As any owner of an IT business can attest, the legalities of running a tech firm can get complicated. Between contracts, licenses, terms of use documents, privacy policies, contractor agreements, and more, there are dozens of legal forms that dictate how your business runs and what your legal responsibilities are.
Creating all those contracts, however, can get expensive: in order to be legally binding, a contract has to meet stringent criteria, which means you most likely have to hire a lawyer. But many lawyers aren’t familiar with the ins and outs of your tech business, which means you’ll have to pay for the hours it takes your counsel to learn how your business works so that he or she can construct documents that accurately reflect the work you do and the risks you face.
Those expenses can add up quickly, making even basic contracts and legal agreements a financial strain for many businesses. But forgoing such contracts opens you up to the risk of even greater financial loss: without a limitation of liability clause in a website privacy policy, for example, you could be on the hook for tens of thousands of dollars in settlement costs if someone sues you.
To help tech business owners manage their risks without draining their bank accounts, TechInsurance has partnered with ContractEdge.com to present three free, downloadable sample contracts that tech companies can adapt for use in their operations.
Protecting Your Business with Contracts
Through conversations with owners of small tech firms, we’ve found that these contracts are among the most in-demand. You can download them for free by visiting TechInsurance’s free sample contracts page.
- Mutual Non-Disclosure Agreement (NDA): This form is essential if and when you work with a business partner or contractor who has to have access to proprietary information or other sensitive data (including trade secrets). It requires parties to the contract to maintain confidentiality and outlines legal remedies if any party breaches the terms of the agreement.
- Website Terms of Use (Terms and Conditions) Agreement: This contract limits the liability of a website creator. When you build a website for a client, the Terms and Conditions Agreement states that you cannot be held liable for losses website users incur related to the content of the site. It also asserts that you do not vouch for the completeness or accuracy of information included on the site.
- Website Privacy Policy: An important contract for anyone building a website for a client, the Privacy Policy outlines how the site administrators plan to use visitors’ data and limits the website maker’s liability for losses related to data use.
Your Comprehensive Risk-Management Strategy
Managing your risk and minimizing the chances that your business will face a costly lawsuit starts with preventative measures such as using appropriate contracts and investing in an adequate Cyber Risk Insurance policy.
For more information about how to minimize the risks your business face, talk with a TechInsurance agent today.
Writtten by Brenna Lemieux - check her out at Google+ or Twitter