Technology Insurance

What Is Technology Insurance?

Technology insurance is customized business insurance coverage designed to protect against issues like coding errors, network management issues and data breaches. It provides a safety net for technology professionals, covering financial losses that can result from mistakes or unforeseen events.

What Does Technology Insurance Cover?

Technology insurance combines standard business protections with specialized coverages for businesses that provide technology services or advice.

Core coverage examples:

  • Professional liability (Errors & Omissions): This is critical for tech pros. It protects you if a client claims your work was late, incomplete, or contained errors (bugs) that cost them money.
  • General liability insurance: Covers common risks like slip-and-fall accidents in your office or accidental damage you cause to a client's property (like knocking over a server).
  • Business Owners Policy (BOP): Bundles general liability and commercial property insurance. It can protect your office space and equipment from theft, fire, or damage.
  • Workers’ compensation insurance: Provides coverage for medical expenses and lost wages if an employee is injured or becomes ill while working. This coverage is required in most states for businesses with employees.

Example: If a software update you deployed causes a client's e-commerce site to crash, professional liability helps cover the legal costs and damages if they sue for lost revenue.

Optional or add-on coverages

  • Commercial auto insurance: Protects your company vehicles in case of an accident while they're being used for work tasks such as hardware deliveries, or travel between client locations.
  • Cyber liability insurance: Essential for anyone handling data. It helps cover costs related to data breaches, including notifying customers, legal fees, and restoring data.
  • Business interruption insurance: Can help replace lost income if a covered event forces you to pause operations. It's not sold as a stand-alone coverage but may be included in a Business Owners Policy (BOP) or sometimes your general liability insurance.

Who Needs Technology Insurance?

You typically need technology insurance if you:

  • Have access to sensitive client data or intellectual property
  • Write code or design software that is critical to a client's business operations
  • Advise clients on technology purchases or security implementation
  • Sign contracts that require proof of professional liability coverage

This insurance is essential for:

  • IT consultants: Professionals who advise on infrastructure and strategy
  • Software developers: Creators of apps, platforms, and custom software solutions
  • Web designers: Creatives building and maintaining client websites
  • Computer repair shops: Businesses handling hardware repairs and data recovery
  • Cybersecurity firms: Experts managing sensitive security protocols
  • Data processors: Companies handling large volumes of client information

You should have technology insurance if you provide technology services or advice. In the tech world, a small error can lead to significant financial loss for a client, making commercial insurance critical for your protection.

What Does Technology Insurance Cost?

The cost of your policy depends on the specific nature of your technology business. We customize quotes to specific situations, but key factors include:

  • Business size and revenue: Larger contracts often equal higher potential liability.
  • Type of services: A cybersecurity firm handling medical records carries more risk than a website designer for local restaurants.
  • Data access: The amount and sensitivity of the data you handle impacts premium costs.
  • Equipment value: The total value of the hardware and software you need to insure.

Get a free quote online and protect your technology business today.

State Availability and Compliance

Technology insurance is available in most U.S. states. However, requirements for professional liability can vary by state and by the specific contracts you hold. We recommend checking with your local regulatory bodies or reviewing client contracts to ensure you meet all necessary coverage limits.

Why Choose GEICO Insurance Agency for Technology Insurance

At GEICO Insurance Agency, we make it easier to protect your technology business with coverage options that fit how you work. Whether you run a software company, manage IT services or consult on projects, you deserve insurance that feels straightforward and dependable. Here’s why so many businesses trust us:

  • Customized coverage: Your technology business is unique and your insurance should be too. We partner with Berkshire Hathaway–approved providers and select affiliates to help match you with coverage that fits your business.
  • Vetted, trusted providers: Feel confident knowing your policy comes from providers with a track record of financial stability and reliability.
  • Effortless process: Skip the hassle of shopping around. We do the heavy lifting so you can stay focused on your clients, your projects and your next milestone.

Ready to take the next step. Get a free quote today and see how easy it can be to help safeguard what you’re building.

FAQs on Technology Insurance

  • Does general liability insurance cover coding errors?

    No, general liability insurance covers physical damage and bodily injury. To protect against coding errors, bugs, or contract disputes, you’ll need professional liability insurance.

  • Do I need business insurance if I work from home as a freelancer?

    Yes. Even if you work from home, you still face liability risks, such as a client suing you for your work. Additionally, your homeowners insurance likely doesn’t cover business equipment.

  • What is technology errors and omissions insurance?

    Technology errors and omissions (E&O) insurance is a type of professional liability coverage that protects your business if a client claims you made a mistake or failed to deliver promised services, such as software bugs, missed deadlines, or faulty tech advice. E&O insurance helps cover legal fees and settlement costs resulting from these claims.

  • What if my laptop with client data is stolen?

    If your laptop is stolen, cyber liability insurance can help cover the costs of a data breach, while commercial property insurance, in your BOP, would cover replacing the physical device.

  • Do small businesses need cyber insurance?

    Do small businesses need cyber insurance?
    Yes. Data breaches and ransomware attacks can impact businesses of any size. Cyber insurance helps with response efforts, notifications, and business interruptions (business interruption coverage is only available in a BOP).

  • Are subcontractors covered under my insurance?

    Coverage for subcontractors varies based on your policy. Additional insured endorsements or requiring subcontractors to meet specific limits can help.

  • Will a business owner’s policy (BOP) cover laptops and servers?

    A BOP covers office property and tenant improvements. For equipment that travels, you’ll need inland marine coverage. Find out more about BOP coverage.

  • Is workers’ compensation required for remote employees?

    Yes, in many states, workers’ compensation is required for employees, even if they work remotely.

  • How are claims for code defects handled?

    When a defect is reported, you’ll need to share scopes, commits, and involve forensics if necessary. Professional liability insurance helps cover defense costs and damages.

  • Can clients be added as additional insured?

    Yes. Adding clients as additional insured is straightforward, and certificates can be issued to meet contractual requirements.