What Insurance Do Saskatoon IT Consultants Need?
If you are an information technology consultant or contractor, a client could accuse you of providing negligent advice. A client could slip and fall in your office. You need IT consultant insurance to protect you against the risks you face while you do your job.
IT consultant insurance can help protect you against the financial impact of being sued.
Is your Saskatoon IT consultant business in Saskatoon, or elsewhere in Saskatchewan? Your Western Financial Group business insurance expert will make sure that your commercial insurance is customized to your IT needs and at the right value for you.
What is IT consultant insurance?
IT consultant insurance is a package of insurance coverages that’s designed to protect you as a Saskatoon IT consultant or contractor. It helps protect your IT business against the risks that you face, including negligence, errors and omissions, and third-party damages and injuries.
You need to protect yourself as a Saskatoon IT consultant or IT contractor should a client claim that you caused him to suffer a financial loss or damage.
How can IT consultant insurance help protect your Saskatoon business?
1. You updated a client’s computer system and you didn’t back up all of the existing data, which was lost and you are unable to recover it. Your client is suing you. Your errors and omissions (E&O) insurance may pay for your defence costs and any monetary judgment against you in court or an out-of-court settlement.
You may also hear this type of coverage called professional liability insurance.
2. One of your clients slips and falls on an icy sidewalk entering your Saskatoon IT business office. She fractures her wrist and then sues you. Commercial general liability insurance (CGL) can help cover your legal expenses and any awards ordered by a court, whether you win or lose, and uninsured medical expenses.
How much CGL do you need as a Saskatoon IT consultant? You can expect to have at least $2 million in coverage, but that will depend on the size of your business and services.
3. You provide network security for a client whose system is hacked by cybercriminals. Client data and confidential financial information are stolen. Cyber liability insurance coverage can help pay for repairing your client’s computer system.
Without cyber insurance, you will have to pay out of your own pocket for the cost of restoring your client’s system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
How much does IT consultant insurance cost?
There’s no one-size-fits-all insurance policy for Saskatoon IT consultants or contractors.
The cost of your coverage will depend on such factors as:
- The services you provide
- Your clientele
- Where you are located
- Your annual revenue
- Your experience
- Your education and training
- Any past insurance claims
What’s in an IT consultant package?
Commercial general liability (CGL) insurance: CGL helps provide financial support for your Saskatoon IT business should a customer or supplier get injured or their property be damaged at your place of business.
Commercial general liability insurance helps cover your legal expenses and any awards ordered by a court, whether you win or lose.
Commercial property insurance: Commercial property insurance covers your Saskatoon IT’s business property, contents, electronics, and inventory if damaged or destroyed by a natural disaster or extreme weather, or by fire, flood, theft, and vandalism.
Errors and omissions (E&O) insurance: You will also hear this type of insurance called professional liability insurance.
It helps protect your Saskatoon IT consulting business from allegations of negligence, product failure, failing to deliver a service, or damage or loss to a client resulting from your information technology services.
Cyber insurance: Cyber insurance helps protect your business if you electronically store confidential data about your clients and your Saskatoon IT business.
Legal expense insurance: Legal protection insurance gives you access to legal advice, assistance, and coverage for legal disputes. As a Saskatoon IT consultant or contractor, you will be able to get legal advice from an experienced lawyer. Legal expense insurance also helps cover the costs of a lawyer to pursue legal action.
Business interruption insurance: This coverage supports you when your Saskatoon IT business can’t operate due to a covered loss.
There are a number of losses that can force your business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Business interruption insurance can mean the difference between recovering from a loss and your Saskatoon information technology business closing permanently.
Here’s a business insurance checklist:
- Do you have the best Saskatoon business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
What do I do if I need to make an insurance claim?
- Contact your broker immediately after any business-related mishap at your Saskatoon business. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- If there’s any damage, document it. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right IT insurance as a consultant or contractor. Our experts are available now to help you navigate the business insurance journey to protect your Saskatoon IT business.
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