Why Do IT Consultants Need Insurance?
You are truly living in a technology-filled world. Technology is everywhere and it only keeps growing and growing. This is especially true in the Ontario area. More and more people are becoming interested in computer systems and hardware. With such a high demand in the field, IT consultants are really reaping all the benefits. As an IT consultant, it will be your job to design computer systems that integrate with hardware, software and other communications. However, there are some consultants that train and teach as well as design. There are even some that travel out to job sites and set up computer networks. Whichever direction you take your business in, you need to make sure that you are mitigating your risks by investing in the right insurance policies.
Understanding IT Consultant Insurance
Anyone in the Ontario area that is going to delve in the IT field needs to invest in IT insurance or commercial general liability insurance. This is a specific type of policy that will protect your business from some of the risks that you are exposed to on a day-to-day basis. Commercial general liability insurance protects you against injury and property damage claims. For instance, if one of your employees damages a customer’s computer, this policy will step in and pay to have the computer repaired or replaced. Commercial general liability insurance also offers protection in the event that you cause a customer bodily harm.
Just imagine if you are working on a ladder installing fiber optic wires in the ceiling and fall onto a customer. If they are seriously injured the policy will pay the medical expenses. It will also pay any court-related costs in the event that the customer wants to take the case to court. It will pay deposition fees, the expenses of hiring a lawyer and it will even cover the settlement in the event that the case doesn’t go your way.
It should also be noted that commercial general liability insurance extends protection to your office as well. If someone slips and fall in your office, the policy will cover any medical related expenses. It will also cover lawsuits in the same manner.
Understanding Commercial Property Insurance
It doesn’t matter if you own a building or you are renting an office space, you are going to need to protect it and its contents. You probably store a lot of valuable computer equipment and if it is damaged or stolen you could be looking at thousands of dollars’ worth of losses. This is why it is important to protect your building and that equipment. You can do just that with what is known as commercial property insurance. Commercial property insurance will cover your property and its contents in the event that there is a fire, theft, vandalism or natural disaster. This not only includes your computer equipment, but it pretty much includes everything like office chairs, desks, furniture and pretty much any office equipment.
Understanding Business Interruptions Insurance
When you are building your unique insurance package you should also consider what is known as business interruptions insurance. You just learned above that commercial property insurance protects your property and its contents in the event that there is a fire, theft, vandalism or natural disaster. However, what if that fire burns down your store and puts you out of business for a month or more? Who’s going to pay your wages during that month? This is where business interruptions insurance can offer a bit of protection. This policy will pay for ongoing expenses while you are out of business. It will even pay to have you relocated to another location in the meantime if the situation comes to that.
Consider A CGL Package
Some insurance providers will offer certain small businesses what is known as a commercial general liability package. This is basically just a unique policy that combines general liability, property and business interruption coverage. Your monthly premiums will also be much cheaper when you combine policies together like this.
Is Cyber Liability Insurance Necessary?
Most IT consultants don’t think that cyber liability insurance is necessary. However, that is not the case at all. In today’s tech sophisticated world, it is not unlikely to imagine one of your customer’s networks getting breached or hacked. If someone hacks into a network that you set up and steal sensitive information and uses it to harm your client, you are going to be held liable. The client will say that you set up the network and were responsible for its security. Whether the claim is deemed worthy or not, your client can legally take you to court.
Going to court can tie up tons of resources and cost a lot of money. Cyber liability insurance will offer the financial protection that you need in these situations. It will pay for the court related expenses regardless if you are liable or not. It should also be noted that cyber liability insurance protects your network against data loss, computer viruses and hacks as well. If your network is damaged due to a hack or virus, cyber liability insurance will pay for the damage that you incur.
Is Errors And Omissions Insurance Necessary
When you are building your insurance package you will also see something called errors and omissions insurance (professional liability insurance). This is certainly a policy that is worth considering. As an IT consultant, it will be your job to provide expertise at all times. However, in your fast-paced industry, anyone can make a mistake at any given day. Just imagine if you:
- Design a network that has flaws.
- You lose a client’s data
- You don’t complete a project on time or within budget.
All of these situations would be seen as negligence on your end and can results in a long draw out, expensive lawsuit. Errors and omissions insurance or professional liability insurance will offer the protection you need. It will cover any of the court related costs involved with the entirety of the case.
Find Insurance Tailor Made For Your Business
Here at LiabilityCover we have unique insight and knowledge in the IT industry. We work will IT consultants every day and know what risks they face. We can help you put together a comprehensive insurance package that will mitigate any financial damage that you might face.