Technology companies vary widely with regard to their scope of work and services offered. Some businesses sell or manufacture products while others provide services like computer programming or graphic design. Some businesses offer advice while others simply provide a service. Each of these differences bring unique risks that are usually not protected under a General Liability Insurance Policy. The knowledge of an experienced technology insurance professional is paramount to ensure your business is prepared for both known and unknown risks.
At Technology Insurance Shop.com we work with insurance providers nationwide in an effort to provide the absolute best service at rock bottom prices. We have industry specific specialists who understand the unique risks technology companies face. Most companies operating in the technology field are pushing the envelope in every aspect of their business. We have the experience to provide them coverage for their unique set of risks. Plain and simple, we shop technology insurance so you don’t have to.
Technology Insurance is not something only for large businesses. Small IT firms, Freelance Marketers and Architects all have some level of risk. Any business who stores information about their customers has a need for Technology Insurance. Nearly every business has some sort of presence on computers and the internet. Most store some types of information about their customers. Every breach no matter how big or small your business may have enormous repercussions.
Many companies think they do not operate online or they are not big enough for a hacker to want to target them. One of the largest breaches ever, Target, begun by hacking a third party vendor who than got access to Target’s network. This company was a HVAC company working on the heating and cooling system. This company probably thought noone would ever want to bother to hack such a small company. This type of hacking is becoming an ever more popular way for hackers to gain access to much larger businesses with larger amounts of consumer data.
According to the Ponemon Institute, a leading independent research group, the average costs to a business for each compromised record is $188. For just 100 customers information stolen that totals more than $18,000.00. For 10,000 customers that total would be almost $2 million. Would your business survive if this were to happen to you?
Another critical part of Technology Insurance is the type of information you are saving about your customers. The amount of risk your business has can be much different if you are an accounting firm storing clients tax returns versus a flower shop storing someone’s address for home deliveries. The type of information breached can effect how large the losses are. If the information breached is only a username than the loss can be very small. If it is personal numbers like Social Security, credit/debit card or bank account numbers than the loss can be quite large.
The types of Technology Liability Insurance typically fall in to one of two coverage types. Those two types are first party claims and third party claims. First party claims deal with the costs to repair your business. In most states it is law to notify all customers of a breech and offer credit monitoring services for up to a year. Most policies will also cover the cost of hiring a Public Relations Firm to help restore the reputation of your business. Third party coverage would cover legal expenses if you are sued and some of the damages awarded in such cases. It does not cover the up front costs of dealing with a breech. Think of it this way. If you own a home that has a leak in the roof you need insurance to cover the roof to be fixed. This is an example of first party insurance. If you are the architect who designed the house you could be held accountable for a design defect and need insurance to cover your work. This is an example of a need for third party coverage.