At Technology Insurance Shop.com we help businesses find technology specific insurance coverage the way they want it. We use a network of nationwide insurance providers who all are competing for your tech insurance business. Our agents have the industry specific knowledge to help you find the complete coverage you may not know you need. We’re confident we can help you find extensive coverage and affordable rates for your tech business. We shop for Technology Insurance so you don’t have to.
Many of the products offered to technology companies are offered to all small businesses. Other products are very specific to the industry you operate. Our agents have the knowledge and expertise to help you sort through what is necessary for the risks your technology business face. Below are some examples of the different types of coverage we offer technology companies.
Technology Errors and Omissions Coverage
Technology Errors and Omissions Insurance (also known as Professional Liability Insurance or E&O) is a form of liability insurance that helps protect businesses providing all types of technology services and products. This coverage prevents businesses from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in a civil lawsuit.
Consider the impact to your business if:
- A software glitch causes a client to lose important data.
- A flawed program installation keeps a client from receiving orders.
- Missing code prevents a customer from booking reservations.
Costly mistakes can happen, even to people with the best training and years of experience. It’s human nature. That’s why Technology Errors and Omissions Insurance is essential to protect your business. Agents at Technology Insurance Shop.com have the industry insight to help tailor coverage to your individualized needs.
Cyber Security Coverage
Cyber Security Insurance is also known as Privacy Notification and Crisis Management Expense Insurance. This coverage deals specifically with the immediate response costs associated with a data breach. This does not deal with the liability a business faces dealing with the results of the breach.
In many cases it is required by law to find out how the breach occurred, notify those affected and provide credit monitoring services for one year.
Costs included in this type of coverage could include:
- hiring a forensics expert to determine the cause of the breach, suggest measures to secure the site and prevent future breaches
- hiring a public relations agency to assist in dealing with the crisis
- setting up a post-breach call center
- notifying affected individuals whose personally identifiable information (PII) has been compromised
- monitoring these individuals’ credit (usually for 1 year)
- paying the costs to “restore” stolen identities as a result of a data breach (e.g., expenses of notifying banks and credit card companies)
Cyber Liability is the type of insurance that deals with what occurs as a result of the breach.
Cyber Liability Coverage
Also termed, Information Security and Privacy Insurance, Cyber Liability Insurance covers the insured’s liability for damages resulting from a data breach. It does not cover expenses that deal with the immediate response. This type of insurance protects businesses which sell products and services directly on the internet. Also, it protects businesses which collect data within its internal electronic network.
The most common forms of data breach involve personal or financial information such as credit card numbers, bank account information, personal data such as social security numbers and health information, and trade secrets or intellectual property.
Such liability most often results from situations like:
- An employee’s car is broken into and a laptop containing clients’ personal information is stolen.
- An email containing sensitive employee or customer information is sent to the wrong person.
- Important customer paperwork, such as a credit application, is taken during a break-in.
- Damage to data stored in the insured’s computer systems belonging to a third party.
- Transmission of malicious code or denial of service to a third party’s computer system.
- Failure to timely disclose a data breach.
Contrary to popular belief, the risk of a data breach is not just a big business or technology business problem. Both the Target and Home Depot Data Breaches occurred because of the hack of a third party vendor. This is becoming a very popular way criminals are gaining access to larger businesses through hacking a small business first. Our experts have the knowledge to know what kinds of risks your company faces and where you may be vulnerable.
Cyber Extortion Coverage
This is usually in addition to some larger coverage like Cyber Security or Cyber Liability Insurance. This covers the costs associated with a cyber-extortion event (e.g., an insured receives an e-mail stating that the extortionist will introduce a virus into the insured company’s website unless the company pays a $10 million ransom). The costs covered by this insuring agreement include:
- monies paid to meet extortion demands
- the cost of hiring computer security experts to prevent future extortion attempts
- the expenses charged by professionals to deal/negotiate with cyberextortionists
A few insurers do not offer cyberextortion coverage because similar protection is available under kidnap and ransom insurance policies. It is critically important to discuss these types of situations with your agent in order to find the most relevant coverage for your business.
Hired Auto and Non-Owned Automobile Liability Coverage
Hired and non-owned auto liability insurance pays for damages to a third party if the business is held liable for an injury caused by a vehicle they hired or a vehicle someone uses while performing work for that business. This type of coverage is needed for something as simple as covering an employee who uses their own car to go pick up mail at the post office, to picking up a client at the airport or sales staff that you provide car allowance for business use of their personal vehicle. If you send an employee to do something on behalf of the business, your business can be sued for damages.
Business Income for Off-Premise Utility Services Coverage (OPUS)
Opus is a type of Commercial Property Insurance covering loss of income suffered by a business when damage to its premises causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. It may also be extended to apply to loss suffered after completion of repairs for a specified number of days.
The most basic example of this is loss of electricity. All businesses depend on services such as power and communication everyday. Service interruptions are often beyond our control. Think about the impact these outages could have on your income if you need to shut down because:
- A storm downs power lines and computer service is not available for several days.
- A water main bursts, cutting off water to your business, not allowing you to work for two days.
- Your internet provider is hacked and you are left without internet services for several days.
OPUS coverage helps replace lost income, so you can pay ongoing expenses like rent and payroll.
Inland Marine Coverage
Inland marine insurance is a specialized form of property insurance. It is often referred to as equipment coverage by many business owners and insurance agents. Inland marine is specifically for property that is likely to be moved or in transit, or it is a highly specialized type of property that required a unique valuation. Many inland marine coverage forms provide coverage without regard to the location of the covered property(because the property is going to be moved); these are sometimes called “floater” policies.
Some examples of companies who might need this coverage are companies who work with mobile medical equipment, cameras and movie equipment, musical instruments, fine arts, solar panels, and other related equipment.
Technology companies selling and distributing products need this form of coverage.
General Liability Coverage
General liability insurance is the most important insurance coverage a business can obtain. In most cases, it is the first line of insurance purchased by a business. GL is required by law in most states; additionally, businesses are often required to purchase coverage with most contracts for leases, loans, and work performed for others.
There are two primary components included in a general liability policy: a) public liability, and b) product liability.
- Public liability refers members of the public such as customers, visitors, sub-contractors, and even trespassers.
- Product liability generally refers to a product, or work completed by a business. This can include Manufacturers and distributors being held accountable for their products and for service companies being held accountable for their work.
General Liability coverage protects you from both direct damage and indirect damage caused by the actions of your business or employees.
Workers’ Compensation Coverage
Workers’ Compensation Insurance is a form of liability insurance required for employers that compensates injured workers for lost wages and medical costs. In most states employers who purchase coverage can not be held liable for employee injuries. The only exclusions apply under narrow circumstances where the employer intended to cause injury to the employee or was willfully neglectful.
Workers comp insurance differs from most other forms of business liability insurance because it is specifically designed to cover insurance claims by employees in the event they are injured on the job. It does not provide third-party insurance coverage like most other types of liability insurance. The function of work comp insurance is to insurance a business against employee claims for accidents, injuries, and occupational hazards related to the work performed. Workers’ compensation insurance will pay for employee medical costs, disabilities, and lost wages related to on-the-job injuries and accidents.
Umbrella Insurance protects your business when your existing liability insurance policy limits can’t cover all the expenses of a claim. While your standard liability limits are often enough to cover costs, umbrella insurance steps in when a serious business claim could otherwise sink your business. Many technology risks are not common, but when or if they do happen the consequences can be catastrophic to your business. It is important to discuss with your agent whether this may be necessary for your business.