What is Leasing of Computer Time?
Leasing of computer time, often called computer time sharing insurance, covers liability and property exposures that arise when a business provides access to computer systems, servers or hosted applications for others. This coverage can address third-party bodily injury and property damage linked to on-site equipment, as well as certain negligence claims tied to data services or downtime. It is distinct from cyber liability and focuses more on physical and operational exposures related to shared computer resources.
Who needs it
Organizations that lease access to computer systems — including data centers, software hosts, internet cafés, co‑working facilities, and companies offering time-share mainframes — commonly seek this coverage. Typical buyers include clubs, small organizations, operators and retailers that provide terminal access or processing time to customers. Event organizers or contractors who temporarily provide computing stations may also need short-term protection.
What it typically covers
Policies vary, but common coverages include:
- General liability for third-party bodily injury and property damage related to on-site equipment and facilities
- Equipment coverage for owned or leased terminals and server racks (often listed as equipment coverage)
- Participant accident coverage for users who are injured while using leased computing stations
- Limited coverage for loss of use or business interruption tied to physical damage at the facility
For details on policy forms and available endorsements, review specialized products such as the Rental of Computer Time (Computer Time Sharing Insurance) or the Computer Time Sharing Insurance offerings available through industry carriers and marketplaces.
See more specifics on Rental of Computer Time (Computer Time Sharing Insurance) and Computer Time Sharing Insurance to compare coverages and common endorsements.
Common exclusions or limitations
Exclusions may include cyber or data breach losses, intentional acts, wear-and-tear of equipment, and some kinds of subcontractor liability. Policies often limit coverage for transportation risks or for damage to customer-owned data and may exclude professional liability tied to erroneous processing. Underwriting factors will determine specific limits and carve-outs.
Factors that influence cost
Premiums depend on several underwriting factors, including:
- Size and value of equipment being leased
- Number of concurrent users and operation hours
- Physical security measures and facility protections
- Claims history and risk-management practices
- Limits requested and any additional insured or waiver of subrogation endorsements
Proof of insurance & compliance
Owners and operators often need to provide a certificate of insurance showing liability limits, listed equipment coverage and any required endorsements. Clients or venue owners may request additional insured status or contractual liability coverage as proof of compliance with lease agreements.
How to get a quote
Gather basic information about the facility, equipment values, user counts and any risk controls in place before requesting pricing. If you prefer personal assistance, talk to your agent for help comparing options and identifying appropriate endorsements.
Frequently Asked Questions
Is data breach coverage included?
No. Coverage for cyber events and data breaches is usually excluded from computer time leasing policies and requires a separate cyber liability policy.
Can I add my clients as additional insureds?
Many policies allow additional insured endorsements for contractual partners; request this from the insurer and confirm any effect on limits or pricing.
Do temporary setups at events need this coverage?
Yes—short-term exposures for event organizers or contractors providing leased terminals can be insured via short-term policies or endorsements tailored to the event duration.
Still have questions? Talk to a local insurance expert.