Although technology is always changing and evolving, no technical applications are completely foolproof. Businesses in particular are always at risk for security breaches and lost digital information due to human error, misuse of information, or vulnerabilities in the system. If you own a cannabis grow operation, you may be concerned about the safety of your private company information. Fortunately, there are safeguards available for businesses of all sizes. Technology insurance provides comprehensive coverage to businesses who utilize technology in their day-to-day operations. Learn more about technology insurance and why you should speak to a cannabis insurance broker today.
What is Technology Insurance?
Technology insurance provides essential coverage for businesses that possess valuable intangible assets, such as software, sensitive data, and intellectual property. Many times, a standard general liability policy does not cover these types of assets which make acquiring a separate policy a must. Technology insurance coverage helps protect businesses against the costly risks of economic loss relating to network liability, intellectual property, and cyber property security. As a cannabis grow operation, you want to keep private information, such as personal client information, credit card numbers, and similar data, safe, secure, and away from the prying eyes of hackers.
Cyber liability is a crucial component of any good technology insurance policy. With cyber liability coverage, your business is protected against damage caused from data breaches, cyber-attacks, and similar technological situations that result from the use of data storage or electronic communications. Cyber liability coverage generally covers the cost of recreating lost data or damaged systems. However, it may not cover the costs that result from data notification or legal expenses. Speak with a cannabis insurance broker to determine how far your coverage extends and seek other forms of coverage if necessary.
Data Breach Notifications
One component of technology insurance includes data breach notifications. Federal law requires businesses to send out notifications to the proper parties in the event that they suffer a data breach that releases personal information, such as health information, financial information, or social security numbers. There are a number of laws that outline the time period in which a business must notify the compromised individuals of the breach. In certain situations, some types of data breaches may be exempt from this time period requirement. Technology insurance may cover the costs associated with data breach notifications.
Errors & Omissions
Technology errors & omissions (E&O) coverage provides protection for businesses against claims made by customers or clients that have suffered a loss due to mistakes made by your company. These mistakes can range from computer errors to oversight in a web service or software program. Technology E&O may cover both liability issues and property loss exposures. Coverage may be associated with a wide range of components, such as network security breaches, technology services, media content, or technology products. E&O insurance may also cover costs associated with business interruption, crisis management, and extortion threats.
Importance of Technology Insurance
Businesses face unique risks relating to technology every day. It is important for companies to protect themselves against certain risks and liabilities that could result in serious legal repercussions. Regardless if you are a startup company or have been around for many years, you will want to ensure that your technology needs are met and that your data is protected from cyber criminals. A solid technology insurance policy should include a wide range of coverages, such as electronic theft, network loss or damage, unauthorized access, cyber extortion, copyright and trademark infringement, business interruption, errors & omissions, privacy injury liability, and general liability.
Business operations in the modern world often revolve around the functionality of computers, the internet, and network connections. With the use of these tools and devices come certain risks, such as viruses, data theft, and damage performed by cyber criminals. In some instances, the problem is created due to employees working for your company. Employees who purposely or accidentally ignore a company’s information technology policies can cause significant damage. When clients or customers become involved in a security breach, there can be legal consequences. It can cost hundreds of thousands of dollars if you are forced to go through legal proceedings due to data theft or a security breach.
Contact a Cannabis Insurance Broker
Working in the cannabis industry makes your business liable for certain risks. One major risk in particular deals with the technology sector. From cyber-crimes to the accidental release of private information, there are numerous situations that can arise when you use technology in your daily operations. One of the best things you can do for the benefit of your cannabis grow operation is to get the proper insurance coverage. For more information about technology insurance or how to apply for a policy, contact a cannabis insurance broker today.