IT Consultant Insurance Washington D.C. Policy Information
IT Consultant Insurance Washington D.C.. 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 Washington D.C. policy.
IT consultant insurance Washington D.C. 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 DC 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 Washington D.C. 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 Washington D.C. 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 Washington D.C. 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.
Made In Washington D.C. Economic Data, Regulations And Limits On Commercial Insurance
Whether you have a great idea for a business and you're considering your first startup company or you are already operating a business and you're looking to expand, the location of your operations is one of the most important factors you'll need to consider. In order for a business to achieve success, it must be situated in an area that offers a healthy economy and a market that your products and/or services will appeal to.
The unemployment rate of a region paints a picture of the area's economy. A lower unemployment rate indicates that the area has a healthy business climate that can sustain the residents of the region. In addition, it's important for prospective proprietors to find out which industries are thriving in the area they're considering for their operations.
Furthermore, business owners must take into consideration what type of commercial insurance policies they will need to carry in order to protect themselves, those who interact with them, and to ensure that they are compliant with the law.
If you're considering Washington, D.C. for your business, below, we provide an overview of the above-mentioned information so you can determine if the nation's capital offers favorable conditions for success.
Economic Trends For Business Owners In Washington D.C.
In December of 2019, the Bureau of Labor Statistics reported that the unemployment rate in Washington, D.C. was 5.3%. While that rate is considerably higher than what the national average of 3.5% at the same time, the rate had fallen throughout the course of the year.
For example, in July of 2019, the unemployment rate was 5.6%, in August it was 5.5%, and in October, it was 5.4%. This steady decline indicates that more employment opportunities as a result of a healthy business climate have become and are becoming available in D.C.
Washington, D.C. is divided into four specific quadrants, including NE, NW, SE, and SW. While all regions are considered suitable for businesses, those that are situated in commercial areas - Northwest, Southwest, and Southeast - as opposed to Northeast, which is primarily residential, are likely to offer the best opportunities for prospective business owners.
There are several industries that are experiencing growth in D.C. Not surprisingly, government-related sectors and businesses that provide services for the government are seeing the most growth. Additionally, leisure, hospitality, and tourism are also prime industries in the nation's capital, as the region attracts millions of tourists from around the globe. Construction, education, and health round out the top industries in the region.
Commercial Insurance Requirements In Washington D.C.
The Washington D.C. Department of Insurance, Securities and Banking regulates insurance in DC. Washington D.C. mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Washington D.C. 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.
Washington D.C. 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.
Also find DC local small businesses by General Liability Class Code and learn about Washington D.C. small business insurance requirements for general liability, business property, commercial auto & workers compensation including District of Columbia business insurance costs. Call us (202) 800-5202.