Why Even 100% Remote IT Companies Still Need General Liability Coverage

To the untrained eye, general liability coverage can look like something that only a portion of businesses really need: businesses that have a strong physical presence, with an office space visited by clients or members of the public, for instance. 

As with most assumptions, this isn’t just wrong, but potentially catastrophic. Here’s why.

Remote is not the same as ‘no physical risk’

When we think of physical risks to visiting clients or customers, our first instinct is to look around the immediate space and identify potential hazards. A slippy floor, a patch of carpet that’s come unstuck and could trip someone up, a box of paper reams teetering on the edge of a shelf overhead, or a toaster in the shared breakout area that sparks every time you plug it in.

If you don’t have a physical office space, it’s all theoretical – risks posed to other businesses, but not yours, right? Since so many client meetings take place over Zoom or Teams, you don’t need to feel responsible for their safety or their properties while your team are working with them. 

Wrong. Physical risks come in all forms, and those obvious hazards are just one of them. Even if your team is distributed, there’s a good chance they’re attending in-person meetings with clients, visiting client premises to install equipment, and appearing at tradeshows or conferences. That’s lots of potential touchpoints between your company and someone else.

General liability insurance covers third-party bodily injury and property damage claims arising from these everyday business activities, not just from having a traditional office.

Your clients might insist upon it

If you’re a new company or startup, it’s tempting to avoid any expenses that don’t feel absolutely vital. But, even if you are willing to saddle yourself with the risk of harming someone else or their property during the course of your business, many of your clients won’t be. 

One of the most disheartening things that can happen to a client-oriented business is a contract falling through because you didn’t meet their basic requirements, and general liability insurance is routinely included in client contracts. 

In a best case scenario, it will slow down the onboarding process as you scramble to get sufficient coverage. In the majority of cases, however, your clients won’t be willing to wait – and they may lose faith in your entire business as a result of the revelation that it’s not covered against accidents. Don’t wait until the last minute. 

Similarly, you may not be able to bid on projects without it

Many contracts – and certainly any government contracts that you could find yourself wanting to big on – require a certificate that proves general liability coverage upfront. This means your business is automatically precluded from a massive list of potentially lucrative jobs, before you’re even out the gate. 

Don’t assume this is a simple case of “injury/damage is a risk and I’m willing to take it”. There’s a lot more that general liability insurance does for you.