IT services insurance: protect what matters with the right coverages and best value
Your expert guide to IT insurance requirements, costs and savings
Your IT service company keeps other businesses running smoothly. Unfortunately, one surprise expense (like a client's network outage or a stolen laptop containing sensitive data) can put yours at risk. We believe in your business and want you to have affordable insurance that meets state requirements and protects your equipment, team and income. This guide breaks down:
- Your required coverages
- The most recommended protections
- Some typical costs of IT provider insurance
- How to save with fast quotes from top insurance carriers
QUICK SUMMARY (Because we know you're busy debugging)
- IT providers face specific risks that require customized insurance coverage.
A Business Owner’s Policy saves you money by bundling general liability, property insurance and optional business interruption coverage.
General liability insurance covers injuries and damages caused by your business, as well as advertising-related claims.
- IT service property insurance helps replace or repair damaged equipment, furnishings and inventory.
- Workers’ compensation for IT services employees is required in most states and covers staff injuries and lost wages.
- Professional liability (sometimes called errors and omissions) protects against claims of negligence or harm from your services.
- Commercial auto for IT businesses is required in most states if you use vehicles for business purposes.
- Cyber insurance for IT professionals covers data breaches, including regulatory fines and digital recover costs
- Working with Mylo can help you find the right coverage at the best value.
FIVE BEST INSURANCE COVERAGES FOR IT BUSINESSES:
Here are five essential coverages every IT professional should consider to stay protected and profitable:
1. Business Owner's Policy for IT service providers
A business owner’s policy (BOP) is a smart starting point. It bundles key coverages into one affordable package – ideal for new or growing computer service companies. Your BOP typically includes:
GENERAL LIABILITY for IT businesses covers legal and medical costs if a client is injured or their property damaged in your space or while you're performing services. It also protects you from advertising-related claims.
- A client trips over cables in your office and suffers an injury
- You accidentally damage a client's server while installing hardware
- A competitor accuses you of copying their logo or slogan
IT SERVICE PROPERTY INSURANCE helps repair or replace your space and equipment if disaster strikes – like fire, theft, or vandalism. Examples:
- A fire damages your servers and networking equipment.
- A break-in results in stolen laptops and tools.
BUSINESS INTERRUPTION INSURANCE Replaces lost income if you need to temporarily shut down operations because of covered property damage.
IT service providers typically pay between $500-$2,250 a year for a Business Owner's Policy (BOP). Ready to get your free quote now and see how much you can save? CLICK HERE
2. Workers' compensation (required in most states)
If you have employees, almost all states require you to carry workers comp for IT companies. It covers medical care and lost wages for staff injured on the job – and shields you from most employee lawsuits. You'll need tech employee injury coverage if:
- An employee has a back injury while moving equipment
- A technician develops repetitive strain injuries from long hours at a workstation
- An employee trips over a server rack and suffers a fracture.
IT SERVICE PROVIDERS TYPICALLY PAY BETWEEN $230-$650 A YEAR FOR WORKERS' COMP. TO SEE HOW MUCH YOU CAN SAVE, CLICK HERE.
3. Professional liability (required in many contracts)
Also known as Errors & Omissions (E&O) for IT service providers, this coverage protects you from claims of negligence, mistakes or failure to deliver promised services. Examples:
- A software update you install causes a client’s system to crash
- A configuration error leads to extended downtime
- A client claims your advice resulted in lost revenue
IT SERVICE PROVIDERS TYPICALLY PAY BETWEEN $400-$1,000 A YEAR FOR PROFESSIONAL LIABILITY. TO SEE HOW MUCH YOU CAN SAVE, CLICK HERE.
4. Commercial auto insurance for tech businesses (required in most states)
If you have company vehicles or use personal vehicles for business purposes, almost all states require you to carry commercial auto insurance. IT company vehicle insurance helps pay for:
- Damage or injuries your vehicles cause to others
- Damage to your vehicles (optional physical damage coverage)
5. Cyber insurance for IT providers
You won't be shocked to learn that computer-related businesses are prime targets for cyberattacks. And IT service providers are held to a higher standard for cybersecurity by their clients. Cyber liability for IT companies helps cover data breach response, regulatory fines and recovery costs. Examples:
- Hackers steal sensitive client data from your servers
- A ransomware attack locks your systems until a payment is made
Get the best IT service insurance in your state
Your amazing company deserves protection that keeps up with your business. Mylo has been innovating insurance for 10 years and connected over 75,000 small business owners with 100,000+ policies. Because we don't sell our own insurance, we can give you an objective recommendation and find you the best value in your state – at no cost to you.
In minutes Mylo will:
- Recommend the right coverage for your IT company
- Compare quotes from top-rated insurance carriers
- Find you the best combination of coverage and price
- Keep you feeling confident about growing your business!
IT services insurance FAQs
What IT services coverages are required?
- Most states require commercial auto for any vehicle you operate in your business.
- If you have employees, you also usually need to carry workers' compensation.
- Most states don't require general liability, but many of your contracts with landlords, partners and vendors will.
- Many of your clients will require professional liability.
Why should I shop for a Business Owner's Policy (BOP)?
A Business Owner's Policy saves you money by combining general liability (which helps you pay for medical expenses or lawsuits if someone is accidentally injured by your business) with property (which helps repair or replace your lost, stolen or damaged business property) and business interruption (which compensates you for lost revenue because of property damage). Also, "BOP" is fun to say. We won't judge.
What special risks do I have as an IT professional?
Your company is vulnerable to lawsuits from clients who are unhappy with your work or claim you caused damage to their systems. You may also take on employees who don't know the job as well as you do. Professional liability helps you handle surprise legal expenses connected to your services. You will also want to protect your valuable reputation by carrying cyber insurance.
What are some ways I can save money on insurance?
You may be able to bundle your most essential coverages (general liability, property and business interruption) in a money-saving Business Owner's Policy. In addition, Mylo makes it easy to compare the best quotes from multiple top-rated carriers so you can find the right coverage at the best value in your state.
How do I get a Certificate of Insurance (COI)?
A Certificate of Insurance provides proof to your clients that they can do business with you and not be on the hook financially if something goes wrong. Once Mylo has helped you purchase a policy, you can request a free certificate of insurance (COI) directly from your new carrier. Contact information for your insurance carrier will be included in the email your Mylo agent sends out with your policy documents.