Computer Programming Insurance Alaska Policy Information
Computer Programming Insurance Alaska. As an IT expert and computer programmer, you face the same risks (and different ones) that every other business faces. This applies in particular if you provide consulting services, for instance, Levi Strauss Company, the jean maker took legal action against Deloitte IT consulting firm after the software designed to control payrolls and inventory failed. The Deloitte IT Company was in turn forced to pay damages amounting to $100 million.
With so many companies depending on computer systems to run operations efficiently, you could be the target of lawsuits if your services do not meet client expectations. Due to the nature of your profession, it is best to get a computer programming insurance Alaska policy that will help you in offsetting your personal risks and protect your firm.
Computer programming insurance Alaska protects your firm from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
What Is Computer Programming Insurance?
Computer programming insurance Alaska is a type of commercial coverage that is specially meant to deal with the unique risks that are connected to professional IT careers and computer programmers. Irrespective of whether you own your own IT business or work as a freelance IT expert it is important for you to safeguard your business from the risks of the trade. To ensure you are getting the proper AK computer programmer coverage you will need to assess the risks that you are likely to face in your line of work.
What Does Computer Programmer Insurance Cover?
As a computer programmer, you are also subject to different risks from those faced by other companies. The following types of computer programming insurance Alaska coverage will, therefore, assist you in addressing these risks:
General Liability and Property Insurance: Just as any other business you need a computer programming insurance Alaska policy for your physical assets such as supplies and equipment as well as coverage for client and customer injuries due to negligence or accidents. Injuries and negligence often result in medical lawsuits that could be expensive for your company.
On the other hand, if you are a freelance programmer you may qualify for a Business Owner's Policy (BOP) which bundles both general liability insurance and property coverage for a single discounted premium. The General liability segment of the policy protects you against allegations of property damage and third party injuries while the property section protects your equipment.
Cyber Liability: The major difference between an IT business and other companies is the amount of cyber liabilities they are prone to encounter. Cyber crime is one of the most severe and expensive risks that may threaten your programming business. You could be held responsible for numerous types of damage linked to data tampering, invasion of privacy, data breaches, malware and regulatory action.
There are some cases where large technology companies are forced to pay up data breach settlements amounting to millions of dollars. Small IT companies might think they are not as vulnerable to cyber threats as big firms; however, this is a mistaken belief due to the following reasons:
- Small IT companies including freelancers characteristically have few resources to devote to cyber security.
- Programmers often have access to lots of valuable and confidential information belonging to the clientele they serve.
- Lastly, data thieves perceive small companies and freelancers as easy targets for information mining.
Errors and Omissions Insurance: Also know as professional liability. Cyber-crimes are not the only hazard that threatens your programming business. You are also held legally liable negligence, for any advice you offer, anything you forget to do and any work you perform.
So if you recommend an innovative software to a client and this program causes their systems to crash you could be sued for the damages or monies lost during system failure. To shield yourself against such overheads you will require a solid computer programming insurance Alaska E&O coverage that will pay for the legal expenses associated to such accusations.
Computer programming insurance Alaska may seem like an unaffordable or unnecessary overhead that stresses an already tight budget. As a result, if you decide to buy an insurance policy you might be tempted to save money by selecting a higher deductible which is the amount of money you pay out before accruing benefits. But it's important to keep in mind that you should not choose a deductible that is higher than what you can afford comfortably. If you cannot meet the expense of your deductibles, your coverage does not exist in the sense you will be outof pocket for a large amount and that defeats the purpose of the insurance..
AK Computer Programming Insurance
Even comprehensive legal contracts cannot protect you in all scenarios. Computer programmer insurance is, therefore, a vital tool that can be tailor-made to meet your business protection needs.
Alaska Economic Data, Regulations And Limits On Commercial Insurance
If you're an entrepreneur who is thinking about starting a business in Alaska, it's important to have a basic understanding of the state's overall economy before you set up shop. Regardless of how high-quality the products and services you are planning on offering may be, if the location where you open your organization doesn't offer a target market that your products and services will appeal to, chances of success are slim. Furthermore, if a workforce isn't available to support your business, you'll have a hard time staying afloat.
With that said, it's important for business-minded individuals who are thinking about starting a company in Alaska to familiarize themselves with the state's economy; it's also a good idea to have an understanding of the commercial insurance requirements.
Following is an overview of economic trends and commercial insurance policies that business owners are required to carry in The Last Frontier.
Economic Trends For Business Owners In Alaska
According to the Bureau of Labor Statistics, the unemployment rate in Alaska was 6.1% in December of 2019. While that's significantly higher than the national unemployment rate, which was 3.4% in December, 2019, it's lower than it was one year prior, when the rate of unemployment was 6.5% in December of 2018. Though the workforce is growing slower than it is in other states, economists do predict that the rate will continue to decline in the coming years.
Despite Alaska's remoteness and cold climate, it's actually a great start to start a business. According to the Tax Foundation, Alaska is the second most tax-friendly state for business owners in the United States, as there's no individual income tax or state sales tax. Additionally, Alaska has the second highest rate of new business owners, as well as the second highest percentage of available employees (as per 2016).
As in most states, the best spots to start a business in Alaska are the state's biggest cities and the surrounding areas. This includes Anchorage, Juneau, and Fairbanks. Other key areas that are seeing a boost in business development in recent years include Homer, Sitka, Prudhoe Bay, and Ketchikan.
While there are several industries that are experiencing growth in The Last Frontier, specific sectors thrive more than others. Businesses that are related to the following industries are booming in AK:
- Fishing, which is also one of the largest contributors to the state's economy.
- Mining, which provides more than 4,500 jobs in Alaska.
- Petroleum, which is responsible for 34% of jobs in the state. In fact, Prudhoe Bay is North America's largest oil field.
- Tourism is the second largest private sector employer in the state. Each year, millions of people from around the globe travel to Alaska to marvel at the numerous natural wonders that can be found here.
Commercial Insurance Requirements In Alaska
The Alaska Division of Insurance regulates insurance in AK. Alaska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alaska requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Alaska also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Electronic Data Processing Equipment
- Internet Business
- IT Consultant
- Online Store
- Software Developer
- Technology Services
- Website Design
Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.
For information technology companies, like some of the more popular ones listed below, data security is paramount:
Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.
The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.
Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
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Also find Alaska insurance agents & brokers and learn about Alaska small business insurance requirements for general liability, business property, commercial auto & workers compensation including AK business insurance costs. Call us (907) 531-9001.