Technology has been one of the main driving forces behind the tremendous growth that we have witnessed across all industries in the last few decades. The technology industry is playing a critical role in the growth of the world economy. The industry is undergoing continuous changes and as a result, it is facing newer and newer risks with time. So, it is extremely important for the companies operating in this industry to get their businesses and their technology products & services insured against possible risks.
Technology insurance is a type of insurance that provides coverage to the suppliers of technology products and services. It offers a number of insurance products that can protect a technology business from huge losses that may occur due to certain risks associated with this type of businesses.
Insurance companies usually provide the following insurance products for tech companies –
Technology Errors and Omissions insurance usually covers the financial loss that occurs to a customer due to the negligence of the company or due to any error or omission in the service or product delivered to the customer. Many insurance companies offer customizable Tech E&O insurance to suit the needs of different tech companies.
Cyber Liability or Data Breach Insurance typically covers the liability and financial expenses that can result from the theft or loss of data, or from a data or privacy breach. Cybersecurity is of utmost importance for tech companies and therefore, the right cyber insurance should be in place to prevent losses that might result from the breach of data security or privacy.
Commercial General Liability Insurance usually covers claims of property damage and bodily injury, claims of personal injury such as slander and libel, and advertising injury. This is the most common business liability insurance.
Professional Liability Insurance, on the other hand, provides basic technology errors and omissions coverage, but it can be broadened to include coverage for cyber liability and software copyright infringement as well.
Workers’ Compensation Insurance is required in some countries if a business employs any worker. The insurance mainly provides medical and disability coverage for on-the-job injuries or work-related illnesses. It also covers the employer’s liability, if an employee injured on the job claims that negligence of the employer or the company is responsible for the injury.
Business Owner’s Policy is a very popular insurance policy among small IT companies as it clubs 3 basic insurance products - property insurance, general liability insurance, and business income insurance, in a single package at a discounted price.
Apart from these, some insurance companies can include several other insurance products in their offering to tech companies.