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Business Insurance for Control System Integrators

Insurance for Control System Integrators

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As a control system integrator, you create efficient systems by using your knowledge of disciplines like engineering, information technology, and business. You may be hired to help integrate manufacturing or industrial systems at a new plant or factory to improve their processes and automate routine actions. Though the work you do can save your clients time and money, the enormous control you have over their operations means that if something goes wrong, you may be held liable.

In order to protect yourself financially against lawsuits, accidents, or disasters, consider purchasing business insurance. Control system integrators are often required by clients to hold certain levels of insurance coverage before working on a project. Moreover, having a comprehensive insurance package can give your customers peace of mind when working with you. You should consider purchasing business insurance for your control system integration business if:

What insurance coverage do I need as a control system integrator?

Control system integrators deal with complex and highly detailed technologies and processes, and as such, even a small error can lead to disastrous results. That’s why professional liability insurance is such a crucial coverage for system integrators to obtain. Moreover, system integrators face many of the same risks that other businesses encounter, which is why more common policies like general liability insurance and workers’ compensation insurance are important to consider as well. While there are a number of policies to look into, below we’ve listed the major insurance coverages you should consider.

Professional Liability Insurance or Errors and Omissions (E&O) Insurance

Due to the complex nature of your profession and the highly sophisticated systems you work with, the margin for error is particularly slim. Even the tiniest of mistakes can have serious financial repercussions for your clients. If your customers believe that the work you performed was substandard or error-prone and it hurt them financially, they can sue your firm for damages. Professional liability insurance can protect you from the financial repercussions of a client lawsuit stemming from your firm’s professional mistakes. Even if your firm is not at fault, you may still be sued. Covered areas for professional liability insurance include negligence, misleading statements, performance, and breach of duty.

Examples:

General Liability Insurance

General liability insurance can help protect you and your firm from the financial burden of a lawsuit that claims personal injury, client injury, or accidental property damage. It’s difficult to be certain how careful individuals will be when visiting job sites or when clients visit your office. General liability helps to safeguard your business against lawsuits from clients or third parties. The four types of coverage included in general liability insurance are: products & completed operations, property damage, bodily injury, and personal & advertising injury.

Examples:

Commercial Property Insurance

Commercial property insurance protects your business property from damage caused by covered perils, typically including fire, windstorms, water damage from burst pipes, vandalism, and many other hazards. The included damage can happen to a building or item that you rent, lease, own, or have borrowed from someone else. Covered items include, but are not limited to: paintings, furniture, office equipment, and computers.

Examples:

Cyber Liability Insurance

In today’s hyper-connected world, much of the data, files, and records you work with will be stored on both public and private servers. Everything from client files to employee records are housed in some digital form, and because of this, sensitive and confidential data may be at risk of loss or theft. That’s why it’s important to guard your business against the negative impact of any technological mishaps. Cyber liability insurance can protect you from the financial consequences of hacking, viruses, data breaches, and other cyber perils.

Cyber liability insurance also covers the costs of:

Example:

Workers’ Compensation Insurance

While general liability insurance can cover the cost of injury to a person who is not employed by your firm, workers’ compensation covers work-related injuries and illnesses for your own workers. Almost all states require some form of workers’ compensation if your company has employees, though requirements for coverage vary by state. Receiving workers’ compensation benefits means employees also agree not to file a personal lawsuit against your company in the event of an injury. Workers’ compensation is no-fault, which means that it pays benefits regardless of whether the employer or employee is at fault for the injury.

Workers’ compensation can cover the costs of:

Example:

Business Owner’s Policy

A business owner’s policy, also known as a “BOP,” combines property, general liability, and business income and extra expense insurance coverages for qualified small businesses. By combining these coverages together, your control system integration firm can save on premiums, as there may be discounts available for bundled policies.

Final Word

As a control system integrator, it is your job to see the bigger picture and ensure that productivity stays at its peak. Though you may be certified and capable, mistakes can happen, and your firm may be sued by unhappy clients. One of the most important coverages for system integration firms is professional liability insurance. With a professional liability policy, your firm can protect itself financially from lawsuits related to your work. Moreover, other coverages like commercial property and general liability insurance can protect you from the unexpected dangers that all businesses face, including natural disasters and slip-and-fall accidents. It’s wise to be concerned about the financial safety of your business. Consider purchasing a comprehensive business insurance package in order to protect both your business and your employees.

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