Top 7 Technology Insurance Company: What You Need to Know

Technology Insurance Company is a type of business insurance that covers the risks and liabilities faced by tech companies and professionals. Whether you are a software developer, an IT consultant, a web designer, or a hardware manufacturer, you need technology insurance to protect your business from lawsuits, data breaches, cyberattacks, and other threats.

Key Takeaways

• Technology insurance is a broad term that includes various policies such as general liability, errors and omissions, cyber liability, business owner’s policy, workers’ comp, fidelity bonds, commercial auto, and professional liability.
• Technology insurance can help you cover the costs of legal fees, settlements, judgments, medical bills, property damage, data recovery, and more in case of a claim or lawsuit.
• Technology insurance can also help you comply with state laws, client contracts, and industry standards that require certain types of coverage.
• Technology insurance can be customized to fit your specific needs and budget. You can compare quotes from top-rated insurance companies online and buy policies in minutes.

Why Do You Need Technology Insurance ?

Technology insurance is not a luxury but a necessity for any tech business or professional. Here are some of the reasons why you need technology insurance:

To Protect Yourself from Lawsuits

The tech industry is highly competitive and innovative, but also prone to errors, glitches, bugs, and failures. If your work causes harm or loss to a client or a third party, you could face a lawsuit for negligence, breach of contract, defamation, infringement, or other claims. For example:

• A software developer creates an app for a client that crashes frequently and exposes sensitive data to hackers. The client sues the developer for failing to deliver a functional and secure product.
• An IT consultant installs a network system for a client that malfunctions and causes downtime and lost revenue. The client sues the consultant for not meeting the project specifications and deadlines.
• A web designer creates a website for a client that contains images and content that violate the intellectual property rights of another company. The company sues the web designer for infringement and damages.

Technology insurance can help you cover the costs of legal fees, settlements, judgments, and other expenses related to these lawsuits. Without technology insurance, you could end up paying thousands or even millions of dollars out of your own pocket.

To Protect Yourself from Cyber Risks

The tech industry is also vulnerable to cyber risks such as data breaches, cyberattacks, ransomware, phishing, malware, and other threats. If your business handles or stores sensitive data such as personal information, financial records, health records, or trade secrets, you could be targeted by hackers or cybercriminals who want to steal or damage your data. For example:

• A hardware manufacturer suffers a ransomware attack that encrypts its files and demands a payment to restore them. The manufacturer loses access to its data and operations until it pays the ransom or recovers the files.
• A cloud service provider experiences a data breach that exposes the personal and financial information of its customers to unauthorized parties. The customers sue the provider for failing to protect their privacy and security.
• A tech support company falls victim to a phishing scam that tricks its employees into revealing their login credentials to a fake website. The hackers use the credentials to access the company’s network and steal confidential data.

Technology insurance can help you cover the costs of data recovery, notification, credit monitoring, fraud detection, cyber extortion, and other expenses related to these cyber incidents. Without technology insurance, you could face severe financial losses and reputational damage.

To Comply with Laws and Contracts

Technology insurance can also help you comply with state laws, client contracts, and industry standards that require certain types of coverage. For example:

• Most states require businesses that have employees to purchase workers’ compensation insurance. This policy helps pay medical costs from work-related injuries and illnesses.
• Some clients may require you to have general liability insurance or errors and omissions insurance before they hire you for a project. These policies protect you from third-party claims of bodily injury, property damage, or professional negligence.
• Some industry associations or certifications may require you to have cyber liability insurance or fidelity bonds as part of their membership or accreditation criteria. These policies protect you from cyber risks or employee theft.

Technology insurance can help you meet these requirements and avoid penalties, fines, or contract breaches.

What Types of Technology Insurance Company Do You Need?

Technology insurance is not a one-size-fits-all solution. Depending on your business size, type, activities, risks, and goals, you may need different types of technology insurance policies. Here are some of the most common types of technology insurance:

General Liability Insurance

This policy protects businesses from the most common third-party risks. It covers lawsuits related to bodily injury, property damage, or personal injury (such as libel, defamation, or copyright infringement) caused by your business operations, products, or services. For example, if a client slips and falls at your office and breaks their arm, general liability insurance can help you pay for their medical bills and legal fees.

