IT Consultant Insurance Maine Policy Information
IT Consultant Insurance Maine. IT consultants, computer consultants, and other similar professionals design and plan computer systems, software, and other types of technology, but they often fail to plan for the potential liabilities and risks that they face in their professional lives. Oftentimes, it is the job of these professionals to recommend or purchase items on a client's behalf, install systems, or even train the end users of computer systems. Each of these activities can leave the IT consultant open to liability and financial stress. First, you must know what your risks are - as not all of your risks as a information technology consultant can be covered simply by buying a basic IT consultant insurance Maine policy.
IT consultant insurance Maine protects your shop from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Why You Need ME IT Consultant Insurance
Commonly, computer consultants and IT consultants perform a variety of tasks, including:
- Design consulting
- Computer systems integration tasks
- Integration and design of information management systems
- Local area network system implementation
- Design and integration of office automation systems
These consultants face a plethora of different business risks, just as any business faces. Consultants need IT consultant insurance Maine to reduce the risks and protect themselves and their businesses from potential fallout should a problem arise with a client.
Common Perils for the IT Consultant
IT companies and computer consultants put themselves at risk in a variety of ways. They are subject to:
- Design consulting
- Oversights, errors, mistakes and other negligent acts that lead to network downtime and unhappy clients
- Breakdown of communication and misunderstandings with clientele
- Accidents and injuries in the workplace
- Vandalism and theft of property
- Property damage, fires, and weather events
Insurance for IT Consultants
IT consultant insurance protects the business from the exposed risks that crop up in the everyday operation of your business.
One type of insurance that IT consultants should consider is commercial general liability insurance. This type of insurance offers broad protection for the business from any claims of damage to from third parties, including both property damage and bodily injury claims. For example, if an employee causes damage to a customer's computer system while providing services at a client's place of business, he subjects himself to claims of damages that result. In this instance, the commercial general liability policy kicks in and pays. Similarly, if a delivery person, vendor, or a client falls on the premises, then your policy will pay for any related costs and medical expenses if a claim results from the event.
Your perils as an IT consultant are not limited to these instances; there are many more. Even when a claim is unsubstantiated against you, you still need to provide a defense in court when a claim is lodged. Court costs, attorney fees, and any judgments against you can devastate your business' finances. With a policy in place, the computer consultant can rely on his insurance policy to protect them and pay any expenses related to any lawsuits that are filed, up to your policy limits. This type of IT consultant insurance Maine policy can also provide a buffer of protection against any copyright infringement claims, libel claims, slander accusations and similar occurrences.
Insurance is important whether you lease your business space, own the building, or work from home. Protection is vital, since it protects the business not only from liable claims, but also for damage to your building and the contents of the building, including any office equipment, fixtures, supplies, and computers. Whether the damage results from weather, fire, vandalism, theft, or other covered causes, your insurance is your protection from financial ruin. Most policies for IT consultants also provide for coverage of costs when your business operations are interrupted. For example, if your building burns down, then you may be covered for relocation expenses while you find a new place to operate.
A business owner's policy, or BOP, is a type of policy that is idea for certain small businesses. A BOP insurance policy for IT consultants combines several types of valuable coverage into one policy, including general liability coverage, business interruption coverage, and property coverage, usually at a price that is affordable for the business' budget. An independent agent can help you find the right level of coverage for your business needs and make sure that you are fully protected from financial stress if the unexpected happens.
Is Cyber Liability Insurance Right for You?
Any business doing computer work in cyber space should consider cyber liability insurance. This type of insurance pays for data loss, cyber hacks, breaches of information, and computer viruses, should a client file a claim against you and allege that the system that you provided to them is at fault. Even if you are not held ultimately responsible for the losses experienced by your customers, you should be able to provide a defense for yourself. This type of IT consultant insurance Maine policy pays for the cost of litigation and other types of expenses if you face a liability in a cyber lawsuit.
