The median cost of technology E&O insurance is about $60 per month, or $730 annually. This policy, also known as professional liability insurance, can protect your technology business from work mistakes that negatively impact clients. The cost depends on your type of IT business, your policy limits, and other operations factors.
Among IT businesses that purchase technology errors and omissions insurance with Insureon, 36% pay less than $700 per year and 47% pay between $700 and $1,400 per year. Risk factors, such as the size of your company, your industry, and whether you’ve been sued in the past, help determine the cost of this policy.
Most IT businesses (63%) choose errors and omissions policies with a $1 million per-occurrence limit and a $1 million aggregate limit. Another 11% of IT businesses choose policies with a $2 million per-occurrence limit and a $2 million aggregate limit.
The cost of technology errors and omissions insurance increases with higher policy limits. As you can see in the chart below, tech professionals pay more for policies with higher limits.
IT businesses pay a median premium of less than $30 per month, or $340 per year, for general liability insurance. This policy provides protection for client property damage and injuries, along with lawsuits related to slander and libel.
Insureon’s licensed agents typically recommend a business owner’s policy, which combines general liability insurance with commercial property coverage at a discount to protect your computers and other business property. You can select this option when you start Insureon’s online application. For IT professionals, the median premium for a business owner's policy is about $45 per month, or $540 per year.
Among IT professionals that purchase general liability insurance with Insureon, 40% pay less than $300 per year and 47% pay between $300 and $600 per year. Technology businesses in high-risk industries tend to pay more for general liability insurance.
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most technology businesses and IT consultants (88%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
To meet your state’s requirements and avoid penalties, technology businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness.
With a median premium of about $35 per month, or $435 per year for technology businesses, policy cost is determined by your number of employees and their occupational risk, among other factors.
IT businesses pay a median premium of about $200 per month, or $2,415 per year, for commercial auto insurance. This policy can pay for third-party property damage and medical bills in an accident, along with vehicle damage caused by theft, weather, and vandalism.
Businesses with company-owned vehicles, such as telecommunications trucks and computer repair vans, must purchase commercial auto insurance. The cost will vary depending on the type and number of company vehicles, and your unique business risks.
IT professionals pay a median premium of $145 per month, or $1,745 per year, for cyber liability insurance. This policy is vital for IT businesses that collect personal information, such as credit card numbers or Social Security numbers. Cyber liability insurance can help cover legal fees, customer notification costs, and other expenses related to a data breach or cyberattack.
Among technology businesses that purchase cyber liability insurance with Insureon, 39% pay less than $1,500 per year. Another 41% pay between $1,500 and $3,000 per year. The cost of cyber liability insurance is determined by how much sensitive information your business handles (credit card numbers, Social Security numbers, etc.) and other factors like your industry risk.
The median premium for a fidelity bond is less than $90 per month for an IT company, or $1,055 annually.
Fidelity bonds provide reimbursement if one of your employees commits fraud, theft, or forgery against a client or your business, including illegal electronic funds transfer. They are often required by client contracts.
Insureon’s IT business insurance agents work with top-rated U.S. carriers to find coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of software developers, IT consultants, web designers, and computer repair businesses.