Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Computer Programming Insurance
Computer Programming Insurance. As an IT expert and computer programmer, you face the same risks (and different ones) that every other business faces. This applies in particular if you provide consulting services, for instance, Levi Strauss Company, the jean maker took legal action against Deloitte IT consulting firm after the software designed to control payrolls and inventory failed. The Deloitte IT Company was in turn forced to pay damages amounting to $100 million.
With so many companies depending on computer systems to run operations efficiently, you could be the target of lawsuits if your services do not meet client expectations. Due to the nature of your profession, it is best to get a computer programming insurance policy that will help you in offsetting your personal risks and protect your firm.
Computer programming insurance protects your firm from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
What Is Computer Programming Insurance?
Computer programming insurance is a type of commercial coverage that is specially meant to deal with the unique risks that are connected to professional IT careers and computer programmers. Irrespective of whether you own your own IT business or work as a freelance IT expert it is important for you to safeguard your business from the risks of the trade. To ensure you are getting the proper computer programmer coverage you will need to assess the risks that you are likely to face in your line of work.
What Does Computer Programmer Insurance Cover?
As a computer programmer, you are also subject to different risks from those faced by other companies. The following types of computer programming insurance coverage will, therefore, assist you in addressing these risks:
General Liability and Property Insurance: Just as any other business you need a computer programming insurance policy for your physical assets such as supplies and equipment as well as coverage for client and customer injuries due to negligence or accidents. Injuries and negligence often result in medical lawsuits that could be expensive for your company.
On the other hand, if you are a freelance programmer you may qualify for a Business Owner's Policy (BOP) which bundles both general liability insurance and property coverage for a single discounted premium. The General liability segment of the policy protects you against allegations of property damage and third party injuries while the property section protects your equipment.
Cyber Liability: The major difference between an IT business and other companies is the amount of cyber liabilities they are prone to encounter. Cyber crime is one of the most severe and expensive risks that may threaten your programming business. You could be held responsible for numerous types of damage linked to data tampering, invasion of privacy, data breaches, malware and regulatory action.
There are some cases where large technology companies are forced to pay up data breach settlements amounting to millions of dollars. Small IT companies might think they are not as vulnerable to cyber threats as big firms; however, this is a mistaken belief due to the following reasons:
- Small IT companies including freelancers characteristically have few resources to devote to cyber security.
- Programmers often have access to lots of valuable and confidential information belonging to the clientele they serve.
- Lastly, data thieves perceive small companies and freelancers as easy targets for information mining.
Errors and Omissions Insurance: Also know as professional liability. Cyber-crimes are not the only hazard that threatens your programming business. You are also held legally liable negligence, for any advice you offer, anything you forget to do and any work you perform.
So if you recommend an innovative software to a client and this program causes their systems to crash you could be sued for the damages or monies lost during system failure. To shield yourself against such overheads you will require a solid computer programming insurance E&O coverage that will pay for the legal expenses associated to such accusations.
Computer programming insurance may seem like an unaffordable or unnecessary overhead that stresses an already tight budget. As a result, if you decide to buy an insurance policy you might be tempted to save money by selecting a higher deductible which is the amount of money you pay out before accruing benefits. But it's important to keep in mind that you should not choose a deductible that is higher than what you can afford comfortably. If you cannot meet the expense of your deductibles, your coverage does not exist in the sense you will be outof pocket for a large amount and that defeats the purpose of the insurance..
Computer Programming Insurance
Even comprehensive legal contracts cannot protect you in all scenarios. Computer programmer insurance is, therefore, a vital tool that can be tailor-made to meet your business protection needs.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- Internet Business
- IT Consultant
- Online Store
- Software Developer
- Technology Services
- Website Design
Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.
For information technology companies, like some of the more popular ones listed below, data security is paramount:
Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.
The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.
Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.