Why Do IT Project Managers Need Insurance?

Why Do IT Project Managers Need Insurance?

IT project managers oversee the processes involved in meeting the information technology (IT) goals and pursuits of an organization. They plan, execute, and delegate the required tasks. Since the IT project manager’s team is often spread out in different locations, it’s their job to ensure all projects are handled and delivered on-time, on-budget and that all requirements are met. Essentially, IT project managers help companies operate more efficiently. They help their clients with IT and coding implementation

Because this is such detailed work, mistakes can happen. Insurance is needed to cover the costs of these mistakes.  Also, being an IT project manager, just because your job is dealing mostly with computers and networks, that doesn’t mean there can’t be other accidents and damages that can get costly. Whether there is an accident, theft, fire or lawsuit, you need insurance to keep your business operational.

Risks Posed on IT Project Managers

Mistakes, breakdowns, and technology are all areas of risks for IT project managers.

Process Mistakes

Process mistakes are a common risk for IT project managers. You increase your risk of not getting a project done right if you don’t have a proper set of process methodologies in place. You could end up not completing the project on time, making mistakes, and having to rework the entire project or not meeting project budget.

Specification Breakdown

Specification breakdowns can occur due to a number of things. If there are too many shortcuts used, the team didn’t understand all the specifications, or they weren’t developed properly, are all examples of specification breakdown. Bottom line, if the specifications of a project are not understood or implemented correctly, other parts of the project may be at risk as well.

Technology-Related Risks

Even if you do everything properly, accidents can still happen. Often, it’s things that you can’t control — like a hard drive failure, which can put you at risk since it can lead to the loss of their critical data or having it not work correctly. You can still be held liable even when it’s no fault of your own, and it could  cost you in fees and damages to their IT business.

It’s important that IT project managers protect their business with insurance specifically designed for their industry as well as general business insurance coverage. For instance, general liability can cover third-party lawsuits involving personal injury, copyright infringement, injured reputation and property damage.  E&O insurance or also referred to as professional liability insurance can cover you against lawsuits that range from contractual disputes to cyber security issues. Another insurance to consider is the business owners’ insurance policy, which bundles both general liability insurance with property insurance which will protect you from unexpected disasters.

There are other insurance policies you will want to look into, therefore its best that you speak with an independent insurance agent and go over your specific needs.