An IT consultant’s time is generally filled with finding potential clients, bidding on jobs, and keeping up with the latest in the industry. As a result, insurance is probably the last thing independent consultants think about when starting out. Like any small business money is tight and most IT professionals are more worried about paying the monthly bills, keeping their computer and knowledge up to date, and purchasing that expensive software necessary for doing business.”
Often times, as a consultant begins to realize a steady income and has continuing success in his or her business the need for IT consultant insurance is simply put on the back burner and forgotten. Small business insurance is betting something bad might happen to your business and though things may be going smoothly now forgetting Murphy’s Law can result in tragic consequences just as your small business is really taking off. The wiser course of action is to do your homework, find out what coverages are needed, and have a qualified insurance representative offer a quote.
Think of General Liability as the safety net for everything you never thought would happen to you as consultant. This insurance covers things other than failure to do your job correctly. Suppose a former client claims you slandered them before another customer. General liability would offer you protection should there be any court costs. Additionally, you would be covered for damage you might do to a clients property at their place of business.
Sometimes called professional liability coverage, errors and omissions insurance protects you from damages related to something you might have done wrong as a consultant. Should some error in coding cause a client to lose valuable data, this coverage would protect you. Considering how many mistakes that can be made in the course of one’s technical career the likelihood of being sued is greater than most of us want to think about. This is the one coverage most IT consultants overlook and the one coverage they might most likely need in the course of their career.
Many consultants work out of their home and assume their office equipment and computers are covered through their standard home owner’s policy. Since your equipment is the life-blood of your small business you need coverage for your property.