For IT Staffing Firms, Candidates’ Technical Skills Present the Biggest Risk, Says New TechInsurance Alert

IT staffing firms face liability risks for work completed by placed staff members.

CHICAGO – April 4, 2013

Cyber security is a hot topic these days, with concerns of impending attacks affecting decisions at every level of business, from the federal government to small and micro businesses. IT safety and security have never been more important, which means that more small and micro businesses are turning to IT staffing firms for the IT security experts they need to keep their data safe.

With this increased demand for IT staffing firms’ services, however, comes an increased exposure to potential liability. A new alert issued today from TechInsurance, the nation’s leading online insurance provider for information technology businesses, warns IT staffing firms of their liability in placing a candidate who may have misrepresented his or her skills, thereby putting a client’s network and data at risk.

“IT staffing firms are often unaware that they face risks that spring from the actions of employees they place,” said Ted Devine, CEO of TechInsurance. “Once a job candidate is placed in a trusted position, they not only have access to sensitive information but, oftentimes, have the responsibility for keeping everyone else out. If a gap in skills results in a data breach, it becomes a nightmare for both the small business and the IT staffing firm.”

Matt Prevost, an account manager at Philadelphia Insurance Companies, notes that many IT staffing firms place a greater emphasis on checking references and conducting background checks than on verifying particular technical skills.

“This can be a critical error as IT staffing firms face more liability from placing an unskilled employee whose work facilitates or fails to prevent cyber crime, data breaches, or identity theft than they do from placing someone with a checkered past,” Prevost said.

Along with the alert, TechInsurance outlined the following important reminders for IT staffing firms:

• Contracts are crucial. For the purposes of mitigating risk, IT staffing firms should get clarity about the specific skills their staffed employees will be expected to have and what services they’ll be expected to deliver. In the event of an Errors & Omissions lawsuit related to work done by a staffed employee, the staffing firm could be held liable for damages.
• Clients’ coverage demands affect a staffing firm’s coverage needs. IT staffing firms must consider E&O risks from multiple sources: every placed worker might have contact with dozens of clients, each of whom has different demands and expectations regarding Errors and Omissions liability. Staffing outfits should be aware of the E&O limits their clients’ clients demand; these limits give an idea of what kind of exposure staffing firms themselves could face in the event of a lawsuit.
• Employment Practices liability exposure exists, too. While Errors and Omissions exposure is the most visible source of risk for IT Staffing firms, they should also be aware of the threat of lawsuits relating to Employment Practices liability. Staffed workers who initiate suits alleging negligent hiring decisions, mismanagement of benefits, discrimination, wrongful termination, and other EPLI-related issues could easily name the IT staffing firm that placed them in addition to their current employer.

TechInsurance gives small and micro businesses access to the nation’s most respected, A-rated business insurance carriers as well as industry-trained licensed insurance agents experienced in identifying the insurance products to meet their unique needs. For more information on TechInsurance’s offerings, please visit www.techinsurance.com.

About TechInsurance

TechInsurance is a web-based insurance agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their business liability insurance needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For more information, visit http://www.techinsurance.com.

TechInsurance Releases Checklist of Must-Review Items for IT Errors & Omissions Insurance Policies

Small Businesses Must Review E&O Insurance Policies Regularly as Business Changes, Adapts, and Grows.

CHICAGO – March 21, 2013

Errors and Omissions Insurance for technology firms is not standardized. The options, riders, features, and exclusions can vary widely from carrier to carrier and even among policies offered by a single insurance company.

But most small-business owners simply don’t have time to comb through the fine print of their policies. To help them more quickly determine whether their insurance adequately protects against the risks their businesses face, TechInsurance, the nation’s leading online insurance provider for small Information Technology businesses, today issued a checklist that outlines the most frequent inclusions and exclusions in Errors and Omissions policies written for tech companies.

“When an insurance company denies coverage for an E&O claim, insurance agents are as devastated as the business owners we work with,” said Ted Devine, CEO of TechInsurance. “That’s why we work so hard to help our clients understand from the start which events their policies cover and which events they exclude. We also encourage our customers to review their policies with us every time they add a new service or otherwise change their business, to make sure they’ll have coverage if and when they need it.”

TechInsurance recommends that small-business owners check their Errors & Omissions (also called Professional Liability) policies for the following inclusions and exclusions in relation to their business needs:

• International clients or international courts: In today’s economy, more firms are working with clients and partners overseas, particularly in the IT field. If a client suffers a financial loss and initiates a lawsuit, the jurisdiction they choose may affect whether the damages are covered by the defendant’s insurance. Policies that only cover suits in domestic courts will not offer coverage for the legal costs associated with international claims.
  
  
• Independent contractors’ work: Small businesses frequently rely on a network of independent contractors for services that complement their expertise. And while some Errors & Omissions policies include 1099 contractors in their coverage, others do not. In the latter instance, contractors must carry coverage independently. Business owners should be diligent about verifying their contractors’ coverage.
  
  
• Intellectual property: If an IT business deals with different software licenses or outside intellectual property (IP), the business’s E and O policy should address what happens in the event that the company is accused of violating that IP.
  
