Business Insurance Requirements for IT Consultants in Pennsylvania

Whether you do freelance IT consulting in Philadelphia or repair computers and smartphones in Allentown, you spend a lot of energy ensuring that your IT business is running smoothly. One way you can keep your focus on your job is by protecting it with IT consultant insurance.

General liability insurance is commonly purchased by IT consultants in Pennsylvania because it can protect your business from the expenses associated with common mishaps, like third-party property damage and injuries. In fact, if you have a commercial lease, your landlord may require you to purchase this coverage. Another policy you might want to consider is professional liability insurance, which can provide financial protection if a client files a lawsuit claiming you delivered work that was late or incomplete.

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 other policies are typically purchased by IT consultants in Pennsylvania, and 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 Pennsylvania vary depending on key 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. Many professional liability policies include this coverage already, but check with your Insureon agent to make sure.

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: If you own an IT consulting business in Pennsylvania, you are required to carry workers’ compensation coverage if you have employees. If you are a sole proprietor, then coverage is optional. However, if you break your arm while tripping down the stairs at a client’s office, or develop carpal tunnel syndrome after years of working on a computer, you can turn to your workers’ comp policy to help pay not only your medical bills, but some of your lost wages as well. In the field of IT consulting, workplace injuries aren’t typically a huge worry – but accidents can happen in any industry.

Business insurance costs for IT consultants in Pennsylvania

According to an analysis of Insureon applications, the typical IT consultant in Pennsylvania can expect to pay slightly more than the national median for most policies. The one major exception is commercial auto insurance. It tends to be the most expensive policy for IT consultants in Pennsylvania, costing a little over $4,000 annually – significantly higher than the national median of $2,700. However, Pennsylvania IT consultants can expect to save on general liability insurance. Most pay around $425 each year for this coverage, which is slightly below the national average of $500.

Median Insurance Costs for Pennsylvania IT Consultants

Save time and money with Insureon

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