With an economy of around $350 billion, Philadelphia is more than the city of brotherly love – it's an epicenter for business growth and development. That economy is built from big tech companies like Comcast as well as small IT startups and
tech service businesses like your own.
And just like the big boys, startups and small businesses need commercial insurance to order to protect their assets and mitigate risk. Read on to learn about the small business insurance policies that can help you.
How Small Business Insurance Can Protect Your Philadelphia Area Business
Small business insurance is one of the most vital investments IT companies make because it protects them from the costs of lawsuits, property damage, and other expenses that could break their budgets. That's something that Philadelphia Phillies,
Eagles, and Flyers fans of all stripes can get behind.
When a developer in Camden is sued for a software bug or a computer repair shop is burglarized, small business insurance helps these businesses stay on their
feet. Let's look at some of the basic business coverages and how they protect IT businesses:
General Liability Insurance covers third-party lawsuits, which are lawsuits from people outside your business like clients, vendors, subcontractors, and other non-employees. Covered lawsuits include those related to bodily injuries, property damage, intellectual
property infringement, and injured reputations. Many businesses buy this coverage as soon as they are founded and need it to sign a lease and meet other legal requirements. That’s because General Liability Insurance covers lawsuits from someone
slipping and falling on your property and other common business lawsuits.
A Business Owner's Policy (or BOP) is a combination insurance policy that bundles General Liability and Property Insurance into one package. The advantage of a BOP is that it usually has a lower insurance premium. Businesses with BOP Property Insurance
are covered when a fire, act of vandalism, theft, or wind damages their property. When this happens, your insurance company can reimburse you for the lost or damaged property, sending you a check to help get your business up and running faster than
Rocky sprinting up the steps of the Philadelphia Museum of Art. Well, maybe not that fast. But you get the idea.
Errors and Omissions Insurance covers IT businesses from third-party data breach lawsuits, software liability, and other risks related to the job they perform. A third-party data breach is one that happens on a client device or network. E&O Insurance
covers lawsuits over these breaches. (It doesn't cover breaches on your own network, though. You need Cyber Liability Insurance for that.) Many clients require you to have E&O Insurance and will list a specific minimum coverage amount in
their contracts. If you buy an E&O policy but need to increase it when you sign a new contract, don't worry. Our agents make the process simple and help you get a new Insurance Certificate ASAP.
Pennsylvania law requires employers with at least one employee to have Workers' Compensation Insurance (also called “Workers' Comp” or “Workman's Comp”). This policy pays for employee injuries, medical expenses,
and lawsuits related to workplace accidents and illnesses. According to Pennsylvania’s Worker’s Comp laws, sole proprietors, corporate officers, and partners don't have to be covered by Workers' Comp. That means, if you don't
have any other employees, you probably won't have to purchase Workman's Comp coverage.
First-party data breaches are those that occur on your own network and devices. Expenses related to these breaches are covered by Cyber Liability Insurance (also called “Data Breach Insurance”). If your network data is exposed via malware
or employee error, you could have to pay for credit monitoring for affected customers (to prevent identity theft), investigations, and a half dozen other expenses related to the "clean-up." Cyber Liability Insurance covers these costs. However,
not all IT companies need Cyber Liability Insurance. Many IT companies don't store much customer data. If they access any private data, it's only when they work on their client's network. For these companies, E&O Insurance covers
their third-party liability (for client data breaches), and they don't need first-party coverage through Cyber Risk Insurance.
Our insurance agents specialize in finding insurance coverage for small tech businesses. We find the coverage you need, help you meet legal requirements, and help you save money. To get a free TechInsurance quote, call an insurance agent at 1-800-668-7020
or submit an online insurance application to receive a quote via email – usually within minutes.