The insurance climate is constantly changing. Costs for coverage fluctuate and new regulations are continually created. Though insurance claims can prove costly, operating a business without coverage, particularly in the information technology industry, can create a highly vulnerable situation for the organization. To keep insurance costs at bay, companies can take proactive steps to curb insurance claims.



Typically, companies will have General Liability insurance coverage, which addresses claims of bodily injury or property damage, and Professional Liability insurance, also known as Errors and Omissions insurance, which protects organizations against claims of professional negligence and errors or omissions in professional work. While protecting the company with General Liability and Professional Liability insurance coverage provides a certain level of risk management, avoiding claims all together by enhancing quality control has proven to be most beneficial. In fact, recent trends point to kinks in quality control as the primary contributor to claims made on these two forms of coverage. This is especially important to General Liability insurance for computer consultants.

Quality control is an effective risk management tool that, when used, demonstrates a direct correlation between reduced risk and lower premium costs. IT companies can implement various strategies to tighten quality control, including:

* There are several fundamental, that when integrated into the quality control procedures, will serve as safeguards for claims made against Professional Liability and General Liability insurance for computer consultants. These include:

o Alpha and Beta Testing

o Prototype Development

o Total Quality Management

o Obtaining a Customer Signature At Every Phase

o Implementation of A Formal Quality Control Program

o A Standard Set of Customer Acceptance Procedures

o Statistical Process Control

o A Formal Vendor Verification Process

* Make certain the business is in compliance with at least one of the mainstream industry standards, including:

o UL/CSA ? The American organization, Underwriters Laboratories, and the Canadian Standards Association are independent nonprofit organizations that are responsible for writing, testing and certifying product safety standards.

o ISO 9000 ? Maintained by the International Organization for Standardization, the ISO 9000 is a family of standards for quality management systems.

o CE MARK ? A mandatory conformity mark placed on a product by the manufacturer that ensures compliance with the health, safety and environmental requirements of European Union.

o ANSI ? The American National Standards Institute is a private nonprofit organization that develops national consensus standards for products, services, processes and systems in the U.S.

* To protect customers against malevolent code and other vulnerabilities related to security in the company's services, perform regular tests prior to release or dissemination.

* To reduce claims on General Liability insurance for computer consultants, implement a contract retention plan that spans at least seven years.

These solutions will help companies in IT-related industries demonstrate a heightened commitment to quality control. As a result, more costly claims will be avoided and insurance underwriters will feel more at ease providing Professional Liability insurance coverage to the organization.