Your IT company handles technology problems that would leave most professionals scratching their heads. From routine software updates to urgent bug fixes, IT companies help businesses everywhere stay up-to-date and fully operational. As the general business landscape becomes more and more tech-savvy, your services are more sought-after than ever.
Working in an ever-changing field comes with its unique share of challenges. Although you do your absolute best to provide applicable advice and troubleshooting skills to your clients, you can’t foresee every snag before it happens. Business insurance for IT companies helps protect your organization from rising costs associated with liability, property damage, and worker injury.
Keep reading to learn more about four big reasons why your IT company needs the right business insurance, then talk to the experts at CoverHound about how to get it.
You have to push back your launch date unexpectedly
A contract is a contract, right? Except in a field as flexible as information technology, it’s hard to know exactly how long projects will take to the day or hour. What if an unexpected roadblock means you have to push back a program’s launch rollout date, much to the chagrin of your client?
You may be able to work out a deal, but if your client sues you for losses related to these delays, you’ll need professional liability insurance on your side to handle litigation fees and damages. As Forbes writes, this so-called errors and omissions insurance “provides defense and damages for failure to or improperly rendering professional services.”
Your client becomes the target of a cyber hack
Symantec reports that over half a billion personal information records were lost or stolen in 2015 alone, and that this does not count the fact that companies sometimes under report the full extent of data breaches. As technology gets more advanced, so do hackers. When you’re working on a client’s system full of sensitive data, you may be vulnerable to a cyber breach that’s just as hard on your reputation as it is on your bank account. Cyber insurance can help mitigate these costs and damages.
A fire in your office park triggers the overhead sprinkler system
As damaging as a fire can be, sometimes the water used to put it out can be worse. Thankfully nobody was injured, but your technology has seen better days. To continue to provide services to your clients, you’ll have to quickly repair or replace your electronics. This can be an unrealistic undertaking without property insurance.
If you take out a Business Owners Policy (BOP) with property insurance and business interruption coverage, you’ll get on your feet much faster after a covered event (think fire, windstorm, vandalism, theft, etc.) This coverage can help you replace your damaged work gear and pay your utility bills until you’re fully functional again. As the Insurance Information Institute adds, this policy should cover your building, permanently installed fixtures, contents within the building and property of others in your care.
Your longtime employee needs carpal tunnel surgery
After years of faithful service, your employee’s wrist ache is worse than ever. A physician’s evaluation reveals that they need surgery to counteract their carpal tunnel syndrome, plus ongoing rehabilitation therapy. A worker’s compensation policy helps you cover medical bills, physical therapy costs and time off work for employees who sustain work-related injuries. It also protects you from lawsuits over workplace conditions.
Doing client work without the right business insurance for IT companies is a gamble you can’t afford. Learn all about your policy options with CoverHound today!