What is Computer Systems Value Added Reseller Insurance?
Computer Systems Value Added Reseller (VAR) insurance is a specialized type of business coverage designed for companies that resell and customize computer hardware and software solutions. These businesses often provide installation, configuration, training, and ongoing technical support, which introduces unique liability exposures and operational risks.
Whether you're integrating systems for small businesses or customizing enterprise-level networks, having the right insurance helps protect your operations from claims related to property damage, data breaches, or service interruptions. This kind of policy typically bundles several forms of protection tailored to the tech reseller industry.
Who Needs It
This insurance is ideal for systems integrators, IT consultants, managed service providers, and VARs that offer installation, training, or other post-sale services. Companies that work on-site at client locations or handle sensitive data face additional exposures that make coverage even more critical. Small to mid-sized firms often seek this coverage as part of a broader risk management strategy.
What It Typically Covers
VAR insurance may include a combination of:
- General liability – Covers third-party bodily injury or property damage, such as a client tripping over a cable during an install.
- Professional liability (Errors & Omissions) – Protects against claims of service errors, failed installations, or data loss.
- Commercial property – Covers damage or theft of your equipment, tools, or inventory stored at your office or job site.
- Cyber liability – Provides protection if your systems are breached or if client data is compromised.
- Commercial auto – If you use vehicles for transporting equipment or making service calls, this covers related risks.
These components can be customized based on your operations, number of employees, and client profile.
Common Exclusions or Limitations
Like most commercial policies, coverage may exclude intentional acts, contractual liabilities not covered by the policy, or certain types of cyber incidents. It’s also common for policies to limit coverage for hardware not installed by your team or for software developed by third parties.
Understanding the exclusions helps avoid gaps in coverage and allows you to take additional protective steps, such as risk mitigation or supplemental policies.
Factors That Influence Cost
Insurance premiums for VARs depend on several underwriting factors, including:
- Business size and revenue
- Scope of services (e.g., installation vs. full systems integration)
- Client industries (e.g., healthcare or finance may carry higher data risk)
- Claims history
- Number of employees and vehicles
Having strong cybersecurity protocols and contractor risk management practices may help reduce premiums.
Proof of Insurance & Compliance
Many clients require computer systems VARs to show a certificate of insurance (COI) before contracts begin. This document proves you carry at least general liability and often errors & omissions coverage. Keeping your policy active and up to date not only ensures compliance but also builds trust with your clients and vendors.
How to Get a Quote
Getting a quote is quick and straightforward. Simply provide details about your operations, services offered, and business size. Our specialists will help you compare options that meet both your coverage needs and budget.
Request your quote today and protect your technology business with the right insurance plan.
For related coverage options, you may also be interested in our Computer Systems Integration Insurance or Insurance for Hardware and Software Retail Businesses.
Frequently Asked Questions
What types of businesses qualify as value added resellers?
VARs are companies that resell computer hardware or software and add additional services such as configuration, support, or integration.
Is professional liability coverage necessary for VARs?
Yes, professional liability (or errors & omissions) is important to protect against claims related to service errors or failed system performance.
Does this insurance cover data breaches?
Cyber liability coverage can be included to protect against data breaches or network security failures, but it may require a separate endorsement.
Can VAR insurance cover employee tools or mobile equipment?
Yes, commercial property or inland marine coverage can protect tools, laptops, and specialized equipment used at client locations.
How quickly can I get proof of insurance?
Once a policy is bound, a certificate of insurance can typically be issued the same day, depending on your provider.
Still have questions? Talk to a local insurance expert.