Common Risks for IT Project Management and Quality Assurance Analysts
Whether you’re facing a lawsuit, fire, theft, or an accident, IT project management business insurance can keep you operational despite the disaster. Without insurance, your business is often left scrambling to cover its bills and stay afloat. Take a look at how insurance can help QA professionals and IT project managers in the following scenarios:
- Damaged client property. A small doctor's office hires your business to integrate tablet computers with the office's main network. One of your project managers is carrying four tablets back to their office when he trips, sending the tablets flying. The doctor's office sues, but your General Liability Insurance pays for the project manager's legal defense, which comes to $1,700, plus a $5,000 settlement to keep the case from going to court.
- Data breach. You're hired to review the code for a new app, analyze testing scripts, and make suggestions for how the client can shore up security. Months later, hackers take advantage of a Java exploit and break into the client's program. The client claims your code review should have prevented this, and they sue. There's little you could have done to prevent the data breach because the flaw was in the older versions of Java. Still, Errors & Omissions Insurance can help cover the cost of the lawsuit. If a court finds you liable for the data breach as well (and let's face it, courts don't tend to be very tech savvy), the Cyber Liability Insurance typically included in an E&O policy can help out.
- Pilfered office equipment. After a lengthy and much-needed Christmas holiday break, your IT management firm returns to find the office's back door bashed open. Several computers, tablets, and other electronics have been stolen. The total amount of damaged and lost property is $25,000. Good thing your Business Owner's Policy can help replace the stolen goods and repair the damage.
- Break room wipeout. An employee walks into the office kitchen to refill her coffee, and she slips on a bit of spilled water. She breaks a shin and tailbone in the fall and needs time to recover before returning to work. You're responsible for her medical bills, and luckily, Workers' Comp Insurance is there to pay the tab. Now let's say she is also an avid marathon runner and sues you, claiming the injury cost her thousands of dollars in mental anguish. Employer's Liability Insurance is often included with Workers' Compensation coverage and can pay for the legal costs.
- Employee theft from a client. Let's say you're overseeing the installation of new sales and database software for a local bank. One of your employees uses her admin access to try to electronically wire funds into her bank account. It's a stupid move, but you have a Fidelity Bond, which reimburses the bank for any stolen funds.
- Lawsuit from a fired employee. A major project is running behind schedule. One of your employees is tasked with managing the freelance developers, keeping them on track, and performing in-stage assessment of the software. You discover your employee skipped over an early in-stage assessment and overlooked crucial errors in the code that are now causing headaches. After you fire the employee, he sues you for improper termination, claiming you are unjustly punishing him for the developers' mistakes. Employment Practices Liability Insurance can help pay for the legal expenses, even if the suit is frivolous.
Risk Management Resources for Project Managers and IT QA Engineers
We know small-business owners don't have much time or money to waste. That's why, in addition to project manager and QA business insurance, we offer lots of free resources on our website. Check out answers to frequently asked business insurance questions (FAQs), sample insurance quotes for IT firms, our risk management blog where we dole out helpful advice, our risk and project management guide, and plenty of other tech business resources.
Whether you're our customer or not, we invite you to take advantage of these free resources to help keep your business running smoothly.