TECH INSURANCE: 3 Policies You Must Consider

There are three specific coverages and policies that every tech company should have for their tech insurance program.

Every technology company should put serious consideration into the following tech insurance policies:

Your tech insurance program is the foundation upon which you’re able to take the risks necessary to grow.

Here’s how you make sure your technology company insurance program is set up correctly…

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Tech Insurance Basics

For technology companies, there are three main coverages you need to have and need to spend time reviewing because it’s where the majority of the exposure exists to their business: Tech E&O Insurance, Cyber Insurance, and Worker’s Compensation.

Twenty years ago coverages like general liability and property coverage were primary risks. Today for technology-focused businesses that often have a geographically diverse workforce, oftentimes working with people in other countries there are a few insurance coverages that need to be in place in order to have the foundation upon which you can grow your business.

It is our belief here at Rogue Risk, that insurance acts of the foundation of your business. You can’t ramp up and take the risks necessary for logarithmic growth, (the type of growth that makes the technology space so sexy and fun), without insurance to keep you steady when things go wrong.

Technology E&O Insurance

Tech E&O or Technology Errors & Omissions Insurance, has a unique language, specifically for technology-related businesses that standard E&O policies do not have.

Additionally, Technology E&O programs can vary widely from insurance carrier to insurance carrier. There is a wide range of quality and inclusiveness in terms of what’s going to be included in a claim versus policies that may be called Tech E&O but are really filled with exclusions.

Understanding where your tech insurance program falls in that range is important to long-term sustainability.

Cyber Liability Insurance

Cyber insurance is a no-brainer. Every company, especially technology-driven companies has cyber insurance exposure.

Unfortunately, too many technology companies still view cyber insurance as an expense or as a luxury coverage. This is crazy to me. If you’re working on a code base and developing in the Cloud in any way, shape or form, the entire value structure of your business is exposed.

Not to mention risks such as phishing, social engineering, and ransomware, three of the fastest-growing claims in insurance.

There will always be cybersecurity-related risk management, backup databases, both Cloud and hardware-based backups, redundancies, and two-factor authentications, and all kinds of things like that. But if any of those break down, if there’s just one crack in that armor, your last line of defense is cyber insurance.

Workers Comp Insurance

Now, workers, comp insurance may sound like a weird coverage for this list, but it fits because of the diversified nature of teams today (I have a company who has employees in 15 different states, just here in the United States, not to mention their virtual assistants and some of their engineers being in different countries).

Setting up your workers’ compensation policy to cover remote workers is not as straightforward as it might seem.

READ NEXT: Workers Comp for Remote Workers

If you have an employee injury in an uncovered state your company could receive significant medical expense, lawsuits, and state penalties.

“Do-it-yourself” is the wrong way to purchase worker’s compensation insurance. This only leads to uncovered claims, workers’ comp rates getting out of control, or statutory requirements that you’re not adhering to leading to penalties and fines.

The Rub

For good measure, I’d also throw employment practices liability insurance into this list. Making sure your business is protecting your employees from each other and the business itself from your employees, incredibly important.

At Rogue Risk, we do tech insurance every day.

If what I’ve outlined above sounds like the type of insurance program and agent relationship you’d like to have for your business, please reach out to us:

I look forward to introducing you to a new way of viewing your insurance program.

Thank you,

Ryan Hanley

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