Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Technology insurance protects your small or midsize business against any errors, omissions, mistakes, or failures that are unique to the tech world. It can help cover your legal and other financial losses as a result of a lawsuit, data breach, or property damage. Any small or midsize business that builds, sells, or supports technology products or services should consider technology insurance.
Here, you’ll learn about the top business tech insurance companies, review different types of tech insurance, and find the best insurers for various tech businesses.
Quick Facts
Tech insurance is a collection of various types of coverage geared toward the needs of the tech industry.
Purchasing bundled tech policies is an effective way for small teams to reduce costs and the time they spend on administrative tasks.
Some investors may require that your business have tech insurance.
The top 3 business tech insurance providers
The Hartford is one of the top business tech insurance companies for small and midsize software as a service (SaaS) businesses. It offers a broad range of property coverage to protect your owned or rented building, whether you work off-site or from home.
Chubb has been in the tech insurance space for more than 40 years and offers a wide range of cyber coverage.
Next Insurance is an insurtech company that’s 100% online and offers tailored coverage for small businesses.
Here, you can learn a little more about each of these companies.
Provider/Plan
Best For
Why It Works
The Hartford
Broad property coverage
Commercial property insurance is included in the BOP bundle
Chubb
Cyber coverage for startups
Long history of cyber risk solutions; no minimum premiums
Next Insurance
Low-asset SMB
Designed for small businesses; 100% online access
What tech insurance for businesses covers: Equipment, cyber, E&O, interruption
To ensure you have adequate coverage for your business, consider the four core protections of tech insurance: equipment, cyber, technology errors and omissions (E&O), and interruption coverage. Purchasing bundled tech policies is an effective way to reduce costs and administrative time for small teams.[1]
Here’s a closer look at each of these coverage types:
Equipment: Equipment coverage pays for the cost to repair or replace equipment and tools if they’re accidentally damaged. Some equipment insurance covers theft, accidental damage, natural disasters, or vandalism. For instance, equipment insurance can cover the cost of renting equipment while yours is being repaired.
Cyber: Cyber liability insurance covers the costs of recovering from a cyberattack at your company. For instance, if a breach affects your client and they file a lawsuit, cyber liability insurance will cover your legal costs.
Tech E&O: Errors and omissions insurance protects against damages caused by mistakes in your tech products or services. For instance, if your technology includes harmful bugs or glitches that cause a client to lose revenue and they file a lawsuit against you, tech E&O coverage will cover your costs.
Interruption: Business interruption insurance covers operating costs and lost income for a period of time if your business is unable to operate as a result of damage to your property. For instance, if there’s a fire in your server room, interruption coverage will kick in.
Key factors that influence tech insurance pricing
Several key factors influence the cost of business tech insurance, including the following:
Type of business
The type of product or service you offer will help determine how much you pay. Generally, the higher the risk, the higher the cost.
Type of insurance
The type of insurance you choose is another key factor. Purchasing tech insurance bundles, like E&O + cyber, can come with a discount.
Location
Insurance rates can vary by state due to different claim frequencies. If you have a physical storefront, crime rates and exposure to natural disasters can also affect the cost.
Claims history
If you have a history of claims, you’ll likely pay a higher cost. A clean record generally results in lower costs.
Deductible
Paying a higher deductible can help lower your premiums.
Tech-insurance policy types and the businesses they fit best
Four tracks of tech insurance policies are available:
Retailer or original equipment manufacturer (OEM) extended equipment plans: Best for companies with limited information technology (IT) support
Stand-alone cyber liability policies: Best for businesses that store sensitive customer data, such as payment or health information
Bundled tech-BOP or E&O + cyber packages: Best for startups that want to bundle insurance
Inland-marine/equipment floaters for mobile gear: Best for businesses with mobile property that’s at higher risk of loss, damage, or theft
Retailer or original equipment manufacturer extended equipment plans help business owners cover the risks to equipment and technology. An OEM plan can provide coverage that goes beyond the manufacturer’s warranty on technology you need to run your business. Ideal customers are freelancers or small-business startups with limited tech tools.
As the name suggests, a stand-alone cyber liability policy protects your small or midsize business against cyber risks. With cyber insurance, you can protect your business from losses arising from cyber attacks or computer incidents.
For instance, if you experience a data breach or someone steals your employee’s laptop with sensitive customer information on it, a cyber liability policy can help cover damages you could be asked to pay for following such an incident.
Ideal customers are tech businesses that store sensitive customer information, including names, emails, addresses, or financial information.[2]
A bundled tech business owners policy (BOP) combines general liability and commercial property insurance, offering protection against losses due to property damage, lawsuits, or fire.
Tech E&O and cyber packages protect against cyber attacks.
