With a thriving tech industry from Silicon Valley to Silicon Beach, IT consultants are in high demand throughout California. Whether you're providing IT solutions for small California businesses or working as a consultant at a hot new startup, it’s crucial to find the right insurance to protect your business and your clients. General liability insurance is one of the most common policies for IT consultants in California because it can cover expenses associated with common mishaps, including third-party property damage and injuries. Another policy to consider is professional liability insurance, which can provide financial protection if a client sues your business over a mistake or missed deadline. Cyber liability insurance, which protects against data breaches and cyberattacks, is often included in this policy.
Insureon makes shopping for insurance easy, with industry-leading technology that gathers quotes from top U.S. carriers to fit your business needs. Read more to find out which other policies are most common for IT consultants in California, or start an application to get your free quotes today.
Find the right insurance policy for your IT consulting business
The most common policies for IT consultants in California vary depending on a variety of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business size.
||General liability / BOP
|1099 contractor / freelancer
General liability insurance: General liability insurance is the foundation of an IT consultant’s business protection, with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.
Business owner's policy (BOP): IT consultants often qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.
Professional liability insurance: Many clients require proof of professional liability insurance before entering into contracts for professional services. This policy, also called errors and omissions insurance or IT consultant liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.
Cyber liability insurance: Cyber liability insurance can help IT consultants survive data breaches and cyberattacks experienced by your company or a client whose systems you are responsible for protecting. Many professional liability policies include this coverage, but check with your Insureon agent to make sure. If you or a client get hacked, it won’t be your IT business footing the bill.
Fidelity bond: Clients in banking or financial services often require IT consultants to carry this bond. Also called an employee dishonesty bond, it provides coverage when an employee steals money, equipment, or other assets from one of your clients. That includes theft by electronic funds transfer.
California workers' compensation insurance: If you own an IT consulting business in California, you are required to carry workers’ comp coverage if you have employees. If you are a sole proprietor, you can choose whether or not to get coverage. If you break your arm after tripping down the stairs at a client's office, or if you develop carpal tunnel after years of typing, you will be able to turn to your workers’ comp policy to help pay not only your medical bills, but some of your lost wages as well.
According to the Bureau of Labor Statistics, the most common workplace injuries for IT consultants in the United States are falls, slips, and trips – which can happen in any industry – followed by overexertion and bodily reaction.
Business insurance costs for IT consultants in California
The cost of living tends to be higher in California when compared to the rest of the country, and the same is generally true for business insurance. The most expensive policy for IT consultants tends to be errors and omissions insurance, at $3,000 per year (or about $250 per month), according to an analysis of Insureon applications. However, California IT consultants typically pay less than the national median for commercial auto insurance and fidelity bonds.
Save time and money with Insureon
Insureon’s industry-leading technology helps IT consultants in California save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in California and can answer your questions as you consider coverage.
To make the application go even quicker, have this information ready:
- Workforce details, such as the number and types of employees.
- Current and projected revenue.
- Business partnerships.
- Insurance history and prior claims.
- Commercial lease insurance requirements.
Apply for free IT consultant insurance quotes today.