Which policies are required for an IT consultant in Texas?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by IT consultants in Texas, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
Your clients may require errors and omissions insurance in a contract. Also called professional liability insurance, errors and omissions insurance provides financial protection if a client files a lawsuit claiming your work caused financial harm because it was late, erroneous, or incomplete.
With few exceptions, purchasing workers’ compensation coverage is optional in the state of Texas. If you choose not to purchase coverage, you are required by law to notify employees and the Texas Division of Workers' Compensation. But business-owned vehicles must be covered by commercial auto insurance. Personal vehicles used for business purposes should have commercial coverage, as well.
What are the most common policies for a Texas IT consultant?
The most common policies for IT consultants in Texas vary depending on revenue, client contracts, partnerships, and other factors.
General liability insurance
General liability insurance is the foundation of an IT consultant’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Business owner's policy
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.
Errors and omissions insurance (E&O)
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 licensed Insureon agent to make sure.
Clients in banking or financial services often require IT consultants to carry a fidelity 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.
Texas workers' compensation
With few exceptions, purchasing workers’ compensation coverage is optional in the state of Texas. If you choose not to purchase coverage, you are required by law to notify employees and the Texas Division of Workers' Compensation. However, this is a policy you may want to consider purchasing, even if it’s not mandatory. That way if you or an employee becomes ill or injured on the job, workers’ comp will help cover medical expenses and partial lost wages.
Commercial auto insurance
Personal auto insurance policies typically exclude business use, which means you could end up paying for an auto accident if it happens on a work errand with your personal vehicle. Commercial auto insurance is required for vehicles owned by IT consulting companies. Hired and non-owned auto insurance covers personal vehicles used for business purposes.
What do IT consultants in Texas pay for business insurance?
According to an analysis of Insureon applications, the typical IT consultant in Texas can expect to pay roughly the same as the national median for most business insurance policies. The one major exception is a fidelity bond, which costs Texas IT consultants a median of approximately $2,100 – about $450 more than the national median.
Save time and money with Insureon
Insureon’s industry-leading technology helps IT consultants in Texas save time and money shopping for insurance by comparing policies from top U.S. carriers. Start a free online application to review quotes for the policies that best fit your business needs. Our insurance agents are licensed in Texas and can answer your questions as you consider coverage.
To make the application go 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.