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Technology Firm Insurance

Technology Firm Insurance

Technology is a high-stakes industry where multi-million dollar deals are common. But just as there are millions to make, millions can quickly be lost through expensive lawsuits and cyberattacks. Thankfully, companies can count on technology firm insurance policies to protect against the specific threats that exist in this complex industry. Here we look at some of the most important policies in a technology insurance plan.

Technology Firm Insurance Policies

Errors and Omissions Insurance

This type of policy will cover financial losses that a customer incurred due to errors or omissions with respect to a product or service that your company provided them. It is one of the most important policies for a technology company to have, as things can and will go wrong with complex products such as computer applications and software. Errors and omissions insurance covers your company in the event of both liability and property losses.

Depending on the policy you choose, there are many possible occurrences that would be covered. These include basic work errors and oversights in addition to projects that are delivered incomplete or after a deadline has passed. You’ll also be defended against accusations of negligence or breach of contract.

Cyber Liability Insurance

This is another very important policy for technology companies, especially those that handle sensitive data. Cyber liability insurance relates to cyberattacks, which are an increasingly common part of modern business. The policy covers legal, forensic, credit monitoring, and other expenses incurred as a result of a data breach or other type of cyberattack that affects your company and your clients.

Importantly, a good cyber liability policy also protects your company in the event that a third party such as a client threatens you with a lawsuit for allowing their personal data to be breached. Further, it can even cover financial losses suffered by third parties who were affected by the cyberattack. In addition to losses related to privacy, it also covers costs related to cyber extortion and regulatory fines or assessments.

Directors and Officers Insurance

This policy is designed to protect both current and past directors and officers of your company from lawsuits. As is the case with any company of significant value, these individuals are particularly vulnerable as they make wide-reaching decisions on company direction and can thus be held accountable for any direct or indirect consequences. For directors and officers in the technology industry, being accountable can even mean putting their personal assets at risk.

Because of this personal risk, many technology companies make this policy a high priority to cover defense costs as well as any awards or settlements related to allegations of wrongful acts charged to directors, officers, and board members. Additionally, if your company seeks investors, it is fairly common that they request board membership as a condition for investing and will likely not join without a director’s and officers’ insurance policy in place.

These are some of the key policies that a technology company would be wise to consider as part of a robust insurance plan. Contact ISU-Armac for an insurance plan that meets the unique needs of your technology business.