Errors and Omissions Insurance

This policy protects against lawsuits over mistakes or oversights made by professionals. It’s also called professional liability insurance. It covers lawsuits related to work performance, such as failure to meet client requirements, deadlines, or expectations; errors and omissions; or breach of contract. For example, if you develop a software that has a bug that causes your client to lose data and revenue, errors and omissions insurance can help you pay for the damages and legal fees.

Cyber Liability Insurance

This policy covers the cost of recovering from a data breach or cyberattack at your tech company. It covers expenses such as data recovery, notification, credit monitoring, fraud detection, cyber extortion, and more. It also covers lawsuits from clients or third parties affected by the breach or attack. For example, if your network is hacked and your customer data is stolen and used for identity theft, cyber liability insurance can help you pay for the costs of notifying your customers, offering them credit monitoring services, and defending yourself from their lawsuits.

Business Owner’s Policy

This policy bundles property insurance and general liability insurance into one plan. It’s one of the most economical types of business insurance for a tech company. It covers your business property (such as computers, equipment, furniture, inventory, etc.) from damage or loss caused by fire, theft, vandalism, or other perils. It also covers general liability claims as described above. For example, if a fire destroys your office and damages your equipment and inventory, a business owner’s policy can help you pay for the repair or replacement costs and any third-party claims.

Workers’ Comp Insurance

State law usually requires tech businesses that have employees to purchase workers’ compensation. It helps pay medical costs from work-related injuries and illnesses. It also covers partial wages while the employee recovers and lawsuits over work injuries. For example, if an employee suffers a carpal tunnel syndrome from typing on a keyboard for long hours, workers’ comp insurance can help you pay for their medical treatment, lost income, and legal fees.

Fidelity Bonds

A fidelity bond provides compensation when one of your employees steals from a client. It’s also called an employee dishonesty bond. It covers losses such as unlawful data access, illegal electronic funds transfer, or other employee theft or fraud. For example, if an employee accesses a client’s bank account and transfers money to their own account, a fidelity bond can help you reimburse the client and protect your reputation.

Commercial Auto Insurance

This policy can help pay for expenses after an accident involving a vehicle owned by your business. You can extend it to include coverage for vehicle damage. It covers costs such as medical bills, property damage, legal fees, and more. For example, if you drive your company car to visit a client and get into a collision with another car, commercial auto insurance can help you pay for the repair costs and any third-party claims.

Professional Liability Insurance

This policy, also called errors and omissions insurance (E&O), protects small businesses that provide professional services or advice. It covers lawsuits related to work performance, such as failure to meet client requirements, deadlines, or expectations; errors and omissions; or breach of contract. For example, if you design a website for a client that contains errors or does not function properly, professional liability insurance can help you pay for the damages and legal fees.

How Much Does Technology Insurance Cost?

The cost of technology insurance depends on various factors such as your business size, type, activities, risks, location, coverage needs, deductible amount, policy limit, and insurance provider. You can compare quotes from different insurance companies online and choose the best option for your budget and needs.

According to TechInsurance¹, an online marketplace for IT consultants, software developers, and other tech professionals, the median cost of technology insurance in 2021 was:

These are only median costs and may vary depending on your specific situation. You can get free quotes from TechInsurance¹ by filling out their online application.

How to Buy Technology Insurance?

Buying technology insurance is easy and fast with TechInsurance¹. Here are the steps to follow:

1. Visit TechInsurance¹ and click on “Get Free Quotes”.
2. Fill out a short online application with some basic information about your business and coverage needs.
3. Compare quotes from top-rated insurance companies that specialize in technology insurance.
4. Choose the best option for your budget and needs and buy your policy

Conclusion

Technology insurance is a vital investment for any tech business or professional. It can help you protect yourself from lawsuits, cyber risks, and other threats that could jeopardize your business and reputation. It can also help you comply with laws and contracts that require certain types of coverage.

If you are looking for technology insurance, you can trust Tech Insurance to find the best policy for your needs and budget. Tech Insurance is the leading online marketplace for technology insurance, serving over 200,000 tech businesses and professionals since 1997. Tech Insurance works with top-rated insurance companies that specialize in technology insurance and offer competitive rates and customized coverage.

Don’t wait until it’s too late. Get free quotes from Tech Insurance today and buy your policy in minutes. You’ll get peace of mind knowing that your tech business or profession is covered by the best technology insurance available. Click here to get started.