Electronic Data Processing Insurance Utah Policy Information
Electronic Data Processing Insurance Utah. 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 Utah 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 Utah 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 Utah 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 UT 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 Utah 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 UT 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 Utah:
- 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 Utah 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 Utah 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.
UT 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 Utah - The Bottom Line
To protect your EDP business, employees and clients, having the right electronic data processing insurance Utah 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.
Utah Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur who has your sights setting on opening up a business in the state of Utah or you are thinking about expanding your operation to the Beehive State, making sure that it offers a climate and demographic that will support your industry is vital to your overall success. If the state does not offer a positive business climate or demographics that will benefit from the products and/or services that you offer, there's a good chance your business could fail.
By assessing the employment rate as well as the key industries that are thriving in UT you will be able to determine if it is an ideal location for your enterprise. Additionally, knowing what type of commercial insurance coverage you'll need is important so you can make sure you are properly protected and set yourself up for success.
Economic Trends For Utah Business Owners
As of January, 2022, Utah has one of the strongest labor markets in the country. At this time, the unemployment rate was registered at 3.1 percent, which is lower than the national average of 3.6 percent. The unemployment rate to continue holding steady or drop even further, as more job opportunities are projected to become available.
Both large urban and small urban areas offer good opportunities for business owners. In a report that was issued at the end of 2018, six Utah cities were included on the list of top cities to start a business in the United States. These cities include:
- St George
Salt Lake City, the state's capital, and the surrounding areas also offer opportunities for business owners who are interested in starting a business in Utah.
The top industries that are poised to see the most growth in Utah over the course of the next few years include:
- Aerospace and defense
- Information technology
- Leisure and hospitality
- Petroleum production
If you are considering going into business in UT, having an operation in any of these industries will likely afford you success.
Commercial Insurance Regulations In Utah
The Utah Insurance Department regulates commercial insurance in the Beehive State. Business owners are required to invest in commercial insurance coverage, as it safeguards their interests, as well as the interest of all that are involved in the company, including employees, clients, and vendors.
Just like any other state in the country, there are specific types of commercial insurance coverage that business owners need to carry in UT. These coverages include:
- Workers Compensation Insurance: Pays for medical expenses and lost wages should an employee sustain a work-related injury or illness.
- Commercial Auto Insurance: For vehicles over a certain weight, covers any damages if a vehicle that is used for work-related purposes is involved in an accident.
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 Utah quote in Alpine, American Fork, Bluffdale, Bountiful, Brigham City, Cedar City, Cedar Hills, Centerville, Clearfield, Clinton, Cottonwood Heights, Draper, Eagle Mountain, Enoch, Ephraim, Farmington, Farr West, Fruit Heights, Grantsville, Harrisville, Heber, Herriman, Highland, Holladay, Hooper, Hurricane, Hyde Park, Hyrum, Ivins, Kanab, Kaysville, Kearns, La Verkin, Layton, Lehi, Lindon, Logan, Maeser, Magna, Mapleton, Midvale, Midway, Millcreek, Moab, Morgan, Murray, Nephi, Nibley, North Logan, North Ogden, North Salt Lake, Ogden, Orem, Park City, Payson, Perry, Plain City, Pleasant Grove, Pleasant View, Price, Providence, Provo, Richfield, Riverdale, Riverton, Roosevelt, Roy, Salem, Salt Lake City, Sandy, Santa Clara, Santaquin, Saratoga Springs, Smithfield, Snyderville, South Jordan, South Ogden, South Salt Lake, South Weber, Spanish Fork, Springville, St. George, Stansbury Park, Summit Park, Sunset, Syracuse, Taylorsville, Tooele, Tremonton, Vernal, Vineyard, Washington, Washington Terrace, West Bountiful, West Haven, West Jordan, West Point, West Valley City, White City, Woods Cross and all other UT cities & Utah counties near me in The Beehive State.
Also find UT local small businesses by General Liability Class Code and learn about Utah small business insurance requirements for general liability, business property, commercial auto & workers compensation including UT business insurance costs. Call us (801) 704-1677.