The United States accounts for the largest portion of the global technology industry. With so many industry sectors relying on the technology industry, providers must examine whether they are adequately protected should something go wrong. Technology insurance is a relatively new type of insurance policy designed to protect businesses big and small from legal action taken against them. All tech businesses need to seriously consider whether they are adequately protected from liability. If the answer is no, tech companies should approach a technology insurance company for coverage.
What Is Technology Insurance?
Technology insurance works like errors and omissions insurance for other industries. An errors and omissions claim against a tech business includes damages for any number of events which arise from hardware and software failure. For example, a tech professional may find themselves embroiled in legal trouble if a business is hacked and client information is stolen. If found to be liable, damages could number in the millions for lost business, diverted business resources and damages to a business’s clientele.
Email phishing scams, for example, have risen from 12% of email traffic to 60% in 2020, according to home workers. Malicious attacks have become more commonplace and if tech professionals are found to be partially liable for successful attacks, technology insurance can protect them.
What A Technology Insurance Company Does
Technology businesses must consider working with a technology insurance company to protect the futures of their organizations. As the industry continues to grow, businesses are only going to face increasing levels of risk. It is vital that business owners understand the purpose of a technology insurance company and, crucially, how they can serve their business.
Create Custom Coverage for Your Technology Business
Technology insurance covers both legal costs and settlements if a business finds itself facing a lawsuit from a client. However, the industry is vast and not every business requires the same type of coverage. Insurance companies in the tech sector work with their clients to ensure they only pay for the coverage they actually need.
For example, a small software company should not have to pay additional premiums for business income extension for cloud services if they do not store important data on the cloud. Technology insurance is an umbrella term for the protection available to different businesses in the technology sector. Every technology insurance policy should be tailored to the organization in question in order to ensure business owners get value for money on their coverage.
Covers The Top Technology Insurance Needs For The Industry
Technology insurance companies provide coverage for the unique needs businesses in the industry face. Some of the major types of coverage that can be included in any tech insurance policy include protection for data breaches, electronic vandalism, contractual liability, fraudulent transfers and errors and omissions.
Many of the top technology insurance companies allow ordinary coverage options to be added into a single tech insurance policy. These coverage options include general liability insurance, commercial property insurance and business income insurance. The industry continually evolves, and the needs of businesses are constantly changing. Building a relationship with a specialist technology insurance company enables companies to stay on top of these changes and react to them quickly.
Work With Companies of Any Size
Although major data breaches and tech lawsuits at large organizations are regularly reported in the media, small companies face the same risks. Whether a business is a one-man web development operation or an enormous global conglomerate, technology insurance companies are equipped to cover them.
Since these insurance policies are tailored to the specific business, technology insurance operations are able to work with anyone in the tech business. The liability and loss of income risks faced by household names like Microsoft and Google are also faced by microbusinesses. Tech entrepreneurs should, therefore, consider this type of insurance to be essential in the running of their businesses.
Find the Best Price to Cover Your Needs
Entrepreneurs want the most cost-effective tech insurance plan available. They do not want to compromise on their protection, but they still want to pay the lowest price possible. A top technology insurance company will work with business owners by giving them a range of options with transparent pricing plans. This empowers entrepreneurs to choose the policy that is right for them and their budget. Business owners are able to speak to an experienced insurance agent who will secure the best price for them on a policy which covers all their needs.
Talk With a Technology Insurance Company
Due to how new this form of insurance is, awareness among tech professionals is ever-growing. The technology industry is both the present and the future, and ordinary business insurance policies are insufficient to fulfill the needs of these organizations. Speak to MFE Insurance to discover more about what technology insurance can do for you and your business.