Do IT consultants need a Business Owner's Policy?

A business owner's policy can help protect your IT consultancy business from a variety of risks. Discover how you can benefit from the right insurance coverage.

David Granahan - Writer for NEXT Insurance
By David Granahan
Michelle Meyer - Editor for NEXT Insurance
Edited by Michelle Meyer
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Published June 5, 2023.

Yes, IT consultants can benefit from a business owner's policy (BOP). The right IT consultant insurance coverage can help you manage risks, mitigate financial setbacks and protect your business.

What risks do IT consultants face?

As an IT consultant, you know risks lurk around every corner. This can include:

  • Property damage: This refers to damage to your or a client's property. For example, your office gets vandalized, or one of your employees accidentally spills water on a client's expensive computer.
  • Accidents and injuries: Someone other than your employees gets hurt in your office. For example, a client slips and falls on a wet floor in your office.
  • Damaged equipment: The equipment you need to do your daily work gets damaged. For example, a water pipe bursts and ruins your computers and servers.
  • Advertising mistakes: This refers to cases of copyright infringement or libel. For example, you used an image of a client in your advertising without their permission.

The financial and legal consequences of these risks can be overwhelming. That's why proactive risk management is key to protecting your business.

How can a Business Owner's Policy help IT consultants?

BOP can give you the benefits of two insurance coverages: general liability insurance and commercial property insurance.

1. General Liability insurance





General liability insurance can help shield you from third-party claims that may arise during work. This includes bodily injury claims, property damage claims, and if you caused any reputational or advertising harm. General liability insurance can help you pay for medical, legal and repair fees as a result, which means you don't have to cover these costs out-of-pocket.

2. Commercial Property insurance

Commercial property insurance is more focused on your business and can help protect your office building (even if you rent it) and business equipment against damage, breakdowns and theft. While this means you don't have to cover costs out-of-pocket either, commercial property insurance can also help you cover expenses in case of business interruption.

Tip:

Consider cyber insurance to protect your business's and clients' information from data breaches and cybercrime.

IT consultant insurance designed for your needs

Not only can a BOP give you peace of mind, but by bundling general liability insurance and commercial property insurance, you can save on your insurance costs.

With NEXT, you can get affordable, customizable business insurance. Apply online for a quote in less than 10 minutes. You'll have instant access to your certificate of insurance once you purchase coverage, and you can share it 24/7 with the NEXT app.

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