IT Consultant Insurance
What You Need to Know About
IT Consultant Insurance
For the past 20 years, RJ Ahmann Company has been a premier provider of insurance for information technology consulting companies nationwide.
Why is insurance for IT consulting different from other businesses?
Technology is a complex field where innovation happens daily. With the fast pace of new and unique products and service offerings and rapid growth of worldwide Internet usage, the technology industry faces greater risks than ever before. A well-designed insurance program for an IT consulting company contemplates a range of exposures beyond those of a typical business.
IT consulting companies often need protection against lawsuits alleging the company’s product or service was flawed, resulting in a client’s business interruption and lost revenue. Another area of concern for IT professionals is intellectual property violation, including infringements of software codes, patents, copyrights and trademarks. Because information technology consulting companies often provide global products and services, working with an agent who understands the international insurance and legal environment is a critical component of a sound insurance program.
What kind of insurance is needed by IT consulting companies?
Like all companies, IT consultants need the standard coverages of property, general liability, auto and workers’ compensation. In addition, information technology consultants may need specialized protection as identified below:
- Errors and omissions (E&O) of products and services
- Intellectual property protection
- Network and security breaches
- Cyber liability
- Cyber extortion
- Communications and media
- Computer virus coverage for damage to data
- Crisis management expense
- Computer virus transmission to others
- Invasion of privacy and failure to protect data
- Denial of service
- Unauthorized access
- International coverage
One out of every seven professionals will be named in some type of E&O claim at some point in their careers. The average cost per settled claim is in excess of $16,121.
Who should have specialized IT consultants insurance?
To control the risk of a wide variety of exposures, most information technology consulting companies maintain specialized IT consultant insurance coverage. Specialized insurance policies are often required to secure a contract. If you own, operate or manage an IT professional services or Web development business, you should strongly consider talking to a technology insurance specialist.
A common claim example
Typical IT professional claims can simply involve clients alleging what they believe to be wrong or misguided advice. Most professional liability policies respond to this type of claim and include defense costs. In challenging economic times, a client could threaten to withhold payment due to what they believe is poor advice even if there is no clear evidence of a wrongful act by the consultant. Until the allegations are sorted out, a professional liability policy can provide the needed defense.
A smart solution
If you need insurance for your IT consulting company, or if you just want to learn more, RJ Ahmann can help. Based in the Minneapolis area with hundreds of clients in the technology industry, our highly trained and experienced staff will negotiate with major technology carriers to secure customized coverage extensions on your behalf.
Why RJ Ahmann Company?
- With our contract review assistance and insurance program/policy reviews, RJ Ahmann is unsurpassed in technical expertise. We frequently identify coverage gaps and find cost-savings opportunities.
- We maintain international affiliations to efficiently meet your legal and risk management requirements worldwide.
- RJ Ahmann can assist with specialized loss control and other value-added services, such as disaster planning, electronic presentations and human resources assistance.
- Major life science/technology insurance carriers recognize us as technology and life science insurance experts.
- Minnesota High Tech Association and LifeScience Alley recognize us as a preferred provider.
- RJ Ahmann is the only Minnesota member of TechAssure, an international association of technology and life science insurance specialists.
- To negotiate more effectively on your behalf, we are a Cornerstone Chubb agent and a VIP Travelers agent.
Ready to Learn More? RJ Ahmann is Ready to Help with IT Consultant Insurance Solutions!