IT Insurance for Technology Professionals Covers a Variety of Potential Risks

Category: Commercial Insurance

IT consultants, developers, engineers and programmers provide their clients with an invaluable service by providing technology services that enable them to be more efficient and profitable. That means that one mistake can cost your clients money, and in return, leave you vulnerable to serious financial repercussions. You need to be protected from potential mistakes (real or alleged), as well as external factors such as fire, theft or natural disaster that could destroy your business.  

IT insurance is not just one policy that covers the insurance needs of IT professionals. Rather, it is a package of customized policies designed to meet their unique needs. IT professionals need broad protection for their business property, liability concerns, employees and other risks. Some of the specialists that need IT insurance include:

  • IT consultants
  • Application service providers
  • Database administrators/designers
  • Computer consultants
  • Computer programmers
  • Hardware installation experts
  • Integration specialists
  • IT project managers
  • Online security specialists
  • Software developers
  • System designers
  • Website developers

 The typical IT insurance package will include:

  • Professional liability/errors and omissions coverage, which protects your business against the costs associated with claims that your business is negligent in providing professional services.
  • Commercial general liability, which protects your company from third-party claims related to property damage or bodily injury liability.
  • Commercial property coverage, which protects your business property (furnishings, equipment, computers and other materials) in the event of loss or damage due to theft, fire, natural disaster and other covered perils. It also covers other people’s property while it is in your possession (e.g., a client’s computer).
  • A business owners policy (BOP), which bundles commercial liability and property coverage into one policy. It is typically recommended for smaller operations that meet certain requirements.
  • Excess liability/umbrella insurance, which provides liability protection in addition to the liability coverage under your general liability, employer’s liability and commercial auto coverage. It kicks in when the limits of your other policies have been met. It will not apply to any professional liability claims made against your business.
  • Workers’ compensation insurance, which provides payments for medical expenses and lost wages for workers who are hurt while at work or who suffer a work-related illness.
  • Cyber liability insurance, which typically protects you against lawsuits alleging that your firm is responsible for denial of service attacks or a client’s inability to access a website or a system. It may also provide coverage for disclosure of confidential information, malicious or accidental loss of assets or data, data tampering, unauthorized access to or use of data, introduction of viruses or malicious code, terrorism threats, cyber extortion and other cyber liability situations. Cyber liability insurance may cover expenses associated with restoring data or systems, crisis management and public relations, regulatory action, notification, legal defense and business interruption. 

Contact us today to learn more about how we can help your IT firm assess its risks and find the right combination of insurance policies and risk management techniques to help protect against those risks. We have access to policies from numerous insurance companies, so we can be sure to find the policy that best fits your business and the risks you face every day.

 

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