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INFORMATION TECHNOLOGY, NEW MEDIA, COMPUTER CONSULTANTS, SOFTWARE DEVELOPERS, INTERNET SERVICE PROVIDERS, NETWORK ENGINEERS, WEBSITE DESIGNERS, PROGRAMMERS . . . . . What do all of these have in common?  They all barely existed, just a few short years ago.  At the rate technology is advancing, who knows where we'll be by the year 2003!   

It seems that computer, software and Internet technology is limited only by the immense collective imagination of those with the vision, the nerve (some might say, "chutzpah"), and the technical ability to make it happen!  

It's hard to imagine a world without Microsoft, AOL, Apple, Unix, Cisco, Sun, InterNIC, Amazon, Priceline, iVillage, and countless others.  Yet, stop and think for just a moment - just how long have any of these been around?  Whatever happened to those technology stars of not so long ago . . . Commodore, Tandon, the original Prodigy - heck, remember the Bowmar Brain?  OK, so I'm showing my age . . . but, really, it wasn't THAT long ago, was it?  

Companies and technologies burst upon the scene overnight.  Some survive; some thrive; some burn bright and fizzle out; some just fizzle.

If someone just a few years ago had suggested that you add some Java to your site, you would have thought they were talking about installing a coffee machine at the office.   HTML?  GIF?  FTP?  C++?  RAM?  ISP?  Remember when a "server" meant, maybe, a waiter?  Remember when a computer was the size of a small car, and needed to be placed in a room, cooled like a meat locker?  Remember when floppy disks were, well, floppy?  Not all that long ago!

It's a brave new world . . . . and it will be changing again, tomorrow!  As those wonderful television ads for Cisco Systems ask, "are you ready?"

What are some of the risks?

Properly insuring today's technology-centered business or professional requires a recognition of the risks involved.  The potential liability exposures are evolving just as quickly - and unpredictably - as the state of technology itself.

As is the case with any sort of change, it can spell "OPPORTUNITY" for those who recognize what's happening - or about to happen - and it can spell "DANGER" for those who don't!

What if the computer system or software that you recommend, design - or even simply install - does not do what your client says it is supposed to do; does not do what you client claims that you promised it would? 

What if your client's system crashes, 24-hours after you upload that nifty custom application you wrote for them?   Sure, systems can crash for any one of a million reasons - and you KNOW that your code wasn't to blame.  OK, go ahead and explain that to your client's CIO or EDP Manager.  Of course, you'll have to do your explaining while he or she is explaining to their boss just who is going to pay for the recovery of the lost data; who is going to pay for their lost revenue; who is going to loose their job?

How about that great new Web Site you designed that just went live?  You know, the one that has that great comparison of your product or service with the competition?  Oh, oh, THAT one . . . . the website that the competitor's attorney is referring to in the lawsuit that was just filed, alleging trademark infringement, libel, and a whole bunch of other things you don't quite understand.  Yes, yes, THAT lawsuit . . . . the lawsuit that is demanding damages of $2 Million.  

Oh, so you say that you only designed the site; that you were only following your client's orders; that you had no duty to verify the claims?   Well, you may very well be ABSOLUTELY CORRECT!  However, since you have been named as a defendant in the lawsuit, all you have to do is to hire an attorney and have him/her file an answer on your behalf, and hopefully get you dismissed as a defendant.  Oh, darn, there is that little matter of that $5,000 retainer the attorney wants, against his $300 per hour fee.

What about that call you just got from your biggest client.  They tell you that the new contractor you sent over last week did a great job! Wonderful!  Oh, one problem, though . . . . three printers and a scanner are missing from the office.  Your client is sure that your contractor took them.  Your client is equally sure that you will reimburse them!

Then, there is that call you just got (gee, you sure do seem to be getting a lot of calls today!) from a client who says that while your people were running cable, the office receptionist tripped over some loose wires and broke her hip.  Fortunately, your client explains that since this happened "on-the-job", she is covered by workers compensation.  You breath a sigh of relief . . . . until you get the letter from your client's workers comp carrier, telling you that they expect you to reimburse them, since the injury was caused by the work you or your staff were doing.  Oh, they'll give you a few days to think about it . . . . . before they file the lawsuit.  Can you spell, "SUBROGATION"?

Hold my calls, please!  What about insurance?

Glad you asked!  Today, more and more computer, technology, software & Internet professionals are relying upon a well-thought-out insurance program to protect themselves, their company, their staff - and their reputation - in case of trouble.

In fact, more and more potential technology clients are insisting upon receiving a "Certificate of Insurance" before they award that next contract.  If you haven't been asked for one yet, you will sooner or later . . . . and it's probably going to be "sooner" than "later".

Fortunately, this is an area of insurance in which I specialize.  Frankly, it is one of the most interesting areas of insurance and risk management these days, particularly since it is changing and evolving so rapidly. 

I am pleased to tell you that we have a number of excellent insurance programs available, designed specifically for the computer, technology, EDP, network & Internet-related professional.  Coverage options include general liability, professional liability ("errors & omissions" or "E&O"), property, first & third-party fidelity ("bonds"), loss-of-income, hired & non-owned auto, workers compensation . . . . and more!

