FOR IMMEDIATE RELEASE
Trend Watch: TechInsurance Notes Continuing Growth in Technology Services Businesses
Business insurance sales indicate a rise in small IT business startups, despite a generally weak economy
Dallas, TX——TechInsurance, the nation's top business insurance provider for information technology companies, is experiencing rising sales of business insurance to small technology firms, indicating growth in IT service startups despite a tough economy.
"We're insuring a lot of new technology businesses that are being launched by people who were laid off from large IT companies," said Jim Cochran, president and founder of TechInsurance. IT service providers are often required by client contracts to carry specific types of business insurance, and many small IT businesses elect coverage voluntarily to reduce the liability risks inherent in working with clients' sensitive data and valuable equipment. "When they get their first clients, they need professional liability, general liability, property, and other types of insurance, so our continued steady sales of these policies tell us that these small IT companies are getting off to a good start."
Another trend observed by TechInsurance: Growing sales of business insurance policies to IT professionals who were laid off from their full-time jobs and then hired back as independent contractors by the same companies that let them go. Such labor-on-demand arrangements allow companies to reduce their salary and benefits expenses while still meeting their IT needs, but require the newly minted contractors to find ways to protect themselves from a new set of business risks.
"During a weak economy, independent IT services tend to remain fairly stable," Cochran said. "As the companies these IT firms serve seek to cut their budgets, the first things to go are generally marketing and advertising. At the same time, these companies look to IT services to improve efficiencies and reduce costs when times are tight. When they're ready to start growing again, they look to technology to increase their ability to compete. That means more business for the customers we serve, and more insurance business for us." As an online insurance agency, TechInsurance makes it easy and efficient for technology service startups to get the insurance policies they need at a rate that fits within a new-business budget.
TechInsurance provides business insurance exclusively to small and mid-sized IT service companies, making it a trusted risk and insurance resource for new IT startups. Overall, many of the more than 15,000 businesses that TechInsurance serves continue to report revenues that are comparable to or better than those reported throughout the last two years.
TechInsurance is the nation's leading online insurance agent for small and micro businesses (those with 10 or fewer employees). Since its launch in 1997, TechInsurance has provided a convenient online destination where IT and technology consultants, contractors, and business owners can find essential liability insurance coverage from top-rated providers by completing an application process that takes only a matter of minutes. In addition to offering third-party Cyber Liability Insurance policies, TechInsurance offers General Liability, Property, and Workers' Compensation Insurance. For more details about TechInsurance, visit the company's website at http://www.techinsurance.com.
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Mark Meadows, Propllr LLC
302-353-8258, [email protected]