Push boundaries while managing your risks.
Technology companies redefine the future every day, but every breakthrough carries risk. From professional liability and intellectual property disputes, to cyber threats and investor pressures, the risk insurance program empowers you to innovate boldly, scale strategically and keep your focus on growth.
Common Technology Coverage Types to Consider
Mavrix delivers modern insurance solutions for technology-focused businesses. From data breaches to professional liability, our coverages help protect your innovation, equipment, and operations. Each plan is designed to keep your business secure and ready for what’s next.
Planning for the Future
Whether you’re running a new IT startup or an established IT firm, you have clients who depend on your company. Contract disputes, cyberattacks, and lawsuits may threaten your clients, your company, and your reputation.
When things go wrong, the right insurance can control the damage, protect your bottom line, and help you get back on track as quickly as possible. As technology continues to play a bigger role in business operations, tech insurance is playing an increasingly important role in risk management.
Frequently Asked Questions
What is technology insurance and why do tech companies need it?
Technology insurance usually refers to errors and omissions insurance, also called professional liability insurance or tech E&O.
Tech E&O insurance provides coverage for claims involving errors or omissions. For example, if a client files a lawsuit alleging that your company provided software that does not function properly or does not fulfill the contract, your company can seek coverage under its tech E&O policy. This is an important insurance coverage for tech companies because other types of liability insurance do not typically cover claims involving professional negligence and because this is a common type of lawsuit.
What type of business insurance do IT companies typically need?
The most important business insurance for IT companies will depend on the specific nature of your services as well as the size and structure of your company. Tech E&O insurance is a staple of IT business insurance. Cyber insurance is also becoming increasingly important as cyber risks grow.
Other important coverage may include commercial property, general liability, commercial auto, workers’ compensation, employment practices liability, intellectual property, and D&O insurance.
What does professional liability insurance cover for IT consultants?
Professional liability insurance for IT consultants provides coverage for claims alleging professional negligence or errors and omissions in the course of providing professional services. If a client suffers financial loss as a result of issues with your services, the client may sue you. IT consultants can protect themselves from this type of lawsuit with professional liability insurance designed to cover IT risks.
This product is also called errors and omissions insurance for IT consultants or tech E&O. It typically covers a wide range of claims involving professional standards, including breach of contract and misrepresentation.
Are tech companies required to buy tech insurance?
State law typically requires workers’ compensation for any employees you have and auto insurance for any vehicles you have. You may also have contractual insurance requirements. For example, a lease for commercial office space may require you to maintain commercial property insurance and general liability insurance. Contracts with clients may require tech E&O insurance and cyber insurance. Review your contracts and your state’s laws to see exactly what you need.
How much does business insurance cost for technology startups or IT firms?
Technology industry insurance costs vary significantly based on your company’s risk profile and the amount of coverage you need. A small, private company with a modest client base will need less insurance and should expect to pay less than a large, public firm serving Fortune 500 companies.
The types of insurance policies you need will also have a big impact on your total business insurance costs. For example, are you just looking at the cost of tech E&O insurance or do you also need workers’ compensation, commercial property, and general liability insurance?
Maintaining adequate coverage protects your bottom line by shielding you from the unexpected losses and costly legal expenses. At the same time, you don’t want to spend more than necessary. You may be able to save money by bundling certain policies. Comparing coverage options from different technology insurance companies ensures you find one that best fits your needs.