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6 policies every education technology professional should consider
State laws, clients, and landlords may require you to carry business insurance. These policies prevent financial losses in the event of an injury, property damage, lawsuit, or data breach.
General liability insurance
This policy protects edtech companies from basic third-party risks, and it's often required by contracts and leases. Bundle it with property insurance in a business owner's policy (BOP) for a discount.
- Accidental client injuries at your office
- Accidental damage to client property
- Libel, defamation, and copyright lawsuits
Cyber insurance
This policy helps your edtech business recover from a data breach or cyberattack. It's strongly recommended for any business that stores credit card numbers, customer addresses, or other personal information.
- Fraud detection and monitoring services
- Client notifications after a data breach
- Business interruptions from cyberattacks
Technology errors and omissions insurance
Tech E&O insurance covers legal costs related to work performance, such as a coding error in your learning technology that leads to downtime or data loss. It includes both E&O and cyber insurance.
- Outages and downtime
- Breach of service level agreement
- Legal costs from a client's data breach
Workers' comp insurance
Education technology companies that have employees usually need to buy this policy to comply with state laws. It also covers work-related medical bills for sole proprietors, which personal health insurance won't cover.
- Medical bills from work-related injuries
- Disability benefits while employees recover
- Workplace injury lawsuits
Commercial auto insurance
Commercial auto insurance covers the cost of accidents involving an edtech business's truck, van, or company car. Most states require this insurance coverage for vehicles owned by a business.
- Auto accident injuries
- Property damaged by your vehicle
- Legal costs from accidents
Fidelity bonds
If one of your employees steals from a client, a fidelity bond reimburses the client for the amount that was stolen. It's also called an employee dishonesty bond.
- Unlawful data access by your employee
- Illegal money transfer by your employee
- Other employee theft or fraud
How much does insurance cost for technology businesses?
Average costs come directly from policies purchased by TechInsurance customers.
General liability: $30 per month
Errors and omissions: $67 per month
View more expected costs.
Start a free application to see how much insurance will cost for your business.
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Common questions about business insurance for edtech companies
Should edtech independent contractors get business insurance?
Independent contractors and consultants take on many of the same risks as bigger businesses, but with fewer assets to pay for a costly lawsuit or injury. Business insurance can pay for medical bills, attorney's fees, and expensive repairs that you might otherwise have to pay for out of pocket.
Additionally, you may need insurance or a bond to sign a commercial lease, qualify for a loan, or fulfill the terms of a contract. Other policies like tech E&O are also crucial, as they can pay for legal costs if a client blames your edtech company for financial losses or a data breach.
While it's not required by law for sole proprietors, workers' comp covers job-related injuries that your personal health insurance won't cover, such as carpal tunnel syndrome. Contractors often buy business insurance because homeowner's insurance and other personal policies don't cover incidents related to your work.
What other business insurance policies should edtech startups buy?
Education technology companies may need additional insurance policies to protect against other risks, such as a fire that damages your office or equipment:
- Business owner's policy: A BOP bundles general liability coverage with commercial property insurance to protect against common lawsuits and business property damage. It's often required for client contracts and commercial leases.
- Business interruption insurance: This policy helps your edtech company recover financially from a temporary closure tied to a fire, storm, or other covered property claim. It's often included in your property insurance or BOP.
- Employment practices liability insurance (EPLI): This type of insurance covers lawsuits related to violations of an employee's rights, such as wrongful termination or discrimination.
- Directors and officers insurance (D&O): This coverage pays for legal costs when a board member or officer is sued for a decision they made on behalf of your edtech company.
What's the difference between first-party and third-party cyber insurance?
There are two kinds of cyber insurance, both equally important for edtech businesses:
- First-party cyber insurance protects against data breaches and cyberattacks that affect your edtech company directly, such as a DDoS attack that overwhelms your network.
- Third-party cyber insurance helps pay for legal costs when a client blames your edtech company for failing to prevent a data breach or cyberattack at their business. For example, a vulnerability in edtech software that your clients depend on could expose their customers' sensitive information.
When you buy tech E&O, it includes both types of cyber insurance, along with errors and omissions insurance to protect against other lawsuits from dissatisfied clients.
How can you save money on business insurance for edtech companies?
It's easy to save money on business insurance through a few simple steps:
- Shop around. Get quotes from several insurance companies to find pricing that matches your budget. TechInsurance makes this possible with one easy online application.
- Bundle policies. When you buy policies from the same provider, it's often possible to combine coverages for a discount.
- Pay the annual premium. Paying the full annual premium on your policy usually costs less than the monthly payments.
- Avoid claims that increase your premium. Reduce your risks by removing loose rugs and other tripping hazards, setting guidelines for social media posts, and documenting all communications with clients.