jic
10-07-2004, 01:17 PM
I am a slilent owner of Nethosters, Inc (started in college and now I have employees that cover it). Since then I have been doing insurance for IT companies big and small. There is a huge disconnect between the IT world and the insurance world. I just wanted to put some interesting things up that I am sure most people didn't know.
1) You have a strong contract with your client (probably written by a good lawyer) saying that if there is downtime that you are not responsible.
Correct, as long as you didn't cause the issue. For example if a tech is working on a router and he screws something up. You are liable. They can sue you for the a) business income lost b) any damage to their name
2) You have a server colocated at a datacenter, if there is a fire they will pay for it.
The majority of the time this is incorrect. You have to carry you own insurance to cover the contents of your hardware in their datacenter.
3) I have General Liability so I am covered.
Absolutely incorrect. All General Liability is truthfully good for is a slip and fall at your location. Software, Downtime etc. is all covered on Errors & Omissions insurance.
4) I only have 1 employee, so I dont need workers comp.
Well legally you may/may not need it (http://www.hrtools.com/HREssentials/P05_4403.asp) for the laws. But on almost all health insurance policies if you get injured on the job, it is going to exclude the injury. i.e. You fall over in your chair at work, break your wrists. Your blue cross/aetna etc. is not going to cover it.
If you guys have any questions I would be happy to answer them. This is my speciality but I encourge everyone go get insurance. I can always help, but if you dont have at least 5-10 employees it is probably just as good to go to a local broker. Be sure to explain to them everything you are doing. Most insurance brokers may say they specialize in it, but in fact only a few do in the country and they work on bigger things and are in DC, Chicago, Atlanta, NYC and I am just weird so I am in Jacksonville, FL :)
p.s. for the small hosts out there.. PLEASE incorporate, drives me nuts to see sole prop.
1) You have a strong contract with your client (probably written by a good lawyer) saying that if there is downtime that you are not responsible.
Correct, as long as you didn't cause the issue. For example if a tech is working on a router and he screws something up. You are liable. They can sue you for the a) business income lost b) any damage to their name
2) You have a server colocated at a datacenter, if there is a fire they will pay for it.
The majority of the time this is incorrect. You have to carry you own insurance to cover the contents of your hardware in their datacenter.
3) I have General Liability so I am covered.
Absolutely incorrect. All General Liability is truthfully good for is a slip and fall at your location. Software, Downtime etc. is all covered on Errors & Omissions insurance.
4) I only have 1 employee, so I dont need workers comp.
Well legally you may/may not need it (http://www.hrtools.com/HREssentials/P05_4403.asp) for the laws. But on almost all health insurance policies if you get injured on the job, it is going to exclude the injury. i.e. You fall over in your chair at work, break your wrists. Your blue cross/aetna etc. is not going to cover it.
If you guys have any questions I would be happy to answer them. This is my speciality but I encourge everyone go get insurance. I can always help, but if you dont have at least 5-10 employees it is probably just as good to go to a local broker. Be sure to explain to them everything you are doing. Most insurance brokers may say they specialize in it, but in fact only a few do in the country and they work on bigger things and are in DC, Chicago, Atlanta, NYC and I am just weird so I am in Jacksonville, FL :)
p.s. for the small hosts out there.. PLEASE incorporate, drives me nuts to see sole prop.