  
• Physical damage to clients’ hardware: During a software installation or repair, equipment (including a computer or server) can potentially be damaged. In E&O policies, physical damage is always listed separately from non-tangible damage to software or a network. This means that IT businesses that work with both tangible and non-tangible property should verify that their E&O policy covers damages to both.
  
  

Devine notes that proper E&O Insurance coverage provides protection not only for any judgments or settlements a business is found liable for paying, but also for any expenses incurred while defending itself against the claim. “Even if a business isn’t ultimately found liable, the costs of providing a legal defense can be considerable. That’s one reason insurance is so important – it prevents frivolous claims from wreaking financial havoc on a small business,” he said.

TechInsurance gives small and micro businesses access to the nation’s most respected, A-rated business insurance carriers as well as industry-trained licensed insurance agents experienced in identifying the insurance products that meet their unique needs. To request a fast and accurate quote or speak with an agent, please visit www.techinsurance.com.

About TechInsurance

TechInsurance is a web-based e-agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their Commercial Property Insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For information, visit http://www.techinsurance.com.

Caution Ahead: Outsourcing Technology Services Does Not Outsource Risk and Responsibility

TechInsurance Provides Checklist for Small Businesses That Outsource Tech Services.

CHICAGO – March 4, 2013

Small-business owners are experts at outsourcing fundamental business tasks – payroll, human resources, design, data hosting, and even customer service – in order to better serve their customers’ core concerns. But, when looking to outsource IT services, small businesses need to closely manage vendor relationships to ensure that vendors have adequate insurance protection.

Ted Devine, CEO of TechInsurance, notes that selecting vendor partnerships is often one of the most important decisions that small businesses can make. “Small businesses are hesitant, and rightfully so, to forfeit control of their business to outside vendors. However, owners frequently realize that they cannot be chief technology, finance, and marketing officers while also being the president, head of sales, VP of human resources, and any number of other jobs.”

To help business owners better navigate the tricky waters of outsourcing, TechInsurance, the nation’s leading online insurance provider for information technology businesses, today issued a checklist of questions for small businesses to consider when outsourcing key technology services and solutions. The first step in this checklist is to request proof of Errors and Omissions Insurance coverage, which can ultimately mitigate damages in the event of a cyber attack or data loss.

“Small business owners rely on a network of vendors to help manage customer needs, many times outsourcing IT services,” said Devine. “But outsourcing services can increase, not decrease, a business’s risks. That’s why small businesses as standard practice should require proof of insurance to ensure that they will not be left holding the bag in the event of a data breach.”

In addition to requesting proof of insurance, TechInsurance recommends that small business owners ask the following questions when outsourcing tech services:

• Can the vendor scale IT services as the business grows? Most small businesses hope to become lasting partners with both customers and vendors – and changing processes can disrupt business. Determining from the beginning of the relationship whether the vendor has the capability to scale can save time and energy in the future.
  
  
• Where’s the data? With the potential for natural disasters to take out a single data site, as well as the possibility that servers and storage networks might be compromised by malicious attackers or equipment failure, businesses should engage with firms that have redundant capabilities. That way, should an unexpected event occur, the business will not lose access to or control of important customer information.
  
  
• Who will be working on this project? Many smaller tech firms use a coalition of freelancers and professionals to complete and service projects. Therefore, businesses should understand who is ultimately responsible for work in order to make sure that, during and at the end of the project, the right party can be held accountable.
  
  
• Does any of the work occur offshore? Offshoring, even for small projects and firms, is commonplace in today’s global economy. Transmitting work and data overseas can introduce risks – and it is better to weigh this into the decision-making process at the start of the contract, rather than after a breach event.
  
  

TechInsurance gives small and micro businesses access to the nation’s most respected, A-rated business insurance carriers as well as industry-trained licensed insurance agents trained to identify the insurance products to meet their unique needs. For more information on TechInsurance’s offerings, please visit www.techinsurance.com.

About TechInsurance

TechInsurance is a web-based e-agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their Commercial Property Insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For information, visit http://www.techinsurance.com.

For Small Businesses, the Latest Tech Fad Might Present the Biggest Risk
Money-Saving BYOD Policies Present Additional Risks for Small Businesses

According to TechInsurance, Small Businesses Need to Be Skeptical of Bring-Your-Own-Device Policies whose Added Convenience comes with Increased Risk

CHICAGO – February 5, 2013

Running a small business involves constant cost-benefit analysis. Each minute and dollar spent is one that must yield additional returns. That’s why it’s often easy to get roped into the latest technology fad that promises convenience and cost savings. TechInsurance, the nation’s leading online insurance provider for information technology businesses, has seen a notable increase in interest from small and micro businesses exploring bring-your-own-device (BYOD) policies, which empower employees to use their personal devices – from smartphones to tablets and laptops – for work and at work.

In a CDW survey of small businesses released in October 2012, 89 percent of IT managers said employees were embracing BYOD policies and using personal, non-company issued mobile devices for work. Yet just half of those IT managers thought their business had an effective strategy to deal with these devices.

