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IT Business Insurance for Tucson, AZ

Tucson has a unique combination of urbanity and natural beauty. Without a freeway network as dense as other western cities like Phoenix, Las Vegas, or Denver, Tucson boasts some of the cleanest air in the nation, making hiking in the foothills of the Catalina Mountains or biking around town more enjoyable. Add in Tucson’s low cost of living (around ten percent lower than the national average) and the “Old Pueblo” makes a lot of sense as a home base for any active tech entrepreneur.

Small Business Insurance for Tech Companies in Tucson

Tucson’s tech scene is on the upswing. Over the past ten years, community organizations and motivated local investors have built up quite a support system in the city and around Arizona. Tucson has long enjoyed the tech transfer opportunities and funding surrounding the aerospace and defense industries (with Raytheon and Sargent Aerospace & Defense acting as pillars of the local tech community). But increasingly, Tucson has become home to smaller enterprises supported by a large stable of incubators and shared workspaces. Whereas ten years ago there were only three active incubators in all of Arizona, now there are 30, including Tech Launch Arizona, Startup Tucson, the CoLab Workspace, and the Arizona Center for Innovation.

If you want your tech company to keep up with Tucson’s emergence as a tech hub, you should take some time to make sure your assets and investments are protected. The following IT business insurance policies can raft your business through a slew of unexpected hits:

General Liability Insurance

When a guest is injured on your company’s property, you’re not just liable for their initial medical costs (e.g., hospital bills). You’re potentially liable for all medical complications that follow, as well as your own legal defense expenses. So while the possibility of an accident in the tech business seems small, even a minor injury can lead to exorbitant litigation costs. General Liability Insurance makes sure these potentially enormous costs don’t bankrupt your business. GL Insurance also provides protection in the event your tech company is sued for trademark or copyright infringement, a key consideration for any firm that hosts or creates digital media content.

Business Owner’s Policy

Business Owner’s Policies (BOPs) are available to certain low-risk small businesses. A standard BOP combines GL Insurance with Commercial Property Insurance at a lower premium. Considering Tucson’s relatively high rate of property crimes, you’ll want Commercial Property Insurance to cover repair or replacement costs when a vandal damages your office or when a thief steals your computers. Property Insurance also covers damage or loss by fire and certain weather events. Additionally, your BOP may include Business Interruption Insurance, which compensates you for lost revenue if a covered property event shuts down your business temporarily.

Errors and Omissions Insurance

If a customer or client blames your tech product or service for their data loss or other financial injury, E&O Insurance (also called Professional Liability Insurance) pays your lawyer’s fees, court costs, and settlement or judgment expenses. E and O Insurance also includes third-party Cyber Liability Insurance, which helps cover the potentially devastating costs associated with a security breach or identity theft on your customers’ networks.

Workers’ Compensation Insurance

Arizona state law requires all Arizona employers to carry Workman’s Comp Insurance. Workers’ Comp protects your employees by paying their medical bills, rehabilitation costs, and lost wages if they are hurt on the job. Workman’s Comp also protects you by covering your litigation expenses if your injured employee sues. Even if you only employ part-time workers or family members, you still need to carry Workers’ Comp coverage.

Cyber Liability Insurance

In the Old West, bandits made the roads unsafe, preying on vulnerable travelers just trying to get to town. Today, Internet thieves roam our cyber networks, preying on vulnerable network security protocols. Attacks on small businesses by hackers and identity thieves account for 70 percent of cyber crimes. So if you have any sensitive third-party information on your servers (from credit card information to confidential business data), you’d best protect yourself with first-party Cyber Liability Insurance. Your Cyber Liability policy covers many costs, large and small, that flow from a data security breach, including remedial measures to repair both your network security holes and your reputation in the marketplace.

The right combination of IT business insurance policies can be the difference between a successful business and a failed one. Call a TechInsurance agent at 1-800-668-7020 or fill out an online insurance application now to receive quotes for your Tucon-based tech business.

Snapshot of Small IT Business Owners in Tucson

  • 79% of Tucson-based IT professionals work out of their home.
  • 57% of Tucson tech businesses are responsible for their clients’ data as part of their services.
  • Tucson IT businesses clear a median of $80,000 a year in revenue.