Electronic Data Processing Insurance Hawaii Policy Information
Electronic Data Processing Insurance Hawaii. Companies engaged in electronic data processing serve numerous branches of commerce and non-profit organizations by compiling valuable datasets.
Data processing operations perform accounting and record keeping functions for other businesses. The clients provide raw data in paper or electronic form from their operations.
The data processing firm enters the data for the client and provides the agreed-upon reports and reconciliations, which may include data cleansing and validation, sorting and classifying the data entered, and summarizing the results. The data is then stored for future use.
A data processing operation may be a captive of one major firm, may specialize in a group of related firms (such as a group of medical doctors), or may offer their services to the general public.
Data processors will program software at their own operation to provide the accounting and record keeping services to clients. They may also provide custom-developed software programs so that client firms can do their own data processing.
The information obtained over the course of electronic data processing may, for example, give businesses in the financial sector a significant competitive advantage.
Data processing companies, also sometimes referred to simply as "data processors", go through multi-step procedures that include collating, processing, interpreting, and storing data. This line of work heavily relies on high-value assets such as servers, computers, and electronic accounting machines.
While the role of electronic data processing across commercial sectors is only going to increase in the coming years, and businesses engaged in electronic data processing have the potential to be extremely successful, these companies also have to consider the many risks they face.
What types of electronic data processing insurance Hawaii will best protect your financial health even if your EDP business is impacted by a major peril? Read on to learn more.
Electronic data processing insurance Hawaii protects data services businesses from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Why Do Hawaii Electronic Data Processing Businesses Need Insurance?
Companies dedicated to electronic data processing are vulnerable to the same risks as any other business. In addition, however, they face industry-specific threats that pertain to the value of the unique hardware they depend on and the risk that their data could be breached.
Just like any other commercial premises, the facilities and assets of HI businesses engaged in electronic data processing can fall victim to acts of nature - such as wildfires, severe storms, and earthquakes. The hazards of physical theft and vandalism are accompanied by the risk of cyber threats.
Electronic data processing companies also face another risk in the potential that their valuable hardware will become compromised, whether due to mechanical malfunctions or for any other reason.
In addition, employees may become injured while at work, or you may find yourself on the receiving end of a lawsuit that leads to exorbitant costs.
Despite your best efforts, the risk of catastrophic events can never completely be eliminated. Data processing companies can, however, carefully evaluate their insurance needs to guarantee that, even in the event of a major peril, they will not have to shoulder the massive costs alone.
In addition to the fact that certain types of electronic data processing insurance Hawaii will be legally mandated, the fact that having adequate coverage can save your business from ruin represents the most important reason to invest in business insurance.
What Type Of Insurance Do HI Electronic Data Processing Businesses Need?
Each business is unique, and that fact should be reflected in your insurance coverage. Factors including how many employees you have, the jurisdiction in which you are based, the size of your operation, and the value of your assets all influence your insurance needs.
Consulting a commercial insurance broker who is deeply familiar with electronic data processing is the optimal way to receive advice tailored to your circumstances, as well as to get the best deal on your premiums.
With that in mind, EDP companies should certainly invest in the following key types of electronic data processing insurance Hawaii:
- Commercial Property: This form of coverage safeguards your financial interests by covering a majority of the costs you incur if your physical assets - your building and specified contents - are damaged or lost by acts of nature, theft, vandalism, or accidents. Commercial property insurance does not typically offer flood coverage, which needs to be purchased separately.
- General Liability: Designed to cover your legal costs in the event that your company faces a lawsuit related to third party injury or property damage, this form of electronic data processing insurance Hawaii is essential for any business. It is impossible to predict when you may face a third party property damage or personal injury claim, after all.
- Electronic Data Processing Coverage: These policies may be referred to by a variety of names, including computer coverage and electronic data processing equipment insurance. They are sometimes sold as stand-alone insurance packages, but also often exist as add-ons to commercial property insurance policies. Regardless, EDP coverage serves the unified purposes of protecting your valuable equipment in case of malfunction, physical perils, or data breaches.
