Internet Business InsuranceBusiness Internet Insurance
This is the 3 liability insurances that every web company should have.
If you have a home network, you do most of your work alone, on-line and conveniently from your own desk. However, just because you work from home doesn't mean you don't face business risk every workday. Opening a business and taking over the job as a small IT business proprietor puts you at the mercy of a legal action if something goes sour.
It' not to be a Debbie Downer, but there are many things that can go awry for a typically domestic IT company: By meeting with customers in your home offices, you may be held responsible if they are hurt or their belongings broken. Thus if you have a shaky front crotch and a client who stumbles and drops, your business could be responsible for paying your medical bills. Your business could be responsible for your patients' outcomes.
There may be a violation of privacy. When you are in any way accountable for the maintenance of a customer's privacy and the customer is affected by a violation, your company will exert some pressure. In a recent study[PDF], Kaspersky Labs, an anti-virus and Internet safety company, found that the cost of small business breaches averaged 38,000 US dollars and the cost of recovering an extra 8,000 US dollars indirectly.
When your customer is affected by a violation, you can be sure that they expect you to give them some money to expectorate to handle the consequences. And the best way to help your business stay protected is with these three web business third party insurance policies: Insurance for general liability: "In general, I suggest that companies with which I work have at least general third party insurance," says Adam Scavone (@adamscavone), a lawyer with the Scavone Law Firm.
A good piece of good business practice when you consider that it can help business proprietors prevent bodily harm, material damages to third parties and promotional damages. Occupational liability insurance: Known as Failure and Failure Insurance, this policies has taken you off if you make a failure in the delivery of your business service. "Being an IT company, you need to recognize your risk and look at all the things that can happen," says Michael Carroll (@InsuringLawyer), Insuring Lawyer chairman.
It is also a good practice to make sure that your suppliers have their own technical E&O guidelines if you contract out work to them on a regular basis. In this way, if the supplier makes a mistake, his insurance should be able to recover all the resulting costs. Nobody knows. Cyber liability insurance: Cyber crime and privacy violations are becoming bigger and bigger and bigger and bigger and bigger threat for small IT companies.
So if a particular case you are working on for a particular company leads to the theft of information, it could be a large one. Nace Naumoski (@nacenaumoski), a lawyer and Stewart Bernstiel Rebar & Smith (@SBRSLawyers) associate, believes that every small business, especially IT companies, wants cyber liability insurance.
Whatever your small IT business looks like, you can still be causing a bigger mess, he says. A third parties cyber malpractice insurance is often contained in a mistakes & misses insurance company tech insurance policies. Not sure whether you need third person insurance yet? To see when it might be a good option for your business, check out our blogs entry "When to Buy IT Consultant Insurance.