IT security is an absolute essential for any business that handles data, and businesses that are experts in implementing cybersecurity strategies and solutions can be in high demand. If you are a cybersecurity professional who is thinking about starting your own solutions or consulting business, then there are a lot of things to consider when it comes to keeping your new enterprise compliant and protected, and one of these is insurance.
While your business will certainly need some of the common types of business insurance that apply to just about every kind of company, like general liability insurance and workers’ compensation (if you have employees other than yourself), another type of insurance that is strongly recommended is professional liability. Here we look at what it is, and why it can be a very important type of insurance for IT security companies and IT services businesses in general:
What is Professional Liability Insurance and What Does it Cover?
Professional liability insurance is designed to cover your business against errors and mistakes made by your company that go on to negatively impact your clients. It is important in most industries where services are provided, for instance, in the financial services industry and for companies like law forms. In the event of compensation claims or lawsuits brought about by mistakes, negligence, malpractice, or clerical and data entry errors, the general liability insurance almost all businesses have will not cover you, but professional liability insurance will.
Benefits of Professional Liability Insurance for IT Services Companies
The professional liability insurance cost is well worth it for almost all IT services businesses, including those in the cyber security sector. This is because errors in IT services can be extremely costly to clients, who will then need to claim compensation from the IT business that made the mistake in the first place. Nobody likes to think that they or their employees would make a mistake that could have such a devastating effect on a client’s business, but of course, when it is IT, there is the scope for both human and technological errors, which you could be held accountable for. Professional liability insurance gives you and your clients significant peace of mind.
How to Get Professional Liability Insurance for Your IT Security Business
Many business insurers will put together custom insurance packages to meet the needs of a business. These will include essentials like general liability and workers’ compensation, but also things that only some businesses need, like insurance for specialist equipment, company vehicles, product liability insurance, and of course professional liability. When you are starting your new IT security business, it is important to consult with a business insurance provider to establish the insurance package you need and get quotes for your premiums to include in your budget.
However, if you already have a business with insurance and want to add professional liability, you can usually get an instant quote from your insurer and instant cover should you accept it.
Professional liability insurance could save your business in the event of a major error, so make sure you have the cover you need.