Providing IT services has its risks. Your clients expect you to provide IT solutions that run smoothly without any costly mishaps. Although you strive to provide the most reliable IT solutions, you can never prepare for the unexpected. Computer equipment breakdown can suddenly get defective and you might need to buy a replacement from the electronic store. Your employee can mishandle the data of clients.
But worst of all, you might become a victim of data breach. An astonishing 108.9 million online accounts were breached in 2022. The caveat is that these events occur unexpectedly and carry serious financial implications for providers and their clients.
Your IT company can easily face lawsuits and claims that can significantly dent business accounts. That's why it's critical to take out IT business insurance. Here’s a guide that will talk about the function of each inclusion, the cost of premiums, and the best companies.
The IT sector has many companies and professionals that provide specific services to other businesses and individuals. The following are companies and professionals that require IT company insurance coverage:
Data scientists
Computer installation and repair professionals
IT project managers
Network security companies
IT staffing agencies
Web designers
Telecommunication companies
Web hosting companies
IT business insurance is specifically designed to protect IT companies from financial losses caused by a variety of risks. As aforementioned, these risks include cyberattacks, data breaches, equipment failure/loss/theft, and natural disasters. IT company insurance can also cover any legal disputes and provide financial support for recovery strategies.
IT business insurance bundles different types of policies such as general liability insurance, professional liability insurance, cyber liability insurance, commercial property insurance, and more.
Overall, business insurance for IT companies is critical for any IT venture or professional as it protects against financial losses and ensures continued operation
IT business liability insurance comes in the form of a general liability policy, cyber liability policy, and professional liability policy.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | |
|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $250,000/1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $250,000/1,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 |
Let’s face it, not everything goes as planned when you’re doing something for a client. The computer you’re programming might not work as it should. Coding errors can result in bugs and glitches. Employees can also mess up reports that must be submitted to stakeholders.
Clients can sue if an IT company or professional commits an issue with their work. This is why investing in professional liability insurance is crucial. Use the table above to see which insurance company offers the best professional liability insurance for IT companies and professionals.
Professional liability insurance allows you to cover these common exposures that IT companies and professionals usually face:
Missed deadlines
Breach of contract
Breach of confidentiality
Misrepresentation
Negligence
Violation of fair dealing
No. Your independent contractors aren’t considered employees. Therefore, professional liability insurance can’t provide coverage if a client files a claim against you because the independent contractors caused issues.
To protect yourself, we suggest you request the independent IT contractors to get an IT contractor insurance package and name you as an additional insured in its professional liability policy.
Yes. Professional liability insurance can help in this case, provided that the accusation is unfounded and frivolous in nature. However, if it’s proven that you did such an act willfully and with full consent, then professional liability insurance can’t cover the resulting expenses.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Included | Excluded |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Excluded |
| Equipment breakdown floater included? | No | Yes | Yes | Excluded |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 |
General liability insurance is often the first and most important coverage that an IT business or professional needs. Remember that accidents can happen in your building and third parties who got involved can sue for bodily injuries or property damage. That's where general liability insurance comes into play.
Use the table above to see which insurance company offers the best general liability policy for IT companies and professionals.
This enables you to reimburse a third party’s damaged property. You can also use general liability insurance to cover the medical treatment costs if any third parties got injured while on your business premises. This IT business insurance also grants protection against high-cost lawsuits, ensuring your business continues operating even after paying attorney fees, investigation fees, and court judgments.
Property owners/managers often require businesses to present their general liability insurance before signing a commercial lease. Besides qualifying for commercial leases, general liability coverage makes your company eligible for government and private contracts.
Though caused by an employee and not by an accident, this situation counts as a form of third-party property damage. And so, general liability insurance will help you reimburse the value of the client’s damaged computer and communications system.
This insurance enables IT companies and professionals to survive cyber attacks and data breaches by covering client notification costs, legal expenses, and other related expenses. It comes in handy when faced with data breach lawsuits and fraud monitoring expenses.
The coverage of cyber liability insurance usually kicks in if you experience these types of cyber attacks as an IT professional or IT company:
Malware
Phishing
Ransomware
Password attack
Man-in-the-middle-attack
SQL injection
Denial of service attack
Cyber liability insurance comes with an electronic data loss endorsement. Electronic data loss endorsement can reimburse your losses and cover business interruption if important documents and software such as Eclipse, Geany, gedit, and Adobe Dreamweaver get corrupted or lost after a data breach or cyber attack happens.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $280,000 | $25,000/$500,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $18,000 | $25,000/$500,000 | $25,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included |
An office makes everything easier if you’re an IT business. IT gives you a physical location where clients can frequently visit. An office also keeps computers and other business equipment safe. Above all, an office allows you to keep a close watch on what employees are doing.
