E&O insurance will step in and help with these types of legal actions. If he was sued for a work-related error, the policy could help pay legal fees and court costs. If he had to settle a legal claim, it could cover that too. That gave Stu peace of mind. He didn’t want to take on that kind of risk alone and liked shifting the costs to the insurance company.
Small Errors Can Cause Big Expenses
Stu thought about all the repair jobs he’d done over the years. Many were very simple, like replacing a power supply to a box. Others were more complex, like fixing a corrupted drive or troubleshooting a business’s network. If one of those repairs went wrong, the damage could be more than just a broken part.
Let’s say he lost a customer’s business data or accidentally made things worse. That could mean lost income for them, and a huge bill for Stu! It wasn’t just about the parts or the hours spent fixing it. It was about what the mistake cost the client.
Professional Liability Insurance helped cover those kinds of costs, so he wouldn’t have to drain his bank account trying to make things right.
Why Having The Right Insurance Coverage Helps You Grow
Stu recognized that the company asking for a certificate of insurance before giving him work was about risk mitigation. Business insurance wasn’t just about protecting himself anymore. It was about landing new business and bigger jobs with larger tech companies. If he couldn’t show the right coverage, he would lose out on those jobs.
E&O Coverage isn't just a safety net. It is something that makes his shop look more professional. Clients saw that he took their systems seriously. That helped him stand out from the guy down the street who didn’t carry any coverage at all.
Finding Specialized Insurance Coverage
Stu doesn't like to guess when it comes to insurance. He loves the agents who actually understand technology businesses at Insurance For Texans. They sit down and talk through the kinds of jobs Stu handles, and then look at the risks, the clients, and the future of the business.
True Texas Technology Insurance is a plan built for specifically tech shops like his. The experienced commercial insurance agents start by asking questions and the customizing a plan for your business. Not only did he have great E&O coverage, but his general liability, cyber liability, and workers compensation help provide the peace of mind he needs to do his job well.
Now, when a client asks for proof of insurance, Stu knows exactly what to send. And when he locks up at night, he knows he’s protected.
Click to call and get started with True Texas Technology Insurance, only from Insurance For Texans.