Data analyst contract jobs are growing fast as more companies realize they can use big data to gain insights into their business and increase profits. In fact, the HR professional society SHRM notes 59 percent of companies plan to add a position that requires data analysis skills in the next five years.
This means there will be lots of opportunities for a talented contract data analyst. But what happens if a client isn't happy with your work? It could quickly turn into a lawsuit.
Data analyst insurance can help by covering costs like…
- Attorney fees.
- Damages awarded to your client.
Common Risks Data Analyst Insurance Can Cover
Not sure what kind of contract analyst insurance you might need? Let's take a look at some common risks you might face and the coverage that can help protect you.
- Stolen data. This is the key worry for most data analysts. Your clients provide you with access to proprietary information. If a data breach occurs because of your work, it could lead to a lawsuit. Cyber Liability Insurance can often cover the resulting legal expenses.
- Damaged client laptop. You meet with a new client to present a report. While hooking your laptop up to the HDMI cable, you accidentally bump the CEO's coffee with your elbow. His computer is drenched in coffee. After you slink out of the meeting, be sure to tap your General Liability Insurance. It can pay to replace the damaged laptop.
- Bad numbers. Let's say you prepare a careful analysis on Q3 sales figures for your client. They give it an initial review and seem satisfied. A week later, you get an angry phone call. Instead of providing an analysis on the numbers from 2016, you inadvertently pulled the 2015 Q3 figures. Oops. If your client sues you over the mistake, your Errors & Omissions Insurance may cover the legal expenses.
- Electrical fire. Your office is in a space that hasn't seen many updates in 50-plus years. That includes the electrical system. One day the system short-circuits and starts a small fire in your office. Your laptop and most of your office furniture is ruined. If you have a Business Owner's Policy (BOP), its Property Insurance coverage can help replace your fire-damaged stuff.
- Occupational injury. Your employee is excellent at his job, but all the clicking and typing has taken a toll on his wrist. Turns out he has carpal tunnel syndrome. Most states require employers to have Workers' Compensation Insurance, so yours should help pay for your employee's occupational injury expenses. That can include surgery and follow-up medical care costs.
- Sticky-fingered employee. A local bank hires your firm to review some of its data. One of your employees pulls the data but also manages to skim some money from the bank. As embarrassing as it is to discover you hired somebody so foolish, the Employee Dishonesty Bond the bank required you to purchase can reimburse the bank for its loss.
- Discrimination lawsuit. To fill a job opening, you hire Sabrina, a 25-year-old with a few years of data analysis experience. Bill, another candidate, claims you didn't hire him because of his age and sues you for age discrimination. Even though you didn't choose Bill because his experience is in B2B sales, you now need to prove it in court. Employment Practices Liability Insurance can help by covering your legal expenses.
Risk Management Tips for Data Analysts
You don't need to be an insurance pro to understand your risks. We have several resources that can help you find the information you need.
Start with our glossary, which translates insurance-industry jargon into plain English. If you need to hire someone and aren't sure if an employee or a freelancer is the best fit, this article can help you decide.
Lastly, check out our tech business resources section for more business growth and risk management tips.