What Insurance Do B.C. IT Consultants Need?
If you are a B.C. information technology consultant or contractor, a client could accuse you of providing negligent advice. Or a client could slip and fall in your office.
IT consultant insurance can help protect you against the financial impact of being sued and against other risks you can face.
What is IT consultant insurance?
IT consultant insurance is a package of insurance coverages that’s designed to protect you as a B.C. IT consultant or contractor. It helps protect your IT business in British Columbia against the risks that you can face, including negligence, errors and omissions, and third-party damages and injuries.
You need to protect yourself as a B.C. IT consultant or IT contractor should a client claim that you caused them to suffer a financial loss or damage.
How can insurance protect your British Columbia information technology business?
You updated a client’s computer system and you didn’t back up all of the existing data and you were unable to recover it. Your client is suing you. Your errors and omissions (E&O) insurance may pay for your defence costs and any monetary judgment against you in court or for an out-of-court settlement. This type of insurance coverage is also called professional liability insurance.
One of your clients slips and falls on an icy sidewalk entering your B.C. IT business office. They fracture their wrist and then sues you. Commercial general liability insurance (CGL) can help cover your legal expenses and any awards ordered by a court, whether you win or lose, and help cover any uninsured medical expenses.
Your B.C. IT office provides network security for a client whose system is hacked by cybercriminals. Client data and confidential financial information are stolen. Cyber liability insurance coverage can help pay for repairing your client’s computer system.
Without cyber insurance, you will have to pay out of your own pocket for the cost of restoring your client’s system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
How much does information technology consultant insurance cost in British Columbia?
There’s no one-size-fits-all insurance policy for B.C. IT consultants or contractors.
The cost of your coverage will depend on such factors as:
- The services you provide
- Your clientele
- Where you are located
- Your annual revenue
- Your experience
- Your education and training
- Any past insurance claims
What’s in an IT consultant package?
Commercial general liability (CGL) insurance
CGL helps provide financial support for your British Columbia IT business should a customer or supplier get injured or their property be damaged at your place of business.
Commercial general liability insurance helps cover your legal expenses and any awards ordered by a court, whether you win or lose.
Commercial property insurance
Commercial property insurance covers your B.C. IT’s business property, contents, electronics, and inventory if damaged or destroyed by a natural disaster or extreme weather, or by fire, flood, theft, and vandalism.
Errors and omissions (E&O) insurance
You will also hear this type of insurance called professional liability insurance.
It helps protect your information technology consulting business from allegations of negligence, product failure, failure to deliver a service, or damage or loss to a client resulting from your information technology services.
Cyber insurance
Cyber insurance helps protect your business if you electronically store confidential data about your clients and your B.C. IT business.
Legal expense insurance
Legal protection insurance gives you access to legal advice, assistance, and coverage for legal disputes. As a B.C. IT consultant or contractor, you will be able to get legal advice from an experienced lawyer. Legal expense insurance also helps cover the costs of a lawyer to pursue legal action.
Business interruption insurance
This coverage supports you when your IT business can’t operate due to a covered loss.
There are a number of losses that can force your business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Business interruption insurance can mean the difference between recovering from a loss and your B.C. information technology business closing permanently.
Financially protect your B.C. information technology business with a comprehensive insurance package.
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Western Coast Insurance Services Ltd. is a wholly owned division of Western Financial Group Ltd. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada.