• Types Of Business Insurance Essential For Technology Companies

    According to reports, almost seventy percent of small technology companies have gone out of business within a year of commencement due to major data breaches. The most feared breach in the technology industry is that of data and the consequences that the company will have to face due to data breach often can shut down small companies. It is important for all technology companies to have insurance in place to protect their company from threats that can affect the sustainability of the company. Let us have a look at some of the most essential technology insurance that technology companies should have.

    Cyber Liability Insurance
     Cyber attacks on technology companies are always a threat and all tech companies have to be prepared to counter such attacks. Even if all necessary precautions and security measures are in place, the risk of cyber attacks still looms large. By opting for cyber liability insurance, you will be able to protect your company from claims that you will have to face due to cyber attacks. Some of the solutions cyber liability insurance will provide are
    • Public relations
    • Fraud resolution services
    • Crisis management
    • Breaches in customer information
    • Monitoring of credit of affected customers
    • Call center services or other notification services to provide information to clients about the breach.
    • Any PCI costs or fines
    • Regulatory defense costs
    • Sending notifications to customers in foreign countries
    General Liability insurance
    All companies including technology companies should have general liability insurance to protect them from any claims raised due to injuries or damage of property or leased premises. Any injury that might happen to a customer in the premises of the company or any type of security breach can cause claims to be raised against the company. To protect the company from such claims, general liability insurance is required.

    Professional Liability Insurance
    In the technology industry, professional liability insurance is commonly called the ‘errors and omission’ insurance. The professional liability insurance is one of the most important insurance policies for technology companies. This policy will protect the company from litigations that have occurred due to professional mistakes or negligence. Claims that arise due to loss of data pertaining to clients, system failures, software failures or non-performance are covered by this insurance.

    As technology companies provide services that are highly specialized, and work with data that is critical and sensitive, the professional liability insurance is important. Any error done by the tech company can hamper the functioning of the clients’ business and this can lead to litigations. Liability insurance policies will help to protect tech companies form such litigations where the settlement costs will be very high.

    Property Insurance and Workers’ Compensation Insurance
    It is important for tech companies to safeguard its employees and its property. To protect the company’s property, property insurance can be availed. This insurance will cover all equipment, furniture and other materials present in the company’s property.

    Workers Compensation Insurance will help provide coverage to all employees in the company. Many states and countries require all companies to have this insurance in place if there are more than two employees working in the company. This insurance will help provide cover to employees should any injury be caused to them while working in the company.

    Gemma-Leigh Garner is a freelance blogger who specializes in the insurance industry. She has in depth knowledge about the various technology insurance policies present in the market.

    Do you have have any questions or suggestions? Fill free to write in comment section.

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