Insurance For Information Technology
Information Technology, or IT, is defined as anything that has to do with electronic data management and maintenance . This includes software, hardware, programming languages, data storage, and information systems. Information Technology is such a varied profession that each job is a little bit different. An employee in the IT business could range from setting up hardware, creating a large and complex computer network, to maintaining a database.
There is certainly significant opportunity for an independent contractor to make a lot of money. In this day and age the need for IT professionals is already large and growing by the day. For many smaller companies or companies that are looking for a single project to be done, outsourcing IT is a great option. Of course as an independent agent, it is up to you to find your own work and each job will require different knowledge so you must keep up with more systems, but the upside is immense.
If you work for yourself not only you get the reward but you take all the risk. This is why it is important to get IT contractor insurance. Now it may seem to many people that since you aren’t doing anything dangerous and there is little to no chance of any physical harm that paying a premium is a waste of money, however, although a mistake may not result in clearly quantifiable damage, information mismanagement can be a costly error.
Independent contractors take on a very high risk because they don’t have the protection of a larger entity. If they are sued they can be at risk both professionally and personally. A judgement against a contractor may cause them to lose more than just their business, personal property can be attached to the lien. When searching for IT contractor insurance, make sure you vet all agencies and read your entire contract. Check out what the deductibles and how other fees, like lawyers are handled. Don’t work under the table, not only is it illegal, it opens you up to all kinds of risks. Make sure to incorporate your business to separate it from yourself as a person. There are different ways to do this, LP (limited partnership), LLC (limited liability corporation), Inc (Incorporated), each offering a different advantage.
A placement agency or contract work agency will alleviate some of the liability. All reputable companies will carry their own IT contractor insurance to provide protection for themselves against any damage a contractor they send out may cause. Other advantages to working for an agency are: they may provide group health insurance and other benefits, they will find and bill the clients, some provide payment when you are between jobs. The downside is that you will only receive a portion of what they charge the company and you are not guaranteed work.