Purchase commercial property insurance and you can protect your office against the unexpected. Use the table above to see which insurance company offers the best commercial property insurance.
Commercial property insurance covers these exposures that may result in the damage or destruction of the office you use as an IT professional or IT company:
Fire
Theft
Vandalism
Civil commotion
Volcanic action
Sinkhole collapse
Lightning
Weather
Impact
Falling objects
Aircraft
Vehicle
Yes. Commercial property insurance comes with contents coverage and this will cover your IT office’s computers, servers, printers, monitors, hard drives, headsets, speakers, microphones, telecommunication devices, and others.
No. Commercial property insurance only covers tangible business properties. Therefore, it can’t reimburse the value of software and electronic data that’s integral to your operations as an IT business.
| NEXT | Thimble | Hiscox | |
|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,00 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 |
Insurance for IT equipment covers any repairs or replacement costs as a result of accidental loss or damage to computers and ancillary equipment that an IT company owns.
IT equipment insurance protects IT companies and professionals from financial losses related to theft, damage, malfunction, or loss of computers and other tech equipment. Use the table above to see which insurance company offers the best equipment insurance for IT companies and professionals.
IT equipment insurance is available as a floater that can be added to a general liability policy or commercial property policy for tech businesses.
An advantage of this insurance coverage is that IT companies can add new items to their equipment insurance at any time throughout the policy year. Examples of equipment eligible for IT equipment insurance include:
Computer equipment (laptops, monitors, printers, hard drives, modems, etc.)
Mobile devices (portable hardware devices designed to be transported regularly without suffering losses under normal circumstances)
Office equipment (photocopiers, fax machines, and telecommunication systems)
Audiovisual equipment (smartphones, camcorders, TVs, projectors, cameras, and video recorders
Leased/loaned equipment
Employee-owned computers (if used specifically for work assignments or located
| CoverWallet | Thimble | NEXT (Best) | Hiscox | |
|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $25,000/$500,000 | $280,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes |
If you operate a small or mid–sized IT company, it would be best to bundle your general liability coverage with commercial property insurance in a business owner's policy (BOP).
A BOP costs less than purchasing each policy separately. Besides, a BOP may include other types of policies, such as professional liability insurance, cyber liability insurance, etc. thus providing comprehensive coverage for your company's property, assets, and other liabilities.
Additionally, most insurers tailor BOPs to meet your IT professional insurance needs. IT companies that qualify for BOPs typically:
Have less than 100 employees
Have a small workplace
Generate less than $1 million in annual income
Operate in a low-risk sector
Apart from IT business liability and equipment insurance, purchasing other insurance policies can ensure your business rebounds from other risks your company faces every day. The following are additional policies you might need:
Many states require IT companies with employees to obtain workers' compensation. Suppose you're a sole proprietor; in that case, this insurance policy can cover work-related injury costs that health insurance may deny. It also offers disability benefits and protects from employee injury claims.
Also known as employee dishonesty insurance, this coverage policy reimburses your client if one of your employees steals from them, including theft by electronic money transfers. It's also best for unauthorized/unlawful data access by staff, as well as employee fraud.
