The Information Technology has completely transformed the way things are done. It has brought about speed, efficiency and accountability to the whole system, be it manufacturing, service sector or even the government and the administration. IT touches and impacts our lives in every aspect. This means that the technology companies are not just catering to other companies; they have a much larger role to play in the business environment. The insurance needs of such technology companies are therefore different too. Technology Insuranceis a fast growing field that aims at providing insurance coverage to both technology companies and their employees. It is important to understand the exact needs and requirements of technology companies for Insurance providers to be able to tailor products best suited to them. The article would try and explore some of the many aspects and factors that play an important role in Technology Insurance. Following this, both the companies and providers can have a better understanding of the business scenario.
What are the issues to consider?
The issues to consider in the technology companies are much more than the conventional corporate insurances. It stretches beyond the usual health and accident insurance for employees, theft and damages insurance to the manufactured goods etc. The risks in technology business are much higher and technology insurance has to make sure that the areas of heightened risks and even risks that are not tangible yet are covered. Risk that are perceivable and might come up in future should also be safeguarded against. Risk transfer and risk management happens to be the most important area for the It companies to take care of. The major areas for technology companies to cover against include Errors and Omissions (E & O), Property, General Liability, International and other specific areas. Discussed below are a few of such risks that technology companies should consider and insurance firms to provide cover against.
The major issue in technology insurance is that of Errors and Omissions (E & O). There can be occasions where the data can be lost or irretrievable. This can happen through physical damage of the equipment or through other means. Data breach coverage and Electronic data liability coverage are thus important for companies, as this protects their assets in events where data is inaccessible due to many reasons. These should also include third party liabilities. The security and privacy coverage also falls under Errors and Omissions (E & O) and companies should make sure that its technology insurance package covers these aspects as well. Websites are indispensable to the technology business, and there have been occasions where corporate websites have been hacked. Cyber liability insurance is recommended for IT companies to have as it protects them from potential damages from such attacks. General liabilities insurance does not usually cover every internet-based liability and companies should carry out a thorough risk assessment and insure against all the events they are likely to face.
Employee considerations are equally important for IT companies. A few things that small and medium enterprises often do is to have a pay-as-you go workers compensation. This enables the IT companies to better manage their cash flow and reduce audit surprises. This is done through basing premium payments on actual and not estimated payroll. Protection for employees is another area that IT companies should keep in mind. Employee theft and dishonesty are risks that every small and medium business should monitor, as it has the potential for huge losses in revenue. Companies should ask for employee dishonesty insurance (fidelity bonds) to be a part of their technology insurance. It protects ones business from fraud committed by a single employee or a group of employees.
There is no shortage of insurance providers in United States. However, very few completely understand the needs of IT companies and technology insurance. A few of the more prominent names in this field are TechInsurance, The Hartford and Zurich Insurance. These companies do have international presence and there might be other companies in your country offering technology insurance. The choice of your preferred insurance company should be made after the study of extensive portfolio of the products they offer. The insurance company that you choose should be all inclusive of your needs. God insurance companies also help in identifying risks and recommend and tailor new products for the IT companies. Thus, by visiting this website http://www.insurancefortechs.com/professional-liability-insurance.html you can get the great information about the technology insurance.