IT Insurance Overview
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Ever had trouble trying to explain what your IT or technology firm does to an insurance
professional; your workflows, business model, employee job descriptions? Are you
frustrated or concerned because you feel like your company is exposed to IT
E&O and other risks but can’t seem to find the right IT insurance program or professional
that can adequately address those risks?
With seasoned IT professionals
on our staff and decades of
combined commercial insurance experience, we will listen to and understand your
particular IT insurance needs - the first time around.
“Our experience with Desmond Insurance has been great. When we first approached them,
we were concerned that our existing commercial insurance policy wasn’t equipped to handle an
online business. Of particular concern were risks posed by the open forum
hosted on our flagship site
www.expeditersonline.com. During our first appointment with Sean
at Desmond Insurance, we knew we found the right outfit for the job. Within a few
days we had an IT insurance package that not only met our particular needs,
but reduced our overall insurance expense.”
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Lawrence McCord
President & CEO, OnTime Media
http://www.ontimemedia.com
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Recommended IT Insurance Coverages
Insurance for IT oriented businesses falls into several general categories:
- The first is property insurance for both the building
(if it is owned by the business) and business property. Technology businesses
typically have high concentrations of electronic data processing equipment (EDP):
development/designer workstations, data communications equipment, servers, manufacturing
equipment, scientific devices and such. It is important that these items be adaquately
covered in the event of a loss. Beware, many non-tech policies have sub-limits of
insurance - or exclude coverage altogether - on certain varieties of electronic
equipment.
- Business Income & Extra Expense insurance is a
highly recommended coverage addition for IT businesses. In the event of a loss, business
income insurance will pay expenses (e.g. payroll, utilities, etc.) while extra expense
coverage will pay for the use of an alternate facility, equipment and the like until
the original business facility is fully restored. Note: Extra Expense, in particular,
is a major exposure since time is of the essence whenever the Internet is involved.
Designers and WEB developers must be able to meet the client’s need in a timely
manner or the client will find another provider.
- Inland Marine insurance is must in any IT
insurance package. A computer or EDP policy will pick up not only the hardware but
also the software and the media. Furthermore, Inland Marine insurance will cover
laptops and other equipment used by sales and service professionals on the road.
- Professional Liability and Errors & Omissions insurance
is also highly recommended in a comprehensive IT insurance solution. Technolgoy
professionals (e.g. Web Designers, IT Consultants, SEO Specialists, Software Developers,
etc.) are responsible for meeting particular client requirements and milestones
as well as other contractual obligations. A potential for lawsuits is created when
milestones are missed, inaccurate information is published on client Web sites,
improper handling of client product data, or of customer purchases, or even of customer
financial data, as well as errors that misdirect/misinform the client’s potential
customers. Hazards are substantially greater if the technology business or professional
does not keep detailed records of client agreements, along with documentation of
client approval at each stage of a project. Finally, the insured has a responsibility
to control access to the clients’ private information, made more difficult by the
extensive use of laptop computers, as well as very small storage devices. Professional
Liability insurance is used to mitigate risks associated with multi-faceted technology
projects having law suit potential.
- Lastly, Workers Compensation exposure exists particularly
in the area of ergonomics, primarily eyestrain, neck strain, carpal tunnel syndrome,
and similar cumulative trauma injuries. The design of workstations to prevent worker
injuries is important. Lifting and other material handling injuries may occur if
the there is any moving of computers or related equipment.
Who Needs IT Insurance Products & Services?
- Electronics Manufacturing
- Computers, electronic components and peripherals
- Industrial electronics
- Instruments and measuring equipment
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- Information Technology (IT)
- Products, applications and computer programming services
- Integrators and consultants
- Managed and outsourced IT services
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- Medical Technology
- Diagnostic, surgical, monitoring and treatment instruments
and technologies
- Invasive and non-invasive medical devices and appliances
- Laboratory instruments and tech
- etc...
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- Telecommunications
- Equipment manufacturers
- Service providers
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Get More Information
If you are interested in our program or would like more information, please fill
out our
online information request form. Or, contact
Sean Desmond,
our IT insurance program administrator.
Phone: (513) 549-7326
Email: sean.desmond(at)desmondinsurance.com