This policy covers third-party property damage and bodily injuries if your company vehicle is involved in an accident. The insurance also provides the funds you need to replace or repair the vehicle in case of theft, vandalism, or weather damage.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $50 | $600 | $0-$500 |
| Professional liability insurance | $95 | $1,140 | $0-$500 |
| Commercial property insurance | $60 | $720 | $1,000-$2,500 |
| Business owner’s policy | $100 | $1,200 | $500-$1,000 |
| Workers compensation insurance | $70 | $840 | $2,000-$5,000 |
| Cyber liability insurance | $110 | $1,320 | $500-$1,000 |
| Tools and equipment insurance | Depends on the value of tools and equipment to be covered | Depends on the value of tools and equipment to be covered | $500-$1,000 |
The average IT business insurance cost is $50 per month or $600 per year for a $1 million general liability insurance. The cost of business insurance for IT companies is determined based on a customer’s:
Annual revenue
The value of your commercial property
Number of employees
Business history
Claims history
The risk level of your business
Your choice of insurance company is also a significant determinant. Here’s a table showing the cost of a $1 million general liability insurance from carriers that you must consider working with as an IT business:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall, Fastest general liability insurance for IT businesses |
| CoverWallet | $32 | $384 | Comparing IT business insurance quotes online |
| Tivly | $33 | $396 | Comparing IT business insurance quotes over the phone |
| Thimble | $36 | $432 | On-demand coverage for IT businesses |
| Hiscox | $38 | $456 | IT business insurance with worldwide coverage and automatic policy renewal |
| Nationwide | $42 | $504 | IT businesses looking for comprehensive workers compensation insurance |
| Berkshire Hathaway | $44 | $528 | Companies wanting BOPs |
| Chubb | $46 | $552 | IT business insurance for IT companies of any size |
Get all the best quotes from leading providers in a click of a button!
The insurance industry is filled with many carriers providing IT company insurance. Usually, finding the best insurer means searching for a provider that offers reduced costs. Still, it's critical to choose a carrier that provides quality insurance solutions.
If you're ready to purchase IT business insurance, here are some reviews of the best IT business insurance companies. Read to know the pros, cons, and cost of a $1 million general liability policy.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for IT businesses
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT’s general liability, commercial property, professional liability, and workers' compensation policies for IT businesses are available through its software publisher insurance, computer and information systems managers insurance, IT consulting and programming insurance, and computer programmers insurance.
This company simplifies your insurance purchase by creating an insurance bundle wherein the inclusions have their own predetermined limits, as shown below:
$300,000-$2 million general liability insurance
2 million professional liability insurance
$3,000-$10,000 tools and equipment insurance
$218,000-$350,000 commercial property insurance
Workers compensation insurance
Best for: Best overall, Fastest general liability insurance for IT businesses
Average cost: $25 per month
Our rating: 10/10
Compare IT business insurance quotes online
Easy online policy management
Add additional insureds during or after you bought your policy
Cancel your coverage anytime with no additional charges
Not an insurance company but an insurance broker
CoverWallet offers business insurance products for IT professionals through its IT consulting insurance, IT software/hardware training insurance, IT security consulting insurance, computer programming and software development insurance, and software publishing insurance.
CoverWallet is an insurance broker and not an insurance company. It provides coverage by compiling the quotes of different insurance companies that underwrite business insurance solutions for the IT and tech industries. Policies you can avail are as follows:
$2 million general liability insurance with an optional waiver of subrogation, terrorism coverage, and hired/non-owned auto liability coverage
$2 million professional liability insurance
$50,000 commercial property insurance
Workers compensation insurance
$25,000 commercial auto insurance
Business owner’s policy
Best for: Comparing IT business insurance quotes online
Average cost: $32 per month
Our rating: 10/10
Responsive customer service
Caters to the specialized risk of your IT business
Compare quotes over the phone
A trusted partner of many insurance companies
You need to call to get a quote
Go for Tivly (formerly CommercialInsurance.NET) if your IT business has specialized risks that no other insurance companies are willing to take care of. Your quote from Tivly will be curated by a representative. That said, you need to call Tivly in order to compare quotes over the phone.
