Business Insurance for Tech Businesses
Business insurance is a must for tech businesses. The technology business is constantly changing. With that comes an ever changing level of risk for businesses as well. Whether your company’s operations include software development, programming, systems integration, IT consulting, or communication and consulting services, insurance coverage can provide you with the ability to protect your business and remain competitive in today’s marketplace.
Types of Technology Business Insurance
The types of coverage for tech businesses are comprehensive and varied.
One type of tech business insurance you may want to look into is Technology Errors and Omissions Coverage. This protects your company from claims if your client holds you responsible for programming errors, software performance, or the failure of your work to perform as promised in your contract. The coverage includes legal defense costs, and will pay for any resulting judgments against you, including court costs, up to the coverage limit on your policy. Another, Information Risk and Media Liability endorsement, can be bundled with this coverage, protecting you against claims arising out of the gathering and communication of information. Liability Insurance provides valuable coverage against defamation and invasion of privacy claims, as well as copyright and trademark infringement.
Other types of technology business insurance coverage to consider include: Business Personal Property, Business Income, and Utility Services and Direct Damage. Business Personal Property Insurance permits a business owner to cover all of the buildings, fixtures, machinery and equipment, and personal property used in business and the personal property of others for which the business owner is responsible. Coverage also can be extended to insure newly acquired property, valuable papers and records, property temporarily off the business premises, and outdoor property. On the other hand, Business Income insurance is intended to compensate the insured for income lost during a “period of restoration,” if a business is physically damaged and can no longer operate. It begins when the direct physical damage occurs, and ends on the date that the damaged property should be repaired, rebuilt, or replaced. As for Utility Services and Direct Damage coverage, tech business owners can expect to be compensated for losses due to an interruption in water, power, communication, or other utility services.
Tech businesses may also want to look into Advertising Injury coverage. This is typically designed to cover offenses such as defamation, invasion of privacy, misappropriation of advertising ideas or style of doing business, and infringement of copyright, title, or slogan. Additional types of coverage include Primary Non-Contributory Coverage. This term is commonly used with contract insurance requirements to stipulate the order in which multiple policies triggered by the same loss respond. For example, a tech contractor may be required to provide liability insurance that is primary and non-contributory. This means that the contractor’s policy must pay before any other applicable policies (primary) and without seeking contribution from other policies that also claim to be primary (non-contributory).
Lastly, one other type of technology business insurance to investigate is for Additional Insured or a person or organization that enjoys the benefits of being insured under your insurance policy in addition to yourself. The term generally applies to liability insurance and property insurance, but can include an element of other business technology policies as well.
If you want more information on these different insurance coverages or to see how we can help with insuring your business, use the Contact Us form on the right to get a free Chicago Insurance quote.