Technology startups spend an average of $30 per month, or $363 per year, for general liability insurance. Though usually not required by law, a general liability policy may be needed in order to sign a lease or work with some clients.
General liability coverage protects your small business from common third-party risks, such as customer property damage or bodily injury. It also pays for lawsuits related to copyright infringement and defamation, including slander and libel.
For example, if a competitor claims that an employee at your technology company made a disparaging statement about them on social media and decides to sue, a general liability policy would pay for any legal costs.
Below is the average general liability insurance policy for technology businesses who buy from TechInsurance:
Premium: $30 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
If your business is small and low risk, TechInsurance's licensed agents usually recommend a business owner’s policy (BOP). A BOP bundles general liability insurance with commercial property insurance at a lower cost than buying these policies separately.
For technology companies, the average cost of a business owner's policy is $46 per month or $550 per year. To protect against financial losses due to a forced closure, such as from a fire or flooding, you can also add business interruption insurance to a BOP.
The cost of general liability insurance is based on several factors, including the types of services offered, policy limits, size and location of your business, and any subcontractors or additional insured endorsem*nts you may have.
Your industry determines your general liability insurance costs
Looking at technology professionals who purchase commercial general liability coverage with TechInsurance, over half (55%) can expect to pay between $25 to $50 per month. In addition, over a quarter (28%) can expect to pay less than $25 per month.
The risks associated with your specific industry impact your general liability insurance premium. Factors like having a storefront, frequent interaction with customer property, and heavy foot traffic at your business property put you at high risk, often resulting in more expensive insurance rates.
For example, a computer repair shop that sees a lot of foot traffic would likely have a higher premium than a software programmer who works from home.