Insurance is all about pricing risks and with technology this can change quickly. It is sensible to take adequate technology insurance as it will protect your business against an array of events that could have severe financial repercussions.
Technology insurance is designed to cover:
- Providers of technology services such as website designers
- Computer software developers
- Hardware manufacturers
What does technology insurance include?
You can create a bespoke technology insurance package to suit your own individual business needs, but as standard you should include:
1. Professional indemnity insurance
Professional indemnity insurance is essential for risk management in a technology company. If a client sues you for making a mistake – from programming errors to development problems – professional indemnity insurance provides you with cover for any compensation and legal costs.
A professional indemnity policy might include cover for:
- Breach of contract
- Intellectual property rights infringement
2. Employer’s liability insurance
Employer’s liability insurance is a legal requirement for businesses employing one or more people. If an employee becomes ill or injured in the course of their work, they can claim compensation. Without insurance you would have to cover large legal and compensation bills.
3. Public liability insurance
Public liability insurance is an important type of cover to be included in any insurance for technology companies as it can protect you if someone is injured or their property is damaged through your business activity.
4. Product liability insurance
Product liability insurance is an important consideration for your technology insurance package if you manufacturing products or sell any products. If a product that you have made or sourced injures your customer or damages their property, they can seek compensation from you.
Product liability will cover the cost of the compensation plus any legal costs. It acts as an incentive to providers of goods to make sure their products are safe and designed against failure and misuse, without compromising innovation.
5. Office insurance
Business buildings insurance protects your office equipment – including desks, chairs, shelves and fixtures and fittings – against events such as an electrical fire.
6. Business contents insurance
You should include business contents cover in your technology insurance package to protect your office contents and workplace equipment against theft, damage and destruction from fires or floods.
As a technology business it is likely that your office machines, computer systems, hardware and software make up your livelihood, so you are sure to have a large amount of valuable equipment that you will want to protect.