Insurance requirements particular to computer consultants
As a computer consultant, you undoubtedly have heard of General Liability insurance. You may even have a policy in place. But did you know that General Liability probably won’t cover some of the most dangerous financial risks facing your computer consulting business?
Your clients trust you with not only their computer hardware and software, they trust you with the data that is essential to their own businesses. That means that a simple small mistake on your part can result in a client losing vital data that makes their business run on behalf of their customers.
Professional Liability Insurance Coverage
As a computer consultant, you can become vulnerable in lawsuits alleging that your negligent acts, errors, and omissions resulted in economic damages to your clients. Lawsuits for negligence and breach of warranty can result when technology products and services fail to perform . Technology consultants who bear these risks out of their business or personal assets face unacceptable risks.
A Professional Liability (also known as Errors and Omissions, or IT Liability) insurance policy protects you as a computer consultant from these types of liabilities and lawsuits.
The number of IT consultants in the job market and the need for affordable technology consulting professional liability (E&O) insurance has mushroomed with the technology explosion. A good Professional Liability insurance policy will provide consultants with peace of mind.
Commercial General Liability Insurance Coverage
In addition to Professional Liability Insurance, computer consultants should also have a good General Liability Insurance policy to protect their business. A general liability policy typically covers damages resulting from bodily injury, property damage, personal injury (such as slander or defamation of character), advertising injury, and damage to leased premises. The biggest fear of a computer consultant is undoubtedly losing vital data as a result of a careless mistake. But it happens, and without proper insurance coverage you are completely at risk to be held financially responsible.
General Liability is a great policy for general business risk, but did you know it won’t protect you against the most common risks you face?
- Hard drive failure while you are working on a computer can be attributed to a mistake you made, and the associated loss of data can cause a lawsuit.
- Security leaks associated with forgetting to install a software patch can cause private information to be accessible to the public and opening you up to tremendous liability.
These are just a few examples of situations that would be covered under a Tech Professional Liability Errors & Omissions Policy.
The main difference in a General Liability and a Professional Liability policy is that a Professional Liability policy covers damages resulting from a mistake you made while doing your job that results in purely economic damages with no accompanying bodily injury or property damage.
You can get both General Liability and Professional Liability Insurance combined for as low as $1,100 with monthly payments are as low as $110. Can you afford NOT to have the coverage you need for your business?
“Sadler Insurance has knowledge about what insurance is
needed by a small technology company. That’s hard to find.”Syntiro Networks