My clients range from solo consultants, working from home, to large, multi-million dollar firms, with contracts spread across the country, as well as ISP's, B2B dot.com's & online retailers.  Each and every client of mine - regardless of size - receives my personal attention, and the highest level of professional service!  

Let me be blunt . . . at some point, several years ago, Bill Gates, Steve Jobs, Larry Ellison (or feel free to fill in any one of hundreds of others), picked up the phone and called their insurance broker and said, "Hi, it's time for me to move out of my garage - and I need insurance."   Of course, that insurance broker might have replied, "I'm too busy to talk to you - I have Commodore Computer on the other line."  NEED I SAY MORE?

Limits of liability are available from $1 Million, up to $25 Million (I'm sure we can go even higher, but no one has asked . . . yet).

A word of caution . . .

It has been my experience that many insurance agents and brokers haven't got a clue about how to properly respond to the liability issues of the technology industry.  Heck, some insurance agents are still deciding whether to upgrade their office computer from that 386/33, running DOS-based programs.   Well, maybe I'm being too harsh? Maybe they just upgraded last year, to Windows 98, and they installed that wonderful new 56K modem!  Truly cutting-edge!

Of course, few insurance brokers will admit that they're caught in a technological time-warp.   All they'll do, however, is simply call a wholesale broker and then try to sell you whatever they get.  Trust me - just because a policy is titled "computer consultants errors & omissions", or  something similar, do NOT mean that it is the right policy for you.  

Did you know that there is a major, name-brand insurance company that EXCLUDES any coverage - potentially forever - for anything that you started working on before you bought your insurance?  Did you know that there is another, major name-brand insurance company that EXCLUDES coverage for the sale, installation and service of computer hardware?  Obviously, I cannot name names, but there are brokers out there - on the Internet - holding themselves out as experts in the technology insurance field - who are hawking this kind of snake-oil coverage!

Know what you're buying - ASK QUESTIONS!

OK, OK . . . How much is this going to cost?

Insurance premiums can vary widely, depending upon the exact nature of the insured risk.  We all know someone who pays almost nothing for their automobile insurance, and we probably know someone else who pays a small fortune for the exact same coverage.  The difference can be due in part to, 1) location, 2) driving record, 3) whether or not there are other drivers - such as a 17-year old son, who just got his license, 4) the car itself, 5) past claims history, and yes, it could also be, 6) their insurance company - some companies charge more than others!

Well, the same principles apply in all types of insurance, including computer & technology related coverage.  The cost is going to vary, depending upon the nature of the risk (exactly what type of work is being done), the experience of the insured, past claims or litigation (if any), the size of the operation (generally based upon gross annual revenues), etc.

Another significant issue facing the emerging technology field is the fact that there does not yet exist any recognized, independent basis on which to determine the qualifications of technology professionals.  Sure, there are many different "certifications" available - some of which are very valuable, while many others are virtually worthless. 

When a licensed professional - such as a lawyer, accountant, doctor . . . . yes, even an insurance broker, is alleged to have made a professional error, there are at least some basic guidelines with respect to what level of professional conduct is expected of that individual.   No such guidelines exist (yet) in the computer, network, technology & Internet related fields.  Anyone can print up some business cards and call him/herself a "computer consultant", or "network consultant", or "website designer", or "certified internet consultant" . . . . etc.  It's 100% legal, no question about it.  However, as anyone in the industry knows, "legality" aside, the "reality" is that many of these so-called "experts" or "consultants" haven't a clue - and some are outright scammers!

The bottom-line - literally - is that each and every application for insurance coverage must be carefully evaluated by a knowledgeable broker and then submitted to equally knowledgeable underwriters, working with insurance markets comfortable with  the specific nature of the risk.   Not every client is going to be a "fit" with every insurance company or program.

Personally, I have professional liability clients who are paying $1,500 per year for their coverage, and I have clients who are paying $25,000 or more!

Differences include the limits of liability, scope of the coverage, deductible (sometimes referred to as the "retained limit" or "insured retention"), size and nature of the client, location, etc. etc.

A final word of caution when it comes to insurance premiums:  If there is a "substantial" difference in cost, then it is safe to assume that there is an equally "substantial" difference in coverage.  Now, it may be that the additional coverage being offered by the more expensive policy isn't necessary, but NEVER assume that you are being offered identical coverage for "half-the-price".  Does it happen?  Yes, sure it does; people also win the lottery . . . but it is incredibly rare!  

Ask questions!   Be an informed insurance buyer!  After all, it's your money, and it's your business that you're protecting!  Don't let ANY insurance broker (myself included) rush your decision.  If you are not getting clear answers from your broker, translated into terms that you understand, then I suggest that it's time to find a new broker.

Want more information?

I'd be happy to discuss your situation, and answer any questions you might have.  You can click here to fill out a quick & easy form to get the ball rolling.  If you'd prefer, you can call me at my office at 877-320-4061, or you can send me an e-mail at, info@swicker.com.   No nonsense; no obligation; no kidding.  

I look forward to hearing from you.

Bruce R. Swicker