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IT Business Insurance for Austin, TX

Deep in the heart of Texas is a tech stronghold: Austin has been ranked No. 1 by the Business Journal for its overall economic outlook and wellbeing. With the University of Texas right in town and the SXSW festival as an annual staple, it's no surprise that there are so many tech companies in the "Silicon Hills."

But Austin-based tech companies, like all small businesses, require a bit of protection to secure their futures: IT business insurance. Read on to learn more.

TechInsurance: Keeping Austin Insured

Whether you run a freelance IT consulting firm in Round Rock or a mobile development startup within walking distance to Sixth Street, Austin-area business owners face risks everyday. Lawsuits, property damage, professional liabilities, Workers' Comp injuries, and data breaches can all lead to six- or seven-figure debts.

Fortunately, small business insurance can cover these liabilities and more, helping you survive unexpected bumps in the road. Here are the policies we most often recommend to Austin businesses:

General Liability Insurance

General Liability Insurance covers lawsuits over bodily injuries, property damages, and injured reputations caused by your business. However, GL Insurance only covers third-party lawsuits. These are lawsuits filed against you by clients, vendors, and other non-employees. For instance, if a deliveryman is injured on your property, General Liability Insurance covers your attorney’s fees, court costs, and any damages you owe the deliveryman (up to your policy’s stated limits). In addition, many policies also cover the immediate medical costs of third-parties who are injured on your property. This will help you avoid the hassle of a lawsuit.

Business Owner's Policy

A Business Owners' Policy offers small-business owners General Liability and Property coverage together for a discounted price. These policies are a smart way for budget-conscious small-business owners in Austin to save a little bit of money. A BOP Property Insurance policy can pay to replace or repair commercial property your business owns when it’s lost or damaged in certain circumstances. Fires, theft, certain weather damage, and vandalism are all usually covered. So if the offices of a computer repair technician in Round Rock burn down, their Property Insurance provider will pay for the cost to replace lost equipment and repair the damaged building (if they own it).

Errors and Omissions Insurance

Errors and Omissions Insurance is especially important for Austin IT companies for two reasons: 1) many of your contracts require it, and 2) it covers lawsuits over client data breaches. When a client's network is hacked, IT contractors can be sued. Let's say a system admin forgets to update their client's Adobe ColdFusion software, which exposes them to an old security vulnerability. In this case, E&O Insurance can cover the lawsuit. The same applies for mobile developers, IT contractors, and other techies whose work contains a security flaw. In addition, E & O Insurance covers your other tech professional liabilities like software bugs, performance issues, missed deadlines, and other client lawsuits.

Workers' Compensation Insurance

While Texas doesn't require businesses to purchase Workers' Compensation Insurance (also called Workman's Comp or Workers' Comp), your business is still liable for accidents and illnesses caused by your work. If an employee is injured on the job, you're legally responsible for paying their medical expenses and lost wages. Workers' Comp covers this cost. It can also pay for related lawsuits if your policy contains Employer's Liability Insurance.

Cyber Liability Insurance

Cyber Liability Insurance (also called “Data Breach Insurance” or “Cyber Risk Insurance”) covers first-party data breaches, which are the ones that occur on your firm's computers. If you are directly hacked, Cyber Liability Insurance pays for credit monitoring for your customers, investigations into the cause and extent of the breach, the cost to contact parties affected by the breach, and other responses to the cyber attack. What if you don't store much private data on your firm's computers? Then you don't need Cyber Liability Insurance. In fact, most IT companies don't need Cyber Liability Insurance because they are only at risk for third-party breaches, which are covered under their E & O policies.

For a free customized insurance quote from agents who know IT liabilities, give us a call at 1-800-668-7020. Or fill out an online insurance application, and we'll email you a free insurance quote.

Snapshot of IT Business Owners in the Austin and Round Rock Area

  • 81% of Austin and Round Rock IT business owners work from home.
  • 23% are responsible for client data as a part of their products or services.
  • The median amount of revenue is $100,000 for Austin and Round Rock IT businesses.