Important IT Insurance Policies
If you run an IT or Tech firm, there are several policies you should consider. These coverages are critical for any tech professional including IT, App design, website design, data hosting, or other tech business.
General Liability will cover you for claims arising out of property damage or bodily injury. It’s also often required by landlords.
Professional Liability, also referred to as Errors and Omissions (E&O), is perhaps the most important IT insurance coverage for tech professionals. Professional Liability covers you for claims arising out of the services you provide. For example, if the security you implement fails to prevent a hack, you may be sued by your customer. Even if there really is no claim, an unhappy customer may sue and the defense alone can be expensive.
Auto Liability coverage is very important if you have employees visiting customers or driving for business purposes. Auto liability will cover you for the cars you company owns. Hired and Non-owned coverage is particularly essential because hired liability covers rental cars and Non-owned liability will cover the liability of cars of your employees should they get in an an accident.
An Umbrella policy provides additional limits above and beyond the underlying policies. In today’s litigious environment, cases are often settled and damages awarded for amounts far greater than $1 million. It is highly recommended that you carry an umbrella policy above all your IT insurance policies including general liability, professional liability and auto liability.
Cyber Liability is particularly important for IT firms, especially if you are responsible for hosting your client’s data. A cyber liability insurance policy can provide coverage and defense for claims arising out of data breaches and hacking. Both first and third party coverages are available.
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