Technology companies face unique risks many other businesses do not face. Operating online and storing sensitive information open up risks that could be extremely expensive if they are not protected properly. Sixty-Six percent of small businesses can’t sustain their business over six months after an attack. If your small business operates on the web and stores any information about your customers, then you need to protect that business with adequate commercial insurance. Some of these policies will be required by law and similar to insurance coverage for all businesses. Other types of insurance are unique to technology companies. Here are five types of insurance all technology companies should strongly consider.
General Liability Insurance
General Liability Insurance protects a business owner the third party risks they face associated with lawsuits and other claims. In its essence it covers something as simple as someone slipping and falling on the businesses property. It also can cover something like a fire in the basement of your businesses property. General Liability is required by law in most states. In most cases a General Liability Insurance Policy is the first line of insurance purchased by a business. The key thing to remember in relation to this coverage is that it is not all encompassing. Each carrier has their own exclusions and it is imperative that you as a business owner speak about the limitations with your insurance agent. Additional coverage is almost always needed in addition to general liability insurance.
Workers Compensation Insurance
Workers’ Compensation Insurance is required by law in 48 out of 50 states. It is similar to general liability, but it deals specifically with injuries to your employees. Within the insurance industry Workers’ Comp is referred to as the ‘Exclusive Remedy’ because it provides benefits to both employer and employee. Employees who are injured on the job get medical costs covered and some lost wages while they are hurt and not able to work. The amount is typically 60 percent of their normal wages. Employers benefit from the comfort of not being sued for injuries that occur as a part of normal business operations. There are many things that go into what a business owner pays for workers’ compensation insurance premium. The industry your business operates in, the number of employees, the amount of revenue your business does, the claims history of your business, and the state in which you operate all contribute to what your business pays for workers’ comp premium. Partnering with an independent insurance agent is a great way to get the best value the next time you are looking for Workers Compensation Utah.
Data Breach Insurance
Insurance that deals with data breaches is actually two separate types of insurance that are commonly sold in tandem with each other. Data Breach Insurance is for First Party Liability a business faces after a cyber-attack. This type of insurance is also known as Privacy Notification and Crisis Management Expense Insurance. What the verbiage in the policy means when it says first party damage is the damage to you and your business, not the damage to other people when a data breach occurs. Data Breach Insurance deals specifically with the immediate response costs associated with a data breach. These costs may include hiring a public relations firm to restore the damaged image of your business, setting up a post breach call center to notify all those impacted by the breach, and to provide credit monitoring services for those damaged by the breach. In most states it is required by law to find out how the breach occurred, notify those affected and provide credit monitoring services for one year.
Cyber Liability Insurance
Cyber Liability Insurance, also termed Information Security and Privacy Insurance, covers the insured’s liability for damages to third parties resulting from a data breach. It does not cover expenses that deal with the immediate response cost to repair you or your business. These third party costs may include lawyers’ fees, settlement payments if you settle out of court, judgments if found liable for damages, and other fees associated with court costs.
Professional Liability Insurance
Professional Liability Insurance is also referred to as errors and omissions (E&O) insurance. It is commonly referred to as this in the insurance, law and accounting fields. In the medical profession it is called medical malpractice. Professional Liability Insurance is a type of business liability coverage designed to protect traditional professionals who give professional advice and provide technical services for a fee. This coverage is usually in addition to a preexisting General Liability Policy. At the heart of what Professional Liability Insurance does is: ensure consumers have a legal recourse for mistakes made by professionals, and enable professionals to defend and pay damages if they are found responsible.