As the financial center of Indiana (and home of the Colts), Indianapolis has gained recognition for affordability, job growth, and all around quality of life. Forbes Magazine ranked it as one of the best cities for careers and growth. In fact, Indy is
the fastest growing "cyber city" in the Midwest.
And as the location of the Indy 500, it should be no surprise that you're driving circles around the competition. (Yes, thank you, we'll be here all week.) But tech businesses who really want to win the race? They buy small business insurance.
Hoosier Small Business Insurance: Which Policies Do Indy IT Firms Need?
Which insurance policies do Indianapolis IT businesses need? Good question. The answer depends on a number of factors including the size of your business, the type of work you do, and the business liabilities you face. Let's take a look at five policies
that benefit most IT companies:
General Liability Insurance is one of the most essential insurance policies for any small business. In fact, many landlords require you to have this coverage in order to sign a lease. GL Insurance covers lawsuits from third parties (the people your business
doesn't employ). It can cover the following lawsuits: property damage, physical injuries, harm to reputation (libel / slander), advertising injuries, and copyright infringement. In other words, this insurance covers many of the common liabilities
you face from simply interacting with customers and other businesses.
Indy tech companies can save money on General Liability Insurance and Property Insurance by buying them together in a bundle called a Business Owner's Policy (BOP). This discounted policy is only available to lower-risk small businesses. Our insurance
agents can check to see if you qualify – almost all small tech companies do. If you have Commercial Property Insurance, your insurer covers the cost to replace and repair property – such as equipment, computers, and the buildings you
own – that’s damaged by a covered event. The covered events are outlined in the terms of your policy. Common ones include damage from vandalism, office fires, thefts, and windstorms.
Many Indianapolis tech companies purchase Errors and Omissions Insurance (also called “Professional Liability Insurance”) in order to sign a contract with their first major clients. E&O coverage pays for lawsuits related to professional
mistakes (whether they were actually made or perceived by a client). Covered lawsuits include everything from disputes about software bugs to missed deadlines to data breaches on client computers. In fact, data breach protection is quickly becoming
a necessity for IT companies. E&O Insurance pays for data breach and identity theft lawsuits if a client sues you after their network is hacked. (For data breach coverage for your own network, see Cyber Liability Insurance.)
Workers' Compensation Insurance (also called “Workers' Comp” or “Workman's Comp”) pays for the expenses related to workplace injuries. Say a programmer in Carmel develops carpal tunne. Her employer's Workers'
Comp covers the cost of surgery, rehabilitation, and her lost wages. If the programmer forgoes her benefits and sues her employer instead, the Employer’s Liability Insurance portion of the WC policy pays the employer's legal costs. Indiana
state law requires that IT companies cover all their employees with Workers' Compensation Insurance. However, small businesses are allowed a few exceptions. For example, sole proprietors and corporate officers don't have to be covered by
Workman's Comp. In other words, if you haven't hired any employees yet, the law doesn't require you carry this coverage.
Cyber Liability Insurance (also called “Cyber Risk Insurance” or “Data Breach Insurance”) pays for the expenses related to a data breach on your network. If you're hacked or an employee accidentally discloses your customers'
private data, you'll have to contact each affected customer. (If you fail to contact your customers in a timely fashion, the Indiana Attorney General can fine your business up to $150,000. Ouch.) Additionally, you may want to pay for credit monitoring
for your customers. That’s why Cyber Liability Insurance covers these and other “damage control” expenses. However, your business might not need Cyber Liability Insurance. Most IT companies don't actually need this policy
because they don't store much private data (SSNs, addresses, financial info, etc.) on their own computers. However, your clients probably have a lot of private data on their networks, and E&O Insurance already covers lawsuits related
to client-side data breaches.
Call one of our insurance agents at 1-800-668-7020 to work with specialists in the IT insurance industry. We'll send you free customized insurance quotes. You can also submit an online insurance application,
and we'll email you free quotes for E&O Insurance or any other policies that catch your eye.