Wichita is a city of small charms: from the Ring of Fire burning around the Keeper of the Plains, to the Old Town Farmer’s Market, to the Final Friday Art Crawl, little bits of culture accentuate the low-cost and easy living in the middle of the
Heartland. The quality of life combined with the dynamism of the Air Capital of the World combine to make Wichita an intriguing place to found your tech business.
Small Business Insurance for Tech Companies in Wichita
As a tech entrepreneur, you know the excitement of building something from nothing. And as a tech entrepreneur in Wichita, you get to see growth not only in your own business, but in the tech ecosystem around you. According to a study by the Kauffman Foundation, Wichita’s high-tech startup density has increased 40 percent since 1990. New community resources like the growing angel-investment network, a tech incubator at Wichita State, and the development
of Startup Wichita support innovators like you. In ten years, companies like yours might make Wichita the hot new tech city on the Silicon Prairie.
For that to happen, though, you need to protect your investments. An unlucky accident, pesky lawsuit, or data breach can devastate your tech company, which is why you should consider carrying the following IT business insurance policies:
Imagine this: the UPS guy is delivering some juicy new hardware to your front door. Unfortunately, he trips on your doormat, falls, and hits his head on the corner of a desk. And because the accident happened on your property, you’re liable for
his medical expenses. General Liability Insurance makes sure you’re covered for just such bad days by paying for an injured guest’s medical costs and your own legal costs in case they sue. And if your tech company specializes in content
creation or hosting, GL Insurance also protects you in the event of a trademark or copyright infringement claim.
As a small IT business owner, every little cost counts. A Business Owner’s Policy (BOP) is a way you can get the fundamental coverage of GL Insurance and Commercial Property Insurance more cheaply than buying each policy separately. A BOP covers
not only for injuries to your guests, but damage to your office space (and all the equipment and furniture you have inside) caused by fire, windstorms, theft, or vandalism. A BOP can also include Business Interruption Insurance,
a useful policy for those times when a covered property event temporarily shuts down your business. It pays your lost income while your office is being repaired, ensuring that one of those bad Kansas storms doesn’t bankrupt your company.
What happens if the software you developed crashes your clients’ systems or makes them susceptible to cyber attacks? E&O Insurance (also called Professional Liability Insurance) covers you when disgruntled clients sue you, claiming your product
or tech service caused their financial losses or data breach. Even if it wasn’t your fault, E & O Insurance covers your lawyer’s fees and other associated costs – costs that can accumulate into tens of thousands of dollars.
Kansas law requires all employers with a total payroll over $20,000 per year to carry Workman’s Comp Insurance for their employees. Workers’ Comp protects your employees by covering their medical costs and lost wages if they’re injured
or become sick because of their work. Workers’ Comp also protects you by covering the cost of your legal expenses if your employee sues over the injury. Because the definition of “employee” under Kansas’s Workers’
Compensation law is broad and technical, it’s a good idea to speak with an insurance agent to determine your exact obligations.
While your E&O Insurance covers data breaches on your clients’ networks, it does not cover security lapses on your own servers. An additional first-party Cyber Liability policy is necessary for any tech company that keeps third-party financial,
personal, or other sensitive information on its own computers. If you get hacked and a cyber thief steals third-party information, you could face massive liabilities and cleanup costs. Cyber Liability Insurance keeps those costs from decimating your
cash reserves by covering communication with affected third parties, fixing security holes, and paying for public-relations measures that can save your reputation.
Your Wichita-based tech company needs the proper IT business insurance to weather the ups and downs of doing business. Contact a TechInsurance agent at 1-800-668-7020 or fill out an online insurance application to receive quotes tailored to your tech company.