Companies of all sizes face the same basic risks, but independent contractors have little legal protection. Business insurance for IT independent contractors helps cover your liabilities to protect your personal assets.
The clients you work for and the type of work you do will determine the coverage you need. These policies cover the most common risks for independent contractors who work in the tech industry.
This policy protects independent contractors from the basic risks of working with clients. It's often required by client contracts and commercial leases.
Errors and omissions insurance (E&O) protects independent contractors from legal costs related to their work performance. It's also called professional liability insurance.
This policy provides independent contractors with financial protection against data breaches and cyberattacks. Bundle it with errors and omissions insurance in a package called tech E&O.
Workers' compensation insurance provides crucial protection against work-related medical costs, which health insurance could deny. Clients may require it in a contract.
A BOP combines general liability coverage with commercial property insurance at a discount. It protects independent contractors from common third-party lawsuits and property damage.
HNOA protects independent contractors from liability when driving personal, rented, or leased vehicles for work purposes. Each state has its own requirements for auto liability coverage limits.
Sometimes independent contractors and subcontractors are required to carry their own insurance. When you carry insurance, your clients gain peace of mind knowing that your business can handle a lawsuit, so any issues won't escalate to affect them. You can also ask clients to include you as an additional insured on their policy.
You may need insurance to fulfill the terms of a contract. Clients might require you to carry E&O insurance or workers' compensation to avoid potential legal costs or medical bills. Your landlord may also require a certificate of insurance as proof of general liability insurance or commercial property insurance.
You may need insurance to comply with the law. Vehicles registered to businesses must be covered by commercial auto insurance. This policy covers the cost of property damage, medical bills, and lawsuits if you get into a car accident. If you drive your own car for work, you'll want hired and non-owned auto insurance instead. This policy is less expensive and pays for your liability in using a personal, leased, or rented vehicle for work.
Independent contractors can save money on commercial insurance coverage with two packages common in the IT industry.
A BOP combines commercial property insurance with a general liability policy.
A general liability insurance policy is the coverage that most small business owners purchase first. It covers basic third-party (non-employee) liability claims, including bodily injury and property damage. The policy is especially beneficial for independent contractors who invite the public into an office or storefront, handle delicate client equipment, or have an active social media presence.
Commercial property insurance is critical for protecting your work equipment and your building, if you own it. This policy is valuable even if you’re renting an office space, as your landlord’s policy won’t cover your company’s belongings.
Tech E&O combines E&O and cyber liability insurance.
This policy is crucial for independent contractors in the tech industry and professional services, as it covers the cost of lawsuits over the quality of your work, including any security recommendations. It bundles errors and omissions insurance with both forms of cyber liability insurance:
First-party cyber liability insurance helps independent contractors recover from data breaches and cyberattacks. It covers the cost of credit monitoring services, crisis management, and cybersecurity incident investigations.
Thirty-party cyber liability insurance protects independent contractors if a client sues you for failing to prevent a data breach or cyberattack at their business. If you find yourself in this kind of dispute, it covers legal defense costs, settlements, and court-ordered judgments.
Chat with an insurance agent to find out more about bundles and discounts.
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