Professional technology network operators, such as information storage, web designer, and software engineers, can get technology insurance, a comparatively new insurance product. Other experts’ errors and omissions (E&O) insurance is analogous to technology services insurance. E&O coverage is a type of insurance that protects professionals from claims arising from their inability to perform or conduct their technical advice.
Experts in the legal, financial, and other professions can get E&O coverage to protect themselves from litigation arising from the services they offer in their business line. Technology services insurance covers technology professionals who engage in networks, software, and equipment that impact their customers’ day-to-day activities.
What is covered under technology services insurance?
Losses for any series of incidents arising from software or hardware malfunction are likely to be included in an E&O claim against such a technology professional. Cyber-attack and theft of client data or client customers’ details, notices of all those impacted, credit counseling costs, lost revenue due to failure to fulfill a deadline, or maybe even an assert premised on intellectual property rights could all be grounds for a claim.
The target company is likely to file a claim against the technology service provider(s) who were in charge of the company’s data security. Some technical contractors subcontract out a portion of the client’s demands. The client’s claims apply to any contractor or subcontractor who provided security software, licensed the software, or maintained the hardware.
Benefits of getting technology services insurance
- Coverage of legal defense- With technology insurance, regardless of the claim’s merit, the insurance policy covers to defend you. You would have had to fund your defense if you didn’t have insurance, which might be quite costly. That may be sufficient to push your company into bankruptcy and cause it to dissolve at a significant cost to the owners.
- A good reputation as a business partner- If you have technology insurance, it signifies the insurance company thinks you’re a competent professional who backs up your work. If you were not a trustworthy businessperson, you would not have been prepared to pay for insurance, and no reputable insurance firm would have insured you.
If you’re a start-up technology services insurance, be sure you’re covered against losses that could cause your company to fail even before it gets off the ground. If you’re already a well-established technology service provider, check your insurance to ensure you’re insured effectively and adequately.