General Liability Insurance is often referred to as "slip-and-fall insurance," but it might be better described as the "Swiss Army Knife of insurance." Because of its versatility, General Liability can help cover many different IT consultant liabilities.
And like a Swiss Army Knife, there may be parts of your insurance that you didn't even know were there.
Risky Business: 6 Liabilities IT Consultants Face Every Day
As a business owner, you know that sometimes it's the small, unpredictable things that can threaten your business. A random accident or injury could leave your IT firm with a dizzying legal bill. Fortunately, General Liability Insurance can cover many IT consulting risks, including these everyday liabilities:
- Spilling coffee on a client's laptop. GL may cover lawsuits when you damage a third party's property. Translation: spill a latte on a client's laptop and General Liability can cover your attorney fees and expenses you owe if the client sues for damages.
- A delivery person slipping on an icy driveway. A delivery person runs up your driveway to deliver a package. She slips on an icy patch and breaks her arm in the fall. GL may cover lawsuits over slip-and-fall injuries and other accidents that happen on your property.
- A social media blunder. It's all too easy to tweet or blog something you regret later. Good thing GL can provide coverage in the event someone has a problem with what you've posted. General Liability Insurance can help cover lawsuits if someone sues you for libel, slander, or reputational injury.
- Not being able to secure contracts. Clients often require IT consultants to have small business insurance before they'll sign a contract with you. You might need to have GL Insurance, as well as Professional Liability Insurance, to sign on the dotted line. (See "Why Your Technology Clients Want You to Have General Liability Insurance" for more on contract requirements.)
- Damaging your office. Office leases might require you to have General Liability Insurance. If your business causes a fire or damages your landlord's building, your insurance may cover certain damages.
- Liquor liability. As a business owner, you can be liable for your employees' actions if they have too much to drink at a work function (e.g., happy hour or holiday party) and damage property or injure someone. GL Insurance can include coverage for related lawsuits.
General Liability Insurance: A Building Block for IT Risk Management
General Liability Insurance isn't the only technology liability insurance an IT consultant might want, but it's a good place to start your risk management. GL can provide important financial protection for small IT businesses because it offers a wide array of coverage for costly, everyday mishaps.