Why Network Designers Need The Right Business Insurance Policies
There is simply no denying that the Internet and technology have both done great things for Canadian businesses. They have given them the ability to operate more freely as well as more effectively. Combine this with the high-speed capabilities of the Internet today and it should be easy to see why more and more Canadian businesses are relying on computer networks. Computer networks not only give businesses the ability to work from high-speed stations on-site, but it’ll allow them to work away from the office as well. With specific setups, employees will be able to log into the network while away from the office and work remotely.
Today’s networking capabilities are truly amazing. Heck, a computer network is something that is needed for specific industries today. That being said, setting up, managing, and monitoring these networks isn’t easy. In fact, it oftentimes takes a specialist. A network design specialist. There are a lot of lucrative opportunities in this field. This is especially true for the individual with their own business.
Why The Right Insurance Policies Are Pertinent
You can already see from the opening just how integral computer networks are for specific industries. It’ll basically give them the opportunity to work as effectively as possible. Heck, high-speed computer networks are essential for some of today’s businesses. It would be hard for them to operate without them. This much you know, but what you do know is the risks that a network designer faces. When you are designing computer networks for customers and clients, you’ll face tons of risks. Risks that could eventually lead to lawsuits. And, this is where the real risk to your business lies.
The lawsuit! Even a minor lawsuit could end up costing your business thousands of dollars in unexpected revenue. Thousands of dollars that might force you into bankruptcy and the eventual closing of your business. Do you know what the scariest part is? You don’t even have to be at fault to get sued. A customer could just claim that you are at fault and the case would still end up in the Canadian courts. Your IT Professional liability insurance policies can safeguard against these very situations. The key to the entire puzzle is just to know which policies you need.
What Is And Why Errors And Omissions Insurance?
When you are working with providers like ProfessionalsCoverage to build an insurance package one of the first policies that they’ll likely suggest is the professional liability policy or the errors and omissions policy (E&O). Why? Because it protects you in the event of an oversight or claimed negligence. Say that a client has you design a new network and this network actually puts his company in a worse situation than when they started. Say the network you designed is faulty or doesn’t perform the way the customer thinks it should.
Maybe there are outside factors that are affecting things here. Maybe you made a major oversight. Whatever the situation and whether or not you are at fault, the situation could end up in a major lawsuit. A major lawsuit that could likely cripple your business. Luckily, this is where errors and omissions insurance helps.
What Is Cyber Liability Insurance And Why?
Any time you are dealing with computers and the Internet, there are major risks. Throw in a valuable company that is storing even more valuable customer information or data about future stocks, and it makes the situation all that more volatile. You’d be surprised at just how sophisticated hackers and scammers have become today. A simple visit and click to the wrong website or advertisement could result in malware or other erroneous software being installed on the computer. You’d likely catch this, but would your employer?
Your encryption software and firewalls won’t catch all the potential threats, as hackers and scammers are working daily to bypass such products. A customer’s network could get infected at their own behest and you could end up blamed for it. And, you already know where the blame is going to lead. It’ll either lead to a length, drawn-out lawsuit, or a financial payment out of court. Either way, it’ll simply cost you and your company money and resources. This is unless you have cyber liability insurance because it protects you in these very instances.
It protects you, your employees, and your company from fraud detection and monitoring services, notifying a client after a breach, and lawsuits that might be associated with such incidents.
What Are Fidelity Bonds And Why?
Fidelity bonds are likely ones that you haven’t heard of before. That’s okay because this is a learning experience, but it is one of the more important policies available. Why? Because it protects you against pretty much all of the above. The only difference is if the harmful actions were caused by an employee of yours. For instance, if one of your employees unlawfully logs into your client’s network and steals, data or money, you’ll be blamed. Maybe they see information that they shouldn’t have seen and try to pawn it off on the highest bidder?
