Technology insurance is a special type of insurance that is designed to insure providers of technology services or products. Technology insurance coverage can include IT (information technology) insurance and many legal and liability issues that are faced by businesses today. Technology does not only refer to those people in the IT field, but in many other businesses. There are many liability issues, lawsuits, and cyber risks that arise for businesses using technology, so it is important to understand how you can be protected and what is available to you on the market. This article was designed to help you understand the importance of technology insurance, risk management, and how it can benefit you and your business.
Who Can Benefit from Technology Insurance?
Any business that uses technology services or products can benefit from technology insurance for good protection. A few industries that can benefit most from technology insurance include (but are not limited to):
- IT consultants
- Web Designers
- Computer hardware (ex: sales, manufacturing)
- Software developers (ex: consulting, incorporation, analysis)
- Renewable energy services
- Telecommunication and phone businesses
- Electronic businesses
- Computer businesses
What is included in a Technology Insurance Policy?
Included in a standard technology insurance policy, you should find:
- General liability policies
- Commercial auto insurance
- Building insurance
- Commercial property insurance
What does Technology Insurance Cover?
Technology insurance can insure you from a variety of risks that are not generally included in a regular insurance policy. Depending upon your business, you may need to be covered in all of these areas, or just some that are more specific. Some different areas that a technology insurance policy can cover include:
- Loss of data
- Errors and omission
- Data breach
- Cyber crime
- Loss of income
- Employment practices
- Abuse and negligence
- Equipment breakage or repair
- Professional liability
Cost of Technology Insurance
The cost associated with technology liability insurance is dependent upon a number of factors. Some of these factors include: the size of your company, the type of operations of the company, and what you are looking to be insured for. Insurance packages can start as low as $500 and range upwards of thousands. All technology insurance plans are different and are designed to meet a specific business needs. When looking into technology insurance plans it is a good idea to consult with different companies and request different quotes.
Why Technology Insurance?
Most businesses believe that one they are covered under a business insurance plan that they are protected from all risks that could occur. This is not true. Traditional business insurance is not sufficient enough to protect a business from technology lawsuits or risks. Business insurance plans do not cover many aspects of technology that many businesses and industries need to be protected from. Technology insurance plans are designed to close the gaps in technology that are found in a business insurance plans. Having a good technology insurance policy package in place will help a business with risk management. That way if anything ever occurs, you are protected against the risk of contingent, unclear loss.