Information Technology (IT) Business Insurance

Cyber Insurance

Cyber insurance can help companies manage the first-party costs of a data breach or malicious cyberattack. It covers administrative costs, such as notifying clients, credit monitoring, legal fees, and fines.

Cyber liability insurance protects your company from claims, and lawsuits after private information is stolen or compromised. For example, if a hacker steals Social Security numbers, credit card numbers, or any confidential information, you can be held liable. Cyber liability insurance can protect you from the cost of a cyber liability lawsuit and other expenses related to the breach.

If a corporation has a data breach or cyberattack, this policy may cover:

• Customer notification expenses
• Fraud monitoring services for affected clients
• Defense
• Third-part liability for financial loss
• Forensic expense
• Loss of revenue caused by a covered attack
• PCI and regulatory fines and penalties
• Computer fraud

Also Read: Protect Against Cyber Attacks with Cybersecurity Insurance

Fidelity Bonds

Fidelity bonds can reimburse you if one of your employees steals, commits fraud, or forges a signature on a payment instrument harming a customer or your business. Bonds differ from insurance in that once the bonding company covers the loss they will prosecute the employee and collect restitution until the loss is fully recovered.

It's possible that your technology business could be held accountable for damages if an employee participates in unlawful activities. A Fidelity Bond can shield your company from legal fees and expenditures due to a dishonest employee who is involved in criminal activity.

This policy provides coverage related to:

• Theft or fraud
• Electronic funds transfer fraud
• Unlawful data access
• Forgery

General Liability Insurance

General Liability Insurance protects your office against costs relating to customer injury, damage to client property, and advertising injury. It enables your company to qualify for leases and contracts and may also be required by your local government to operate a business.

General Liability Insurance is the first type of protection that most businesses need to purchase. Clients trust your expertise in their company's technology and might make you responsible for the damage they’ve incurred resulting from your work. General liability insurance will defend your business for third-party bodily injury or property damage liability caused by your operations. You usually are required to purchase this insurance when signing a commercial lease.

General liability insurance provides coverage related to:

• Client injuries
• Client property damage
• Advertising injury, such as slander, libel or copyright infringement

Workers’ Compensation Insurance

Workers' compensation insurance covers employee medical care and a percentage of lost wages for work-related injuries and occupational caused illnesses. This policy is typically compulsory at the state level for businesses with a certain number of employees. Any employee can suffer a workplace injury. Without this coverage, your company would be responsible for paying all the statutory benefits owed to the injured worker. A wise insurance choice for businesses with any number of employees.

Commercial Auto Insurance

Commercial Auto insurance coverage should be purchased for any company that has vehicles titled to it. Regardless if your company owns pickup trucks, service vans, and company cars, you need a business auto policy. Personal auto is not recommended for vehicles used for business as there may be gaps in coverage.

At-fault vehicle accidents may result in a terrific financial loss for a small IT firm, especially if somebody else is hurt. A commercial auto insurance policy will defend against bodily injury lawsuits, for medical care, economic loss, and rehabilitation when your driver injures another party when at fault for an accident. The property damage to the other party’s vehicle is also covered. Just like with personal auto you can also insure your owned vehicles for comprehensive and collision coverage.

Depending on the state, besides bodily injury and property damage auto liability, you may also purchase medical payments, uninsured or underinsured motorists coverage, no-fault, personal injury protection, rental reimbursement, towing, hired auto liability, non-owned auto liability, or coverage for permanently attached equipment or vehicle wraps.

Even if you spend most of your day working from the comfort of your home, having professional and general liability insurance is critical to running your technology business. Getting the proper coverage can help you avoid paying the costs of customer claims that could put you out of business. Whether you're an independent contractor or own a business, ensure you are protected.