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IT Business and Tech Companies Insurance | Free Quotes | Econosurance

The tech sector is fast-paced and growth-orientated. While other industries struggle to adapt to the modern world, IT businesses are the heart of many advanced economies. That fosters a positive and forward-looking mindset. 

However, many companies often fail to consider the importance of insurance and the value it brings in the event of damage or liability claims. IT businesses face a range of potential risks: cybercrime, workers' liabilities, and even property damage. Therefore, it is vital to take out IT business insurance to ensure that your business is covered no matter the eventuality.

This article provides an overview of the various policies for IT businesses and gives you tips for saving money on insurance.

Why Take Out IT Business Insurance?

It does not matter if you run your IT business from a home office or run a large office with lots of staff; you are still at risk from customer claims and property damage. You might assume you will never need to use your insurance. However, cybercrime can devastate your reputation and digital assets. Fires can burn down your property, and if you run an IT consultancy firm, bad advice can result in pricey litigation. 

Thus, when something unexpected happens, you want to be covered. There are also legal obligations, such as workers' compensation coverage. Familiarize yourself with your state laws.

Who Needs IT Business Insurance?

IT business insurance involves businesses in the tech sector. But what kind of business does that include?

  • Telecommunication companies
  • Software developers
  • IT service providers
  • IT consultancy firms
  • Computer consultants
  • Web designers
  • Programmers

Working in the tech sector, either as a solo entrepreneur or as the head of a larger company, you benefit from IT business insurance. 

What Insurance Types Do IT Businesses Need?

Professional Liability Insurance

Professional liability insurance is essential for professionals working in the tech sector. It covers any third-party claims of a loss of money due to an act, error, or omission that occurred while working for the third party. Such errors include coding errors, accusations of negligence, or work mistakes and oversights.

Cyber Liability Insurance

Cybercrime is increasingly common, with small- and medium-sized businesses a frequent target. Cyber liability insurance will cover the cost of data breaches and cyberattacks, including the cost of data recovery, lost business costs, and any legal fees by clients resulting from the breach.

Fidelity Bonds

If an employee at your IT business were to steal from a client, you would be covered for compensation. Because of that, they are also known as employee dishonesty bonds.

General Liability Insurance

A requirement for most commercial leases, general liability insurance covers you for any property damage or bodily harm that occurs during your work. This includes slip-and-fall accidents, libel or slander lawsuits, or damage to a customers’ property.

Business Owners’ Policy (BOP)

BOP-s combined general liability insurance with commercial property insurance. Suppose you have business premises, such as an office. In that case, you will want to ensure you are not just covered for general liabilities, but also damage to the property. Such damage can be caused by fire, theft, vandalism, and more. Flooding and earthquakes are usually not covered.

Workers’ Compensation 

In most states, workers’ compensation insurance, or workers’ comp, is a legal requirement. It covers the medical expenses, lost wages, and lawsuits resulting from a workplace injury or illness.

Other insurance policies to consider:

  • Umbrella insurance Extends your insurance coverage beyond the limits of your existing policy.
  • Business interruption insurance – If an event forces your company to lose business through a temporary stop in operations, you will be covered for the lost revenue and expenses.
  • Employment practices liability insurance – This will cover legal expenses if an employee sues due to discrimination, harassment, wrongful termination, and other issues.
  • Directors and officers insurance – Any liabilities resulting from decisions made by a company's leadership are covered in the event of a lawsuit.
  • Commercial auto insurance – If your company has a vehicle used by employees, then you will need to purchase commercial auto insurance by law.

How to Save Money on IT Business Insurance?

When considering all the different insurance policies you need to purchase, it can seem extremely costly. However, the idea is to save you a larger amount in the future, if an unfortunate event occurs. Yet, you can still save money on the policy you take out. Consider these tips:

  • Combine policies Many insurance companies will bundle policies together for start-ups, leading to reduced costs. This is known as a bundle discount.
  • Ask for discounts – Always ask for a discount when purchasing insurance, you never know what offers an insurance company is running.
  • Shop around – Whether purchased separately or in a bundle, get multiple quotes, to find the best deal on the market. 
  • Pay in full – Paying the entirety of your insurance bill annually, rather than monthly, can save a significant amount of money.
  • Reduce risks – Sprinklers, burglar alarms, cybersecurity, hiring diligent employees are all methods of reducing your risks on individual policies—the lower the risk, the lower your premiums.
  • Raise your deductibles – Increasing your deductibles will lead to lower premiums; however, you will need to find extra cash in the event of a claim.

Send us an email, give us a call, or fill out the free quote on our website if you want to insure your IT business.

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