Website Design Insurance Alaska Policy Information
Website Design Insurance Alaska. The biggest source of information today is the Internet. We go online to search for data on a wide variety of topics. Examples of these are academics, law, history, governance, news, entertainment, nutrition and sports. All this information is contained in websites.
Web site designers plan, create, and maintain web sites in accordance with customers’ needs. Services can range from simple layout work to the development of specialized software for information management or e-commerce (sales of products or services over the Internet). The designer is generally responsible for the visual aspects, navigability, and user-friendliness of the web site.
There are also some special activities which they can perform online. They include chatting, watching videos, playing games and shopping. These ones happen within specially built websites. Therefore, web design is one of the most popular services today.
Every business, institution, organization and government needs a website. Web designers are responsible for this task. As such, a website development business is a lucrative venture. Many people have made substantial amounts of money in this line of work. You should purchase website design insurance Alaska as you start a web design business.
Website design insurance Alaska protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
What Is Web Designer Insurance?
Whether you have a small or a big website design business, you will need information technology business insurance. This one contains special policies that are specially designed for businesses in the IT sector. There are some special risks that you are exposed to as a web designer, and a website design insurance Alaska policy can protect your business.
AK web design insurance is specific type of business insurance that can mitigate the risks you are exposed to. Following are some of the most common policies for web designers:
Errors and Omissions Insurance: Also known as professional liability, this is the first website design insurance Alaska policy which you should buy as a web designer. As you develop your websites, you may make an error in the code. You may also miss a deadline in presenting the website development project to your client. In addition to that, you may make an oversight that presents your client negatively to their target market.
These errors can cost your client a lot of money. In such a case, they are likely to lose sales due to your errors or those of your employees. A quick way to recover their revenue is to sue your web design company. In such a case, website design insurance Alaska can cover the costs of their lawsuit. It can pay for a good lawyer to argue your case in court. Therefore, it is a critical type of insurance policy to buy as a AK web developer.
Commercial General Liability Insurance: This website design insurance Alaska covers the costs associated with lawsuits filed against you for a variety of claims. Examples of these are injured customers (slip and fall) or damage to a client's property. This insurance policy can also cover your expenses in case you are sued for slander or image infringement.
Business Property Insurance: A catastrophe can happen at your place of work and destroy the equipment which you use for website design. Examples of such equipment include your laptop, monitors, mouse, printers, projectors and tablets. Events which can destroy this equipment include fires, water damage from floods or broken pipes and demolished premises due to structural fragility or earthquakes. Your business equipment can also get stolen.
In case these unfortunate events cause you to lose your property, business property insurance can cover the costs of replacing your essential equipment. As a matter of fact, this website design insurance Alaska policy can cover any property or equipment that your business owns. Examples of these are furniture, supplies and even the building. You can cover anything that you rent or own in your web design business.
Alaska Web Site Designer's Risks & Exposures
Premises liability exposure is minimal on site due to lack of public access. Off-premises exposures may arise from sales visits, training sessions, and installation of software or hardware at the customer's premises. Since the exposures most needed by the web site designer for work performed for clients are excluded under the CGL policy, coverage must be found using professional and errors and omissions forms.
Professional liability and errors and omissions exposures are extensive as the web site designer is responsible for all content. Lawsuits may arise due to inaccurate information on the client's web site, improper handling of product data or customer purchases, customer financial data, errors that misdirect the client's potential customers, and failure of the web site to provide 24/7 access to customers.
Hazards are substantially greater if the designer does not keep detailed records of agreements with clients and documentation of client approval at each stage. The developer is responsible for controlling access to the clients' private information, which is made more difficult by the extensive use of laptop computers and very small storage devices. Allegations of trademark or copyright infringement can result in substantial damages.
Workers compensation exposure is limited to that of an office. 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. Back sprains and strains can result from lifting and other material handling if there is any moving of computers or related equipment.