Tech E&O insurance provides protection for your clients, while cyber insurance provides financial protection for your business. Ideal users include small-business owners who want to save money, as insurers often offer a discount when you buy insurance bundles or packages.
If your business regularly transports products or ships high-value equipment, you might consider inland marine or equipment floater insurance. Inland marine coverage is a type of property coverage designed to protect specialized equipment, whether it’s onsite, off-site, or in transit via ocean or air.
For example, if you run a video production company and have to ship your cameras and equipment, this coverage would offer protection.
How to buy tech insurance quickly and stay compliant
You can generally purchase tech insurance within a week. Follow these steps to purchase insurance:
Assess your needs. Look at your business to understand what types of risks and assets you need to cover. As a SaaS founder, you can also consider the type of insurance your investors expect you to carry.
Compare plans. Based on your assessment, compare different plans to find the right type of business insurance for tech companies.
Consider add-ons. To ensure you have the protection you need, consider a cyber add-on or other customizable options.
Get multiple quotes. Once you’ve selected the type of insurance you need, get multiple quotes from various insurers.
Review your contract. Read the small print to understand what’s covered, what’s excluded, and how to file a claim.
Purchase insurance. If you’re comfortable with the contract, it’s time to purchase the insurance policy.
Step-by-step guide to filing a tech insurance claim
If you need to make a claim, you can typically start the process online within 24 hours.[3] You’ll want to follow these steps:
Contact your insurer. Reach out to your insurer as soon as possible. This will help get your claim underway as quickly as possible.
Don’t tamper with the evidence. Avoid trying to fix physical damage or restore data files.
Gather evidence. Compile all relevant information to support your claim, including photos, invoices, receipts, firewall logs, and police reports.
Review your policy. While you want to understand your policy before you make a claim, you can take another look to see what’s included, what’s excluded, and what you need to do when submitting a claim.
Work with your adjuster. Stay in contact with your adjuster throughout the process. If they ask for documentation or any information, try to send it as soon as possible.
Alternatives to tech insurance: Backups, maintenance contracts, self-funding
If you run a low-risk business, you might consider alternatives to tech insurance for financial reasons. These alternatives can include backup software, maintenance contracts, and self-funding.
Backup software can create copies of your files and folders, ensuring you don’t lose data due to a cyberattack or technology failure.
Another alternative option is a maintenance contract, which is an agreement between a service provider and you for how your software will be supported and maintained. It can provide your business with tech support and troubleshooting services.
You can also consider self-funding. This is when you set aside your own money to cover potential tech-related issues and expenses.
Here, you can see some pros and cons for each option.
Alternative to Tech Insurance
Pros
Cons
Backups
Protects data; no monthly premiums
No coverage for equipment
Maintenance contracts
Helps prevent cyber incidents; access to expert IT support
Often excludes cyberattacks
Self-funding
No premiums
Flexibility
A large claim might exceed your funds
Best tech insurance plan by business type and scenario
There may not be one, single tech insurance policy that will meet all your needs, but the following table highlights the best type of insurance plan for different types of business scenarios.
Business Scenario
Recommended Plan
Why It Fits
Key Trade-Off
Bootstrapped SaaS startup processing customer data
Tech E&O + cyber package
Covers lawsuits
Provides protection of consumer data
Doesn’t include general liability or property insurance
Retail shop with two PoS terminals and a smart-display TV
Business owners policy
Convenient and cost-effective
Limited cyber coverage
Small SaaS business that collects and stores customers' personal and financial data
Stand-alone cyber
Can keep up with the pace of cyber risk
Doesn’t cover loss of revenue due to intellectual property theft or a drop in stock prices following a data breach
Small video production agency that owns expensive gear
Inland marine/equipment coverage
Covers your equipment at home, on location, and while in transit
Doesn’t cover cyber security or liability
Tech insurance for business owners FAQs
If you own a small or midsize business in the tech industry and have questions about the best insurance for your needs, check out the following answers to some of the most commonly asked questions.
Can you insure leased or financed equipment?
Yes. It’s possible to insure leased or financial equipment. Many lease or finance agreements require that you get insurance coverage.
Does a business owners policy include cyber coverage?
Some BOPs include cyber coverage in the product, while others offer it as an add-on. That said, cyber coverage included in a BOP is typically more limited than a stand-alone cyber policy.
How fast do insurers pay tech claims?
It depends. How long it takes for an insurer to pay a tech claim comes down to various factors, including the complexity of the claim, how quickly you provide evidence and documentation, and whether an inspection is required to assess damages.
What if employees use personal laptops for work?
It depends. Whether employees’ personal laptops are covered by tech insurance hinges on the specific policy you choose and whether employees’ laptops and technology are specifically written into the policy.
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
