As the global technology industry continues to evolve, so do the risks and liabilities tech companies face. The number of data breaches companies experience is on the rise, increasing by 68% from 2020 to 2021. Tech companies who mishandle data may face lawsuits costly enough to bring financial ruin. Insurance for tech companies helps protect against everyday risks and financial loss related to lawsuits.
Who Needs Tech Company Insurance?
Businesses providing technological services, expertise, or products should consider protecting their operations with special insurance for tech companies. This includes:
– IT consultants and technology service providers
– Communication companies
– Electronics or hardware manufacturers
– Businesses working on sustainability and clean technology
– E-Commerce stores
– SaaS Providers
– Software development companies
– Companies operating in fintech or biotech businesses
– Drone manufacturers and service providers
Special Insurance Policies for Tech Companies
Directors and Officers (D&O) Insurance – D&O covers defense costs and damages from allegations and lawsuits against your company’s board of directors and officers. This insurance policy is designed to protect your company directors from lawsuits and protect their personal assets.
Technology Errors & Omissions (E&O) Insurance – E&O is one of the most important types of insurance for tech companies because it protects your company if your service, product, or software does not perform the way that it is supposed to. Tech E&O insurance covers financial losses that a customer sustains as a result of any errors or omissions related to the product your company provided.
Cyber Liability Insurance – Cyber liability insurance covers costs associated with a data breach, and protects from third-party lawsuits involving network security and privacy-related losses. If you are sued by a client whose data was compromised, cyber liability insurance will help reduce financial loss for both you and the client.
Other types of insurance for tech companies to consider are workers compensation, employment practices liability insurance, general liability, and commercial property insurance.
CTG Insurance: Personalized Insurance for Tech Companies
Tech companies are exposed to many unique risks that other businesses may not face. CTG Insurance designs personalized solutions for tech companies. We help protect you from liabilities, so you can focus on running your business without worry. Get in touch with one of our experienced advisors for a quote.