With a low tax burden and central location, Memphis is a good city for tech, logistics, and IT businesses to set up shop. Home to big companies like FedEx and numerous small tech businesses, the Memphis metro area has a $66 billion dollar economy –
not to mention the best BBQ in the country.
River City Business Coverage: Protecting Small Tech Companies
Small business insurance protects you from the unpredictable costs of lawsuits, office fires, and Workers' Comp injuries. Any one of these events could cost upwards of $100,000 – an amount that most small businesses simply can't handle.
You'd be forced to take out loans, cut staff, or even file for bankruptcy. Small business insurance covers these situations and more, preventing an accident or lawsuit from devastating your company.
What insurance policies does an IT business need? Here are the coverages we most often recommend:
As soon as they open their doors, many businesses purchase General Liability Insurance because it covers basic business risks. General Liability pays for lawsuits when a third party (someone your business doesn't employ) sues you over bodily injuries,
property damage, injured reputations, and a few other common lawsuits. You might need this coverage to sign a lease agreement, acquire a business licenses, or sign a contract with a client.
If you want to get more insurance but pay less for it, a Business Owner's Policy can help your Memphis-based business. BOPs are insurance bundles that contain General Liability Insurance and Property Insurance. By buying these together, you'll
qualify for a small business on your premiums. BOP Property Insurance covers property your business owns. If your workplace, computers, or other property is stolen or damaged by a covered claim, you can be reimbursed for the damages. Typically, Property
Insurance covers theft, fire damage, damage from some weather events, and vandalism.
Say a developer in Forrest City writes a mobile app that is hacked. His clients’ data is stolen from their iPhones, and the breach leads to a massive lawsuit. If the developer has Errors and Omissions Insurance (also called “Professional
Liability” coverage), the insurance company pays for the lawsuit and damages owed to his clients. E&O Insurance pays for professional liability lawsuits, which include client-side data breaches, missed deadlines, late delivery of work,
and other disputes with clients. Many vendors, clients, and general contractors require you to have this coverage in order to sign a contract with them.
Tennessee requires businesses with more than five employees to have Workers' Compensation Insurance (also called “Workers' Comp” or “Workman's Comp”). It pays for medical expenses, rehabilitation costs, and lost
wages when an employee is injured performing their job. If a coder gets carpal tunnel, this insurance pays for their surgery and occupational therapy. Many small-business owners also have Employer's Liability Insurance in their WC policy. This
coverage also pays for lawsuits related to Workman's Comp injury or illness. Do note that if your business has five or fewer employees and you elect not to have Workers' Comp, you're still liable for an employee's Workers'
Comp expenses. If an employee were injured, you'd have to pay out of pocket.
Some IT businesses will need Cyber Liability Insurance (also called “Cyber Risk Insurance” or “Data Breach Insurance”), while others won't. Any business that stores a lot of private
financial data on their own network needs Data Breach Insurance. This coverage pays for identify theft prevention, extra personnel, PR campaigns to restore your reputation, and other costs associated with a data breach. Errors and Omissions Insurance
also covers data breaches, but it covers a different variety: breaches on client computers. Nearly all IT businesses need E&O Insurance because they all have client-side data risks, but only some store enough private data on their own
computers to need Cyber Liability Insurance.
For a quote on IT Insurance, call an insurance agent at 1-800-668-7020 or submit an online insurance application.
We'll send you a free quote in, usually within 24 hours.