Business Insurance Requirements for IT Consultants in Texas

If you’re an IT consultant in Texas, you know that the success of your business depends on making smart business choices. That includes choosing business insurance policies that help keep your business profitable and protect you against common pitfalls.

The types of clients you work with may vary, but one thing likely doesn’t – the risks you face by working on client computer systems. If a cybercriminal swipes data from one of your clients, you could be held liable. That’s why most IT consultants typically opt to buy cyber liability insurance. It can help cover the costs associated with a client’s data breach. Another popular policy for IT consultants in Texas is general liability insurance. It can help pay for many of the common mishaps businesses encounter, such as third-party injuries or property damage.

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 Texas, 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 Texas 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 type.

 

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: As mentioned earlier, cyber liability insurance can help IT businesses survive data breaches and cyberattacks by helping to cover recovery expenses for a loss of data experienced by either you or a client. Many professional liability policies already include third-party cyber liability coverage, so be sure to ask your agent if you already have it, or if you’ll 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: With few exceptions, purchasing workers’ comp coverage is optional in the state of Texas. Coverage can be purchased through the state’s workers’ comp fund, a private insurer, or through self-insurance. 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 be able to pay for medical expenses and partial lost wages.

IT consultants don't suffer on-the-job injuries as often as workers in many other professions. That said, accidents do happen. The most frequent workplace injuries for IT consultants in the United States are falls, slips, and trips – which can happen to anyone in any industry – followed by overexertion and bodily reaction.

Business insurance costs for IT consultants in Texas

Texans can expect to pay roughly the same as the national median average for most IT consultant insurance policies. According to an analysis of Insureon applications, the one major exception is a fidelity bond, which costs Texas IT consultants approximately $2,100 per year – about $450 more than the national average.

The most expensive policies for an IT consultant in Texas are commercial auto and errors and omissions, each of which costs approximately $2,500 per year, which works out to roughly $210 per month. Workers’ comp, should you choose to purchase it, costs less in Texas than it does nationally.

Median Insurance Cost for Texas IT Consultants

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 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 Texas 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.