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Ask Us about Tech Insurance!

You've got questions - we've got answers!

Since launching TechInsurance in 1997, we've received thousands of questions about insurance from the owners of technology startups and small tech businesses. As technology our customers use has evolved over the years, so have their questions, but many of the issues are just as relevant today as they were way back then.

Who Is Covered Under My Liability Policies?

The answer depends on which business liability insurance policy you’re asking about. After all, every liability insurance policy is a little different. Let's take a look at some of the most common liability insurance policies for tech businesses and who these policies can cover.

Who Does General Liability Insurance Cover?

General Liability Insurance can typically cover…

  • Your IT business.
  • You.
  • Your employees.

It may also protect subcontractors if they are added as additional insureds to your policy. The policy may step in when any of these parties are sued for their role in causing third-party bodily injuries or property damage either at your office or a client’s. For example, if someone trips and falls at your office or an employee accidentally damages a client’s brand-new laptop, your policy may help cover expenses like…

  • Attorney fees.
  • Medical bills.
  • Damages you may owe.

For a more detailed look at General Liability Insurance, read our article “Answers to Technology Businesses’ Top Five General Liability Questions.

Who Does Errors & Omissions Insurance Cover?

Errors and Omissions (E&O) Insurance, also known as Professional Liability Insurance, can cover…

  • Your IT business.
  • You.
  • Your employees.

The policy can help pay for legal expenses (e.g., attorney fees and settlements or judgments) when you and your employees are sued over professional errors, such as…

  • Failing to deliver work on time.
  • Failing to fulfill scope requirements.
  • Failing to meet professional standards.

For a deeper dive into potential E&O claims you might face, check out “Part 2: Legal Risks for IT Professionals” in our eBook Errors & Omissions Insurance for IT Freelancers, Contractors, and Small Businesses: The Definitive Guide.

Contractors: The Wild Card

If you hire contractors to perform work on behalf of your business, insurance coverage can get a little murky. Contractors aren’t technically employees, so your liability insurance may or may not cover them. Take a look at your policy's actual language so you know who’s covered and who isn’t and up to what dollar amount.

If you regularly hire contractors, you might want to require them to have their own Errors & Omissions Insurance because of the chain of liability. In short, when something goes really wrong with a client, the alleged wronged party might sue everyone involved. If your contractors don’t have their own liability insurance, it can place more financial burden on your business.

It's also worth noting that some clients may not want to work with you if your contractors don’t carry their own coverage.

If you have more questions about the coverage limits of your liability policies, give our TechInsurance agents a call. They are happy to walk you through it.

70% of businesses raise prices or cut hiring when sued