Technology is one of the fastest growing industries in the world today, so it only follows that the risks of running an IT firm are also rapidly growing and changing. The best way to protect your company from costly liabilities as a result of these risks is to find a technology insurance plan that specifically fits the needs of your company. When looking for a technology insurance company, you should ensure that the coverage they offer will shield all aspects of your business from both internal mishaps and external threats. The ideal technology insurance company will offer a wide range of coverage options that protect your company from dangers such as data breaches, equipment failures, product liabilities and other potential risks. Below are some of the essential plan components you should look for when deciding on a technology insurance company.
General Liability Insurance
General liability insurance is an essential component of any insurance plan. Owning any business has its inherent risks, such as third-party lawsuits, property damage, and other workplace liabilities. If a customer is injured by a structural component of your building (stairs, wires, etc.), you are financially responsible for the treatment of their injury and any additional rehabilitation that is required. Without liability insurance, your business is completely vulnerable in the event of any accident that occurs on your premises.
Equipment Breakdown Insurance
Running an IT firm guarantees that you will come into contact with technological equipment on a daily basis, so it is important that the technology insurance company you choose offers coverage that will protect the most critical part of your business. Technological equipment is notoriously expensive to replace should it malfunction, and having a plan in place to protect your company’s most critical assets in the event of damage will bring you peace of mind knowing your most essential equipment is insured.
Compensating for Data Breaches
Cyber liability insurance is crucial for your IT firm to ensure your company and employees are protected should critical data be mismanaged. While having cyber liability insurance coverage does not protect your company from data leaks themselves, but it does offer financial coverage for legal expenses in the event that such a breach occurs. Since the information involved in these claims typically involves employees’ or customers’ social security information, credit card numbers, and/or bank information, those who are compromised by a leak are far more likely to take legal action against your company. Legal fees can add up quickly, and the damages awarded to plaintiffs can also be devastating to companies and investors without a robust technology insurance policy.
Protecting Executive Members from Indiscretions Within their Team
Your company’s executive team may be composed of some of the most experienced and talented professionals in the IT industry, however even the brightest minds slip up sometimes. In the event of any accidental or intentional transgressions on the part of upper level executives, Directors and Officers Insurance (D&O insurance), can protect the rest of the company and investors from the fallout. Without D & O insurance, the other executive members would suffer a potentially devastating financial loss if one of their fellow colleagues were to defraud the company. A reputable technology insurance company can ensure that these liabilities are covered.
Keeping Your Company’s Vehicles Safe
For many IT firms, paying a visit to customers’ homes to repair their laptops, tablets and phones can account for a significant amount of the company’s income, so many companies either own or rent vehicles for company use. As a result, your firm is entirely responsible for the employees operating the vehicle and any auto liability or physical damages to the company vehicle they may incur. In the event of an accident involving a company vehicle, your company will not only be liable for the damage sustained by your vehicle but also any damage to property, other vehicles, and the people operating them. This is another potential liability a technology insurance plan must include. A quality technology insurance company will always include automobile coverage provisions as part of their policy.
Providing for Injured Workers
Workers compensation insurance requirements vary by state, but the majority of states do require most companies with more than five employees to be covered. An employee could easily fall down the stairs or develop carpal tunnel from excessive keyboard use, potentially costing your business to help them with their recovery. Even if workers compensation insurance is not required in your state, having coverage will save your company money in the event of an accident and assure your employees that their company is always considerate of their well-being.
Speak to a Technology Insurance Broker
The best technology insurance company for your IT firm should offer plans that include comprehensive forms of coverage, especially the policies listed above. The more types of coverage a technology insurance company offers, the more protected your business is from costly liabilities that may occur. To learn more about technology insurance or for assistance with finding the best technology insurance plan for your company, contact MFE Insurance to speak with one of our knowledgeable insurance brokers.