IT consultant liability insurance plays an important role in protecting your technology business, but as with any purchase you make, you want to get the most bang for your buck.
You can minimize your technology insurance costs without forgoing protection by bundling policies, comparing quotes, raising your deductible, purchasing only the coverage you need, classifying employees correctly, and upgrading your building security. Read on for more details.
1. Bundle IT Consultant Insurance Policies
Small, low-risk businesses – that's you, IT consultants – can save money on insurance with a Business Owner’s Policy. A BOP bundles two common policies at a discounted price:
These policies offer basic financial protection for your business, so why not save money by purchasing them together?
2. Compare Technology Insurance Quotes
Insurance isn’t some monolithic force; it’s an industry filled with competition and choices that the savvy consumer can work to their advantage. All you have to do is shop around and weigh your options.
One insurance company may be able to offer more affordable coverage simply because it prefers your type of business and your location. To start comparing technology business insurance policies today, fill out an online application with TechInsurance.
3. Raise Your Insurance Deductible
The deductible is what you pay out of pocket before your insurance company will pay its share on a claim. If you choose a policy with a higher deductible, the policy's premium is usually lower. It might seem like a no-brainer to choose the least expensive option, but keep in mind that taking a higher deductible means when a claim does occur, your financial responsibility is also higher.
That said, liability claims aren’t too frequent in independent IT consulting, so you may end up saving money by having a high-deductible policy.
4. Don’t Purchase IT Business Insurance You Don’t Need
Don't throw money away by paying for insurance you won't use or benefit from. Insurance for IT consultants generally comes down to a few essential policies:
Work with an insurance agent to ensure you buy the coverage your business needs and skip the rest. They can also help explain what each policy will and won't cover so you aren't taken by surprise when it's time to file a claim.
5. Make Sure Your Employees Are Properly Classified
If you have employees, you probably need Workers’ Compensation Insurance. But did you know that how your employees are classified affects your Workers’ Comp rate?
Make sure your insurer is using the proper classification codes for the type of work your employees do. If they’re misclassified, it could mean you’re paying too much (or too little) for Worker’s Comp.
6. Upgrade Your Building Security
You may reduce your Property Insurance premiums if you upgrade the security features in your office. For example, you may want to consider installing…
- Security cameras.
- Shatter-resistant windows.
- An alarm system.
Doing so may deter theft and subsequently cut down on Property Insurance claims. Be sure to run security updates by your insurance agent first to see if they qualify for a discount.