Technology services insurance

Technology Services Insurance: The Smart Choice For Smart Businesses

Owning a business is not just about making money. It is about maintaining the company’s graph, always in the increasing direction. This can be done by ensuring that the company is safe from all physical, financial, and judicial aspects. Technology service providers and companies such as data storage, website designers, and software developers face a constant risk of lawsuits for a failure to perform or inability to execute the said services by clients. The solution to this problem is Technology services insurance. It is an insurance product that is available to professionals and technology service providers for protecting them against lawsuits for the failure of products or inability to perform services and even covers for the damage costs that is caused to the company due to the failure of the said technological service.

Technology services insurance

Classification of technology service insurance

A good insurance policy should cover the cost of damages caused by the failure of services to the company and the compensation for lawsuits against the company. There are different policies available for the clients according to the difference in the areas of need of each type of service provider. One can choose from the following types of policies, which cover the specific requirement of the concerned business company.

  • Errors and Omissions: This type of policy is designed to protect the business firm against claims and lawsuits of the clients for the losses caused to them due to the failure of service provided by the company.
  • Professional Liability: This policy includes the coverage that comes under errors and omissions, plus it broadens coverage for even the claims that possibly include software failure, copyright infringement, or any cyber liability.
  • Network Security Liability: This type of policy is designed to cover the costs of damages caused to the company from losses due to unauthorized access to the data such as data theft, hacking, breaches, computer viruses, and more cyber-related securities.
  • Commercial Property: This type of policy extends the insurance coverage to even the commercial properties on the premises and provides for the costs of damages caused to the company due to physical damages by actions such as theft, fire, vandalism, etc.
  • Workers Compensation: This type of policy covers the cost of treatment and medication of the employees in case of an illness rooting due to work performed by them or in case of injury or an accident while at the job. This insurance is essential for all firms irrespective of the company’s areas, services, or products. It ensures employer safety and higher work motivation among the employees.