Best for: Comparing IT business insurance quotes over the phone
Average cost: $33 per month
Our rating: 10/10
Quick to issue an estimate of your rate
Choose to get covered annually or for a short-time only
Easy to get quotes
A lot of endorsements can be introduced to business owner’s policy and general liability insurance
You can’t reach customer service by calling
Thimble grants coverage through its IT consultant insurance bundle and IT project management insurance bundle. The latter and the former offer a business owner’s policy, workers compensation insurance, and stand-alone general liability insurance. Here’s a quick summary of the features of Thimble’s quote:
$1 million-$2 million general liability insurance
$1 million-$2 million professional liability insurance (only available as an add-on to general liability insurance)
Business owner’s policy with a $1 million-$2 million general liability coverage and $25,000-$500,000 commercial property coverage
$2,500-$5,000 tools and equipment insurance
Workers compensation insurance
Best for: On-demand coverage for IT businesses
Average cost: $36 per month
Our rating: 9/10
Automatic policy renewal
Efficient claims filing and handling
Worldwide coverage
Policy limits can be easily customized
Policy upgrades are available
Some policies are offered through a partner
Hiscox offers a lot of insurance packages for IT businesses. Here’s a quick list of them all:
Software and development insurance
Computer programmers insurance
Packaged software development insurance
Custom computer programming insurance
IT consulting insurance
IT project management insurance
IT hardware/software training insurance
In connection, the insurance bundles for IT businesses that we listed above will feature some or all of these:
$300,000-$2 million general liability insurance
$250,000-$1 million professional liability insurance
Business owner’s policy with a $1 million-$2 million general liability coverage and $25,000 commercial property coverage
$10,000-$25,000 tools and equipment insurance
Workers compensation insurance
$300,000 cyber liability insurance
Best for: IT business insurance with worldwide coverage and automatic policy renewal
Average cost: $38 per month
Our rating: 10/10
Tailored policies for IT businesses of all types and services
Nearly 100 years in the insurance industry
Provides a range of coverage options
A+ (Superior) AM Best rating for financial strength
Limited online quoting tools
Nationwide offers industry-leading insurance coverage and solutions for IT professionals and companies of all sizes. Because companies have specific insurance needs, most insurers only provide limited coverage for specific types of IT businesses. Nationwide differentiates itself by providing various policy options for small and large IT companies. The carrier offers every type of protection your business needs, from general liability, umbrella insurance, and equipment coverage to protection for employment-related claims and cybers liability insurance.
Moreover, Nationwide is highly rated by several insurance rating agencies. For instance, it boasts having an A+ (Superior) financial stability rating from AM Best, so you can rest assured it will pay for your insurance claim, regardless of its worth.
One of the few disadvantages is that Nationwide only provides online quoting for five types of insurance coverage. Therefore, customers must first call and speak to an insurance agent for more detailed policy information.
Best for: IT businesses looking for comprehensive workers compensation insurance
Average cost: $42 per month
Our rating: 8/10
Robust coverage option through biBERK and THREE
Discount available for annual premium payments
Unavailable in some states
New insurance company
Berkshire Hathaway offers IT business insurance through two channels. These include biBERK, a full-service insurance company for small businesses, and THREE, a newer venture that provides a simple three-page insurance policy.
Small IT businesses looking for BOPs can purchase coverage through biBERK, which offers property coverage and general liability in a single policy. For additional policy customization, Berkshire Hathaway allows companies to include add-ons, such as employment practices and cyber liability.
THREE provides a more comprehensive coverage option, with all the elements of a BOP and other policies, including cybersecurity, business interruption, commercial auto, and workers' compensation. It's an affordable insurance policy ideal for small IT businesses that would otherwise buy BOP with additional coverage.
While both biBERK and THREE are relatively newer endeavors in the industry, each is backed by Berkshire Hathaway. That means the company's commercial coverage isn't available in all states. BiBERK is only available in 29 states. THREE is continuing to expand in other states, and the policy is available in many of the states where full BOP coverage isn't available through biBERK.
Best for: Companies wanting BOPs
Average cost: $44 per month
Our rating: 8/10
Provides general liability for over 1,000 business types
Insures IT companies of any size
A++ AM Best financial stability rating
Flexible insurance options for supplemental coverage
Businesses must purchase insurance through an agent
Online quotes unavailable
Global coverage requires additional policy
Chubb provides industry-specific general liability insurance tailored to IT businesses of all types and sizes at highly competitive prices.
The company's Customarq General Liability coverage is ideal for small businesses and multinational IT companies. The insurer's general liability covers virtually everything. Although Chubb is a globally acclaimed insurance carrier, its general liability policy doesn't include global coverage, which businesses must purchase separately.
For businesses that want insurance customizations, Chubb offers an additional policy called Continuum, which can be included in any general liability coverage or purchased separately. This extra policy covers risks, such as successor liability and discontinued IT products/services. Furthermore, small companies that generate less than $30 million in annual income can leverage Chubb's BOP to save money and expand their protection.
Chubb scores highly in the industry in terms of financial strength and customer satisfaction. The insurer vaunts an A++ AM Best financial stability rating. The company also bagged the No. 1 spot in the 2020 J.D Power US Small Commercial Insurance Study.
The only two drawbacks are that Chubb doesn't provide online quotes for any of its business insurance policies, and businesses purchasing IT company insurance can only do that through an agent.
Best for: IT business insurance for IT companies of any size
Average cost: $46 per month
Our rating: 8/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow
Not all those who wander are lost.
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