The world of risk as it pertains to the Technology Sector is broad and can be somewhat confusing. Furthermore, there is very little standardization in how insurance policies respond to tech-based businesses. Therefore, it is the job of your agent to fully analyze your risk, read through the options and help tailor a program specific to your business and risk profile. Below, we will breakdown several of the types of policies that Tech businesses are most likely to need in order to protect their assets and information.
Technology Error & Omissions
- » Protects providers of technology products and services from Errors, Omissions, Negligence and Product Failures
- » Cover both liability and resulting property loss exposures
- » The Coverage can help cover your business’ legal fees and other related costs
- » Claim Example: You hurry to complete your product in order to meet a deadline given by your customer but then it has a glitch therefor they file a claim against you for your negligence.
- » Claim Example: You sell your product to a company that has older computer that are non compatible which causes them to crash so the client sues you.
- » Claim Example: Your cloud-based data services failed to backup critical data that a customer cannot recreate
- » Protects your business from cyberattacks and accidental data leaks by paying for defense costs and other related expenses due to a cyber event
- » Cybercrime is on the rise and software and other tech-based companies are the perfect target due to the sensitive information they store
- » Claim Example: Your business’ computers get a virus that exposes private information and you get sued.
- » Claim Example: Lost income due to a cyberattack that causes your network to go out.
- » Questions to ask yourself if you are debating whether or not you need Cyber Insurance:
- » Do we collect, store, send, or receive personal information?
- » What would we do if someone hacked us today?
- » Provides Coverage for Employee work injury and illness expenses
- » Compliance with the State Law – In Alabama the State Law is that if you have five or more employees you must have Workers Compensation
- » Employee injury lawsuits
- »Claim Example: Your employee damages their eyes from looking at computer screens for many years and they go see an optometrist. Your Workers Compensation will pay for the medical bills related and any wages the employee could not work during their recovery.
- » Protects your property from damage which could be caused by weather, vandalism, burglary, fire, etc.
- » Protects all business property – equipment (including computer equipment and hardware), furniture, inventory, and loss of earnings due to business interruption
- » Provides coverage for expenses related to third-party bodily injuries and property damage
- » EX: Client visits the office and while they are there, they fall and break their arm.
- » Provides coverages for advertising injuries (slander, libel, defamation, etc.)
Employment Practices Liability
- » Protects against employees suing the companies for discrimination, wrongful termination, sexual harassment, etc.
Conducting a Risk Analysis?
Having an agent well-versed in Technology and Cyber exposures, conduct a Risk Analysis is key to developing a program that sufficiently mitigates your exposures. Be prepared with the following:
» Copies of Any Current Insurance Policies – In order to identify any un-seen gaps in coverage and to review terms, conditions, definitions and language inside the policy.
» Consider having Relevant people Attend the Review – Sometimes it helps to have your head of security and/or CTO (Chief Technical Officer), CFO’s and other C-Suite executives. Each brings a unique perspective and may have specific information used in analyzing the risk.
» Once the Analysis is completed your agent can bring any concerns to the table and help determine if changes should be made.
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