Ohio has a lot to offer small-business owners. In fact, in our report Best Places to Live for Tech Entrepreneurs, two Ohio cities got shoutouts: Cleveland, for its scrappiness, and Cincinnati, for its family friendliness. Both cities also earned kudos for their supportive communities and their reasonable cost of living. But even if you're not in one of these hotbeds of entrepreneurial activity, the Buckeye State has plenty to love.
Cost-Saving Tips for IT Businesses in Ohio
- Tip #1: Because you never know when disaster may strike, it's important to look into a Business Owner's Policy. As mentioned on this page, a BOP combines General Liability and Property Insurance in a single package. What's more, it also provides Business Interruption Insurance, which can help save your business should it be struck by a natural disaster. With Business Interruption Insurance, you don't have to worry about being closed down indefinitely – it provides funds to replace lost profits and the cost of relocation.
- Tip #2: When exploring your business insurance options, make sure you do your homework. That's why it's a good idea to check with a TechInsurance agent before firmly committing to any insurance policies – we have established relationships with top-rated insurance providers and can provide multiple quotes within 24 hours of your completing an application. We understand how important it is to save money on monthly premiums – especially when you're required by state laws to carry certain packages, like Workers' Compensation Insurance.
- Tip #3: At the end of the day, there's one more policy any IT business owner should consider carrying: Umbrella Insurance. This policy offers supplemental funds to certain packages that have reached their policy limit, including General Liability, Employer's Liability (a part of Workers' Comp), and Hired and Non-Owned Auto Liability. If you're faced with a lawsuit covered by any of these policies that exceeds the policy's limit, an Umbrella policy can cover the difference.
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If you're looking for a safe state to do low-cost business – one that's friendly to technology and innovation – Ohio is a great place to open your IT startup. In fact, Columbus, OH, a lesser known gem of the state, is one of the best places for business and careers, which means there's no lack of potential clients. But as you expand the clientele you serve, you also increase your exposure to risks you may not have accounted for in your IT businesses risk management strategy. That's where TechInsurance comes in.
Top Insurance Policies for IT Businesses in Cincinnati, Columbus, Cleveland, and Other Cities in Ohio
Here at TechInsurance, our job is to make sure you're educated on the policies that best suit your IT business's needs. We keep you up to date on Workers' Compensation laws and inform you of risks you may not have previously considered. From third-party lawsuits to your potential to take on property damage, you never know what each day may bring. Consider the following policies essential to your IT business's long-term success.
The Business Owner's Policy for Ohio-Based IT Businesses
As the backbone for your IT business's insurance package, consider a Business Owner's Policy (or BOP). Available to those considered "low-risk" by insurance companies, a BOP combines General Liability and Property Insurance into a single package. And because you're combining these two crucial policies into one, you typically spend less than if you were to purchase them separately.
With a BOP, you're protected from third-party lawsuits and certain events that may cause damage to valuable business assets. This means that if you're the victim of theft, fire, or natural disaster, you won't have to worry about paying out of pocket for repairs or replacement costs – which in some cases may be tens of thousands of dollars.
What's more, a BOP protects you from lawsuits filed against you by non-employees. Though rare, these cases are a real threat to IT businesses. And when they do happen, the financial repercussions can be disastrous. Some potential lawsuits your IT business may face include...
- Bodily harm.
- Damage to a client's property.
- Advertising injury.
- Copyright infringement.
Finally, a BOP can also offer Business Interruption Insurance, which comes in handy should you need to close your doors for an extended period of time because of covered property damage. With Business Interruption Insurance, you won't have to worry about paying for expenses that continue to pile up regardless of whether you're open or closed. This includes taxes, business loans, wages for valued employees, and in some cases, utility bills.
If you're currently operating without Property Insurance or General Liability Insurance, check with a TechInsurance agent to see if you qualify for a Business Owner's Policy.
Errors & Omissions Insurance for IT Businesses in Ohio
An essential policy for any IT business to carry, regardless of size, is Errors and Omissions Insurance (also called Professional Liability Insurance). This policy protects your business from lawsuits alleging you were negligent in providing services to a client. So if you're tapped to administer the customer database for a local bank, but for whatever reason they're unhappy with the quality of the results, you won't have to dip into your own pockets to combat a potential lawsuit, should they file one against you.
Generally, E&O policies protect your business from the fallout associated with errors or oversights made by you or an employee. Because we're all human, this policy is necessary for any IT business, especially those with contracts involving sensitive information, or with clients who absolutely require your work to be standards-compliant and punctual.
Errors and Omissions Insurance even protects against lawsuits that have no merit, so you'll rest easy knowing that even if the charges against you are bogus, you won't have to lose money to defend your case in court.
Workers' Compensation Insurance for IT Businesses in Ohio
Ohio state law mandates that any business with even one employee must carry Workers' Compensation Insurance. However, there are plenty of reasons beside state laws for an IT business to carry Workers' Compensation.
Workers' Compensation protects against common workplace injuries like carpal tunnel syndrome, repetitive motion injuries, slips, trips, falls, and sudden accidents. Even though your work environment is considered safer than most, you never know when an employee may slip on workspace clutter, or try working through carpal tunnel discomfort and end up unable to perform their duties for an extended period of time.
As an employer, you don't want to have to dip into your own savings for Workers' Comp-related expenses, including...
- Hospital bills associated with the injury.
- Wages while an employee recovers.
- Potential fines associated with not carrying Workers' Compensation.
To find out more about how you can be compliant with Ohio state Workman's Comp laws, contact a TechInsurance agent.
Employment Practices Liability Insurance for IT Businesses in Ohio
It's true, too, that with the success of growing your IT business comes the possibility that you'll be sued by an employee for employment practices violations. These include, but aren't limited to, wrongful termination, discrimination, and harassment.
Like third-party lawsuits, these claims can be financially devastating if they're successful, often causing IT business owners to file for bankruptcy on account of large settlements. With Employment Practices Liability Insurance (EPLI), however, you're financially secure from these claims.
Other possible lawsuits covered by EPLI include...
- Negligent compensation practices.
- Discrimination based on sex, age, religion, or sexual orientation.
- Breach of contract.
- Wrongful use of employee benefits.
Don't let your IT business suffer from a lawsuit like those listed above – contact a TechInsurance agent today to find out more about this essential policy.
STATE INSURANCE LINKS
- < Now Hiring? Start off Right with Employment Contracts
Recruiting and retaining top employees is often a challenge. Getting started with a clear understanding of duties and expectations is critical is your relationship with your employees. That's why many companies now make employment contracts a standard part of their hiring processes.
- Client Contract Requirements: Is There Such a Thing as Too Much Insurance?
You've got pen in hand, ready to sign a new client contract, and then you glance at the fine print. It says that to get the work, your IT business needs to carry five different kinds of insurance. That can't be right! Or can it?