However, the exposures and risks attached to IT companies are greater and have turned more complex over the past few years. If you will add a little more growth and some extra services, the basic insurance program becomes useless in providing what it is supposed to provide—protection of the business.
Here are the 5 most basic concerns which are not taken care of in the old policy and that need to be addressed in an insurance policy for the survival of any IT company:
The advice that a professional provides to their clients is an important part of the service they provide. If a customer complains that a particular advice provided to them by an IT company resulted in their downfall or has caused them financial difficulties, the company might be sued. This is where professional liability comes into play and protects the client from the devastating outcome of such a scenario.
It is the job of an IT company to assist its customers with the setup or management of the phones, servers, Wi-Fi, computers, and other such services. If the customers end up losing sensitive private information, the IT company will be the first to receive the blame. Cyber liability, therefore, provides protection to the company against this situation.
In case an IT company could not operate because a storm or a fire destroys the office or its equipment, it will be losing a significant amount of money before returning to business. In such a scenario, the company might fail to pay for employee wages, vendor contracts, rent, and other utilities. Opting for business income coverage will defend them against this type of revenue loss.
Employment Practice Liability
Firing an employee is not as easy a task as some might believe. Terminating an employee can end up in a lot of legal threats to the company if the procedure is not followed properly. The terminated employee can sue the company for its unfair employment practices. This is where EPLI coverage comes into the picture by providing safety against allegations of discrimination.
Business Personal Property (BPP)
Most of the basic liability business insurance policies do not offer any protection for office equipment such as cables, computers, and other items in the inventory. A BPP insurance policy covers this kind of damage for them.