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Business Insurance for Tech and Software Companies

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Top business insurance policies for tech and software companies

Different types of small business insurance address different accidents, lawsuits, and damages that could impact your business. These policies cover the most common risks for software development and other tech companies and professionals.

General liability insurance

General liability insurance icon

This policy covers third-party business risks including customers' bodily injuries, property damage, and accidental copyright infringement. It's required for most commercial leases.

  • Slip-and-fall accidents
  • Damaged customer property
  • Intellectual property and defamation lawsuits

Technology errors and omissions insurance

Errors and omissions insurance icon

Technology errors and omissions insurance combines E&O (or professional liability) coverage for lawsuits related to your work performance and cyber insurance coverage for losses related to cybersecurity breaches.

  • Coding errors
  • Accusations of negligence
  • Work mistakes and oversights

Cyber liability insurance

Cyber liability insurance icon

This policy helps IT and software companies survive data breaches and cyberattacks. It pays for notification costs when credit card numbers or other customer data are exposed.

  • Data breach lawsuits
  • Customer notification expenses
  • Fraud monitoring costs

Business owner's policy

Business owner’s policy icon

A BOP bundles commercial property insurance and general liability insurance under one plan. It's often the most cost-effective type of commercial insurance for tech business owners.

  • Customer injuries
  • Damaged business property
  • Business interruption incidents

Workers’ comp insurance

Workers’ compensation insurance icon

Most states require workers' comp for tech companies that have employees. It also helps sole proprietors and independent IT contractors pay work-related medical costs that health insurance could deny.

  • Employee medical expenses
  • Partial missed wages
  • Lawsuits over work injuries

Fidelity bonds

Fidelity bond icon

If an employee at your tech business steals from a client, this bond would provide compensation for the client. You may also see it called an employee dishonesty bond.

  • Employee theft or fraud
  • Unlawful data access by an employee
  • Illegal funds transfer by an employee

Commercial auto insurance

Commercial auto insurance icon

This policy can help pay for expenses after an accident involving a vehicle owned by your tech company. You can extend it to include coverage for vehicle damage.

  • Car accidents
  • Vandalism and theft
  • Weather damage

Professional liability insurance

Professional liability insurance icon

This policy, also called errors and omissions insurance (E&O), protects small businesses that provide professional services or advice. It covers lawsuits related to work performance.

  • Work mistakes and oversights
  • Professional negligence lawsuits
  • Late or incomplete work

Commercial umbrella insurance

Umbrella / excess liability insurance icon

This policy boosts your current liability coverage when its limit is reached. It supplements general liability, commercial auto, and employer's liability insurance.

  • Additional general liability coverage
  • Additional commercial auto coverage
  • Additional employer's liability coverage

Business insurance costs for tech and software companies

An IT professional calculates insurance costs using a smartphone and clipboard.

From our customer data, here's a quick look at the average costs of common technology insurance policies:

General liability: $30 per month
Tech E&O: $67 per month
Workers' compensation: $34 per month
View more technology business insurance costs.

Start a free application to see how much insurance will cost for your business.

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Common questions about IT services and technology insurance

Why do small tech companies need business insurance?

Business insurance provides financial protection against common accidents in the tech industry that could cost a lot of money to resolve. But you don't just need it for your own protection.

Landlords, lenders, clients, and the law might require you to carry business insurance. For example, general liability insurance is often required for a commercial lease, while state laws mandate workers' compensation insurance for businesses once they hire a certain number of employees.

Learn more about why you need business insurance.

How do I get a certificate of insurance?

It's easy to get a certificate of insurance for your tech company with TechInsurance. These certificates are granted once you purchase an insurance policy, and you can use them to provide proof of coverage.

Simply fill out our easy online application, which asks for basic facts about your company. You'll receive free quotes from top-rated insurance carriers in minutes. Compare quotes and choose a policy, then pay the premium online. Once you've bought a policy, you can download a certificate by logging in to TechInsurance.

You can typically get your certificate of insurance the same day you apply for free quotes. A licensed insurance agent will help you every step of the way.

Do you offer insurance for my type of business?

TechInsurance provides insurance solutions for IT and software companies and contractors, as well as to small businesses in many other industries.

We also offer coverage for a wide range of business type and structures. That includes: