There's more to Los Angeles than Hollywood and Beverly Hills. The general perception of LA as a glitzy town misses the reality under that shiny surface: LA is one of the world's biggest economic centers, and much of its recent growth has been
due to the tech industry.
With its massive size, LA supports a huge amount of business-to-business IT vendors and tech freelancers, as well as startup companies and mobile developers in the so-called "Silicon Beach" area. In fact, Forbes magazine predicts that So Cal will soon outgrown Silicon Valley as the hot spot for tech startups.
Which IT Business Insurance Policies Do LA Companies Need?
Small business insurance is a crucial investment for tech companies: it covers the cost of many common lawsuits, damaged business property, and workplace injuries and illnesses. Many of these policies may be required by law or by the contracts you enter
with your landlord, clients, or other parties.
General Liability Insurance covers you from an array of common business lawsuits brought by third parties (people not employed by your business). GL Insurance covers lawsuits when third parties sue your business over property damage, personal injuries,
reputational injuries, or copyright infringement. Many businesses refer to this coverage as "slip- and-fall" insurance because, among other things, it covers lawsuits when someone is injured on your property, one of the most common kinds
of third-party lawsuits.
A Business Owner's Policy (or BOP) packages Property and General Liability Insurance into one insurance bundle, offering you lower insurance premiums on both. Most small businesses qualify for these savings, and our agents work with you to help you
take advantage of this (and other) discounts. We've already discussed General Liability Insurance, so let's focus on Property coverage. A Property Insurance policy covers the cost to repair or replace commercial property when it's stolen
or damaged by fire, covered weather events, or burglary. For example, if your computers are stolen, your insurance company sends money to replace them.
Also called Professional Liability Insurance, Errors and Omissions coverage pays for lawsuits that arise from mistakes, professional negligence, or other disputes from unsatisfied customers. One of the most important features of E&O Insurance is its
third-party cyber liability coverage. This portion of your policy pays for expenses when clients sue you over a data breach that happens on their computers. For example, a mobile developer in Long Beach whose app is hacked or a network designer in Santa Ana whose client network is hit with malware is protected from data breach and identity theft lawsuits.
California requires employers to carry Workers' Compensation Insurance (also called Workers' Comp or Workers' Comp) to pay for employee's medical costs and missed wages when they suffer a workplace illness or accident. Injured workers
can also choose to forego these benefits and sue you after an accident instead. That's why many Workman's Comp packages include Employer's Liability Insurance, which covers your legal expenses as an employer.
Coverage note: if your business doesn't have any employees (besides yourself), you can usually opt out of buying insurance.
Do you need Cyber Liability Insurance? Maybe. Most IT companies actually don't need Cyber Liability Insurance (also called “Cyber Risk Insurance” or “Data Breach Insurance”). Most companies only have third-party cyber
liability (the risk of lawsuits from clients after a data breach on their network), which is already covered with E&O Insurance. However, if you store a lot of private data on your own network, you might need Cyber Liability Insurance,
which pays for your expenses after a data breach (credit monitoring, customer contact, public relations, etc.).
Every growing tech business is has different insurance needs based on its size and specialty. At TechInsurance, our insurance agents will customize policies for developers, software testers, Internet and cable installers, and any number of other tech
businesses. For a free insurance quote, contact a TechInsurnace agent at 1-800-668-7020 or fill out our simple online