Tips for Evaluating Technology Insurance
Every business involves financial risks. Evaluating the risks is the first step in the process of determining the need for technology insurance. Technology insurance programs have been developed to address some of the unique risks that IT firms face.
Business Owners Insurance Policy
The Business Owners Insurance policy is a package insurance policy which provides general liability insurance and property insurance.General liability insurance offers a business protection from lawsuits arising from bodily injury or property damage to third parties while on the insured premises. Property insurance protects from direct loss to property of the insured due to such causes as fire or theft. The Business Owners policy is the cornerstone of any business’ insurance program.
Professional Liability Insurance
Errors and omissions insurance, or professional liability insurance, is necessary for technology firms to protect from lawsuits arising from the failure of the firm to deliver a product or service which meets the expectations of professional excellence. Mistakes do happen. If a firm causes financial loss to a client due to mistakes or oversights, a lawsuit could arise. Aside from any damages awarded, an Errors and Omissions insurance policy will provide some coverage for the expensive litigation costs associated with a lawsuit.
IT Consulting insurance should also include coverage for contracted 1099 employees as well as the company’s regular employees. Due to the nature of the business, technology companies should also look for worldwide coverage in an insurance policy. Limiting coverage only to domestic claims only could leave an expensive coverage gap.
Group Health Insurance and Employee Benefits for Technology Companies
Structuring an attractive employee benefit package that will attract and retain the most talented technology professionals is crucial to the long term success of any firm. Employee benefits include group health insurance, life insurance, 401k retirement plans, and disability insurance. Group health insurance for technology companies can be structured in many different ways. Finding employee benefits and group health insurance options for small technology companies can be a time consuming and expensive task. Partnering with an insurance broker that understands the unique needs of technology firms can be a tremendous asset.
Without insurance, a technology company is risking the possible loss of all the company assets. Buying technology insurance policies is the easiest way to protect the business from catastrophic losses. Depending on local licensing requirements, purchasing IT consulting insurance may be required. An experienced agent will be able to assist in determining what IT insurance is necessary for a firm and how to mitigate the risks of financial loss.
