Though New York City is most famous for its Yankees, Mets, pizza, and subway system that leaves tourists scratching their heads, there's something new going on. Over the last few years, the NYC tech industry has become the city's second largest
source of economic growth and now supports over 200,000 jobs. Whether you're a part of the so-called Silicon Alley start-up community or an internet / cable installer running wire through homes on Long Island, small business insurance can be
customized to cover your specific tech liabilities.
Small Business Insurance: Protecting the Little Guy in New York
New York City is the second largest urban economy in the world and boasts a GDP of well over $1 trillion. And down on the frontlines of this giant economy is you, the small-business owner.
When you're competing against multi-million dollar companies, you simply can't afford the unexpected costs of lawsuits, property damage, or workplace injuries. That's where business insurance comes in. Small business insurance protects
small tech companies from lawsuits and other expenses you can't afford.
Did you know that lawsuits often cost $100,000 or more? Given the price of rent in the city, it’s unlikely you have that kind of money to waste on a lawsuit. To protect your business from these costs, cover your tech liabilities, and meet state
requirements, you'll need a combination of the following policies:
General Liability Insurance covers many of your basic liabilities. If a third party (i.e., a non-employee) sues your business over an injury or property damage, GL Insurance can cover your legal expenses. It also covers trademark and copyright infringement,
which is important coverage for app and web developers. Many lease agreements and business agreements will require you to have this coverage.
BOPs are small business insurance packages that combine General Liability Insurance and Property Insurance. Buy these two policies together through a BOP and you'll qualify for a lower premium. Property Insurance covers the cost of replacing equipment,
technology, and other property lost or damaged by a covered event. Property Insurance typically covers fire, theft, vandalism, and certain weather damage.
Like Malpractice Insurance for doctors, E&O Insurance (also called Professional Liability Insurance) pays for lawsuits when you make a mistake performing an IT task for a client. E&O covers software bugs, testing errors, latency problems, and
other issues clients might have with your work. E&O Insurance also covers third-party cyber liability lawsuits. That means that if a data breach occurs on your client's network, E&O Insurance will protect you from lawsuits
related to identity theft, damages, data loss, and more. Because of this, E&O Insurance is one of the most important policies for tech companies.
New York State law requires employers to have Workers' Compensation Insurance. Workers' Comp / Workman's Comp pays for an employee's medical expenses and lost wages if they are injured on the job. It can also pay the employer's
legal expenses if an injured worker sues them. Important note: If you are the company's only employee (or the other employees are all partners in the business), you aren't required to purchase Workers' Comp. If you
have any questions about your legal requirements, our insurance agents will help you sort them out.
Not all IT companies need Cyber Liability Insurance (sometimes called “Cyber Risk Insurance” or “Data Breach Insurance”). As mentioned above, E&O Insurance covers data breach lawsuits when a breach happens on a client computer.
For most IT businesses, E&O provides all the coverage they need. But business intelligence, web hosting, data mining, and other IT firms who store a lot of customer information
on their own networks might need Cyber Liability Insurance. CL coverage pays for resources to prevent identity theft after a breach and helps your business recover after it's been hacked.
To learn more about IT business insurance for small businesses in New York City, call a TechInsurance agent at 1-800-668-7020. You can also fill out an online insurance application and we'll send you a free insurance quote for policies customized to cover your tech liabilities.