All savvy business owners understand that insurance is a necessary precaution, but the insurance needs of tech start-ups are unique. If you are planning to open a technical company in the near future, having a basic understanding of the special insurance needs these types of companies possess will help you be prepared to successfully work with a broker.

Here are 3 things you need to have covered before your tech start-up hits the ground running.

1. Errors and Omissions Insurance

Many tech start-up companies provide services that they feel will have value to their clients. While you might feel that what you have to offer can be beneficial, you must realize that not every client will be completely satisfied with your work.

Errors and omissions insurance is a special product that will protect your tech start-up from financial ruin in the event a customer feels your services don't live up to their expectations. Working with a reputable broker is essential when determining the right amount of errors and omissions coverage to meet your new company's needs.

2. Cyber Liability Insurance

Thanks to the prevalence of the Internet, it has become easier than ever before to distribute information to the public. If you plan to host a website for your tech start-up, then you will want to make sure you have cyber liability insurance. Anyone with a website can be considered a publisher, and will be held to the same standards as traditional print publishers.

Basic liability insurance often doesn't cover the copyright infringements, defamation, or infringement of privacy that accompany online interactions, so having a comprehensive cyber liability insurance policy in place is a must for any tech start-up.

3. Key Person Insurance

Does the success of your tech start-up hinge on the knowledge of a few key individuals? If so, then you will want to work with your broker to acquire key person insurance policies. These policies are designed to act as a life insurance policy on employees that would be difficult to replace.

Your tech start-up would pay the premiums and, should an accident occur, have the ability to fund operational expenses using the insurance payoff until a suitable replacement can be found. Key person insurance policies ensure that your company will not die if key employees are lost.

Acquiring insurance for a tech start-up requires some careful planning. Working with a broker to ensure that your errors and omissions, cyber liability, and key person insurance policies are in place will ensure maximum protection for your company in the future. For more information about insurance options, contact a company like Keller & Associates Insurance Brokers Inc.