If you provide products or services in the IT sector, your clients rely on you to maintain and operate the technology systems to power their businesses. Even if you want to provide the best to your client, things don’t go always right. There occur circumstances when clients aren’t entirely satisfied with your services or face some problems and try to sue you whether it is a fault of the company or not. In such cases, your business is exposed to risks. Having the right technology insurance can protect your business from financial damages and a lot of other unexpected incidents.
The coverage of the insurance can be tailored according to the needs of the business and provide protection against the challenges faced by the company regularly.
Types of insurances
Technology insurance is not restricted to only one type, but there are many you can buy for your company. Some of them are the following:
- Professional liability insurance
It is also called errors and omissions insurance (E&O) and is designed to protect eh IT business from cases of negligence. As IT is a complex field and is constantly evolving, clients can sue you for some reasons like –
- Mistakes in IT consultation or project work
- Poor work product
- Negligence is shown on the job
- Infringement of intellectual property
- Exposing the client data
- Mismanaged projects and server crashes
Professional liability insurance covers everything listed above.
- General liability insurance
It provides coverage in case of bodily injuries or damage to the property while conducting the business. It is not particular to the IT sector but is used in other business areas also.
An example of this type of coverage can be the injury that occurred at the worksite.
- Commercial property insurance
This type of insurance protects the business if there is an incident of stealth, burglary, or hit by a major fire or weather event.
This insurance in the IT sector provides insurance for computers, servers, tools, equipment, or other valuable things owned by the business.
Some other types of coverages that fall under technology insurance are the following:
- Commercial umbrella
It is an extra liability insurance, designed to give protection against claims that exceed your policies.
- Cyber liability
It covers the business liability from the breach of data against the client’s personal or financial data. It helps in protecting the data of the firm that has been hacked.
- Business income
It covers all the income losses in operating the business.
Technology insurance coverages help in increasing the security, stability, and productivity of the business while attracting more customers.