Forbes Magazine has ranked Denver as the 6th best place in the country for business and careers. Those guys at Forbes might be onto something. Denver is one of a handful of cities to revolutionize itself, embracing the new tech economy. That's why
businesses like DIRECTTV, Comcast, and others all have major operations centers in the Mile High City.
Small Business Insurance: Protecting IT Companies in the Mile High City
Here’s a shocker: most small IT businesses don’t have thousands of dollars in cash lying around for the rainy day when a client slips on the office’s tiled floor, breaks a hip, and sues. Lawsuits like this can easily shutter a tech
business – even dropped suits can cost between $2,000 and $5,000 in attorney’s fees.
That’s why small business insurance was invented – to protect you from the significant, unexpected costs that can crop up when you own a tech venture. Here are the policies we recommend most:
Most small-business owners have heard of General Liability Insurance because it’s often mentioned in their contracts. Landlords and clients often require a business to have this coverage because it covers several common liabilities, such as third-party
(non-employee) lawsuits related to bodily injury, damaged property, copyright infringement, slip-and-fall accidents, and more. General Liability coverage helps you pay for medical expenses, attorney’s fees, judgments, and settlements resulting
from these lawsuits.
Business Owner's Policies (or BOPs) are a bit like fast food combo meals. You get two insurance policies (General Liability and Property Insurance) but pay less than you would if you purchased them separately. Since we’ve already discussed
GL Insurance, let's look at Commercial Property Insurance. Say a web designer's office burns down in Aurora. Property Insurance covers the rebuilding costs and reimburses the business owner for damaged property covered under the policy.
This includes buildings, furniture, technology, equipment, and other items owned by the business. In addition to fires, most Property coverage insures you in the event of theft, vandalism, and some weather events.
Errors and Omissions Insurance (aka “Professional Liability Insurance”) pays for lawsuits related to inaccuracies, mistakes, bad recommendations, and other disappointments your clients may see in your work (whether they are there or not).
This policy also covers one type of data breach: those on client networks. If you install software or recommend a product that exposes client data to a breach, you can be sued. Data breaches are particularly expensive because they can lead to identity
theft (among your clients’ customers) and huge revenue losses for your clients. When a client sues you, they will seek reparations for these damages. E and O Insurance covers the cost of the lawsuit and the damages you owe.
Workers’ Compensation Insurance (called both “Workers' Comp” and “Workman's Comp”) covers the expenses of an occupational accident or illness. Say an employee slips on the bathroom floor and tears their ACL.
You're legally responsible for paying their medical costs and covering part of their salary while they can't work. Workman's Comp pays that cost. Many Workman's Comp policies also have Employer's Liability Insurance, which
covers your legal bills if an employee sues your over their illness or injury (instead of taking the benefits). Colorado Workers’ Compensation requirements state that all businesses must have Workers' Comp Insurance if they hire any employees
who are not corporate officers or members of the LLC. In other words, when you hire your first outside employee, you'll probably need Worker's Comp.
We mentioned above that E&O Insurance covers one type of data breach (client-side breaches), but some tech businesses are vulnerable to breaches on their own networks. That’s where Cyber Liability Insurance (also called “Cyber
Risk Insurance” or “Data Breach Insurance”) steps in. It covers the costs associated with breaches on your servers, networks, and mobile devices. It pays for breach investigations, credit monitoring, customer contact / call centers,
and other aspects of date-breach response. Not all tech companies need this policy, because many don't store sensitive data on their networks.
For a free insurance quote for your business, call us at 1-800-668-7020 or submit a quick online insurance application.