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Insurance policies Tech companies should consider

Insurance policies Tech companies should consider

Various insurance products ranging from health insurance to car insurance are available for individuals cautious of their well-being. Similar to people, companies face numerous risks that may arise unexpectedly. Such risks may compromise their viability and long-term success.

To protect themselves, business entities choose the coverage relevant to their activity. Nonetheless, challenges have evolved with the advancement of technologies and the cultural shift resulting from the recent pandemic. As such, new threats have emerged, forcing the insurance industry to adapt and offer adequate policies.

Largest technology companies are not exempt to this phenomenon and must protect themselves against this type of incident.

Indeed, there are many parameters to take into account when purchasing coverage for your tech start-up. It is crucial to anticipate any potential risk that could negatively impact your business. Besides, as their line of business expands, tech start-ups must properly cover themselves to avoid dramatic losses on a financial or human standpoint.

In this article, we will go over the different insurance policies available on the market and further detail their use for companies in the technology sector.

Health Insurance

As an insurance policy covering people’s universal right to health, purchasing a health insurance coverage can help them feel more valued within a company. By guaranteeing your employees’ well-being, you will motivate them to better perform and revaluate their future amongst the company.

Moreover, keep in mind that Tech talent is extremely demanded, hard to find and even harder to retain. A strong health insurance included in their value package would increase the attractivity of a Tech company.

Professional Indemnity

Errors and Omissions insurance helps Tech companies protect themselves against claims coming from a company’s customers. Dealing with claims can be tedious and participate in deteriorating a firm’s time management.

A professional Indemnity insurance is the first line of defence when a Tech company’s digital products fail to meet customers’ expectations.

Indeed, when Tech companies implement new services and digital products, they may sometimes be ahead of the regulations and rules in place. Besides many start-ups depend on scarce funding and may lack the sufficient budget to allocate for legal fees. As such, Professional Indemnity is much more affordable to cover a company in the unfortunate event of a legal action.

Professional Indemnity is also often a contractual requirement from suppliers to appoint Tech companies as their vendors and ultimately a “must have’ for those to transact business.

D&O Insurance

Directors and Officers liability Insurance is a type of liability insurance that protects a company’s directors and officers against claims of wrongful acts, management misconduct, theft, unfair competition, fraud, amongst many others.

Whether your company offers computing services or cloud computing services, is involved in big data or data analytics, deep learning or else, a D&O insurance is your protection against claims that might come from your investors, employees, clients, vendors, and even your competitors.

Cyber Liability Insurance

This type of insurance covers financial losses resulting from cyber threats such as data breaches. Cyber Liability Insurance may include first-party and third-party coverage wherein first-party coverage applies to losses caused by the company directly and third-party covers claims against damages resulting from your failure to act.

There are two main reasons why Tech companies should strongly consider a cyber insurance. This is especially the case when they are still at an early stage of their operation.

The first reason is that start-ups are mostly into data-driven products and services which are at the core of the business. If a breach of data occurs, a Tech company will suffer from a bad reputation. Having a start-up known for its carelessness of customers’ data is a kiss of death and may result in high-calibre lawsuits for breach of data confidentiality.

The second reason is that Tech companies develop innovative and disruptive technologies to thrive and stay afloat. Thus, it is crucial for them to keep their internal processes and technological advancements confidential. In this case, a cyber insurance could potentially cover the loss of a Tech company’s innovative operation.

Cyber Insurance is often a contractual requirement from suppliers to appoint Tech companies as their vendors and ultimately a “must have’ for those to transact business.

How can BLACAZ. help your company.

As an insurance intermediary, BLACAZ is committed to providing the most adequate coverage for its clients. Whether your company is at an early stage with a low annual revenue or a tech giant, it is not immune to cyber-attacks or hacking.

You may contact our customer service centre Monday to Fridays to get an assessment of your situation and which coverage would better be suited for your activity. You can also follow us on social media to stay updated on the latest insurance news.

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