Who needs IT Consultant Insurance?
Information Technology (IT) def: the application of computers to store, study, retrieve, transmit, and manipulate data, or information, often in the context of a business or other enterprise. Source: Wikipedia
The information technology sector is ever-growing and you very well might find yourself in it. Some information technology professionals that would require IT Consultant insurance would include, but are not limited to:
- IT Analyst
- IT Consultant
- IT Trainer
- Custom Programmer
- Software Consultant
- Database Manager
- Computer Programmer
- Computer Consultant
- Database Manager
- Custom Software Developer
What Does IT Consultant Insurance Cover?
The main cover that IT Consultant Insurance provides is coverage in the event you should find yourself accused of providing a faulty professional service or advice. IT Consultant Insurance is very similar to other Errors & Omissions insurance policies but is tailored to the unique needs of the information technology industry. The following covers are some that are usually included in IT Consultant Insurance policies:
- Cyber Liability
- Network Security and Privacy Breach
- Intellectual Property Coverage
- Multimedia and Advertising Coverage
- Liability Insurance Coverage Designed for Tech Companies
Additional insurance covers that can often be packed together with IT Consultant Insurance, and helps to provide well-rounded coverage are:
Why Do I Need IT Consultant Insurance?
Here are some examples that help illustrate the need for IT Consultant Insurance:
Stolen Laptop: You are retained by a large organisation, and keep a database of the organisation on an encrypted laptop holding personal and private information about the organisation’s employees. News breaks that the laptop is stolen and the organisation’s employees start a class action lawsuit against you for jeopardising their privacy and putting them at higher risk for identity theft.
Data Backup: You backed up all your client’s records on an external hard drive and then it fails causing all the data to be lost. Your client could make a claim against you for using improper backup procedures.
Client gets Hacked: A client hires you to review their network security and implement new procedures where needed. A few months after you’ve completed your work, the client’s network gets hacked and they lose revenue from the site being down. Your client can make a claim against you for faulty work.
Faulty Recommendation: You recommend a point-of-sale management system to your client that you are positive will integrate with their current accounting system. Unfortunately, you were wrong and now they’re suing you to recuperate the costs of the software, lost time, and lost sales.
What kind of insurance does an IT consultant need?
IT consultants are open to a variety of risks in this fast-paced sector. Anyone in this field needs a comprehensive IT Consultant insurance package that includes coverage against giving faulty advice to a client or failure to do something crucial for a client. This is also called Errors and Omissions Insurance. Imagine you recommend a software system to a client who implements it, and it does not sync with their POS system as you had predicted it would. They’ve now spent money on the new software, your time and training for their staff, only to find it’s not the right solution. IT consultants also need to protect themselves from other risks that come from operating in the tech world with liability insurance against things like cyber breaches, data losses, privacy breaches, and intellectual property theft.
In addition, IT consultants need to carry the types of coverage common to many businesses including Commercial General Liability Insurance, Property Insurance, Business Interruption and Equipment Breakdown insurance.
How much does IT Consultant Insurance cost?
The cost of your IT Consultant Insurance package will depend on a few factors. Your company’s annual revenue will factor in, as well as the number of employees you have. Your personal years of experience in the industry, as well as your claims history, will also affect the cost of your insurance coverage. The cost of IT Consultant Insurance can generally range from around $600-1000 for $2m in liability coverage, based on the factors mentioned. It is important to speak with an ALIGNED insurance expert to determine the cost of your individual business’ insurance package.
What is IT Consultant Insurance?
IT Consultant Insurance is coverage for those in this field that do consulting work for clients related to their information technology systems. These professionals also carry a certain amount of risk in doing their jobs, so IT Consultant Insurance protects them from claims made against their business. Typically, IT consultants need coverage for professional liability (Errors and Omissions), Cyber Liability (data breaches and losses), other online asset coverage, and those insurance protections that other businesses also require, such as general liability insurance.
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