Startup tech companies face the same risks as large corporations, although they have fewer resources to handle these issues. Even if you have a small budget, ensure you get insurance coverage for different aspects of your business for increased safety. Proper insurance will give you peace of mind, knowing your tech business is protected against unexpected disasters. Insurance is also critical in protecting and maintaining your staff. Below are five insurance options to consider when starting a tech company.
- General Liability Insurance
Your tech business must have general liability insurance to cover the cost of property damage or bodily injury caused by your company. Even though not all states require every business to have general liability insurance, it is good to have it. It will protect your business against incidents that occur during regular business operations. In particular, general liability insurance can cover your business against reputational harm, copyright infringement and false advertising claims.
- Commercial Property Insurance
Your tech company will have different kinds of property, depending on the nature of your business. The property may include a building, office furniture, electronics, vehicles and more. Commercial property insurance will cover the costs of damage, destruction or theft of your property. To save money, you can amalgamate commercial property insurance and general liability insurance under a business owner’s policy (BOP) insurance.
- Cyber Insurance
A tech company is prone to cyber crimes because of the massive amount of sensitive information they collect and keep. Thus, your company must have cyber insurance. This insurance policy protects a business against data breaches and other cyberattack issues. It will protect your business in the event that you lose data through theft, human error, viruses or compromise. It is also instrumental in helping a tech company recover from a cybercrime incident.
- Error and Omission Insurance
Making errors and omissions is common in all fields, and the tech industry is no different. Also known as professional liability insurance, the error and omission policy covers damages caused by your company’s products or services. This policy will take care of all legal defense costs related to an error and omission lawsuit, including settlement and court charges. You will be forced to pay claims out of your pockets if you do not have this policy.
- Workers’ Compensation Insurance
Worker’s compensation insurance is mandatory for businesses with a certain number of employees in nearly every state. This policy covers wages and medical bills for employees who get injured or become ill in the line of duty. It also provides cover against employee lawsuits attributed to workplace injuries and sickness.
Get the Best Insurance Policies For Your Tech Company
Overall, safeguarding your tech business is essential, which is why you should have various insurance policies for protection. Continuously assess the risks in your tech business to determine the type of insurance you need. Do not forget to talk to other insurance companies, read online reviews and compare the rates of different insurance providers to find the best option for your business when shopping for a policy.
