In an economy with 2.8 million businesses with 5 or fewer employees and 53 million freelancers [PDF] , extra-small businesses or "microbusinesses" are the new norm in many industries. That's especially true in information technology, where tech pros routinely set out on their own, start a consulting business, or launch a startup.
Despite how common independent consulting and freelancing have become, most risk management publications focus on big tech companies, not the microbusiness. TIRA aims to fill that gap. By analyzing data from more than 10,000 of the IT businesses that applied for coverage through insureon in the last year, we unearthed the top risks small IT businesses face and came up with seven areas they can focus on to significantly reduce their exposure in those areas:
- Project management procedures
- Complaint resolution policies
- Subcontractor agreements
- Customer acceptance / signoff procedures
- Employee education
- Errors & Omissions Insurance
Small or Micro?
Small businesses < 250 employees
Micro businesses < 10 employees
Before we dive into all the juicy risk management stuff you're no doubt salivating to read, let's take a moment to define who insureon's IT customers are. (Or, heck, if you're really interested in the risk stuff, jump to Part 2.)
Next: Part 1: IT Snapshot: Who Are the Owners of Small IT Businesses