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9Feb/110

Trend Watch: TechInsurance Notes Continuing Growth in Technology Services Businesses

Trend Watch: TechInsurance Notes Continuing Growth in Technology Services Businesses












Dallas, TX (Vocus) December 9, 2010

TechInsurance, the nation’s top business insurance provider for information technology companies, is experiencing rising sales of business insurance to small technology firms, indicating growth in IT service startups despite a tough economy.

“We’re insuring a lot of new technology businesses that are being launched by people who were laid off from large IT companies,” said Jim Cochran, president and founder of TechInsurance. IT service providers are often required by client contracts to carry specific types of business insurance, and many small IT businesses elect coverage voluntarily to reduce the liability risks inherent in working with clients’ sensitive data and valuable equipment. “When they get their first clients, they need professional liability, general liability, property, and other types of insurance, so our continued steady sales of these policies tell us that these small IT companies are getting off to a good start.”

Another trend observed by TechInsurance: Growing sales of business insurance policies to IT professionals who were laid off from their full-time jobs and then hired back as independent contractors by the same companies that let them go. Such labor-on-demand arrangements allow companies to reduce their salary and benefits expenses while still meeting their IT needs, but require the newly minted contractors to find ways to protect themselves from a new set of business risks.

“During a weak economy, independent IT services tend to remain fairly stable,” Cochran said. “As the companies these IT firms serve seek to cut their budgets, the first things to go are generally marketing and advertising. At the same time, these companies look to IT services to improve efficiencies and reduce costs when times are tight. When they’re ready to start growing again, they look to technology to increase their ability to compete. That means more business for the customers we serve, and more insurance business for us.” As an online insurance agency, TechInsurance makes it easy and efficient for technology service startups to get the insurance policies they need at a rate that fits within a new-business budget.

TechInsurance provides business insurance exclusively to small and mid-sized IT service companies, making it a trusted risk and insurance resource for new IT startups. Overall, many of the more than 15,000 businesses that TechInsurance serves continue to report revenues that are comparable to or better than those reported throughout the last two years.

About TechInsurance

TechInsurance is a web-based e-agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their commercial property insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 15,000 businesses insured, the company has grown to become America's leading online provider of business and professional insurance for computer consulting, web services companies and other IT service businesses. For information, visit http://www.techinsurance.com.

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