Information Technology Professional Liability Insurance

Already know what you need? Get started on your application and get a quote in minutes.

Prefer to speak with a CoverWallet consultant? Call (646) 844-9933 anytime

As a technology service professional or tech company, you may find yourself managing a client's information technology department, or maybe even consulting. Because you are in the business of providing advice based on your expertise, this is a professional service. A professional service, in any industry, is at risk for lawsuits regardless of how careful you may be. Due to the substantial financial impact that a suit can cause, you should purchase an Information Technology Professional Liability insurance policy. It can help to reduce the risk and cover the costs of financial loss to yourself, and your small business should a claim arise.

What Are Common Information Technology Professional Liability Risks?

The technology industry has propelled us forward with the ability to do things we never thought possible. As a business owner or manager of technology, you face some pretty substantial risks. An Information Technology Professional Liability insurance policy is an Errors and Omissions insurance policy, and errors are always a risk since you are human. Mistakes and negligence can happen no matter how diligent you are in your work. Even if there was no mistake, there are clients that will be unhappy regardless of how you try to rectify the situation. These clients will be the most significant risk of all, and you will end up in court even if you did nothing wrong. Some other examples include not building a website properly for a client, give advice that turns out to be to the clients' detriment, or installing software that leads to a cyberattack or data breach.

What Does Information Technology Professional Liability Cover?

While you may find that each insurance company can differ on specific coverages offered, there will be some common themes. Some of the usual coverages included are:

  1. Negligence: This is the core of any Professional Liability or E&O insurance policy. Whether you were neglectful, or a client perceived you to be, a claim can be brought against you. Unfortunately, perception is vital when it comes to a relationship with a client, and this can sometimes not work in your favor.
  2. Settlements: Sometimes you might be able to avoid court and settle the claim. This can be beneficial for many reasons. The lower the claim, the less impact it will have on your insurance premiums. Also, it will cost you less in the long run with having to pay a lawyer or attorney. Avoiding a trial will keep these costs down.
  3. Defense Costs: If you do end up going to court, even if you win, you will have to pay a high amount of fees. It is not shocking that the lawyer or attorney will be expensive, but you will also have court fees and administrative fees to start. Luckily, CoverWallet can offer you an Information Technology Professional Liability insurance policy that will provide this coverage.

Are you ready to get down to business?

Great, just click get a quote and you’re off.

How Much Does Information Technology Professional Liability Insurance Cost?

Many factors will be taken into account when an insurance company is calculating the cost of the business insurance policy. Of course, the size of your business will have an impact, with the number of employees and the number of accounts manages being the basis. Also, past claims history, coverage amounts, deductibles, and where your business is located can also be factors. A small technology firm can plan on paying $1,000 annually at a minimum. This price is reflective of standard limits of $1,000,000 per occurrence and $2,000,000 per aggregate, or policy period. A great way to keep the costs down is to bundle all of your insurance needs with one insurance company. CoverWallet works with several of these companies and can work to provide you the best coverages for the best price.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

Get free quotes »