Business Insurance Requirements for IT Consultants in North Carolina

The tech industry is booming in North Carolina. Recently, Forbes named Raleigh one of the top 10 best cities for technology jobs in the nation. It’s no wonder that plenty of IT consultants are setting up shop in North Carolina.

As an IT consultant, business insurance is one way to help your company stay competitive. For example, commercial property insurance can protect the investment you made in computer equipment, your office building, and more. Another important policy for IT consultants to consider is cyber liability insurance, which can help pay your legal bills if a data breach or cyberattack affects you or one of your customers.

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 North Carolina, 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 IT consultants in North Carolina vary depending on 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 can help IT consultants survive data breaches and cyberattacks experienced by your company or a client whose systems you are responsible for protecting. North Carolina state law requires that businesses notify their customers and sometimes other agencies in the event of a data breach. As an IT professional, you (and your lawyer) should fully understand these regulations to make sure you’re prepared. If you or your client ever experiences a data breach, even if it’s accidental, your cyber liability insurance will help cover the associated costs.

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, including theft by electronic funds transfer.

Workers' compensation: If you or an employee is injured on the job, workers’ compensation can help pay for medical expenses and lost wages. Any business with three or more employees must have workers’ compensation insurance, according to the North Carolina Industrial Commission. This includes corporations, sole proprietorships, limited liability companies, and partnerships. While IT isn’t a profession that is plagued with injuries, that doesn’t mean that workers’ comp coverage isn’t important. It can cover common repetitive use injuries such carpal tunnel syndrome, as well as more serious accidents. In addition to providing coverage for employees, workers’ comp can also cover expenses for sole proprietors who are injured on the job.

Business insurance costs for IT consultants in North Carolina

IT consultants in North Carolina can typically expect to pay around the same as the national median cost for most insurance policies. According to an analysis of Insureon applications, the most expensive policy an IT consultant in North Carolina is likely to purchase is errors and omissions insurance. With a median cost of $2,500 annually, it’s not a trivial amount. But a little over $200 per month is a relatively low price to pay for the piece of mind you get knowing that if a client sues you over a project, the lawsuit isn’t likely to bankrupt your business.

Median Insurance Costs for North Carolina IT Consultants

Save time and money with Insureon

Insureon’s industry-leading technology helps IT consultants in North Carolina 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 North Carolina 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.