- Workers Compensation: All companies with employees are further federally obliged to carry workers' comp insurance in most US states. Should an employee sustain a work-related injury or illness, their medical costs and any lost income will be covered.
To ensure that all your electronic data processing insurance Hawaii needs are optimally met, given the fact that you may require further coverage, talk to an experienced commercial insurance profile to discuss your EDP company's risk profile.
HI Electronic Data Processing's Risks & Exposures
Premises liability exposures are minimal since most client contact is done electronically or by mail. If clients visit the premises, they must be confined to designated areas so that they cannot view or overhear conversations regarding other clients' confidential information.
To prevent slips, trips, or falls, all areas accessible to clients must be well maintained with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Off-premises exposures arise from sales visits and examination of records at the client's premises. There should be policies and training as to off-site conduct by employees. Personal injury exposures arise from allegations of breach of confidentiality as employees dealing with clients have access to their records.
Professional liability and errors or omissions exposures are extensive. Records improperly entered could have a major impact on the client's firm as the reports generated are relied on for filing taxes and for making major business decisions.
The exposure increases if the firm fails to conduct thorough background checks to verify employees' credentials and education, if clerical workers are allowed to do tasks that only professionals should handle, or if error checking procedures are ignored or are inadequate.
Very serious losses may result from failure to document decisions and actions or to secure client approval.
Workers compensation exposure is limited to that of an office, although some firms have significant off-site work as well. As work is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
There may be a high stress factor during tax season as employees must work under deadlines. Back sprains and strains can result from lifting and other material handling if there is any moving of computers or related equipment.
If work is done at clients' premises, workers can be injured by slips and falls, assaults, or in automobile accidents.
Property exposure consists of an office operation. Ignition sources include electrical wiring, heating and air conditioning systems, wear, and overheating of equipment. Fire, smoke, and water can cause significant damage to equipment. Fire protection should consist of chemical applications instead of water.
Although computer equipment can be included as part of the business personal property coverage, better and more complete protection is available under an inland marine computer or EDP policy. The concentration of electronic equipment may be targeted by thieves. Appropriate security controls should be taken, including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station or the police department.
Business interruption is very high as the reconstruction of data, replacement of equipment, and duplication of records could cause an extensive shutdown.
Equipment breakdown exposures are high as the business is dependent on computers to process information for clients.
Inland marine exposures are accounts receivable if the center offers credit, computers, and valuable papers and records for clients' information. A computer or EDP policy is critical as it covers hardware, software, and media. There should be a frequent backup and off-site data storage.
The clients' records and valuable papers are typically originals that are difficult or expensive to recreate. A morale hazard may be indicated if the insured does not keep valuable papers and disks in fireproof file cabinets to protect them from smoke, water, and fire. Power failure and power surges are potentially severe hazards.
Duplicates should be kept off-site to allow for easy restoration. Off-site property exposures may be high as employees may have portable computers or home-site workstations.
Crime exposure is from employee dishonesty and computer fraud as data processors possess unique access to clients' personal financial information, including bank accounts and records. Potential for theft, directly or through identity theft, is great.
Background checks should be conducted on all employees. Hazards increase without monitoring procedures and securing all records to prevent unauthorized access. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.
Audits should be performed at least annually.
Business auto exposure is generally limited to hired and non-owned. If vehicles are provided to employees, there should be written procedures in place regarding personal use by employees and their family members. All drivers must have an appropriate license and an acceptable MVR. Vehicles must be well maintained and records kept in a central location.
Electronic Data Processing Insurance Hawaii - The Bottom Line
To protect your EDP business, employees and clients, having the right electronic data processing insurance Hawaii coverage is essential. To discover the types of policy options available to you, how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.
Hawaii Economic Data, Regulations And Limits On Commercial Insurance
Location is one of the most vital factors that prospective business owners need to take into consideration when they are thinking about establishing an operation. You can have the best possible products and offer the most exceptional services, but if the location doesn't offer a market that can benefit from those goods and services, your business will have difficulty thriving.
