For a lot of tech companies that form around an idea or ideas- and then go out to get their business insurance coverage, there is sometimes a surprise waiting in that the cost of liability insurance under traditional business policies is somewhat high.
If they continue to look and find an agent like Henry Murray, who covers clients in Annapolis, Maryland and nationwide, they soon notice that there are tech-specific insurance policies actually created in order to cater to the needs of the tech industry.
Software development firms do not, therefore tend to have the same high premiums that traditional manufacturing firms have because they tend to have much lower liability.
The policy types are a little different as well. Here are a couple of types of coverage that you will want to know about and consider when you purchase your tech business insurance:
Tech Business Liability: This type of insurance is similar to a regular business owner’s liability insurance. It typically covers your facilities and workers for property damages created when they are working onsite. You can usually add automobile coverage for a little bit more, although if you are looking for a blanket policy to cover the personal automobile usage of your contractors when they go onsite at a client, you may need to look at a general automotive coverage policy because the liability add-on primarily covers cars that are parked securely and are used solely for business use.
Errors and Omissions: Most companies that provide work for clients run the risk of delivering a product that is paid for, yet is not what the client wanted. In those circumstances, errors and omissions coverage helps your firm in case it is sued by the client. Many clients in the software industry require this type of coverage in order for you to do business with them.
Henry Murray also specializes in a variety of other tech business-specific policies that may apply to your business. For a free consultation, contact him today.
Posted in: Uncategorized