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IT Business Insurance for Washington, D.C.

While it's long been said that Washington, D.C., is a "company town" because so many people work in jobs related to government, the city has seen a shakeup in recent years after an explosion of tech- and knowledge-based jobs changed the District's economy.

When you include suburbs like Alexandria, Virginia, and Arlington, Maryland, the District's metropolitan GDP is now over $400 billion – which ranks it the fourth best metro area in the country. Much of that new growth is due to startups, IT businesses, and other technical firms like yours.

Small Business Insurance: Protecting the D.C. Area Tech Community

It’s no secret that start-up and small-business owners often work with tight budgets. Businesses like yours need protection from unexpected costs – lawsuits, fires, injuries, and other incidents that could bankrupt your business. That’s where small business insurance comes in. Take a look at the policies we most often recommend to tech business owners in the D.C. metro area:

General Liability Insurance

Washington, D.C., businesses can get General Liability Insurance to cover a number of common lawsuit risks. Specifically, it covers lawsuits from clients and other third parties (non-employees) who sue you over property damage, injuries, libel, slander, advertising injuries, and slip-and-fall accidents – perhaps the most common lawsuit of them all. Let’s say someone walks into your office, trips, and falls, suffering an injury in the process. Fortunately, GL Insurance covers this and other personal injury lawsuits. Most policies also pay for immediate medical costs (such as an ambulance ride) in order to reduce the likelihood of a full-blown legal claim.

Business Owner’s Policy

BOPs are designed with small-business owners in mind: they cut the frills and deliver two vital policies – General Liability and Property Insurance – for less money. Whether you rent or own your office (or work from home), BOP Property coverage can be molded to suit your needs. Computers, technology, mobile devices, and other equipment located on your premises can be covered, as well as any commercial buildings you may own. Property Insurance usually covers fire damage, vandalism, certain weather events, and theft. If your property needs repairs or replacement after a covered event, your insurer sends you money.

Errors and Omissions Insurance

Errors & Omissions Insurance (also called “Professional Liability Insurance”) covers lawsuits related to an IT business's professional performance. In short, if you make a mistake that causes a client a loss, E&O Insurance can pay for the resulting lawsuit. This is especially important in the tech world because lawsuits can be huge. For example, if your work leads to a data breach on a client computer that results in identity theft, you could be looking at close to a million dollars in legal expenses. E&O Insurance covers client-side data breaches as well as disputes about missed deadlines, botched rollouts, delays, latency issues, compatibility problems, and the thousand other ways an IT project can go wrong.

Workers' Compensation Insurance

Compensation Insurance (also called “Workers' Comp” or “Workman's Comp”) covers medical bills when an employee is injury or made ill by a work-related cause. If an employee gets hurt performing work duties, Worker's Comp covers their medical bills and the salary you are required to pay them. Workers' Comp often includes Employer's Liability Insurance to cover employee injury lawsuits. This coverage is required in Washington, D.C. However, the District's law allows for an exception for certain micro businesses. If you are the only employee, you don't have to get coverage. But as soon as you hire any employee who works more than 240 hours during a business quarter, you must purchase Workers' Comp.

Cyber Liability Insurance

E&O Insurance covers client-side data breaches, but can’t cover breaches that occur at an IT professional's own network. For that, there's Cyber Liability Insurance (also called “Cyber Risk Insurance” or “Data Breach Insurance”). While it may be confusing to have two different types of insurance for two different types of data breaches, it actually makes sense. Not all businesses need Cyber Liability Insurance. It's only important for businesses that store a lot of private data (SSNs, credit cards, addresses, etc.) on their networks. Otherwise, you have all the coverage you need in your E and O policy.

For a free insurance quote, call a TechInsurance agent at 1-800- 688-7020 or submit an online insurance application. We'll customize a quote for your IT business and send it to you – usually in a matter of minutes.

Snapshot of Small IT Business Owners in Washington, D.C., Alexandria, and Arlington

  • 78% of District-area tech businesses work from home.
  • 13%of tech businesses are responsible for client data as part of their products and services.
  • The median revenue for a District-area tech business is $100,000.