Technology companies and information technology (IT) professionals are more important than ever in today’s digital world. However, there are many business risks associated with their work. That’s why insurance for tech companies and IT pros is essential.
From lawsuits to property damage, a single incident can produce a very large expense. And if a business doesn’t purchase adequate business coverage, that business or individual can end up paying the costs out of their savings. With the right insurance for a technology company or professional, on the other hand, the expenses related to a covered risk can be paid, preventing a financial burden that can threaten a company’s financial stability.
Information technology insurance comes in different policies, allowing you to select only the coverages you need. The seven types of IT insurance most commonly required are:
IT Professional Liability Insurance
A client alleges a mistake you made in providing professional advice caused them financial damage, and they sue you. This is the kind of incident a professional liability insurance policy can cover. Also known as errors and omissions (E&O), this type of tech company insurance can pay costs associated with mistakes your business makes (errors) and the failure to perform a service (omissions). It’s also important to have since clients may require you to show evidence of coverage.
IT Workers' Compensation Insurance
Imagine your employee is injured on the job and needs medical treatment. Workers’ comp can cover those costs and also legal fees and lost wages related to the injury. Nearly all companies with employees are required by the states they’re in to have workers’ comp coverage.
IT General Liability Insurance
You’re greeting a visiting client as they enter your office space when they slip, fall, and break their wrist. Subsequently, they sue your business for the cost of their medical care. Small business liability insurance can cover the legal fees and damages associated with injury claims by non-employees. It also covers things like libel, slander, and copyright infringement. Plus, you can add endorsements to customize your policy, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability.
IT Business Owners Policy
A storm damages several of the computers in your office. Fortunately, your business owners policy (BOP) can pay the cost to repair or replace them. Sometimes called property and liability insurance, a BOP protects the building you own, a space you lease, and any property needed to run your business. It can also provide payment for business interruption due to a covered loss, including expenses associated with continuing or resuming operations after suffering property damage. As with a general liability policy, you can customize your BOP with add-ons, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability.
IT Commercial Auto Insurance
An employee driving a company-owned or leased vehicle is at fault in an accident that injures another driver and damages their vehicle. This type of insurance can cover your legal fees and the medical costs of others in that type of scenario. It can pay for damages even if the vehicle is used for personal activities outside of its primary business use.
IT Cyber Insurance
Someone hacks your computer network, steals sensitive information (yours or a client’s), and uses it to commit fraud or is likely to do so. This coverage, which you purchase as an add-on to a BOP, general liability, or professional liability policy, can pay costs related to the incident. And in some cases, clients may require you to have cyber insurance.
IT Umbrella Insurance
A lawsuit filed by a delivery person injured on your property exceeds the limit of your general liability policy. This is an example of where an umbrella insurance policy can be critical. It can cover costs exceeding the limit of another biBerk liability policy up to its own limit. Without it, you may be responsible for anything over your policy limit.
If you run a tech company or work as an IT professional, it’s important to have information technology insurance. This includes:
Application development companies
Automated data processing services
Cloud architects
Computer consulting firms
Computer technical support specialists
Data architects
Database administrators
Database designers
Development operations engineers
Information technology vendor managers
IT consultants
IT specialists
Mobile application developers
Network administrators
Software engineers
Solution architects
User interface designers
Web design firms
Web developers
And these are just examples. Ultimately, IT coverage can benefit any organization that designs, develops, or services technology.
What you’ll pay for IT coverage depends on several factors, including your size, claims history, and others. But generally speaking, you can get hundreds of thousands of dollars of financial protection for as little as a few hundred dollars annually.
You can get instant, self-service quotes for the information technology insurance you need online anytime. Should you decide to purchase policies, you can do that on our website as well, with coverage active as soon as the following day. You can even report claims and manage your policies online. We want to make getting and using insurance coverage as easy as possible.
There are many IT insurance providers out there. But not every business insurance company is the same. And if you choose one to cover your business only to find that the organization is gone in a year or can’t pay the cost of your claim, that’s a significant problem!
biBerk is a Berkshire Hathaway Insurance Group company. As an organization, we have over 75 years of experience and millions of satisfied customers, and we paid $38 billion in claims in 2020. That means if you ever need to report a claim, we’ll be there for you and pay it promptly.
What’s more, thanks to our direct-to-you business model, we can offer policies at costs that are as much as 20% less than other providers. By choosing biBerk insurance products, you’re making the right choice to obtain solid financial protection for your company at a great rate.