IT Consultant Insurance Rhode Island Policy Information
IT Consultant Insurance Rhode Island. 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 Rhode Island policy.
IT consultant insurance Rhode Island 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 RI 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 Rhode Island 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 Rhode Island 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 Rhode Island 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.
Rhode Island Economic Data, Regulations And Limits On Commercial Insurance
If you are considering starting a business, it's important that you choose the right location for your operation. Ensuring that the area offers the right market and demographics that will benefit from and be interest in the goods and/or products that your business intends on providing are vital for your success.
If you are thinking about starting a new company in Rhode Island or would like to expand the operations of an existing company into the state, it's crucial that you ensure the state offers a healthy climate that will allow your business to reap as much success as possible.
By assessing the employment rate of a state, as well as the key business sectors that are thriving there, you can determine if Rhode Island is a practical location for your company. Additionally, to ensure that you are in compliance with the law, it's imperative that you are aware of the commercial insurance coverage that business owners are required to carry in the state.
Below, we offer an overview of the economic trends and commercial insurance requirements in the Plantation State so you can determine if it will be a good location for your business.
Economic Trends For Business Owners In Rhode Island
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Rhode Island was 3.5%, which was on-par with the national average, which was also 3.5% at the same time.
Economists credit favorable taxes, the close proximity to regional markets, and the diverse workforce for the state's health economy.
In regard to locations within the state that offer the best opportunities in the Ocean State, urban areas are ideal. This includes:
The suburban regions that surround the state's metropolitan areas also offer favorable conditions for businesses.
Businesses of varying sizes and in a variety of industries are thriving in RI. At the time of writing, the sectors that are seeing the most activity in Rhode Island include:
- Financial services
- Health care
- Hospitality and tourism
- Professional services
Commercial Insurance Requirements In Rhode Island
The Rhode Island Division of Insurance Regulation regulates insurance in RI. Rhode Island mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Rhode Island requires you to have worker's compensation insurance if you have four or more employees 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.
Rhode Island 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 Rhode Island quote in Barrington, Bristol, Burrillville, Central Falls, Charlestown, Coventry, Cranston, Cumberland, East Greenwich, East Providence, Exeter, Foster, Glocester, Hopkinton, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Narragansett, New Shoreham, Newport, North Kingstown, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Richmond, Scituate, Smithfield, South Kingstown, Tiverton, Warren, Warwick, West Greenwich, West Warwick, Westerly, Woonsocket and all other cities near me in RI - The Ocean State.
Also find Rhode Islan insurance agents & brokers and learn about Rhode Island small business insurance requirements for general liability, business property, commercial auto & workers compensation including RI business insurance costs. Call us (401) 371-8771.