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How much does business insurance cost for web designers?

Web design business insurance costs are based on policy limits, deductibles, types of policies purchased, and several other factors. Save money on small business insurance by comparing quotes from different carriers with TechInsurance.

Key web design insurance policies and their expected costs

Here are the top insurance coverages bought by website design businesses and their average monthly costs:

Our figures are sourced from the median cost of policies for web design companies who apply for quotes with TechInsurance. The median provides a better estimate of your expected insurance costs because it excludes outlier high and low premiums.

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Tech errors and omissions insurance coverage

Web design businesses spend an average of $68 per month, or $810 yearly, for technology errors and omissions insurance. This combined coverage bundles errors and omissions insurance and cyber insurance into one policy, often costing less than buying each coverage separately.

Also known as professional liability insurance, E&O insurance protects small businesses against claims of professional negligence. For example, suppose a web designer created a great website for a client, but a broken link in it caused the client financial loss. They could sue, resulting in a costly lawsuit.

Tech E&O includes third-party cyber insurance with this coverage, which adds extra protection in case your web design services unintentionally cause a data breach or cyberattack at a customer's company.

Below is the average E&O policy for web designers and UX / UI designers who purchase from TechInsurance:

Insurance premium: $68 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $2,500

Errors and omissions insurance costs for web designers are based on many factors, including the coverage limits you choose, the types of professional services you provide, and your claims history.

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Cyber insurance for web designers

Web design companies spend an average of $170 per month, or $2,041 annually, for cyber insurance. Also known as cyber liability insurance or cybersecurity insurance, this policy helps pay for the cost of complying with your state's data breach laws.

Cyber insurance covers expenses related to a data breach or cyberattack, including legal fees and customer notification costs. It is especially crucial for companies that store personal customer information, such as credit card numbers or Social Security numbers.

The cost of cyber insurance primarily depends on the amount of sensitive information you handle at your web design firm.

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General liability insurance for web designers

Web design startups spend an average of $29 per month, or $350 per year, for general liability insurance. Though usually not required by law, a general liability policy may be needed in order to sign a lease or work with some clients.

General liability insurance for web designers protects your small business from common third-party risks, such as customer property damage or bodily injury. It also pays for lawsuits related to copyright infringement and advertising injury, including slander and libel.

For example, if a competitor claims that an UX designer at your web design company made a disparaging statement about them on social media and decides to sue, a general liability policy would pay for any legal costs.

Below is the average general liability insurance policy for web design businesses that buy from TechInsurance:

Premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

If you have a small web design business and it's low-risk, TechInsurance's licensed agents usually recommend a business owner’s policy (BOP). A BOP bundles general liability insurance with commercial property insurance at a lower cost than buying these policies separately.

For web designers, the average cost for a business owner's policy is $50 per month or $598 per year. To protect against financial losses due to a forced closure, such as from a fire or flooding, you can also add business interruption insurance to a BOP.

The cost of general liability insurance is based on several factors, including the types of services offered, business income, size and location of your company's business property, and any subcontractors or additional insured endorsements you may have.

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Fidelity bonds for web designers

The average cost of a fidelity bond is $110 per month, or $1,316 annually, for web designers. Some clients, especially those in the financial services industry, may mandate a bond in order to sign a contract with them.

Fidelity bonds, a type of surety bond, protect your clients by reimbursing them in the event your employee commits theft, fraud, or forgery. This includes illegal electronic funds transfers and unapproved credit card purchases.

The cost of a fidelity bond is a certain percentage of the total bond amount. Unlike most insurance policies, this amount must be paid back to the company that issued the bond.

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Workers' compensation insurance for web designers

Web design business owners spend an average of $32 per month, or $386 annually, for workers' compensation insurance. To comply with state requirements and avoid penalties, web design companies with one or more employees typically must purchase this policy.

Workers' comp coverage pays for medical expenses and disability benefits when you or an employee suffers a work-related injury or illness. For example, if a web designer at your company develops carpal tunnel, a workers' comp policy would pay for their treatments and lost income while they recover.

Workers' compensation coverage also often includes employer's liability insurance, which pays for defense costs and other legal expenses in the event of a lawsuit related to workplace injuries.

Even though workers' comp may not be required for sole proprietors or independent contractors, it is highly recommended since most health insurance plans can deny claims for injuries that occur at your jobsite.

The cost of workers' comp is based on numerous factors, including the number of employees you have and their occupational risks.

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Commercial auto insurance for web designers

Technology companies spend an average of $198 per month, or $2,375 yearly, for commercial auto insurance. Almost every state requires this type of insurance if your web design business owns any company vehicles.

If your business vehicle(s) are involved in an accident, a commercial auto policy would help cover property damage costs and any legal expenses. This coverage also helps pay for costs related to vandalism, weather damage, and theft.

To protect personal, rented, and leased vehicles used for business purposes, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on many factors, including your employees' driving records, policy limits, the number of vehicles you own and their value, and your coverage options.

How do I get affordable website design insurance?

TechInsurance makes it easy for web designers, web developers, network designers, software developers, and other technology professionals to obtain affordable business insurance in three easy steps:

  1. Fill out a free online insurance application with details about your business.
  2. Compare custom quotes from top-rated U.S. insurance companies, such as The Hartford, in real-time.
  3. Choose the best policies for your business and pay the premiums to begin coverage.

TechInsurance's licensed insurance agents are available to help answer questions about your liabilities, state insurance requirements, and the right types of property and liability coverage for your tech company's insurance needs.

Once you've bought the policies you need, you can download a certificate of insurance for proof of coverage. Small business owners can usually get insured within 24 hours of applying for quotes, offering peace of mind almost instantly.

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