As such, if you are an entrepreneur who has set your sights on Hawaii for the headquarters of your business or a new division of an already existing corporation, it's a good idea to familiarize yourself with the state's economic data. It's also important to understand what type of commercial insurance you will need to invest in to protect yourself, your employees, your vendors, and the clients you serve.
Below, we provide a brief overview of important economic data and the commercial insurance requirements for business owners in the Aloha State.
Economic Trends For Business Owners In Hawaii
A state's unemployment rate is a good indicator of the overall economy of the region. It indicates that there are enough jobs available to support the economy, which is a direct reflection of the success of businesses in the state. As of 2019, the Bureau of Labor Statistics indicated that the unemployment rate in Hawaii was 2.6%, 0.8% lower than the national average of 3.4% from the same timeframe. This rate has also decreased throughout 2019, as it was 2.8% in July of 2019.
As with most states, the best locations to start a business in the state of Hawaii include urban areas and the suburban regions that surround them. The top cities for business owners in HI include:
- Pearl City
While several industries do well in Hawaii, certain sectors thrive. Tourism has long been the leading industry in the state, as people from around the globe flock to Hawaii each year.
Agriculture is also a booming industry here; the state is the second largest producer of sugar can in the U.S. Defense is also a key sector here, as all branches off the armed forces have bases located in the state. Another industry that also thrives here is manufacturing; specifically the manufacturing of cotton-based goods, such as clothing.
Commercial Insurance Requirements In Hawaii
The Hawaii Department of Commerce and Consumer Affairs regulates insurance in HI. Hawaii mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Hawaii 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.
Hawaii 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
- Artificial Intelligence
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Electronic Data Processing
- Electronic Data Processing Equipment
- Internet Business
- Internet Service Provider
- IT Consultant
- Online Store
- Social Media
- 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.
Request a free electronic data processing insurance Hawaii quote in Ahuimanu, Aiea, Ainaloa, Anahola, Captain Cook, Eleele, Ewa Beach, Ewa Gentry, Ewa Villages, Haiku-Pauwela, Halawa, Haleiwa, Hanamaulu, Hanapepe, Hauula, Hawaiian Acres, Hawaiian Beaches, Hawaiian Ocean View, Hawaiian Paradise Park, Heeia, Hickam Housing, Hilo, Holualoa, Honalo, Honaunau-Napoopoo, Honokaa, Honolulu, Iroquois Point, Kahaluu, Kahaluu-Keauhou, Kahuku, Kahului, Kailua, Kalaheo, Kalaoa, Kaneohe, Kaneohe Station, Kapaa, Kapaau, Kapolei, Kaunakakai, Keaau, Kealakekua, Kekaha, Keokea, Kihei, Kilauea, Koloa, Kualapuu, Kula, Lahaina, Laie, Lanai City, Lawai, Lihue, Maili, Makaha, Makakilo, Makawao, Maunawili, Mililani Mauka, Mililani Town, Mokuleia, Mountain View, Nanakuli, Nanawale Estates, Napili-Honokowai, Ocean Pointe, Orchidlands Estates, Paia, Pearl City, Princeville, Puhi, Pukalani, Pupukea, Royal Kunia, Schofield Barracks, Volcano, Wahiawa, Waialua, Waianae, Waihee-Waiehu, Waikapu, Waikele, Waikoloa Village, Wailea, Wailua, Wailua Homesteads, Wailuku, Waimalu, Waimanalo, Waimanalo Beach, Waimea, Waimea CDP, Waipahu, Waipio, Waipio Acres, West Loch Estate, Wheeler AFB, Whitmore Village and all other HI cities & Hawaii counties near me in The Aloha State.
Also find HI local small businesses by General Liability Class Code and learn about Hawaii small business insurance requirements for general liability, business property, commercial auto & workers compensation including HI business insurance costs. Call us (808) 300-0578.