Your clients depend on your services to work anywhere in the world, but if there's a disruption, the result could be a lawsuit. Business insurance protects cloud computing companies from hefty legal fees and settlements. It can also cover costly injuries, fires, cyberattacks, and auto accidents.
Cloud providers can save money by comparing free quotes from top insurers.
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These insurance products cover common risks for cloud computing firms.
Tech E&O covers legal expenses related to your work performance, such as a client who sues over a service outage. You can often add intellectual property and media liability coverage.
This policy covers basic business risks, such as accidental damage to a client's property. You can often combine it with commercial property at a discount in a business owner's policy (BOP).
This policy helps cloud computing companies financially survive data breaches and cyberattacks. It’s sometimes called cybersecurity insurance or cyber liability insurance.
This policy covers the cost of an accident involving a vehicle owned by your cloud computing firm. Most states require this coverage for business-owned vehicles.
Most states require workers' comp for cloud companies that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
Fidelity bonds compensate your clients if one of your employees steals from them. Your clients might require you to purchase a bond, especially if you work in financial services.
A cloud computing company with only a few employees will pay less for insurance than a larger business.
Factors that affect premiums include:
It's easy to get cloud computing, data center, or managed service provider (MSP) business insurance if you have your company information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
Insureon's licensed agents work with top-rated U.S. insurers to find cloud insurance for your company, whether you work independently or hire employees.
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Cloud computing business owners may think their company has less risks compared to other industries. However, even a small lawsuit can still have a serious financial and reputational impact on your company, whether you're just starting your business or are well established.
Here’s a closer look at some key insurance products and why you should carry them:
Much like other technology-focused businesses, cloud computing firms aren't required by law to carry professional indemnity insurance. However, it should be a key component of your risk management plan.
Professional indemnity insurance, also called professional liability insurance or errors and omissions (E&O) insurance, protects you in the event a client files a lawsuit against your cloud computing company for an error, mistake, or professional negligence.
You can bundle professional liability insurance for cloud computing businesses with cybersecurity insurance into a technology professional liability policy, which is more commonly referred to as tech E&O. This would be a more affordable insurance solution than purchasing the policies individually.
Cyber insurance provides coverage for incident response and its associated costs when you or your customers are affected by a data breach, cyberattack, ransomware, phishing, or other cyber threat. More specifically, there are two kinds of cyber liability coverage you should consider for your cloud computing business:
First-party cyber insurance protects your cloud computing service business against data breaches and cyberattacks that affect you directly, such as a DDoS attack that overwhelms your network. This is crucial coverage if you handle personally identifiable information (PII) or other sensitive customer information.
Third-party cyber insurance provides legal protection if a client blames your cloud company for failing to prevent a data breach or cyberattack at their business.
Tech E&O insurance coverage typically includes both types of cyber insurance, along with E&O insurance to safeguard your cloud business against other lawsuits from dissatisfied clients.
The insurance industry has a wide range of pricing for the same policies, which is why it's important to shop around. You can start by comparing free business insurance quotes with Insureon.
Our licensed insurance agents can help make sure you get the right coverage for your cloud computing business at an affordable price. Most small businesses can get insured and download a certificate of insurance within hours of applying for quotes.
Read more about how to save money on insurance.