You’ll likely be blamed and they’ll come after your company for financial restitution. This policy pretty much protects you against anything that one of your employees could steal from a client. If an employee gets made and steals a chair or a pack of post-it notes and gets caught, this policy will cover whatever ensues.
What Is A Business Owner’s Policy And Why?
If things weren’t confusing enough, they are about to get even more confusing. And, this is because the business owner’s policy is a unique one. Unique in the fact that it is actually a bundled policy. It’s a compilation of general liability insurance and commercial property insurance. So, in order to understand how this policy can protect your business, you need to understand how individually general liability and commercial property protects you.
It basically protects you in the event that the customer or his or her property is damaged while on your property. Imagine this- you have a customer over in your shop for a consultation. Your employee brings them a hot cup of coffee and ends up spilling it on them, causing 2nd or 3rd-degree burns. Maybe the customer’s car is scratched while sitting in the parking lot. Either of these situations is going to lead to you paying for the repair costs of medical expenses.
Unfortunately, there also might be lawsuits attached to these cases as well. Luckily, this is what the business owner’s policy does. It not only will pay for the medical expenses of the burns or the damage to the scratched vehicle, but it’ll cover any court-related costs that ensure. If you are going to own a brick and mortar business that will host clients, you’re going to need this policy in place.
Why Workers’ Compensation Insurance And What Is It?
Given that you’ll be located in Canada, you won’t have any option but to institute a workers’ comp policy. Why? Because it is required by law. Even if it wasn’t, it’s still a handy policy to have in your arsenal. It’ll protect you against your employees in the event that they are injured on the job. Seems unlikely in the network design field, but it happens all the time. You are constantly dealing with wires, electricity, sharp tools, mildly heavy computers and monitors, and there will be lots of bending, lifting, and reaching. Any of these could lead to an injury or pulled muscle that would eventually lead to time off work.
Time off work that might eventually lead to rehab and lawsuits or expensive medical bills. While the Canadian healthcare system is good, it is not inexpensive. Luckily, you won’t have to worry about paying when you have workers’ comp in place. It’ll protect you in the same manner as the above policies mentioned.
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance:
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Estimating The Cost Of Insurance
By now it is likely that this is right at the forefront of your mind. The only problem is, it’s a hard question to answer. Hard because different providers charge different rates. This is something you’ll pick up on quickly when you start comparing quotes. Why different rates? Because providers base their specific rates on certain factors. Some might consider the number of years you’ve been in business, whereas some might base the prices on the type of clients you set up networks for. This is why it is imperative to shop around and find a quality provider that offers exceptional rates like ProfessionalsCoverage.
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Helpful resources for IT professionals and their companies
- Why do I need IT insurance for my business?
- What types of insurance do I need for my IT business?
- Will I be legally required to get insurance to operate as an IT company?
- How do I get the cheapest rate possible as an IT business?
- As an online business, what liability insurance coverages will I need?
- How do I handle a lawsuit that is frivolous or completely fake?
- Want to cancel insurance for your IT Company? Here are reasons to consider!
- Using a change control board for tracking.
- Acceptable use policy – Every business needs it and here is how to write one!
- Want to start an IT consulting business? Awesome! Here is a small guide!
- How much insurance will I need to operate my tech company?
- I am a sole proprietor, how will business insurance work for my IT business?
- How do I choose the right legal corporate structure for my technology company?
Other types of IT Businesses we insure:
If your specializing is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of information technology related businesses.
- Telecom Cabling Installers Insurance
- Network Designer Insurance
- Cyber Security Insurance
- Business Intelligence Insurance
- Data Analysis Insurance
- Database Administration Insurance
- Web Hosting Service Insurance
- Network Security Company Insurance
- Mobile App Developers Insurance
- IT Staffing Agency Insurance
- IT Project Management Insurance
- IT Consultants Insurance
- Data Scientist Insurance
- Computer Repair Business Insurance
- Digital Marketing Agency Insurance
- SEO & SEM Consultants Insurance
- Software Developers Insurance
- Technical Writers Insurance