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Business Insurance for Database Administrators

Business Insurance for Database Administrators

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If your company focuses on database management, design, or administration, there are particular risks you should consider as you select insurance coverage. From professional negligence lawsuits to cyberattacks, your company faces many potential liabilities. It’s important to consider purchasing comprehensive business insurance coverage to financially protect you from these risks.

What insurance coverage do I need for my database administration company?

There are many types of insurance for companies to consider, but these are particularly important for database administrators:

Professional Liability Insurance

If your company focuses on database design, administration, or consulting, clients rely on you to help them manage their databases correctly. If you make a mistake, it could have a major impact on their business and cause them to lose valuable data, which could be costly. If that happens, you could be held liable and sued. Professional liability insurance can protect your business against these risks by covering lawsuits and damages brought by dissatisfied clients.


Cyber Liability Insurance

Cybersecurity is an ongoing concern for modern companies because electronic systems and networks have become so fundamental to everyday business. Hackers are constantly targeting companies with data vulnerabilities and these cyber criminals frequently develop new methods of accessing systems. Even if your company implements comprehensive cybersecurity protections, there’s always a chance that criminals could somehow gain access to your network and steal data or hold it for ransom.

This is especially relevant when you work with databases that could contain valuable or personally identifiable information. If hackers are able to access confidential data through one of your systems, you could be held liable. The costs of recovering from a cyberattack are high, and news of hacks can damage your reputation among clients as well. Cyber liability insurance can provide financial assistance to help your company stay in business in the event of cyberattacks, and insurers often provide resources to help you prevent incidents as well.


General Liability Insurance

Most companies have some level of general liability risk. If your company hosts clients at its offices, visits clients at their locations, or is visited by suppliers or vendors, there is a risk that someone will be injured or property will be damaged. It’s a good idea to consider general liability insurance to protect your company from these risks as accidents can be unexpected and happen at any time. General liability insurance covers third-party bodily injury and property damage. It also includes a personal and advertising injury component, which provides coverage for a number of risks, including libel, slander, and copyright infringement.


Commercial Property Insurance

If your company operates from owned or rented office space and relies on technology such as computers and servers, then you may benefit from commercial property insurance. If an unexpected disaster damages or destroys your property, it can be difficult and expensive to recover from the loss. Commercial property insurance can help your company recover if your property is damaged.

Commercial property insurance covers the following:


Additional Coverage

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a technology company with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for technology businesses:

ProviderGeneral LiabilityProfessional LiabilityBusiness Owner's Policy

Final Word

When your company provides database services, you open yourself to a variety of professional risks, as well as risks that are common to most companies. Lawsuits brought by unhappy clients, physical damage caused by a disaster such as a fire, and cyberattacks are all risks that could have a major impact on your business. It’s important to financially protect your company by purchasing the right insurance policies for your company’s individual needs. With a wide range of insurance coverage, you and your clients can rest assured that your company will survive an unexpected disaster.

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