Cleveland has long been one of America’s industrial centers, but lately it has become a great place for technological development, too. Over 2,500 IT companies combine with high-tech resources like the NASA Glenn Research Center and the COSE Technology
Network to provide a vibrant, interactive community for tech entrepreneurs like you.
Opportunity, however, does not guarantee sustained success. Just ask the Cavs or Browns, who have routinely enjoyed high draft picks in recent years but haven’t even sniffed a championship (at least, not since LeBron left town). In order to sustain
the continued growth and accomplishment of your tech business, you need to protect your investments with IT business insurance.
Small Business Insurance for Tech Companies in Cleveland, Elyria, and Mentor
Whether your IT business provides products for individual consumers or supports Cleveland’s industrial and commercial base, your company faces risks particular to the tech sector. Those risks can generate unplanned (exorbitant) expenses, leaving
your business cash-strapped or in debt. By maintaining a well-calibrated combination of the following small business insurance policies, you can avoid the potentially disastrous consequences of an accident, data breach, or lawsuit:
General Liability Insurance is the bedrock of any small business insurance portfolio. GL Insurance protects your company if a non-employee gets hurt on your work premises or if your business activities damage third-party property. In the event of a lawsuit,
GL Insurance covers your legal costs, an injured party’s medical bills, and the cost of replacing or repairing damaged property. This includes intellectual property (meaning trademarks and copyrights), an important consideration for tech companies
that produce or host content. Just one unfortunate accident (someone slipping on a spot of spilled coffee and hitting their head, for instance) could cripple your business under ballooning costs.
If your business qualifies, you can purchase a Business Owner’s Policy (BOP), which bundles together GL Insurance and Commercial Property Insurance at a lower rate. Property Insurance compensates you for repair and replacement costs when fire,
windstorms, and property crimes damage your office and its contents (your equipment and furniture). Even if you rent or share workspace, you’ll likely need your own Property policy to cover your building’s contents. A BOP can also include
Business Interruption Insurance, which compensates you for lost income when a property event shuts down your business temporarily – an especially useful protection
for a young company without large cash reserves.
Because your business involves technical expertise, you’re vulnerable to getting sued by someone who thinks your service or product did not meet their expectations. E&O Insurance (sometimes called Professional Liability Insurance) covers your
legal costs when a customer or client sues you, claiming negligent, insufficient, unprofessional, or defective work on your part. Even if you weren’t at fault, E & O coverage pays for your legal defense fees, a small fortune in their own
right. E and O Insurance also includes third-party Cyber Liability Insurance, which kicks in when your client’s network gets hacked and they sue your business for “causing” the breach.
Ohio law requires employers to cover each employee with Workman’s Comp Insurance. The definition of an “employee” is broad under Ohio law, so even if you only have part-time workers or sometimes hire independent contractors, you
still might have to carry Workers’ Comp. A Workers’ Comp policy covers work-injured employees’ medical costs and pays their replacement wages during recovery. It also covers your legal costs when your employee sues over the injury.
As you know, any computer hooked up to a network is vulnerable to attack by identity thieves and other cyber criminals, no matter how good your security protocols. First-party Cyber Liability Insurance can help your business cope when sensitive third-party
data is stolen from your own network or computers. If you store customers’ financial or personal information on your network and suffer a data breach, first-party Cyber Liability Insurance pays for notifying affected parties, repairing holes
in your network security, and rehabilitating your injured reputation after the incident.
To properly protect your Cleveland-based IT business, contact a TechInsurance agent at 1-800-668-7020 to discuss your particular risks. You can also fill out an online insurance
application if you’d rather receive insurance quotes tailored to your tech business via email.