TechInsurance Study: Client Lawsuits a Top Concern for IT Professionals
The inaugural TechInsurance Market Index (TIMI) provides a snapshot of small IT business needs and risks.
CHICAGO, Oct. 28, 2014 /PRNewswire/ -- TechInsurance, the nation's leading provider of business insurance for IT freelancers, contractors, and entrepreneurs, today published its inaugural TechInsurance Market Index (TIMI) report, which illuminates the primary risk exposures facing small technology business owners and offers strategies for reducing these risks and minimizing loss.
Of note, the study finds that technology professionals face their greatest risks from client lawsuits over work – not from threats to data security, as headlines in mainstream media would suggest. Specifically, the research found that 16 percent of small IT businesses studied do not use contracts to manage client relationships and clarify the terms of a project. Further, more than half – 53 percent – have no procedures in place for resolving client disputes that arise.
"These numbers are telling," said TechInsurance CEO Ted Devine. "Almost all of these businesses [96 percent] request Professional Liability Insurance, but a lot of them don't have the risk management procedures in place that could prevent a claim on that policy." He noted that, while it's good to see high awareness about the importance of Professional Liability policies, study results suggest that IT professionals aren't as aware of non-insurance strategies for managing risk.
To help owners of small technology businesses (including freelancers, 1099 contractors, and those with employees), TechInsurance includes in TIMI four concrete recommendations for preventing the kind of misunderstandings that can lead to claims on a Professional Liability policy and cost thousands of dollars in legal fees: prioritize contracts, negotiate with clients for more favorable contract terms when appropriate, manage risk proactively, and know the benefits and limitations of business insurance.
To read the full TIMI report, visit www.techinsurance.com/resources/timi.
About TechInsurance, an insureon Company
TechInsurance offers essential business insurance policies, including Professional Liability (Errors & Omissions) Insurance, to small technology businesses. It also provides educational resources to help IT professionals manage their risk and avoid costly claims incidents.
CONTACT: Madeline Carlson, (630) 706-1068, [email protected]
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SOURCE insureon
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