Important insights on technology insurance for your consultancy or company.

Having a technology business can be exciting and rewarding. But working in this industry can be stressful if you don't have the right financial protection. From property damage to client lawsuits, there are many ways to find yourself facing unexpected expenses. But here’s the good news: Technology insurance can cover the costs of incidents IT companies and consultants are most likely to encounter.

Let’s dive into the important topic of insurance for technology companies! We’ll explain what it is, why you need it, how you get it, and more.

Tech company insurance protects a wide range of roles and titles.

“Technology company” and “technology professional” are terms we use as shorthand for a wide range of roles and titles. You might use any of the following terms or others to refer to your company or the people who work for you:

• IT analyst
• Programmer
• Technical consultant
• IT trainer
• Software consultant
• Systems analyst
• Information systems consultant
• Database manager
• Software architect
• Software engineer
• Computer consultant
• Solution architect
• Technical advisor
• Custom software developer

In this article, we’re using “technology company” and “technology consultant” to refer to any entity or person who provides technical advice or services related to computer systems, databases, and more.

Understanding Professional Liability insurance.

One type of coverage that’s particularly important in technology is Professional Liability insurance. You might hear people call it “tech Errors & Omissions” or “tech E&O insurance,” but it protects your business in situations where you made a mistake or provided incorrect advice that caused their business financial harm.

For example, let’s say you advise a client to buy several expensive computer servers as part of a large IT project. They make the purchase and the manufacturer delivers the units. But the client then discovers you provided an incorrect model number, and they can’t use the devices. They’ll have to return them and pay the shipping costs and other fees. They also missed out on a deal from another company on the correct devices, and now they’ll pay significantly more for their servers.

The client sues your business for their losses—an amount close to $75,000—and the court agrees that you’re liable. Thankfully, your Professional Liability insurance can cover the cost plus your legal defense fees.  Without that coverage, you’d be required to pay the amount from your savings or revenues.

So, you can see why tech E&O insurance is essential.

A THREE policy provides tech companies with Professional Liability insurance and more.

In the tech sector, E&O insurance protects companies from potentially costly lawsuits, which is really important. But it’s not the only type of coverage you need. Tech businesses face other risks, which can be addressed by different components of a THREE policy:

Employee injuries.

Insurance for tech companies includes Workers’ Compensation coverage for work-related injuries or illnesses, such as developing carpal tunnel syndrome or being injured in an auto accident on the way to a client location. It can pay medical bills, rehabilitation costs, and some of the person’s lost wages while they recover. Workers' Compensation protects employees and owners. It's also required in many states for businesses with employees.

Theft of business property.

Computers, servers, and other technology equipment can be expensive. If someone steals company property and you have this type of coverage, you can expect payment.

Property damage.

Property insurance can cover situations like a pipe bursting, flooding your office, and damaging equipment and furniture.

Employee theft.

If one of your employees steals from a client, the business liability coverage in a comprehensive insurance policy from THREE may pay related costs.

Commercial auto damage and liability.

This insurance covers company-owned or leased vehicles. It can pay court-awarded damages or settlements if someone driving your vehicle is at fault in an accident and the other party sues. It can also pay to repair damage to your vehicles from accidents, vandalism, or other covered causes.

Cyberattacks.

As a tech company or consultant, you are likely to receive sensitive information from clients. If someone hacks into your computer network, steals data, and uses it to commit fraud (or is likely to), the Cyber coverage in a technology services insurance policy from THREE can pay specified costs related to the theft.

The benefits of all-in-one tech company insurance from THREE.

Unlike companies that offer several policies, each designed for a specific risk, THREE provides the protection most tech companies need in a single, comprehensive insurance policy. That benefits your business in several ways.

For example, researching and buying technology insurance from us takes less time and effort. Our all-in-one policy is also easier to manage, use, and update as needed so you can stay focused on your work.

With THREE in your corner, you can focus on doing your best work without worrying about suddenly having to deal with a large expense from a legal issue or other incident.

Every tech company or consultant needs business insurance.

Every IT business should have insurance. From startups to established companies, no tech venture should be without coverage.

If you’re a new owner of a tech startup, THREE can help you understand your business risks and how to address them effectively. You’ll need to have the right coverages in place from day one to support your company’s stability and growth. Our policy protects tech companies like yours and can keep otherwise costly incidents from derailing your business success. Plus, we provide lots of resources you can use to educate yourself about business insurance.

Are you an owner or manager at an established IT consultancy or company? If so, technology insurance from THREE provides comprehensive coverage for your people, property, and operations. Established companies also benefit from our ability to customize the limits of their policy so that their coverage evolves as their business grows and changes. It feels good to have THREE’s deep industry expertise behind you.

What if you’re a freelance tech professional? THREE has the coverage you need, too. We make it easy to get a quote and buy a policy online, which is helpful for busy consultants. Once you have coverage, you can stay focused on doing exceptional work and growing your business without worrying about “what if” scenarios. If someone sues you or company property is damaged or stolen, the issue won’t create a potentially devastating financial burden.

A provider technology companies trust for Professional Liability insurance and other coverages.

Tech companies and consultants tend to be analytical by nature, so it’s no surprise that they typically take a systematic approach to evaluating their business insurance options. What they find is that it’s hard to beat THREE’s winning combination:

• Convenient all-in-one policy
• Highly regarded provider
• Better risk protection
• Outstanding customer support
• Backing of a trusted, established company

If you have questions about how we can help protect your technology company or consultancy, don’t hesitate to reach out. We’re happy to answer them. Contact us at 1-800-507-4495, Mon.–Fri. 8am–9pm ET.