Tech companies have a number of specific needs for their businesses and therefore specific insurance suits just that. If you are a Tech company and you need to take out some insurance, at TechRound, we can put you in touch with a number of brilliant policy providers. Just get in touch with us at [email protected]
Tech companies tend to be very fast paced and often things get broken in the process. In order to protect yourself from potential loss, you must take out insurance for your Tech Company. Taking out specialist cover will be highly beneficial as the provider will have a very good idea of what your company needs are.
We live in a world now which is highly reliant on technology and it seems to shape everything that we do. As tech companies pave the way for society and the development of the digital age, it is essential that they have technology insurance to take control of their insurable risks in an industry which is constantly adapted and changing.
There are a number of things that you will need to consider and cover yourself for. In this guide, we will detail this.
Products Liability Cover
If you provide products to customers, you will want to make sure that you are insured in case any of your products are faulty and cause harm to a customer. This is known as products liability cover.
This cover will pay out for any lawsuits that may be a result of defected or unsafe products which are accidentally sent out to anyone. This applies to anyone who is making and selling the goods or someone who works with a manufacturing company. There will always be a risk that one of your products may not turn out the way you hoped, causing harm to a customer along the way. To avoid having to pay a huge settlement, you can get cover to pay for any legal fees and damages that may happen to the customer.
For example, if you provide a technology product like a computer which is faulty and blows up once it is plugged in and hurts the customer, they will be eligible to claim compensation from you. Instead of having to pay out for this, you can fall back on your products liability cover.
Public Liability Insurance
If your tech company ever comes into contact with the general public as part of the business, you will need to take out public liability insurance.
This kind of cover is also there to protect your company from claims made against you where a person became injured as a direct result of working with them.
The Technology Industry exposes you to risk
Whether you have launched something or you haven’t, you may face potential losses if you are not insured correctly. Lawsuits between co-founders are actually quite common this industry, especially when large amounts of money are involved. People will sue when they feel it is within their rights to do so. This is why it is so very important to get the right policy in place when starting up a tech company. A policy provider will be able to identify gaps in your coverage and can employ proper risk management strategies which you may not be familiar with.
What does technology insurance cover?
There are a number of things which are essential to every business. These include the likes of:
- Property damage
- Business interruption/Income Protection
- Protection for injury suffered to employees and other individuals
- Protection for damage to other parties’ property as a result of your business operations
Whilst tech companies will need cover for all of the above, there are other industry-specific areas that must be considered.
Technology insurance further offers additional protection for:
- Intellectual property rights infringement
- Negligent and Inadvertent virus transmission
- Network Security and Business interruption resulting from risks excluded under a standard business combined policy – such as virus, hacking, denial of service attacks, loss of data
- Breach of Contract
- Mechanical breakdown
- Software, products and cyber liability
- Software failure
As you will be aware, Technology businesses now rely on increasingly complex IT systems in order to run effectively. This not only increases the risk of system failure, but also the general scope of the potential reasons for claiming on the insurance policy.