With general liability insurance, your technology company might be shielded against legal action for physical harm or property damage.

Commercial property insurance covers where you do business and your tools, like computer equipment and office furniture.

If you cannot operate your business due to covered property damage, such as a fire, business income insurance can help you restore lost income.

Some other coverages you must consider are:

• Errors and omissions insurance

When a customer sues you for a mistake or overlook, regardless of whether it was your fault, errors, or omissions, insurance, also known as professional liability insurance, defends your IT company.

• Cyber liability insurance

Cyber liability insurance covers the costs of legal defense, credit monitoring, and other recovery measures if a data breach or cyberattack results in losses for your business or your clients.

• Workers' compensation insurance

Workers' compensation covers medical expenses for sickness and injuries sustained at work. Employers are required to carry this policy in almost all states.

• Fidelity bonds

If an employee defrauds a client or your firm by stealing from it or forging documents, fidelity bonds shield your tech company from suffering financial harm. Client agreements frequently call for them.