Best Tech and IT Business Insurance

The Hartford and NEXT tie for best tech business insurance with MoneyGeek scores of 4.78 out of 5. Both excel in affordability and customer service while offering comprehensive coverage for IT companies. We also recommend comparing quotes from biBERK and Simply Business to find the right fit for your technology company's specific needs.

Note: We based all scores on a tech/it business with two employees across professional liability, general liability, workers' comp and BOP policies.

The Hartford and NEXT remain top choices across tech specializations. The Hartford leads for computer programming and software companies, while NEXT edges ahead for computer repair businesses. Both offer competitive rates starting around $37 monthly and comprehensive coverage for IT companies facing cyber liability, professional liability and tech errors and omissions risks.

The Hartford offers the cheapest tech/IT business insurance at $39 monthly ($462 annually) and leads for professional liability coverage at $88 monthly. For IT companies looking for the lowest rates, NEXT beats The Hartford on general liability and workers' comp, while biBERK offers the cheapest business owner's policy at $22 monthly.

NEXT offers the cheapest general liability insurance for tech companies at $16 monthly ($188 annually), saving IT businesses $11 monthly compared to the $27 industry average. That's 41% lower, adding up to $132 in annual savings.

Tech companies with employees can secure the cheapest workers' comp insurance through NEXT at $26 monthly ($307 annually). That saves IT businesses $21 yearly compared to the $328 industry average. The Hartford, Thimble and Simply Business offer competitive alternatives for technology companies seeking affordable workers' compensation coverage.

The Hartford offers the cheapest professional liability insurance for tech companies at $88 monthly ($1,051 annually), saving IT businesses $128 yearly versus the $1,179 industry average. NEXT ranks second at $91 monthly, while Progressive Commercial offers another budget-friendly option for software developers and IT consultants.

Tech companies seeking business owner's policy coverage will find biBERK offers the most affordable option at $263 annually. This saves businesses $12 yearly compared to The Hartford's $275 rate.

Tech/IT business insurance costs are the following for the four most popular coverage types:

• General Liability: $27 on average per month, ranging from $23 to $32 , depending on the state
• Workers' Comp: $27 on average per month, ranging from $24 to $32, depending on the state
• Professional Liability (E&O): $98 on average per month, ranging from $85 to $115, depending on the state
• BOP Insurance: $32 on average per month, ranging from $28 to $38, depending on the state

Required coverage for technology companies varies by state and business structure, while others are highly recommended based on common industry risks. Depending on your specific operations, like consulting work, software development or managing client data, you may need additional protection beyond the basics.

Mandated

• Workers' Compensation Insurance: Tech companies with employees must carry this in almost every state. It covers medical bills and lost wages when employees get injured, from carpal tunnel developed by programmers to back injuries sustained during hardware installation at client sites. Most states require coverage from your first hire, though a few states set thresholds at three to five employees. Remote workers need coverage too, since work-related injuries can happen anywhere.
• Professional Liability Insurance (Errors & Omissions): A coding error crashes your client's e-commerce site during a major sale, costing them revenue. Now they're suing your firm. This covers legal costs, settlements and judgments when your tech services or advice fail to meet client expectations. Most tech companies carry $1 million per occurrence and $1 million aggregate limits, though clients with larger projects often require $2 million to $5 million. Software developers, IT consultants and managed service providers especially need this protection.
• Cyber Liability Insurance: Hackers breach your client's customer database through a vulnerability you missed, or ransomware locks down your own systems right before a critical project deadline. Cyber insurance covers client notification costs, legal fees, data recovery expenses and regulatory fines from privacy violations. Most small businesses purchase policies with a $1 million per occurrence limit, a $1 million aggregate limit and a $2,500 deductible. IT consultants and companies managing sensitive data need $2 million to $5 million in coverage to meet client contract requirements.
• General Liability Insurance: A delivery person trips over server cables in your office and breaks their wrist, or you accidentally use a competitor's trademarked phrase in your marketing campaign. General liability covers bodily injuries, property damage and advertising injuries at your office or client sites. Most technology business owners choose policies with a $1 million per-occurrence limit and a $2 million aggregate limit. Commercial leases and client contracts frequently require proof of this coverage before you can start work or sign agreements.
• Commercial Property Insurance: Protects your computers, servers and office equipment from theft, fire or natural disasters. Tech companies with expensive hardware or office spaces can bundle this with general liability in a business owner's policy, which costs less than buying each policy separately and covers daily operating costs if property damage forces you to close temporarily.
• Commercial Auto Insurance: Required in most states if your IT business owns vehicles for client site visits. Covers accident costs, theft and damage when your technicians drive to install equipment, troubleshoot systems or provide onsite support.

Finding the best and cheapest business insurance for your tech company starts with getting business insurance quotes from multiple carriers and comparing coverage options that match your specific risks.

Tech companies need professional liability, cyber insurance, general liability and workers' compensation to protect against service errors, data breaches and client injuries. The Hartford and NEXT offer the best overall coverage for IT businesses at competitive rates, with The Hartford providing the most affordable options starting at $39 monthly. Compare quotes from multiple carriers to find business insurance that matches your technology company's specific risks and budget.

We answer frequently asked questions about technology and IT business insurance:

We selected the best business insurer for tech & IT companies based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue