Technology insurance was unheard of a few decades back but today almost every company needs technology insurance in one form or the other. Many service professionals are unclear if they need the tech insurance or not. If your service falls under any of these categories, you need IT insurance:
- Computer Consultants
- Telecom Consultants
- Electronics Distributors
- Computer Security Professionals
- SEO Companies
- SEM Companies
- Medical Electronics
CLIENT CONTRACT COVERAGE: THE MOST IMPORTANT PART OF TECH INSURANCE
One of the biggest reasons to purchase technology insurance is to protect your business interests in the event of a contract related dispute. Here are some of the reasons why IT companies need a different type of contract liability coverage than other industries:
No Concrete Guarantee On Results – If you compare the services of an IT professional to that of a building contractor, you will notice the differences in delivery guarantees. If you walk into a car dealership and pay a specific amount, you will get a car with specific features and specific displacement. Let’s say a 2013 special edition Dodge Challenger will cost you $55,000. The same can be told about contractual agreements between a building contractor and his buyer. For $200,000, you can guarantee a 2,000 square foot house with certain amenities.
IT services on the other hand can’t give such deliverable promises. If you are a programmer, you can sometimes charge for the deliverable but an electronic distributor or SEO company can only charge against the amount of work they do but the results can vary based on several factors.
However, there is no guarantee that your client understands all this. If you promised a client certain results against your SEM campaign but the results are not up to his expectations, he may not necessarily consider the parameters that lead to it so he can sue you. The only way to protect you is buying adequate technology insurance. You need tech insurance if you are:
- Outsource & BPO
- Tech Staffing
- Tech Support
- Medical Electronics
- Hardware Support
- Power Supplies Vendors
- Website Design
- Database Design
- Database Administrators
- Telecommunication Vendors
General Liability Coverage Is Different For IT Companies If your business deals with any of the following, you know that generic liability coverage is not enough for your business:
- VOIP providers
- Wire Installers
- Data Centers
- Smart Homes & Offices
- International Exposures
- Software setup
- Hardware setup
- Network Design
Your data center protection plan may protect your clients against most virus attacks but what if a hacker group like Anonymous determines to take away the client’s data for some personal grudge? Every promise that we make to our clients is based on the ordinary circumstances but we don’t expect any sort of extraordinary damage to take place to our client’s business interests. However, it can happen through many sources.
An angry employee that turns into a hacker, an inexperienced worker that mishandles the company assets etc are enough to damage millions of worth of hard work and investment. However, the generic insurance program can’t see your damage. There are no burnt houses, no injured people or vehicles that caught on fire in an IT related crime. You need to prevent your insurer overlooking at the trouble you are going through and the best way is purchasing IT insurance liability coverage.
CUSTOMIZED TECHNOLOGY INSURANCE IS A MUST
Customized technology insurance is the only way to cater most clients’ needs. If your It business is related to any of these:
- Software Developers
- Search Engines
- Data Aggregators
- Software as a Service
- Cloud computing
- Bricks and Clicks companies
- Network Security
- Dept of Defense Work
- Defense Base Act Coverage
- HIPPA Compliance
- Network Security
- Sarbanes Oxley Compliance
- SEC Compliance
You need a customized tech insurance program that is created exclusively for you so that you can yield some great results.
PROFESSIONAL LIABILITY INSURANCE
Professional liability coverage in tech insurance is also very different from other errors and omissions because of the vague nature of the work. The discrepancies are often fought in court if you fail to meet a client’s expectations and it is not unusual for a client to have unrealistic expectations at unrealistic budgets. The downside of such lawsuits is the very long duration that these insurances typically take. Instead of fighting professional liability coverage claims in courts, you can choose to add adequate coverage as a part of your IT business so that you don’t need to worry about expensive liability suits.
BUSINESS OWNERS COVERAGE AND OTHER ASPECTS OF IT INSURANCE
Technology insurance is not just about buying adequate cyber liability insurance coverage to protect your business interests against third parties. You also need business owners coverage to protect your business, properties and workers. There is a separate worker’s compensation program that can give additional protection to your workers.
It goes without saying that the success of an IT firm largely depends on the insurance they have in hands. If you do not have adequate technology insurance, there is no way you can compensate your employees. If internal issues of an IT company are not resolved on a timely manner, it is only natural to expect bigger problems with outside sources.
The business owners program is not just coverage for your property, assets and investment but it can also compensate to the loss of business in the event of a mishap. This is also a very important factor to be considered in the operation of an IT company. You do not need external factors stopping you from running your business so loss of business coverage should be purchased adequately with your cyber liability insurance.
WHAT ARE YOU WAITING FOR? CALL STREETSMART INSURANCE AGENCY TODAY?
Do you still have doubts about your IT insurance? Don’t wait anymore! Just give StreetSmart Insurance Agency a call and we are more than happy to help you.