How an IT Professional Can Stay Protected by Professional E&O Liability Coverage

Business risks and liability are something that all freelancers and contractors worry about. The fact is if you are in business then you face liability risks every single day.

It does not matter if you are a new IT worker or highly renowned professional such as an IT Engineer, Web designer or Web developer, Software Programmer, network system’s administrator or Computer IT consultant; a single legal claim by your client or your employee against inappropriate services can ruin your entire career and lead to a huge financial crunch.

Information technology consultant workingYou may already understand what business general liability insurance is but you may not have heard of specialized coverage for professionals and you may be wondering if you have the proper coverage for your IT business.

The big question that comes to your mind might be – how can you defend yourself in a legal situation accidently caused from your IT services?

Well, the answer is simple.

The very best way to protect yourself is to get professional liability insurance customized for your type of IT service business.

The next question that might strike your mind is – what is professional liability insurance?

The concept of professional liability insurance has become increasingly popular in recent days since people who are running a successful business or planning to open a new one are always concerned that they do not land themselves or their company into any kind of mishap.

However, you should be extremely careful if you feel that you already have General Liability Insurance coverage. The reality is that General Liability coverage will not defend you from mistakes, accidents or bad information given while doing your professional service. You have to have a specific professional liability insurance policy called an E&O.

With that said, anyone who is engaged in rendering service to the people rather than providing products should apply for Professional Liability Insurance coverage.

This is the most transparent answer to – What is Professional Liability Insurance vs Errors and Omissions Insurance?

Furthermore, known as (E&O) Errors and Omissions Insurance, this is a type of Professional Liability Insurance policy that is highly useful in preventing an IT tech or a technology service provider from going bankrupt due to legal issues.

At any time, a customer can lodge a complaint against you for various reasons, for example, if your service has resulted in a wrong effect (error) or if your service has been ineffective in accomplishing all the desired results (omission).

Even an expert is bound to commit errors at some point in time. It is a fact that a small mistake committed unknowingly can ruin you completely, so covering your business with Professional Errors and Omission’s insurance will definitely be a great help in the long run.

IT consultant professional liability insurance is also available for consultants in case of any client lodges a claim against the consultant for giving incorrect information or giving improper guidance. The consultant professional liability insurance comes at a low-cost and can be afforded by any person capable of starting an IT related business, and it provides financial help to a consultant failing to provide correct information or guiding the client in the wrong direction.

You should always keep certain important points in mind like you should always do proper research before selecting any insurance company. You must try to find an agency that has good records in the technology industry and has full knowledge about your areas of dealings. You should also ensure that most of the risks are covered under your insurance rather than negotiating with the insurance agents so that you have to pay a small premium.

You must also prevent yourself from changing insurance companies frequently since it is not a necessity that a service which was insured by the older company will not be insured by the new company and the earlier one will also deny any service since you have changed the company. It can also be termed as “insurance for IT techs” as it is highly useful for them because their services can break down at any point of time even without their prior knowledge.

If a client sues your technology company in situations where your IT services have stopped performing midway, or you haven’t fulfilled all your promises, the agents at SADLER Insurance quotes for Techs shall come to your rescue since you are properly insured.

Author: Gemma-Leigh Garner

Gemma-Leigh Garner lives in Austin,TX and is a direct response copywriter that writes as on many different business financial topics.