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IT Business Insurance for Chicago, IL

Despite its reputation as an industrial and financial capital, Chicago boasts more tech industry jobs than any other city in the country – take that New York and San Francisco! Its 45,000 IT companies employ almost 350,000 Chicagoans, White Sox and Cubs fans alike.

The number of digital startups in Chicago has grown by 90 percent over the last few years, and your IT venture is a part of this new wave of Windy City business. But as a small-business owner, it's easy to get caught up in day-to-day operations and forget about protecting your investments. That's where small business insurance can help out.

Second City, Meet First Rate Coverage from TechInsurance

Business insurance covers expenses that could sink most small IT companies and tech startups. One lawsuit can end up costing more than $100,000. An IT freelancer in Naperville likely won’t be able to afford that. Business insurance can cover the costs of many common lawsuits, property damage expenses, and workplace injuries. Take a look at the following policies:

General Liability Insurance

Almost every business purchases a General Liability policy, which covers numerous third-party lawsuits (i.e., lawsuits from non-employees). General Liability can pay for lawsuits over property damage, injured reputations, personal injury, and trademark / copyright infringement. Common GL lawsuits include slip-and-fall accidents on your property and damage you might cause your landlord's property (often due to fire).

Business Owner's Policy

A BOP bundles General Liability Insurance and Property Insurance into one package. BOPs usually have lower premiums because they are offered to businesses with lower risks. Although not all small businesses qualify for a Business Owner's Policy, most small tech companies will. The Property Insurance included in a BOP can help a small business rebuild after a devastating property loss. Theft, fire damage, vandalism, and certain weather events are all covered under the Property Insurance portion of your BOP. When these scenarios happen, your insurance company can pay to repair or replace your damaged business property.

Errors and Omissions Insurance

E and O Insurance (also called Professional Liability Insurance) covers tech lawsuits related to your professional duties. For example, if your software has a bug or you deliver a project late, E & O can cover the resulting lawsuit. Sometimes, clients allege you've made a mistake, even when you haven't. In these scenarios, E and O Insurance can cover your legal expenses. E and O policies also cover third-party data breaches and identity theft lawsuits. If a breach happens on a client network / device, your E&O policy can pay for the lawsuit.

Workers' Compensation Insurance

Most businesses have to carry Workers' Compensation Insurance (also called Workers' Comp or Workman's Comp) in order to meet state requirements. A Workman's Comp policy pays for the medical costs of a workplace accident and the wages an employee misses when they can't work. In addition, most Workers' Comp coverage includes Employer's Liability Insurance, which pays for Workers' Comp lawsuits (i.e., when an employee sues you). Small business note: If you're a freelancer or microbusiness you might not have to buy this coverage. Businesses that only employ the founder(s) of the company are often excluded from these coverage requirements.

Cyber Liability Insurance

We discussed how E&O Insurance covers client-side data breaches, but what happens when your own computers are hacked? First-party data breaches (hacks on your own networks and devices) are covered under a separate insurance, Cyber Liability Insurance, which pays for your response to the attack. CL Insurance (also called Data Breach Insurance or Cyber Risk Insurance) pays for data breach investigations, credit monitoring to prevent identity theft, and other expenses you will have if your business is hacked or unintentionally discloses private data. Not all IT businesses need Cyber Liability Insurance. In fact, most do not. Most businesses only need to worry about client-side data breaches because they don't have a lot of private data on their networks. However, IT companies that host data on their servers or otherwise have lots of private data on their networks might need Cyber liability Insurance.

For a free, detailed insurance quote for IT coverage, contact an insurance agent at 1-800-668-7020 or fill out an an online insurance application

Snapshot of Small IT Businesses in Chicago, Naperville, and Joliet

  • 75% of Chicago, Naperville and Joliet tech business owners work from home.
  • 37% are responsible for client data as a part of their products and services.
  • The average tech business subcontracts 34% of its annual work to third parties.