The seven most common insurance coverages in the technology sphere are:
- General liability insurance – This coverage forms the foundation of your protection. Most clients and vendors require a minimum of $1 million in limits.
- Professional liability and tech errors and omissions insurance- This can be added on to your general liability insurance policy to broaden your coverages to provide protection for professional services exposures. Exposures generally involve claims and losses that arise out of professional advice, consulting, custom programming, and intellectual-property violations.
- Umbrella insurance – This policy is normally used to cost-effectively increase your limits on your underlying coverages. This is sometimes referred to as excess coverage.
- Workers compensation insurance – This coverage is normally obtained once you have employees on your payroll versus having no employees or in utilizing independent subcontractors.
- Non-owned/hired auto coverage – This coverage provides your company with protection from automobile claims or losses for liability that arises out of autos your company does not own, or if your company rents autos. If you have employees and/or independent contractors and they are using their personal vehicles on your behalf, this will protect you and your company from auto liability claims that they may be involved in.
- Contents coverage – This coverage provides protection for your equipment, contents, inventory, and raw materials and can be extended to cover the property of others. The premium for this coverage is based on the limits you choose for your contents value.
- Crime coverage – This is a bond and is not a typical insurance contract. If you have a claim on this policy, the insurance company has the right to restitution. It is similar to a bank’s right as a mortgage holder on real estate to come after you for a default. This policy specifically covers theft and/or employee dishonesty of third parties property.