Insurance for System Builders

[halfadder]

I often build machines for friends and family members, but I was recently asked if I could build some machines for a local business. I said no and suggested they look into Dell, mostly because I don't have time but also because I'm concerned about liability.

I'm sure there has to be a few people on these forums that have build computers for a profit, even if it was just a few bucks and a thank you...

What did you do to protect yourself? What kind of liability insurance do you need? What sort of paperwork did you have a lawyer write up?

I don't think a person can get rich building PCs for a living, but there are occassional times and projects when some money could be made. But I don't want to lose all of my possessions and / or sit in jail just because the freak Antec power supply burst into flames and I couldn't afford a good lawyer to defend me.

 

[asm0deus]

i dont think people get sued over power supplies blowing up, businesses might have to defend their reputation and product and replace it maybe but us average joes dont worry about it.

screw insurance, theres not as much money in building the computers as there is in supporting and networking them. you can get business insurance, i worked for a company that sold it, it's not worth getting most of the time. usually you're better off using contract type of protections on big stuff and invoices for the little stuff, you get what you paid for, and if an antec PSU blows up, call antec.

 

[halfadder]

I'm not concerned about a dead powersupply, I'm concerned about a system burning down someone's office. Things like this have happened. I even personally know someone whose rather new 19" CRT started a fire. Thankfully they were in the next room and were able to call the fire department before it burnt more than just the wall behind the monitor, a fireman was able to put out the mess with a large fire extinguisher. It was more smoldering and smoking than anything else, plus the drywall didn't burn fast. But it could have been really bad.

 

[newParadigm]

Sell all systems as is, and be sure to write in the contract you are not liable for any damages related to the PC you built.

What if newegg sold you a bad CPU that shorted your system causing your motherboard to fail (this actually happened to me), they are not liable for the damages caused to the rest of my system, in fact i couldn't even get amd to replace the system, as the CPU was OEM (thats what i get for saving $5 to get OEM), anyway just write a non liability clause.


~new

 

[DruidAllanon]

Insurance is one route if you can find something that is cost-effective.

You could have the buyer agree to hold you harmless (waive liability) from the things you are concerned about. For example, against failures and related damages attributable to component manufacturer defects. Then you would only have to worry about doing things negligently yourself.

If you started doing it on a semi-regular basis, you could establish a company (corporation or limited liability company) and do the work through the company. If you observed corporate formalities (setting the company up correctly, holding corporate meetings and otherwise performing activities required by the law), liability would be limited to the assets of the company. This might run you a couple of thousand dollars a year for maintenance, accounting, tax help, etc. so you would need to be making enough to justify having a corporation.

 

[hopejr]

I stick a disclaimer on my quotes and invoices, and make sure my customers read and sign it. I give them an unsigned copy, and I keep the signed copy for my records.

 

[Greenman]

The reality is they would have to prove negligence on your part, hard to do if you only assembled a bunch of name brand parts. Just make sure the psu is UL listed.

 

[DaveSimmons]

Read the disclaimers on equipment about damages being limited to replacement cost of that exact equipment.

Someone in here was whining about suing over lost data when a hard drive enclosure killed a hard drive that had the (idiot's) only copy of a year-long project. So the danger from stupid people is very real unless you have a disclaimer like that on your own agreements.