Miami is not the first place one thinks of when contemplating the technology industry. Usually, Miami brings to mind warm beaches, Latin American flavor, and maybe LeBron James and Dwyane Wade. But over the past ten years Miami has become a hotbed of
startup activity, attracting angel investors and sparking the development of more community tech resources.
With shared workspaces and support centers like MEC261, The Lab Miami, Pipeline Brickell, and Venture Hive, Miami has become a wonderful place to start and operate your small tech business. And with numerous opportunities to interface with emerging Latin
American markets – where wireless, handheld, and other technologies are just starting to take off – it’s no wonder South Beach is turning into Silicon Beach.
As excited as you probably are to tap into these opportunities and make your mark in this innovative environment, it’s important to protect your bottom line. Without the appropriate small business insurance coverage, you risk the future of your
small or startup tech business.
Small Business Insurance for Tech Companies in Miami, Fort Lauderdale, and Pompano Beach
As a resident of Miami, Fort Lauderdale, or Pompano Beach, you know first-hand about changing fortunes. With less than 30 seconds to go in game six of the 2013 NBA Finals, it looked like your Miami Heat were done for the year. If you were at the game
or watching on TV, you might have seen the droves of people leaving American Airlines Arena to beat the traffic. But two offensive rebounds and a couple of missed free throws later and Ray Allen was saving the season.
Unfortunately, not all reversals of fortune are that positive. An accident or data breach can take your tech company from thriving to cash-starved. By investing in following types of small business insurance, you can prevent your company from ending up
like the 2013 San Antonio Spurs:
General Liability Insurance is a must-have for any small business, so much so that your commercial lease may require it. GL Insurance steps in when a non-employee sues you for premises liability, damaging their property, or advertising injuries (e.g.,
copyright infringement). While unlikely, it only takes one unfortunate day to produce high medical costs, property replacement expenses, and legal fees. GL Insurance covers all of those costs so they don’t come out of your company’s
Business Owner’s Policies (BOPs) are an efficient way to get multiple types of coverage for a price lower than you would otherwise pay. The standard BOP bundles together GL Insurance with Property Insurance, which protects your work premises in
case of fire, windstorms, or property crimes (e.g., theft or vandalism). As a Floridian, you don’t have to be told how damaging weather can be. With the Commercial Property Insurance included in a BOP, you can rest assured that your expensive
technical equipment and the structural integrity of your workspace are protected. Some small tech businesses will also find it useful to include Business Interruption Insurance in their BOPs. This coverage replaces your lost profits when a covered property event forces your business to temporarily close.
Being on the cutting edge of technology means that you have knowledge, skills, and experience that your clients most likely don’t have. While this makes your services or products valuable, it also sets you up for liability when things go wrong.
E&O Insurance (aka Professional Liability Insurance) covers you if one of those clients blames your technical product or service for causing a data breach or other financial loss. E and O Insurance covers your legal expenses when a disgruntled
end-user sues for these perceived errors.
If you have four or more part- or full-time employees, the Florida laws require you to carry Workman’s Comp Insurance. In the unfortunate event that one of your employees suffers an occupational injury, Workers’ Comp protects you and them
by covering their medical costs and lost wages. It can also pay for your legal fees if the injury turns into a lawsuit.
Cyber Liability Insurance comes in two flavors. Third-party Cyber Liability Insurance protects you if a data breach or other cyber attack happens on your client’s network. It’s included in your E&O policy, which is sufficient protection
for many small tech companies. But if you have sensitive information on your own computers, you probably need first-party Cyber Liability Insurance (also called Cyber Risk or Data Breach Insurance). If your own network is hacked, your coverage pays
to patch up the security breach, notify those whose information was stolen, and fund a PR campaign to rehabilitate your reputation.
To properly protect your small Miami-based tech company, call a TechInsurance agent at 1-800-668-7020, or fill out an online insurance application. You’ll receive
insurance quotes tailored to your tech business within minutes.