Errors and Omissions Insurance for IT Consultants
As an IT consultant, you know that your clients expect you to perform at a level of expertise that is standard in the industry. The client can end up suing you for non-delivery of services rendered or promised and for negligence arising from any advice that you give them. Some potential errors and omissions claims often arise from:
- Designing a network with serious deficiencies instead of the promised network
- Performing backup that leads to data loss for the client
- The design of a network that is vulnerable to an attack by a virus or a hack by criminals
- Failure to complete a project as established by a contract
- Exceeding the time length provided for the project or going outside the project's budget
No matter whether you work as a freelancer providing IT consulting services or you are working as part of a larger organization, finding the right level of coverage is important. Discuss your particular needs with an independent agent to get the coverage you need.
Maine Economic Data, Regulations And Limits On Commercial Insurance
You have a great idea for a business and you have developed excellent products and services that you are certain people will benefit from. You've also developed a viable business plan. Now you need to choose a place to start your company.
In order for your company to be as successful as possible, you need to choose a location that offers a favorable market for your specific business. After all, if the area doesn't offer a job force to support your operation or a target market that will purchase your products and services, you likely aren't going to succeed.
With that said, if you are thinking about starting a business in Maine, having an understanding of the state's economic trends is essential. It's also important to know what type of commercial insurance you'll need to carry. Below, we offer an overview of this information so that you can determine if ME is right for your business.
Economic Trends For Business Owners In Maine
Unemployment rate is a good indicator of a state's economic climate. The lower the rate, the more opportunities exist for business owners, as it suggests that there are ample job opportunities, and the more job opportunities, the more successful businesses there are in the region.
As per the Bureau of Labor Statistics, the unemployment rate in the state of Maine was 2.9% in December, 2019; that's 0.6% lower than the national average, which was 3.5% at the same time.
Additionally, according to economists, more employment opportunities are expected in the coming years, which will further reduce the unemployment rate.
While locations throughout the state offer opportunities for business owners, there are certain locations that are ideal for entrepreneurs. These locations include:
- Bar Harbor
These cities are the largest in the Pine Tree State, so it's understandable why they offer the best opportunities for businesses. While Maine is home to multiple industries, there are specific sectors that do particularly well here, including:
- Finance and insurance
- Hospitality and tourism
- Information technology
- Professional services
- Real estate
Therefore, if you are considering launching a business in any of these industries, Maine is likely a good location for your company.
Commercial Insurance Requirements In Maine
The Maine Bureau of Insurance regulates insurance in ME. Maine mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Maine 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. Independent contractors do not count as employees, but if those contractors employ subcontractors, the subcontractors must be covered by a workers compensation policy.
Maine 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
- 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.
Request a free IT Consultant Insurance Maine quote in Arundel, Auburn, Augusta, Bangor, Bar Harbor, Bath, Belfast, Berwick, Biddeford, Brewer, Bridgton, Brunswick, Bucksport, Buxton, Camden, Cape Elizabeth, Caribou, Casco, China, Cumberland, Dexter, Dover-Foxcroft, Durham, Eliot, Ellsworth, Fairfield, Falmouth, Fort Kent, Freeport, Fryeburg, Gardiner, Glenburn, Gorham, Gray, Greene, Hampden, Harpswell, Hermon, Hollis, Houlton, Jay, Kennebunk, Kennebunkport, Kittery, Lebanon, Lewiston, Limington, Lincoln town, Lisbon, Litchfield, Lyman, Madawaska and Wiscasset, Madison, Millinocket, Monmouth, Naples, New Gloucester, North Berwick, North Yarmouth, Norway, Oakland, Old Orchard Beach, Old Town, Orono, Orrington, Oxford, Paris, Pittsfield, Poland, Portland, Presque Isle, Raymond, Richmond, Rockland, Rumford, Sabattus, Saco, Sanford, Scarborough, Sidney, Skowhegan, South Berwick, South Portland, Standish, Topsham, Turner, Vassalboro, Waldoboro, Warren, Waterboro, Waterville, Wells, Westbrook, Wilton, Windham, Winslow and Farmington, Winterport, Winthrop, Yarmouth, York and all other cities near me in ME - The Pine Tree State.
Also find Maine insurance agents & brokers and learn about Maine small business insurance requirements for general liability, business property, commercial auto & workers compensation including ME business insurance costs. Call us (207) 401-4779.