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IT Business Insurance for El Paso, TX

With an economy of $29 billion, El Paso is one of the major economies of Texas and a key part of the tech, energy, international business, and military sectors of the national economy. With UTEP located in the city and numerous import / export companies, El Paso is an epicenter of the Southwest.

Sun City Small Businesses Insurance: Protection for IT Businesses in El Paso

Business insurance protects West Texas companies from many of the unpredictable expenses that could bankrupt small IT businesses. Data breaches, office fires, employee injuries – each of these incidents comes with thousands of dollars in legal bills and other expenses.

Fortunately, by investing in business insurance, El Paso-Las Cruces tech businesses can protect themselves from these costs. Here is a breakdown of five key insurance policies tech companies need to know about:

General Liability Insurance

Many businesses buy General Liability Insurance as soon as they start up because it offers protection against many common third-party lawsuits – lawsuits from non-employees. These include disputes about property damage, slip-and-fall injuries, accidents on your premises, reputational damages, and more. Say a client tumbles down your stairs and breaks their hip. General Liability Insurance can pay for the resulting lawsuit. In addition, many GL policies even cover the immediate medical costs – such as ambulance and emergency room expenses – of someone hurt on your property. This decreases the likelihood of a full-blown lawsuit.

Business Owner's Policy

A Business Owner's Policy (or BOP) is a good way for IT companies to save money on their insurance. BOPs bundle Property and General Liability coverage together at lower premiums. The Property Insurance portion covers property your business owns: workspaces, furniture, technology, inventory, equipment, etc. If this property is lost or damaged by a covered event, the insurance company pays for repair or replacement costs. Covered claims typically include fires, some weather damage, power surges, theft, and acts of vandalism.

Errors and Omissions Insurance / Professional Liability Insurance

IT companies often have to purchase E & O Insurance in order to sign a contract. Clients require E&O Insurance because it insures the quality of your work. E&O pays for lawsuits over mistakes, missed deadlines, and other problems (or perceived problems) an IT company might have delivering work to its clients. Perhaps most importantly, E & O covers client data breach lawsuits. If a breach occurs on a client computer, whether it's caused by a product you recommended or a flaw in their network, E&O Insurance covers your attorney’s fees, settlements, judgments, and other damages.

Workers' Compensation Insurance

Unlike other states, Texas doesn't require every business to have Workers' Compensation Insurance (also called “Workers' Comp” or “Workman's Comp”), a policy that provides benefits to employees for workplace injuries and diseases. However, Texas law still holds you liable. Without this coverage, you'd have to pay out-of-pocket for an employee’s medical expenses and lost wages. Say an employee trips over a lip of carpet and faceplants, dislocating their shoulder. Workers' Comp can pay for their medical treatment, rehabilitation, occupational therapy, and other bills. Many policies also come with Employer's Liability Insurance, which covers your legal expenses in a Worker's Comp lawsuit.

Cyber Liability Insurance

Cyber Liability Insurance (also called “Cyber Risk Insurance” or “Data Breach Insurance”) covers expenses when a data breach occurs on your network. Only some IT companies need this insurance because only some store enough sensitive data on their networks to make it worthwhile. (Remember, E & O Insurance covers client-side breaches.) For instance, this insurance makes sense for a web hosting company but is probably less applicable for a consultant who doesn't work with private data. Cyber Risk Insurance pays for credit monitoring / identity theft prevention services, the cost to inform each person that their data was exposed, crisis management services, additional temporary personnel, and other services that help you respond quickly to minimize the damage from a breach.

TechInsurance gives El Paso companies free quotes on their business insurance. Call us at 1-800-668-7020 or submit a quick and easy online insurance application, and we’ll customize a quote for your tech company.

Snapshot of Small Tech Businesses in the El Paso-Las Cruces Area

El Paso, TX
  • 75% of El Paso-Las Cruces area tech businesses are home-based.
  • The median annual revenue for businesses is $75,000.
  • An average business subcontracts 55% of its annual work to third parties.