3 ways insurance can protect your technology business
In the rapidly changing world of technology how do you protect your thriving ICT business in an unstable and sometimes unfamiliar market?
Here’s 3 ways insurance can help protect your business…
Written by Kate Slater on 5th March 2015
1 – Professional Indemnity and Liability Insurance
As the world of technology accelerates due to innovation, so too does the breadth of risk to which companies are exposed. This means a comprehensive professional indemnity policy is vital for protecting your business.
In its most basic form, Professional Indemnity insurance (PI)) covers against losses arising from a claim made for negligence, or an alleged breach of duty which is made against you by your clients.
But in our experience when it comes to technology businesses, your policy should include other areas of dispute and risk. We are finding that breaches of contract, product defects, cyber security, libel and slander and breach of intellectual property are proving fertile areas for claimants.
2 – Property Insurance and Business Interruption
Your property insurance should be bespoke and tailored to your needs, beware of generic packaged policies which may not meet your requirements. Whether your business deals in IT, software design, hosting, hardware assembly or data network management, the chances are you will have valuable equipment to protect.
As well as the usual insurance you can expect from buildings and contents insurance, additional cover should be on your policy as standard, such as software incompatibility, accidental, or malicious erasure of data and third party property.
3 – Working overseas and Cyber crime insurance
In light of the UK’s growing global service specialism, it is now easier than ever for businesses in the technology sector, to spread their expertise and exposure abroad.
Overseas trade has a dramatic effect on insurance. Ensure that your overseas trade is disclosed to insurers. Your policy wording should be extended to include wider territorial and jurisdiction limits.
Some technology Professional Indemnity insurers are now including an element of Cyber Liability insurance within their PI wording. If you require broader cover, or if there is no cyber insurance under your existing PI policy, then you should consider a separate Cyber Liability policy. Once again wordings vary greatly in this developing market.
Protecting your technology business
Despite being more digitally savvy than many businesses, technology firms are still subject to a broad range of risks from customers, hackers, own employees and the general public.
The result of losses, whether tangible or intangible, can leave a business on the brink of uncertainty which is why insurance is so important.
Ensure you have a comprehensive insurance package that protects all your business operations, get in touch with an independent broker such as Franklands with specialist knowledge, who will fully understand your sector and your business and source the most appropriate policy for you.