Good Information Articles

When Minimum Coverage Is Not Enough for Your Business

The name of the game in insurance is risk management. As a small information technology business owner or manager, you transfer the risk of loss to an insurance company in exchange for a premium. Of course you don?t want to spend more on that premium than you have to; nobody does. But skimping on your liability insurance could cost you your business. Litigation costs are rising, particularly for IT companies. More and more businesses are completely dependent upon their software. If that software fails, the IT Company which supplied it is going to end up paying. But if that IT firm has the right professional liability coverage, then it's their insurance provider who does the paying.

So, are you one of the lucky ones who can get by with having only the minimum amount of liability insurance coverage? That depends on your assets but even more on your exposure. And if you?re running a high tech business, don?t count on it.

You need to consider both professional liability and general liability insurance. General liability insurance protects you in the event that your business is responsible for a bodily injury or the destruction of property. If your firm is open to the public or if your employees regularly interact with other companies or with the general population, you?ll want to bump up this coverage. If the manufacturing of your product is hazardous, again, you?ll want to raise your liability insurance. Most agents will be able to advise you on how much general liability insurance you?ll need.

But in this modern world, only having general liability insurance isn't enough. It doesn't protect you against claims that your product failed or did not perform as advertised. And even if your product works perfectly, defending against a spurious lawsuit can easily cost you hundreds of thousands of dollars in legal fees. To protect you in these situations, you need professional liability coverage. Okay, but how much?

You need to consider where your product will be sold. With the Internet, we often take doing business in a global marketplace for granted. However, most minimum coverage professional liability policies only apply to North America (assuming you reside in the United States). Furthermore, minimum coverage will not only have limits on the amount payable per case, but also on the aggregate amount payable per year.

A few court cases could put you over that limit. Let?s look at this possible IT firm scenario:

? Your software lacked adequate security and allowed hackers access to your client company?s customers' financial information?case settled for $300,000 plus legal fees. ? Your software corrupted data in a client?s database?case settled for $700,000 plus legal fees. ? Due to your court cases, you cannot make a deadline in your contract to another business? case settled for $500,000. ? Worst of all, your company?s software does not live up to the extravagant claims of your salesman, and the case goes to a jury to determine damages?judgment against your firm for several million dollars plus legal fees.

That?s a lot of money, more than most small businesses could pay. While you hope that your product will perform better than the one illustrated above, liability insurance of any kind isn?t about hope, it's about the realities of the industry.

James Cochran, owner of Techinsurance.com, is a web-based small business insurance agent specializing in the IT industry. Over 15 years of insurance experience, Cochran founded Techinsurance in 1997 to provide insurance products for IT professionals. Techinsurance has grown to become one of America's leading liability insurance and business insurance providers. For more visit http://www.techinsurance.com/default.aspx and http://www.techinsurance.com/ProfessionalLiabilityInsurance_2.aspx

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

The Best Internet Connection For A Top Home Internet Business
When it comes to working at your home business one of the most important things you will need is internet access Having a fast and relatively error free Internet connection is imperative for a person to be successful in working at home

Online Magazine is Home to the Best Travel Writing on the Internet
For the second year in a row, SoGoNow.com is the home to the best travel article written for the internet as judged by the North American Travel Journalist's Association.

Home Internet Business Opportunities: Reinvent Your Family
Think about your daily job, daily responsibilities, time spent at meetings, driving your kids to this activity and that sporting event, meal planning and preparation, house cleaning, on and on with our grossly busy lives, and what time is left for our family? Do you really think that 9-5 JOB is the answer to all of our hopes and dreams? Do you really think it was our personal goal to spend the majority of our lives at work? When was the last time you saw your son/daughter play in that school volleyball game or run in their cross country meet? Isn?t it time to put your family first?

Internet Based Business: How Single Parents Could Earn Extra Income For The Entire Family
Are you a single parent who has been trying to support your children on a single income? If you have been having so much trouble making both ends meet with your present income, you might want to earn some extra money by setting up an internet based business. A big family with children can be very expensive and you definitely will need to earn some extra money to keep everyone comfortable. Having some extra money could really do wonders for you and your small children so you better start exploring other means of getting extra money for your children through an internet based business.

Internet Home Based Business : Legitimate Work at Home Jobs Opportunities and Advantages
There are many advantages involved in choosing an internet home based business as your primary or secondary source of income Use these benefits to find a legitimate work at home jobs that suits your needs and desires

Work At Home Internet Home Business Opportunity
There are various opportunities for work at home Internet home business opportunities on the Internet Because of the Internet, there are many opportunities for people to be able to take care of their families and work from home and as well

Home Based Internet Marketing Business - Staying Organized In Your Home Office
When working from home there is nothing more frustrating than not being able to find things when you need them. While most home business entrepreneurs see themselves as never having any time, you have to spend some of your time to organize things. If you can't daily, you should at least try for once a week, you should set aside some time to put things where it should be. Allot of people have a saying that there is a spot for everything and everything must be in its assigned place.

Families Mourning Children Travel to Nashville for July Compassionate Friends National Conference
The Compassionate Friends self-help support organization for families going through the natural grieving process following the death of a child is hosting its 31st national conference July 18-20 in Nashville, Tennessee. More than 1300 parents, siblings, and grandparents, as well as professionals who provide support, are expected to attend the conference. Highlights include well-known speakers, more than 100 workshops covering most aspects of grief following the death, a pre-conference Professional Outreach Day, and the Walk to Remember Sunday July 20 at 8 a.m. This conference is annually the largest in the United States aimed specifically for those left behind following the death of a child.

SoGoNow.com -- Home of the Best Travel Article Written for the Internet in 2006
SoGoNow.com travel magazine announced that frequent contributor Linda Fasteson has won First Prize for the Best Travel Article Written for the Internet from The North American Travel Journalist Association.

Family Travel at its Finest - European Villa Rentals Perfect for the Whole Family
Parents can easily find family friendly villa rentals in Europe with Rentvillas.com.

Sales of Children's Travel Bed Soar as Summer Travel Hits
Gentle Air has seen an increase in summer travel sales due to hotels at popular summer attractions charging high prices for rollaway beds and cots.

Making Time For Your Family and a New Internet Home Business
Starting your own internet home business can be a very fulfilling experience. It offers many new and exciting challenges, with the hopes of providing financial security for you and your family.

Family Circus - Make Time For Family With An Internet Business
Sometimes, it seems like you don?t have a full 24 hours in a day. Between work, family, and sleep, there is no time for anything else. You never seem to have five minutes to relax, and on days when work requires overtime, you lose time with your family. In fact, it seems you never spend quality time with your children anymore. One way to get your life back under your control and manage time better is to start your own internet business. With an online business opportunity, you can decrease your work hours overall, as well as become more flexible and available for your family.

New Home Based Travel Businesses and Training Available for Retirees and Work-At-Home Parents
Affordable training is now being offered for those wishing to set up their own home based travel businesses. Program offers participants everything they need to get started quickly and affordably in this exciting market.