Business Insurance Quebec 2026

IT COMPANY

IT Business IT Services Insurance

Software development, integration, cloud computing, MSP, SaaS, consulting: protect your firm against service errors, cyber incidents and contract lawsuits with a customized policy.

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Starting at $1,500

Annual premium

$2M to $10M

EO/RC Limits

Bill 25

Compliant

AMF

Certified brokers

An IT services company in Quebec faces a combination of risks: professional errors (critical bugs, poor architecture, loss of customer data), cyber-incidents (hacking, ransomware on hosted customers), contractual liability (missed SLAs, delays, cost overruns), and traditional business risks (equipment, commercial liability). Bill 25 adds strict obligations when you handle personal information for your clients. An integrated policy combines EO, RC, cyber and property for comprehensive coverage.

IN BRIEF

IT Business Insurance

IT companies (sales, service, consulting) combine goods (equipment, inventory), EO technology, cyber, product liability. Embedded fonts available through tech specialty marketplaces.

3 pillars: EO Tech $1-2M + Cyber $1-2M + Commercial RC $2M. Typical total cost: $1,800 to $4,500/year for an SME with 5-15 employees.

The 6 Essential Protections for an IT Business

Errors and Omissions (EO)

Critical bug, failure caused by your code, bad architecture, non-compliant deliverable. Basis of the contract.

Cyber business and customer

Ransomware, data leakage — yours AND that of hosted/processed customers.

Commercial liability

Injuries during customer visits, property damage on the customer’s premises.

Property and equipment

Servers, laptops, lab equipment, goods on the road at the customer’s site.

Business interruption

Loss of income following a disaster (fire, theft, cyber) that interrupts your operations.

DO (Directors)

Protection of executives against personal lawsuits: strategic decisions, governance.

💡 Broker’s advice

In IT services, most lawsuits come from customers who feel they have not received the promised result, not real technical errors. Protect yourself on two levels: (1) clear agreements with SLAs, limitations of liability, precise definition of the deliverable; (2) EO policy with a limit ≥ $2 million and no “exceeding promise” exclusion. A strong contract reduces your claims; A good police force manages those who pass by in spite of everything.

Frequently Asked Questions

What is the difference between commercial liability and EO for an IT company?

Commercial liability insurance covers physical and material damage (a cable that causes a fall, equipment that damages a wall). EO (errors and omissions) covers financial damage caused by a service error (bug, misconfiguration, loss of data). Both are necessary, often combined in an integrated font.

How much does IT business insurance cost in Quebec?

For an SME with 3 to 20 employees and a turnover of $500,000 to $5 million: between $1,500 and $8,000 per year. Integrators, MSPs, and SaaS firms pay more for access to client systems. Solo freelancers start as early as $600/year.

A bug in my software causes a financial loss for the customer — covered?

Yes, through your EO. Typical limit $1 million to $5 million. Covers demonstrable financial damage (loss of income, repair costs, compensation to end customers). Limitation of liability clauses in your contracts also limit your exposure.

If a customer gets hacked and sues us — are we covered?

Yes — third-party cyber covers lawsuits against customers whose data has been compromised by an incident in your infrastructure. Essential for MSPs, integrators and hosting providers. Usual limit $1 million to $5 million.

Does Bill 25 apply to us as IT providers?

Yes — if you process personal information for your customers, you are a joint controller. Obligations: designate a RPRP, keep a record of incidents, notify in the event of a breach. Your policy must include explicit “Bill 25 / Quebec Plan” coverage.

Our B2B contracts sometimes require $5 million or $10 million in coverage — is that possible?

Yes. Limits of $5 million to $10 million in EO and cyber are common to meet B2B contractual requirements. Your broker can issue a quick certificate (24-48 hours) at the request of a client. Additional cost per $1 million: $200 to $600.

Our employees are working remotely — are we covered?

Yes. Most EO policies cover telecommuting at no extra premium. Equipment provided to employees (laptops) is covered through the “off-premises equipment” endorsement of your property policy. Declare teleworking when you take out.

Can I limit my liability contractually to reduce my premium?

Yes. Insurers reward solid contracts with limitations of liability (cap at 1-3x the annual value of the contract), exclusion clauses for consequential damages, arbitration clauses. Have your standard contracts validated by an IT lawyer.

Are SLA penalties covered?

Partially. Predefined contractual penalties (SLAs) are usually excluded or sub-limited. Actual damage suffered by the client (proven loss of income) is covered via EO. Read the exclusions carefully with your broker.

IT companies throughout Quebec

Assur360 supports businesses throughout Quebec: Montreal, Quebec City, Laval, Gatineau, Longueuil, Sherbrooke, Trois-Rivières and Saguenay. Startups in Montreal, SaaS firms in Quebec City, MSPs in the regions, integrators in Sherbrooke, Laval, Gatineau: our brokers know the risks specific to technology companies and the contractual requirements of the sector.

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