“Small and micro businesses are particularly vulnerable to the challenges that arise from BYOD,” said Ted Devine, chief executive officer of TechInsurance. “Without a technology department to effectively manage these devices, small and micro business owners need to ensure their insurance policies are comprehensive and protect against risks of data loss, viruses, and malware on non-company devices.”

TechInsurance recommends that small and micro businesses update their insurance coverage to include the following, which are part of TechInsurance’s suite of products:

• Cyber Liability Insurance: Mobile devices are particularly vulnerable to malware and hackers, who often look for the path of least resistance. Cyber Liability coverage protects against expenses and liability from the theft or loss of data and/or breach of data security and privacy.
  
  
• Business Owner’s Policy: Business Owner’s Policies are typically the catchall for liability. These policies would protect the physical devices should an employee lose or damage his or her equipment on the job – even if it is personal equipment.
  
  

In addition to insurance coverage, formal BYOD policies should be accompanied by employee education and a thorough set of guidelines on how to handle company information. “Business owners cannot assume that because they have ceded responsibility for purchasing devices that they hold no responsibility for how those devices are used,” Devine notes. “Quite the opposite, both in practice and in terms of business liability.”

TechInsurance gives small and micro businesses access to the nation’s most respected, A-rated business insurance carriers as well as licensed insurance agents trained to identify the best possible insurance products to meet their needs. For more information on TechInsurance’s offerings, please visit www.techinsurance.com.

About TechInsurance

TechInsurance is a web-based e-agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their Commercial Property Insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For information, visit http://www.techinsurance.com.

TechInsurance Launches Automated Marketing System for IT Customers with MODsocket™

New partnership provides small IT businesses with an easy, affordable way to market to existing and prospective clients

Allen, Texas – January 15, 2013

TechInsurance, the nation’s top insurance provider for information technology businesses, has launched an offering for the small IT businesses it serves: an automated system that lets them customize, manage, and deliver high-quality marketing campaigns, quickly and affordably. Details are at www.techinsurance.com/MODsocket.

“At most of the IT businesses we serve, the owner is also the customer service rep, the bookkeeper, the IT consultant, and the chief marketing officer,” said Ted Devine, CEO of TechInsurance. “Between operating their business and staying in touch with current clients, they don’t have time to focus consistently on marketing and reaching prospective customers. This new system makes it fast, easy and affordable to build brand and name recognition.”

The template-based marketing portal is being introduced via a partnership with MODsocket to give TechInsurance customers maximum marketing impact with minimal effort and expense. Customers create a free membership and select from a variety of high-impact brochures, flyers, postcards, online and print ads, and email campaigns that are affordably priced and available a la carte. The marketing materials are designed and written to sell specific IT services, such as web development, custom programming, and network support services. New materials will be added to create an ever-expanding library of marketing resources.

“We are excited to be working with TechInsurance to help deliver high-quality, affordable marketing support to small businesses in the IT sector,” said Donovan Dillon, president of MODsocket’s developer, Ad Giants LLC. “Marketing is critical to the sustained growth and success of any company, large or small. TechInsurance’s commitment to proactively assisting its policyholders in this area is impressive.”

As Devine noted, “At TechInsurance, we constantly seek ways to help our customers and often introduce technology-based solutions to make their lives easier, so that they can stay focused on serving their clients. We’re excited to release this high-quality MODsocket marketing system that is affordable and easy to use.”

To use the service, IT businesses simply customize the selected materials with their company’s logo, contact information, and messaging to create a consistent, personalized marketing campaign. Then, they upload a contact list and select when and how often they’d like to reach out to their clients or prospects. The MODsocket system handles the printing and delivery or email distribution, or users can download files to manage this themselves. Customers may track timelines, budgets, and results through a secure, online MODsocket portal.

“With all that I have to do, finding the time and the resources to market and promote my business is one of my greatest challenges. That’s why I love what MODsocket offers. In a pinch and in a flash, I’m able to get a great creative product at a very affordable price, a valuable commodity today,” notes MODsocket user Gaye Jackson, owner of Gaye Jackson’s Flowers.

MODsocket was created to be an all-in-one, marketing-on-demand resource for small business owners, allowing them to easily customize, order, and use professional-quality products to promote their business. At just $49.95 each month, pricing is much less than a custom agency-created marketing campaign. MODsocket has worked closely with TechInsurance to adapt its successful marketing model to suit the needs of independent, small IT businesses.

Subscription fees at MODsocket will be waived for TechInsurance clients. Access to view the templates will be free and each campaign within the system is priced affordably, starting at just $10.00 – plus the cost of printing, mailing, or email delivery based on the size of the target list.

About TechInsurance

TechInsurance is a web-based e-agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their Commercial Property Insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For information, visit http://www.techinsurance.com.

About MODsocket

MODsocket.com is a first-of-its-kind, online, marketing-on-demand system designed to meet the real-world marketing challenges of today’s small business owners. It is the latest in a line of marketing-centric technologies developed by Ad Giants, LLC, a leading digital marketing services company based in Dallas, Texas. Through MODsocket, small business owners are able to easily access, execute and manage a wide variety of professional marketing programs – affordably and on demand. To learn more about MODsocket, visit www.MODsocket.com.