Web Hosting Insurance

Clients may require your web hosting company to be bonded and insured before they'll work with you, for their own protection. In some cases, business insurance is required by law.

Here are several situations where web hosts must have insurance:

• Your clients require coverage. Clients may include tech E&O, general liability, or a fidelity bond in their contractual requirements to gain protection against financial losses related to your services.
• You rent an office or apply for a loan. You might need general liability insurance to sign a lease or get a business loan.
• You have employees. Most states require workers' compensation for businesses that have employees, even if they work part-time.
• You have a company car. Similarly, you'll need commercial auto insurance to comply with state laws if your business owns a vehicle.

Even when it's not required, it's important to have insurance to protect against costly accidents and lawsuits that could otherwise bankrupt your business.

Lost data is one of the biggest liabilities for a web hosting company. Your clients depend on you to host their websites, online portals, and databases—basically, everything they need to conduct business.

If a hacker holds client data hostage, or if it's corrupted by a power surge, your company could be held responsible. Even if your terms of service agreement places the responsibility for a backup on the client, you could still face a lawsuit if your company was negligent.

Web hosting companies usually invest in the following policies to protect against data loss:

• Tech E&O can sometimes pay for legal fees when your company's mistake or oversight leads to loss of client data, but it depends on the terms of your policy.
• Electronic data liability insurance provides financial protection when a client's data is accidentally lost or corrupted. This covers a general liability exclusion that would otherwise deny claims involving data.
• Electronic data processing (EDP) insurance covers electronic devices such as computers, servers, and the data they contain during a power surge, fire, natural disaster, or similar incident. It's essentially property coverage for your tech infrastructure.

Our licensed agents can answer any questions you have and help you choose the right data coverage for your company.

Whether you're just starting your business or you're well established, you should consider a range of business insurance policies to make sure you're fully protected.

Here are some additional insurance products that can protect hosting providers:

• Commercial property insurance covers your office and its contents in the event of a fire, storm, or theft. Should your equipment suffer a mechanical or electrical failure, equipment breakdown coverage would provide the funds to repair or replace it.
• Business income insurance, also known as business interruption coverage, offsets your lost income and pays for daily operating expenses if a fire or other covered property claim forces your business to close temporarily.
• Hired and non-owned auto insurance (HNOA) provides liability coverage for personal, rented, or leased vehicles used for business purposes. Personal auto insurance won't cover work-related driving beyond your commute, which is why sole proprietors may need this coverage.

It's easy to find affordable insurance with Insureon. Our easy online application lets you compare quotes from trusted providers to find policies that fit your budget and your business risks.

Other ways to save money on business insurance include:

• Bundle policies. Small business owners often save money by purchasing two or more types of coverage in one package, such as a business owner's policy or tech E&O.
• Customize your coverage. Choose lower limits or higher deductibles to reduce your premium, but make sure your policy can still cover a potential claim.
• Focus on cybersecurity. Cybersecurity controls, such as multi-factor authentication, protect web hosting companies from data breaches and other cyber incidents. Insurance companies often provide discounts for approved security measures.
• Risk management. Policyholders can prevent employee injuries and customer accidents that lead to claims by eliminating loose cables and other tripping hazards in the office, and by providing ergonomic setups for employees.

If you need help finding the right coverage, don't hesitate to contact an agent. They can help you find cost-saving bundles, choose the best coverage for your insurance needs, and add endorsements for any special risks.