Technology is everywhere these days. Even companies in non-tech industries still rely on technology to connect with their customers. To increase the efficiency of their operations, and to keep up with the competition, technology is key. In this increasingly connected world, more and more companies are wondering whether they need to have technology insurance policies. Yet there is currently a lot of confusion surrounding this type of insurance coverage. This article will help you determine whether tech insurance is something your company needs.
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Technology Insurance, Contents Insurance, and Cyber Insurance: Understanding the Differences
To determine whether your business needs technology insurance, it’s important to understand exactly what coverages are available. A common misconception is that tech insurance is another term for cyber insurance. Cyber insurance is a type of liability coverage that protects companies in the case of cyber breaches. Another common misconception is that business insurance is the same as a tech insurance policy. Although a business insurance policy also has general liability coverage included the two policies are very different.
Neither of these associations is accurate. A business insurance policy is not designed to cover the needs of a technology company. With our tech insurance policy, you are getting a policy specifically designed to cover your tech business. As for hacks and breaches, there are cyber insurance policies to protect companies from those occurrences. These policies are entirely different from technology insurance and we can help you with that as well.
What Is Technology Insurance?
So what is technology insurance exactly? Technically, it is a special type of errors and omissions (E&O) insurance, meant specifically for technology businesses or tech professionals. E&O insurance, also known as professional liability insurance, protects your business against claims of negligence. For instance, medical malpractice insurance is a type of E&O coverage. It shields medical professionals and their employers from bearing the cost of a lawsuit related to a negligence or malpractice claim. Any individuals or companies who provide professional services or advice need to have E&O coverage, from IT Consultants to Software Developers.
Technology insurance provides this kind of negligence protection for professionals or businesses that provide services or advice on matters of technology. For instance, if your business provides computer repair services, you would want to have tech insurance. If you’re repairing a computer and did something that compromised customer intellectual property, you might find yourself facing a lawsuit. Your tech insurance policy would help you cover your legal costs and pay the settlement, if necessary.
Also included within a tech office insurance policy is coverage for your business contents. You don’t need a separate policy to cover your computers, servers, networking equipment, or other technology assets your business owns. We have that built into the policy to make sure you have the coverage you need.
Who Needs Technology Insurance?
Many other high-tech businesses would require technology insurance for similar reasons. From software companies to cloud services and companies that assist with hardware or software installations tech insurance is required. Technology has become common in every aspect of the business world. More companies are hiring third-party professionals or consultants to assist with matters of security, tech implementation, or information technology.
The businesses providing these services are handling the technological assets of other companies or other people. In other words, they are taking responsibility for the hardware, software, data, cybersecurity, and overall tech stability of their clients. Any mistakes can be devastating and costly. This means that even the most skilled tech professionals need to have a plan in place to protect themselves from claims. Tech insurance is that protection and risk management you need.
Chat with an Insurance Broker about Professional Liability Coverage for Your Technology Business
Is your business a technology company? Do you provide tech-related services or advice to individuals or other businesses? If you answered ‘yes’ to these questions, then you need to have a professional liability policy to protect yourself. At Guild/HMS Insurance, we are proud to offer our DIY Tech Insurance online specifically designed with you in mind. We give you the ability to purchase your policy online and pick the package that suits your business. If you aren’t sure whether you need errors and omissions coverage, we can advise you on that as well.
Purchase your policy online by clicking Buy Now, chat with Edgar or give us a call to chat with our team of insurance professionals.
Questions?
Our team of insurance professionals are always here to help find the right insurance for you. Send us an email, check out “The Blog”, or give us a call to chat with one of our professionals.
