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Computer Business Owners Protect with Professional Liability Insurance

Computer Business Owners Protected by Professional Liability InsuranceWhen you are running a computer business, your clients place a significant amount of trust in you and your company. A careless mistake when administering a server can lead to data loss, business downtime, and lost revenue.

While care, conscientiousness, and planning all reduce the chance of a disaster, accidents do sometimes happen, and it’s not always clear who is accountable.

 For this reason, it is essential you have insurance that can protect your business if a client takes you to court for a mistake you made. This insurance is sometimes known as “Professional Liability Insurance” or “Errors and Omissions Insurance.” In some countries, such as the UK, it is known as “Professional Indemnity.”

Here are three reasons why this insurance is so important:

Peace of Mind

As the owner of a computer business, you need to be able to get on with your work without the distraction of potential legal and financial problems if you make a mistake. The knowledge that you have an insurer to fight in your corner and pay legal costs if the worst happens leaves you free to please your clients and build up your client base. 


Showing your clients that you are suitably insured makes your business stand out as a professional company that takes its responsibilities seriously. When it comes to larger clients, proving you are properly insured may well be a prerequisite before they can offer you a contract.

Best Practice

To ensure your insurance is valid, you will need to keep a good paper trail with your clients, and ensure contracts are clear and thorough. Knowing you are paying out for the insurance will give you an incentive to adopt and maintain this good practice.

Your insurance broker should be able to provide a quote for a suitable policy.

Do you have this form of insurance for your computer business? Have you ever needed to make a claim? Share your experiences in the COMMENTS box below.

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