Business Insurance for IT Consultants
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Small Business Insurance for IT Consultants

In IT consulting, the details matter. When you're recommending IT solutions for a client, you have to find the right fit based on their industry, the size of their business, and their budget.

The same is true about your insurance. The details matter. When you invest in IT business insurance, you should make sure to get insurance designed specifically for an IT consulting firm of your size and focus.

Proper business insurance protects you from lawsuits. If you're sued, you'll file a claim with your insurance company and receive the following support:

  • Expert lawyers skilled in defending small tech businesses.
  • Coverage for expensive settlements and judgments (i.e., paying damages to the party that's suing you).
  • Medical cost coverage for employees and third parties injured on your property.

The Risks of Running an IT Consulting Business

When you're an IT consultant, customers look to you for expert recommendations. But what happens when a client takes your advice and the outcome is less than ideal? Here are some examples of common risks and the tech consultant business insurance that may help out.

  • A client is hurt in your office. One of your favorite clients comes to your office for a meeting, and she trips over a cord. In a failed attempt to protect her laptop, she lands hard on her arm. Now both the laptop and her arm are broken. She's rushed to the ER, and the next month you receive a bill for her medical expenses. If you have General Liability Insurance, it should cover the hospital fees. It may even pay to replace her damaged laptop.
  • A software program you recommended doesn't work. You were positive a pricey point-of-sale management system you recommended would integrate flawlessly with a client's accounting system. But it didn't. At all. Now they're suing you to recoup the cost of the software, lost time, and lost sales. Professional Liability Insurance, also known as Errors & Omissions Insurance, can come to the rescue when you're sued over professional mistakes.
  • Antivirus software is defective. You regularly recommend and install antivirus software on client computers. But one client is hacked because of a small defect in the software. They lose thousands of financial records as a result. A Data Breach Insurance policy may help pay for the damage even though you didn't create the software.
  • Your office is robbed. Someone forced the door open and stole several laptops, your printer, a couple of tablets, and all of your office snacks. To add insult to injury, the culprits graffitied the walls. Classy. Luckily, a Business Owner's Policy can help pay to replace the stolen items and to deal with the vandalism.
  • An employee is hurt at a client's office. While leaving a client meeting, your employee walks straight into a glass door, breaking his nose. Luckily, you live in one of the 49 states that mandate Workers' Compensation Insurance for most businesses, so it should pick up the tab for his surgery expenses. This policy also usually includes Employer's Liability Insurance, which can pay for lawsuits over employee injuries.
  • You land a bank as a client. Financial institutions are great clients to have because you typically don't have to worry about getting paid (banks are where the money lives). However, they may ask you to purchase a Fidelity Bond, which helps them out in case you steal from them. Don't take it personally.
  • An employee sues you over discrimination. Your IT consulting business is starting to grow and you promote your best employee, Jill, to team leader. But Carl thinks you passed him over for the promotion just because he's a dude, so he sues you over discrimination. This is why Employment Practices Liability Insurance is often a good idea once you start hiring staff.

Tech Consultant Business Insurance and Risk Management Resources

IT consultant business insurance is one way to keep your firm on the fast track for growth. When the unexpected comes your way, you'll have the means to quickly handle the aftermath and put it in your rearview mirror. And when you work with TechInsurance, you get the policies that fit your needs. No more, no less.

But your protection plan shouldn't begin and end with insurance. That's why TechInsurance maintains a free online resource center for IT risk management. To help your business plan ahead, check out our sample IT contracts, risk management blog, insurance cost estimates, and other free resources.

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