Information technology startups are sprouting everywhere. Fresh ideas are fuelling disruptive businesses that could become billion-dollar enterprises in the future. Before they reach those dizzying heights, however, they must first cover the basics and protect themselves from potentially crippling lawsuits. No matter how well a business is run, it is not immune from suits. Anything can happen. The smartest executives have the foresight to hire excellent lawyers for these situations. In fact, they have they try to prevent things from escalating by getting different types if IT business insurance coverage such as the ones discussed below:
General Liability Insurance
In most places, this kind of insurance is required for businesses. This will provide coverage against common business risks when dealing with their customers. For example, it can be activated if a client has an unfortunate slip-and-fall accident while inspecting the premises. It will provide for medical expenses from the bodily injuries resulting from this event. General liability can also cover the repairs for customer property damage. It is similarly useful in case the business gets involved in a libel or slander lawsuit. Talk to a lawyer or an insurance professional for more information about this policy.
Workers’ Compensation
This is also a mandatory insurance policy in many areas and it can indeed prove to be quite useful for businesses. It is meant to cover the cost of medical bills and lost wages for employees who get sick or injured because of work. The IT industry is relatively safe compared to accident-prone industries like construction and manufacturing but it’s still a good idea to have this in place. For example, it might come in handy if employees start to get seriously ill due to punishing work schedules and environmental conditions. Those affected can get the financial help they need while the company takes steps to prevent a recurrence.
Commercial Property Insurance
This will cover the damages that can result from unfortunate events like fires, floods, theft, and different sorts of natural disasters. Make sure that you check which types of hazards are included in the coverage because some might exclude acts of god and other items. A good broker will ensure you have adequate coverage. Business that rent office space would do well to get this since property damage can be incredibly expensive. It would be a big hit on their balance sheet if they had to cover it on their own. See to it that the amounts involved are enough for the property if repairs are necessary.
Errors and Omissions Insurance
This also goes by the name of professional liability insurance. Any business engaged in technology should have this to get coverage for all of the legal fees that might be incurred should a client or customer sue for issues regarding the performance of work. For example, the lawsuit could revolve around coding errors that led to substantial losses for a company. There should also be mistakes and oversights. Some might accuse the business of negligence that caused them harm. It can be a long and costly legal battle. Exercising diligence at all times is ideal but it is not a bad idea to have E&O insurance on standby in case it becomes necessary.
Cyber Liability Insurance
A cyber liability insurance has been developed in response to the need for protection against cyber attacks that could paralyze operations or compromise security. It can also offer financial stability in the face of data breaches. Businesses often handle sensitive information. Clients trust them with the data with the promise that these will be kept away from prying eyes. Security measures are in place to keep a tight lid on everything but hackers have their ways of finding holes around solid walls.
Fidelity Bonds
Finally, there are fidelity bonds which can be used in the case of problematic employees. Businesses must do their best to hire not just the most technically proficient talents but also the most upright personalities. There have been situations where employees committed theft, fraud, illegal data access, and illegal fund transfers. The bond can give the harmed clients ready compensation for damages.