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IT contractor insurance secured with McArdle Insurance Agency.
In the digital age, people need professionals who understand all things computer-related and internet-based. That’s where you come in. As an IT contractor, people and businesses alike rely on your knowledge of a complex field to help give them access to the digital world. This also means you’ll come into contact with some risks unique to your business, which is why having a comprehensive IT contractor insurance plan is important to keep you protected.
IT contractor insurance for your complex industry.
As an IT contractor, whether you’re helping a business set up a computer network or developing a software for a client, you want to make sure your work is accurate and operating smoothly. However, mistakes happen. When they do, you could be held liable for them. For example, let’s say the software you develop has a coding issue you didn’t catch that results in the client losing all their data. Errors and omissions (E&O) liability insurance helps to cover the costs of defending lawsuits filed against you if you’re accused of an error, making it a critical part of your IT contractor insurance policy.
Protect your expensive technology.
While a general commercial property insurance policy is important to have, you may want to consider supplementing it with a systems breakdown insurance policy. As IT contractors, you work with often expensive technological equipment like servers, hard drives, and other computer components. Systems breakdown insurance as part of your IT contractor insurance policy can help your business in the event that your equipment is damaged and needs to be repaired or replaced. In some cases, it can protect against loss of business income, though most likely at a higher premium.
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Commercial General Liability
Risk Factor
Businesses are susceptible to many risks, such as claims due to property damage, bodily injury, personal injury, and more.
Solution
General liability insurance is an absolute necessity for your technology business. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action regardless of its merit.
Professional Liability
Risk Factor
As a company providing emerging technology products and support, you are susceptible to unique exposures and potential lawsuits either by not doing the work correctly (errors) or not doing it at all (omissions). Lawsuits can arise claiming the error or omission harmed your client and caused them a financial loss.
Solution
Professional liability insurance protects you and your business from potentially catastrophic litigation caused by charges of professional negligence or failure to perform your professional duties. This might include errors and omissions resulting in loss of client data, software or system failure, claims of non-performance, or negligent oversell.
Commercial Property
Risk Factor
When a fire, theft, or another type of disaster strikes, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your technology business.
Solution
Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
Systems Breakdown / Inland Marine
Risk Factor
Computers, phone systems, steam boilers and other equipment are susceptible to exposures not normally covered under your basic policy. While repairs are being made, you can lose valuable time and suffer diminished profits. More often than not, business interruption, extra expense and recovery costs can outweigh the damage to the equipment itself.
Solution
Systems breakdown insurance can cover more than the cost to repair or replace your equipment. It can cover lost income if you need to temporarily shut down, the extra expenses needed to continue running your business while equipment is being fixed or the losses and expenses your business may incur if normal operations are interrupted by an off-site equipment-related failure.
Business Income
Risk Factor
What would you do if a pipe leak impacted the operation of your business and prevented you from serving clients for a day or more? Or what if a hacker or cyber-criminal caused a system outage or extended downtime, leaving your business inoperable? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.
Solution
Business income insurance compensates you for lost income if your company cannot operate as normal due to disaster-related damage that is covered under your commercial property insurance policy.
Workers' Compensation
Risk Factor
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.
Solution
Workers' compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law and may vary by area, so be sure that you understand your obligations for all physical locations where your business operates in and all physical locations where you hire your employees.
Business Auto
Risk Factor
As a technology business, you have many exposures associated with your business vehicles, whether they are owned or leased. With a fleet of cars, trucks, vans or other types of vehicles used in the course of business, a single accident can potentially put your technology business in financial jeopardy.
Solution
Business auto insurance provides coverage for vehicles owned or leased by your technology business and provides coverage for bodily injury, property damage, and other exposures, and could include comprehensive and collision coverage as well.
Commercial Umbrella / Excess Liability
Risk Factor
Losses and lawsuits are quite common in business and settlements can be substantial. If your technology business is found to be responsible for damage or injury to a third party, you could be facing a large liability loss that exceeds the basic limits of your standard policy.
Solution
You should consider purchasing a commercial umbrella insurance policy which provides higher limits, typically between $2,000,000 and $10,000,000, and often broadened coverages. Coverage is extended over various policies, including general liability insurance, business auto, and directors and officers liability insurance.
Cyber Liability
Risk Factor
The Internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data, and financial information of your customers. If this information is lost, stolen, or compromised, your company is at risk. In fact, you may even be required by law to alert those impacted by the breach and to pay for any financial loss incurred.
Solution
Cyber liability coverage offers protection due to unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion, or any unintentional act, mistake, error, or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology to help run your business.
Since you work in the digital world, you’re a target for hackers.
As IT contractors, you probably understand the benefits of working with all things digital, but you also know the risks better than anyone. You hear about hackers and warn clients all the time, but are you following your own advice? Cyber liability insurance can protect your business in the event of a data breach. It offers protection against the costs of notifying your clients, potential fraud monitoring, and any other legal expenses that result from the breach, such as client lawsuits. As experts in your industry, you must take care to have the right protection in place.
Make sure your employees are covered if they get hurt.
You wouldn’t necessarily think that being an IT contractor could be a dangerous job, but it certainly has its own unique hazards. By working with technical equipment, you’re exposing your employees to potential injury. One faulty bit of wiring in a server your contractor is working on could land them in the hospital, putting you in the hot seat if you aren’t properly covered. Workers’ compensation insurance is important to have as part of your IT contractor insurance coverage as it provides coverage for your employees if they get injured on the job by covering medical costs, lost income, and more.
Cover the basics of your IT contracting business.
There are some basic coverages you may want to obtain as part of your IT contractor insurance plan. The nature of your work likely requires travel to client sites. Business auto insurance can cover your vehicles if they are involved in an accident while on company business. Since you’re going out to client sites, general liability insurance is another important coverage since it can protect you from liability resulting from damage to other people or their property. As mentioned before, commercial property insurance is a key part of your plan as it can help cover the costs of damage to your business’s building, equipment, and more in the result of fire, water damage, or theft.
If you’re looking to learn more about IT contractor insurance and what coverage is right for you, contact us today.
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