In this article we will be considering “What Is Technology Insurance?”. We will consider what it means to be technological insured and the benefits of being technologically insured.
What Is Technology Insurance?
Technology insurance is a type of insurance policy that covers losses caused by technology errors and omissions, cyberattacks, data breaches, and other technology-related risks.
What Is Insurance?
- According to Wikipedia Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
- The literal meaning of insurance would be an assurance against unforeseen and unfortunate loss. This means, that if you encounter a less than normal event in your normal course of life, and happen to incur a financial loss because of it, you can be compensated.
The Concept Of Technology Insurance
Technology Insurance is simply viewed as an assurance against unforeseen and unfortunate losses. In this case technology insurance provides professional technology service providers, such as data storage, website designers, and software developers protection from financial losses in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.
As a professional technology service provider your technology business may come under attack from competitors, those who would seek to steal valuable data, and even from a litigious society looking to blame anyone who may have harmed them, real or imagined. That’s where technology insurance comes in to help you to prevent and manage against major risks in your business.
Lastly, technology insurance is designed to respond to the particular risk management needs of tech companies, helping to protect their facilities, their employees and their business from disruption. In addition, technology companies share elevated cyber risks due to the nature of their businesses.
What Technology Insurance Covers
Insurance policies for a professional technology provider to help protect his business include;
- Directors and Officers (D&O) Insurance
- Technology Errors & Omissions (E&O) Insurance
- Cyber Liability Insurance
- Employment Practices Liability Insurance (EPLI)
- Loss of data and audio and visual information.
- Loss of electronic and computer equipment.
- Consequential loss to stock and selling price valuation.
- Contractual penalties.
- Coverage for electronic data destroyed or corrupted by a computer virus or harmful code.
- Loss of business income due to a denial of service attack.
- Worldwide coverage for laptops, personal property, property in transit, and business income from dependent properties.
Types Of Technology Insurance
- Business Interruption Insurance.
- Business Owner’s Policy.
- Commercial Auto Insurance.
- Commercial Property Insurance.
- Commercial Umbrella Insurance.
- Cyber Liability Insurance.
- Employment Practices Liability.
- General Liability Insurance.
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Benefits Of Having A Technology Insurance
- Legal Defense: When your legal defense is covered the insurance policy pays to defend your claims, regardless of the validity of the claim. Without insurance, you would have to pay for your own defense, which can cost a significant amount of money.
- Damages: When your operating a technology insurance the damages you incur will be covered.
- Responsible: You show you are a responsible business partner.
- Professional indemnity: When it comes to professional indemnity, it’s crucial that there are no grey areas in your policy and that you’re covered for all the risks you face, both contractually and in your business operations.
- Given today’s compensation culture, claims for breach of contract, data loss or infringement of intellectual property rights are increasingly likely and the consequences can be disastrous.
- Some contracts aren’t covered by standard insurance policies. For example, if you’re signing up to contractual terms that are subject to a US court of law, you need to ensure your policy reflects this.
- When your company depends heavily on technology, a hacker attack or virus can be very damaging to your reputation and your profit.
What Is Technology Errors And Omissions Insurance?
- Technology errors and omissions (tech E&O) is one of the most important types of insurance to have for any business offering a technology service or product; from hardware and electronics, to software app and game developers, to hosting and platform providers. In the emerging and ever-changing world of tech, it is important you have the right protection in place for potential mistakes or negligent actions your business may make.
- A Technology Errors And Omissions Insurance policy is a type of professional liability policy that helps cover the costs if your business is blamed by a customer for causing damages due to errors, omissions or negligent acts, related to the service or products provided by your tech business