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5 Ways to Protect Your IT Business

As the owner of a computer, web, IT services, or IT staffing business, you have built your company from the ground up. Your business is your contribution to your community and the ever-changing world of technology, offering your expertise to those who need it. So when it comes to protecting the business you created from scratch, you naturally want to protect it.

However, accidents and uncontrollable events happen all the time. In such cases, your business insurance provides security against the elements outside of your control. But along with the safety net of your insurance policies, you can enforce other risk management techniques to further protect your business. Keep reading to learn how you can take an active role in creating a safe environment for your employees and mitigate your business's exposure to risk.

Risk Management Tips for IT Business Owners

As an IT professional, you probably have already experienced how protective and particular clients can be when it comes to their computers, technology infrastructure, and systems management. When combined with the ever-increasing potential that clients could turn to the courts to resolve their dissatisfaction, your IT firm could be at risk for liability lawsuits. Aside from Errors & Omissions-related lawsuits, there are other risks that your business could face as well. For example, faulty office equipment or administrative tasks could lead to employee injuries. With just one lawsuit brought by a disgruntled client or injured employee, your business — no matter how well-run it is — may have to close its doors due to an exorbitant settlement.

To reduce the risk of accidents, mistakes, and situations outside of your control, take a look at this guide for five risk management tips to safeguard your IT business.

1. Enforce protocol for sensitive client information.

1. Enforce protocol for sensitive client information.

To reduce the risk of costly Errors & Omissions lawsuits, your best course of action is to proactively prevent mistakes, especially when handling sensitive information. From passwords to bank account information, IT, computer, and web professionals work with some of their client's most sensitive data. Make sure you and your employees minimize the risk of mistakes by establishing preventative measures up front. This may include creating clear guidelines for password protection and encrypting data and outlining project expectations clearly in client contracts.

2. Know your E & O exposure.

2. Know your E & O exposure.

Even if your work is only part of a much larger project, your business could be named in an E & O lawsuit from a disgruntled client. To protect your business, make sure you have adequate E & O Insurance. This coverage ensures your business has the funds to defend itself against claims that you were professionally negligent, provided incomplete or incorrect work, made mistakes or oversights, or failed to perform professional duties. Note that if you have a claims-made policy, your E & O Insurance has to be in force both at the time of the incident and when the claim is made. That's why it's in the best interest of your IT business to have an active E & O policy throughout your company's life. Depending on your state's statues of limitations, a former client may able to sue your business months or years after you completed a project.

3. Have an emergency plan in place.

3. Have an emergency plan in place.

Protecting your business means preparing for the worst-case scenario and knowing how to ensure your IT firm can weather a serious disaster. Make sure you employees know about the plan so everyone on your team can help out should an unforeseen event strike. Your strategy may include keeping multiple copies of records that you could be legally accountable for and maintaining a list of important contacts, such as clients, contractors, your insurance agent, and anyone else your company contacts regularly. Another wise move is to insure your office equipment against damage, theft, or malfunction under your business's Property Insurance policy so that you can quickly replace your company assets in the event of a covered claim.

4. Protect your employees.

4. Protect your employees.

No matter the size of your office building, it's imperative that your employees know safety protocol for fires, tornadoes, or any other unexpected event. Since your IT business relies on technological devices in order to operate, you'll want to ensure your electrical system is up-to-date, as a safeguard for both your employees and your office equipment. It's also important to keep an organized and clean work environment to minimize the risk of your employees tripping over cords. You may also want to conduct regular training sessions on how to properly lift and carry heavy boxes or equipment, and provide your employees with ergonomic furniture and equipment to mitigate repetitive motion injuries and strain.

You may be required to carry Workers' Compensation Insurance for your employees as well, depending on your state's laws. If one of your employees is injured at work or suffers from a work-related illness, this coverage provides funds for medical expenses or to defend your business in court if your employee sues. To find out what your state requires, talk to your insureon agent.

5. Know your policy.

5. Know your policy.

Each insurance provider offers different policies, premiums, deductibles, and exclusions. That's why it's essential to fully understand your policy and know exactly what it covers and what it does not. If want to increase the limits on your General Liability or Employer's Practices Liability policies, you may look into Umbrella Liability / Excess Liability coverage. This affordable policy can extend the limits of both policies for a single premium. If you're not sure about the amount of coverage that is appropriate for your business protection needs, feel free to talk to an insureon agent. We can help you with any questions you have about your existing policies and advise you on the extent of coverage other IT businesses purchase.

Business Protection for Your Computer, Web, or IT Services Firm

Business Protection for Your Computer, Web, or IT Services Firm

Your experience and your risk prevention measures may still mean your business could face a costly liability lawsuit — and even a frivolous lawsuit could cost your IT business hundreds of thousands of dollars in attorney's fees and court costs. To give your business adequate protection against the situations you can't control, contact an insureon agent today. We can help you determine which policies offer your business added security against common risks.

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