Being a computer consultant, it’s no doubt you have most likely heard of general liability insurance. It’s quite possible you already have this type of policy in place. However, what you probably don’t know if that this type of insurance doesn’t cover some of the harmful risks associated with owning a computer consulting business. Not only do your clients trust you with your software and hardware, but also with their confident data. This means that even a tiny mistake you make could lead to your client losing essential data that they need to successfully run their business on behalf of their customers.
Risks You Face
As a computer consultant, you face a number of risks, including these three significant risks.
Lost Data
Because of your job as a computer consultant, you have a higher risk of having a lawsuit filed against you alleging your negligent errors, acts and omissions that led to your client’s economic damages. While working on a computer, hard drive failure can attribute to an error on your part and any loss of data because of it can result in a lawsuit.
Security Leaks
Forgetting to install a specific software patch can lead to a security leak of private information which makes it accessible to the public. This can open up a tremendous liability lawsuit.
Breach of Warranty
Lawsuits of breach of warranty and negligence can happen in the event technology services and products fail to perform. Computer consultants who bear these risks out of their personal or business assets face risks that are unacceptable.
Examples of Possible Claims
These are just a few example of claims you might experience.
- A software problem that leads to a client losing bookkeeping records and not being able to make a collection on what’s owed.
- The client not being able to accept ecommerce orders online for two days due to a hardware failure.
- Custom coding that isn’t working as fast as promised.
- Confidential information is released due to a hack in the client’s system .
Protecting Yourself with Business Insurance
Protecting yourself with sufficient professional liability insurance and cyber liability insurance is important. Many small business owners do not realize the costs that are associated with a breach of data or the repercussions they face when their virtual or paper records are stolen or lost.
Breach coverage insurance helps to pay for fees associated with managing public records, notifying impacted individuals, legal liability expenses and good faith advertising. It also has services that will help you to prevent the likelihood of a breach and if one should happen, assistance to navigate through it.
Another important insurance to have is a professional liability policy that will protect you against allegations of wrongful or negligent acts, omissions or errors or if your technology fails to perform as it is supposed to.
It’s essential that you utilize an independent insurance agent to get computer consultant’s business insurance so you are protected against all the risks associated with your profession.
If you’re a computer consultant, be sure to give us a call here at BOLT Insurance Agency, to ensure that you’re adequately protected against your risks.
