Information technology professionals, whether they are technical writers, computer programmers, or IT consultants, need small business insurance that protects them from the distinct risks present in their work. Even if you've written hundreds of IT insurance policies, reviewing the coverages that are most critical to the industry will help you become a trusted ally for your IT clients.
Your IT clients need business insurance that addresses their unique property, data, and services-based liabilities. These essential policies include:
General Liability Insurance
Accidents happen - even in IT businesses where the risk of premises liability or property damage is relatively low. General Liability Insurance steps in when third parties (i.e., non-employees) are hurt on your client's property and sue for damages. It also covers claims that your client lost or damaged someone's property. GL can pay for medical expenses, court costs, legal fees, settlements, or the replacement of damaged property.
Property Insurance / Business Owner's Policy (BOP)
Your IT clients rely heavily on technology - computers, tablets, and smartphones - to compete in their industry. Property Insurance protects their valuable equipment and office space, compensating your client if a covered event damages their insured assets. Your client may be able to combine their Property and General Liability Insurance through a Business Owner's Policy (BOP), which can reduce their premiums.
Errors & Omissions (E&O) / Professional Liability Insurance
IT professionals tend to work with critical and sensitive data. Errors & Omissions (E&O) Insurance, also called Professional Liability Insurance, safeguards your client should a disgruntled customer claim they lost money because of your client's negligence. Be sure your client finds a policy that includes third-party cyber risk coverage. This type of Cyber Liability Insurance protects your client when their customer claims they are responsible for a data breach. For example, if your client's software transmits a virus to their customer's computer, third-party Cyber Liability coverage can pay for legal fees if the customer decides to sue.
Workers' Compensation Insurance
Most states require even small-business owners to carry Workers' Compensation Insurance in case their employees suffer a work illness or injury (e.g., carpal tunnel syndrome). Workers' Compensation may pay medical expenses or replace lost wages. Some policies also cover legal expenses if your client's employee sues them for negligence.
Umbrella Liability / Excess Liability Insurance
Your client may want to purchase Excess Liability Insurance to further protect their business assets. Also called Excess Liability Insurance, this policy allows your client to draw on more coverage when certain other policies have reached their limits. For example, if a lawsuit exceeds their General Liability Insurance limits, your client can make a claim on their Umbrella policy to cover the remaining amount. Purchasing an Umbrella policy is often less expensive than raising policy limits individually. Please note: Though your client can apply Umbrella Insurance to their General Liability, Employer's Liability, and Hired and Non-Owned Auto coverage, it can't be applied to Errors and Omissions Insurance.
Please note: Though your client can apply Excess Liability Insurance to their General Liability, Employer's Liability, and Hired and Non-Owned Auto coverage, it can't be applied to Errors and Omissions Insurance.