Property exposure consists of an office operation although there may be some incidental storage or an area for minor service work on computers. Ignition sources include extensive electrical wiring to support computers and servers, heating and air conditioning equipment, 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, more complete protection is available under a computer or EDP policy. Extra expense is a major exposure since the designer must be able to meet the client's need in a timely manner.
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.
Crime exposure is from employee dishonesty and computer fraud. Web site designers may have access to private financial information of their clients. Hazards increase in the absence of proper background checks and monitoring of the insured's workers who may have such access. Billing and disbursement duties should be separated.
Inland marine exposure includes accounts receivable if the designer offers credit, computers, and valuable papers and records for customers' information. A computer or EDP policy is critical as it covers hardware, software, and media. There should be frequent backup and off-site data storage. Extra expense and equipment breakdown exposures are significant hazards as clients expect their web sites to be operational at all times.
The designer must be prepared to restore service and handle any problems that arise. Laptop computers used by both sales and developers can result in substantial off-premises exposure. If the designer keeps customers' property on site, bailees customers coverage will be needed.
Automobile exposure is generally limited to hired and non-ownership liability. 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 appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.
AK Website Design Insurance
New businesses and organizations will always need websites and to update and maintain them. One of the fundamental steps which you can take to protect your business is investing in website design insurance Alaska policies.
Alaska Economic Data, Regulations And Limits On Commercial Insurance
If you're an entrepreneur who is thinking about starting a business in Alaska, it's important to have a basic understanding of the state's overall economy before you set up shop. Regardless of how high-quality the products and services you are planning on offering may be, if the location where you open your organization doesn't offer a target market that your products and services will appeal to, chances of success are slim. Furthermore, if a workforce isn't available to support your business, you'll have a hard time staying afloat.
With that said, it's important for business-minded individuals who are thinking about starting a company in Alaska to familiarize themselves with the state's economy; it's also a good idea to have an understanding of the commercial insurance requirements.
Following is an overview of economic trends and commercial insurance policies that business owners are required to carry in The Last Frontier.
Economic Trends For Business Owners In Alaska
According to the Bureau of Labor Statistics, the unemployment rate in Alaska was 6.1% in December of 2019. While that's significantly higher than the national unemployment rate, which was 3.4% in December, 2019, it's lower than it was one year prior, when the rate of unemployment was 6.5% in December of 2018. Though the workforce is growing slower than it is in other states, economists do predict that the rate will continue to decline in the coming years.
Despite Alaska's remoteness and cold climate, it's actually a great start to start a business. According to the Tax Foundation, Alaska is the second most tax-friendly state for business owners in the United States, as there's no individual income tax or state sales tax. Additionally, Alaska has the second highest rate of new business owners, as well as the second highest percentage of available employees (as per 2016).
As in most states, the best spots to start a business in Alaska are the state's biggest cities and the surrounding areas. This includes Anchorage, Juneau, and Fairbanks. Other key areas that are seeing a boost in business development in recent years include Homer, Sitka, Prudhoe Bay, and Ketchikan.
While there are several industries that are experiencing growth in The Last Frontier, specific sectors thrive more than others. Businesses that are related to the following industries are booming in AK:
- Fishing, which is also one of the largest contributors to the state's economy.
- Mining, which provides more than 4,500 jobs in Alaska.
- Petroleum, which is responsible for 34% of jobs in the state. In fact, Prudhoe Bay is North America's largest oil field.
- Tourism is the second largest private sector employer in the state. Each year, millions of people from around the globe travel to Alaska to marvel at the numerous natural wonders that can be found here.
Commercial Insurance Requirements In Alaska
The Alaska Division of Insurance regulates insurance in AK. Alaska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alaska 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.
Alaska 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
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- 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.
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Also learn about Alaska small business insurance requirements for general liability, business property, commercial auto & workers compensation including AK business insurance costs. Call us (907) 531-9001.