Business Insurance Requirements for IT Consultants in New York

New Yorkers may be accustomed to a fast pace of life, but choosing the right type of insurance for your IT business isn't something you want to rush into. For IT consultants, it's important to first understand what your risk factors are in order to choose the policies that will best protect your business. For example, if an IT consultant in New York has employees, workers’ compensation insurance is required by state law. While it’s not mandatory, most clients will likely expect IT consultants to have professional liability insurance. Without this coverage, you may have a hard time landing new clients, since this policy protects you and your client if a project goes wrong.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for IT consultants in New York, and start an application to get your free quotes today.

Find the right insurance policy for your IT consultant business

The most common policies for New York IT consultants vary depending on a number of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business size.

 

Business type General liability / BOP Professional liability Cyber liability Fidelity bond Workers' comp
Sole proprietor X X X    
Business owner with employees X X X X X
1099 or independent contractor X X X    

 

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 helps businesses survive data breaches and cyberattacks by helping pay for recovery expenses. This policy is particularly important for IT consultants, since it can protect you if there’s a breach of your client’s data during a project. Many professional liability policies include cyber liability coverage, so ask your agent if you already have it, or if you need to purchase a standalone policy.

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.

Workers' compensation: In the state of New York, virtually all employers have to provide workers’ compensation for their employees. Sole proprietors have the option of whether they want to purchase it for themselves. Even IT consultants can get injured in the workplace and may need to take time off work. Workers’ comp can help pay for medical fees and lost wages while you or an employee recuperates.

Business insurance costs for IT consultants in New York

Despite a high cost of living, most IT consultants in New York can expect to pay roughly the national average when it comes to business insurance, according to an analysis of Insureon applications. The one major exception is commercial auto insurance, which costs almost $5,000 annually. While paying about $400 per month is a substantial expense, you could save money in the long run if you get into an accident while driving to meet a client. On the upside, workers’ comp costs in New York are lower than the national average.

Median Insurance Costs for New York IT Consultants

Save time and money with Insureon

Insureon’s industry-leading technology helps IT consultants in New York 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 New York 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.