When you're shopping around for an IT provider, you ask about response times. You ask about certifications. Maybe even their cybersecurity tools. But here’s the question most businesses don’t ask:
“Do they have cyber liability and E&O insurance?”
If they don’t, that’s a red flag! Because if your IT provider makes a mistake, misconfiguration, a missed patch, a data breach and they’re not insured? YOU could be the one paying for it.
These policies aren’t just for peace of mind. They’re a sign your provider is legit, accountable, and prepared to take responsibility, if things go sideways.
Let’s break down what cyber liability and E&O actually cover—and why it’s something your business can’t afford to ignore.
What Is ‘Cyber Liability Insurance’?
Cyber liability insurance protects your business when a data breach or cyberattack occurs due to your IT provider’s failure. It helps cover costs like legal fees, regulatory fines, lost revenue, and data recovery. Without this coverage, your business could be left paying out of pocket for damages caused by someone else’s mistake. Any company that relies on digital systems or handles sensitive information needs this protection.
What Is ‘Errors and Omissions Insurance’?
Errors and omissions insurance protects against mistakes or negligence in service delivery. This might include failing to install critical updates, recommending an insecure setup, or configuring a backup system incorrectly. When those kinds of oversights lead to real business harm, E&O insurance helps cover the cost of fixing the damage. It ensures that your IT provider is not just confident in their services but also prepared to take financial responsibility when mistakes happen.
Why Every Business Should Care
This is not just a technology problem. It’s a business risk. Every industry relies on IT. Whether you are in manufacturing, healthcare, finance, legal, retail, or logistics, your systems and data are essential to daily operations. When IT fails, your business slows down or stops. When a breach happens, trust is lost. And when your provider has no insurance, recovery becomes your responsibility.
What You Should Know About Your Provider
Any reputable IT company should be upfront about its insurance policies. It should be able to show proof of coverage, explain its limits, and demonstrate how it is prepared to protect your business. If it can’t or won’t, that’s a signal to reconsider your relationship.
Insurance Is Part of IT Accountability
IT providers should be just as responsible for protecting your business as you are. That means doing more than promising fast support. It means backing up their work with real-world coverage in case something goes wrong.
If your current provider isn’t insured, or you’re unsure what protection you have, let’s talk.
We offer a free risk assessment to help you identify vulnerabilities before they cost you.
Call 201-402-1900 or visit us at www.krsitconsulting.com to schedule.
Because when things go sideways, the last thing you need is a partner who disappears, up until the bill comes due.