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Imagine you spill a coffee on a client’s laptop. Suppose you tweet something, and the client takes it the wrong way and decides to sue you for slander. Could you afford the legal damages if you caused a fire? These are only some of the many risks IT consultants face every day.

Do you know how liability insurance can help in such cases?

If you have been a business owner for a while, you know that unpredictable things can be devastating to the bottom line of your business. If someone is hurt unexpectedly and claims the accident is your fault, your expenses could mount quickly.

If you are a computer programmer or another kind of IT professional, you should know you face potential legal risks that those working in other fields don’t. Before buying liability insurance, you need to evaluate what risks your business faces, and how much money they might cost you.

For example, how much money could a client claim he has lost as a direct result of your advice or services? Suppose you drive from one job site to another—will your personal car insurance cover you, or should you get commercial vehicle coverage? Ifyou or your employees transport computer equipment from one place to another, how great is the risk to property? Is there a risk of personal injury?

Types Of Liability Insurance You May Need

IT Professional Liability Insurance

This might be your most important coverage. If a client doesn’t like the service you have given and files a claim against you, your coverage will pay for your legal defense and some or all of the judgment or settlement amount.

Cyber Risk Insurance

Cybercrime is one of the most serious issues any IT professional faces. Suppose someone claims you are responsible for a data breach or malware attack, or you are hacked, the coverage can protect you from any repercussions you face. This can also protect you against lawsuits alleging that your firm is responsible for denial of service attacks or a client’s inability to access a system or website.

In addition, it may cover you for malicious or accidental loss of assets or data, disclosure of confidential information, cyber terrorism, unauthorized access to or use of data, data tampering, introduction of malicious codes or viruses, cyber extortion, terrorism threats, and other cyber liability situations.

Commercial Property Insurance

Your homeowner’s policy may protect you from damages at a home office, but might or might not cover equipment. Property insurance will protect any professional equipment you are you using, as well as the structure of your home office. You will be able to recover damages faster after a fire other disaster.

Business Owner’s Policy (BOP)

This combines property coverage and commercial liability and property coverage into one policy. This is especially beneficial for smaller businesses that meet certain requirements.

Workers’ Compensation Insurance

This will provide money for lost wages and medical expenses and lost wages for workers who suffer a work-related illness or are hurt while at work.

Excess Liability/Umbrella Coverage

This is to protect you when your employer’s liability, general liability, and commercial auto coverage do not provide enough insurance. When the limits have these policies have been reached, it will provide additional money. It will not provide additional coverage for professional liability claims made against your business.

People Who Might Need Liability Insurance

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

If you have questions about liability insurance, feel free to contact us or request a free quote.