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.