In any economy, the IT industry plays a critical role. Businesses based on technology are exposed to grave risks when compared to their counterpart businesses. These risks can result in overwhelming financial challenges that prove difficult to overcome if you don’t have the right insurance coverage. To maintain a healthy business, adequate protection is vital regardless of whether you offer a service or tech product. Ensure that you get Technology services insurance for your own sake as it can help cover the risks.
The coverage can be customized according to a business’s specific needs. The policies can protect you from the risks the business faces on a regular basis. The insurance also protects the firm from lawsuits.
Where does the coverage help?
The technology insurances can help to cover the legal fees and other costs if or when:
- The sold software to the client had some glitches, which cost them to lose valuable data.
- Equipment installed by the business prevented the client’s business for a day or two.
- The cloud-based services provided by the business failed to do their job.
The above-listed points are only some of the circumstances when technology services insurance helps you out.
The insurance cost
The average price of the technology services insurance is $1,000,000/$2,000,000for small technology services ranging from $27 to $39 each month based on size, location, sales, payroll, and experience.
Type of insurances required by technology services
Technology services insurance policy has the following coverages:
- General liability
It protects the tech company from lawsuits that allege body injury or property damage that arise from business operations. For example, spilling of coffee on client’s computer. It also protects against damages arising from business lawsuits.
- Professional liability
It is also known as errors and omissions and covers negligence occurring in the business. It is coverage vital for any business, regardless of size and scope.
- Commercial property
A technology service insurance policy also protects the buildings where the business operates and the furniture, computers, and other equipment required in the business. It also covers all the tools and equipment to fix and upgrade the client’s computer hardware – whether you own the equipment or lease them.
Who needs these insurances?
The technology insurance is required by any business that provides technology products or services that include:
- IT consultants
- Software developers
- Computer manufacturers
- Web developers
- Social media consultants
- IT staffing companies
- Web designers
A broker or licensed insurance agent can help you get the right insurance coverage to help your business.