Technology Services Insurance Policy Information
Technology Services Insurance. Technology services firms have unique risks. Also, basic insurance comes with various limitations, and there is a need for technology-specific coverage. For example, you could have irreplaceable data, software, and valuable research equipment that are at the core of your technology company and require protection. Technology services insurance can help you cover your risks.
This coverage can be tailored to cover specific needs. The policies can beset up to protect your business from the specific risks it faces on a daily basis.
Technology services insurance protects your firm from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked tech services insurance questions:
- What Is Technology Services Insurance?
- How Much Does Technology Services Insurance Cost?
- Why Do Technology Services Need Insurance?
- What Type Of Insurance Do Technology Services Need?
- What Does Technology Services Insurance Cover & Pay For?
What Is Technology Services Insurance?
Technology services insurance is a type of insurance policy designed to protect technology service providers, such as IT companies, software developers, and consultants, from financial losses and liability claims that can arise from the services they provide.
This coverage typically includes protection for errors and omissions, data breaches, intellectual property infringement, and other common risks faced by technology companies. The policy may also provide liability coverage for professional services and contract performance, as well as business interruption coverage for lost income and expenses in the event of a technology failure or disaster.
How Much Does Technology Services Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small technology services businesses ranges from $27 to $39 per month based on location, size, payroll, sales and experience.
How Much Does Technology Services Insurance Cost?
Here are some reasons why technology services need insurance:
Cyber Liability: With the increasing use of technology, there is a higher risk of cyber-attacks and data breaches. Technology services need insurance to protect themselves against the cost of a cyber attack and the resulting loss of data or financial compensation.
Professional Liability: Technology services often provide professional services to their clients. Insurance helps protect against claims of negligence, errors, and omissions.
Product Liability: Technology services that produce and sell products are at risk for liability if the product fails or causes harm. Insurance can help cover the costs of these claims.
Business Interruption: Technology services rely on their technology to operate. If the technology fails, the business may experience a significant interruption. Insurance can help cover the costs associated with this interruption.
Equipment Coverage: Technology services require expensive equipment to operate. Insurance can help cover the cost of replacement or repair if the equipment is damaged or destroyed.
In conclusion, technology services need insurance to protect themselves from the various risks associated with their business operations and to ensure they are financially prepared in the event of a loss.
What Type Of Insurance Do Technology Services Need?
Following are some coverages that can be included in a technology services insurance policy:
General liability protects your tech company from some lawsuits that allege bodily injury or property damage arising from business operations. For example, you pill coffee on a clients computer and ruin it.
Also, it can protect against damages from lawsuits that emerge from various business activities. Technology services insurance will cover these and several other claims of libel and slander against your firm.
What Are The Benefits Of Commercial General Liability?
- Provides you with protection against damages resulting from lawsuits due to third party bodily injury or property damage.
- Covers you against libel and slander claims
Also called errors & omissions, technology services insurance covers negligence that might occur in your business. E&O is an important coverage for any tech business, regardless of their size or scope.
A comprehensive technology services insurance policy will also protect the building where you operate (if you own it) and/or your computers, furniture and other equipment used to do business. It will also cover both the equipment and tools that you use to fix or upgrade your client's computer hardware and related components, workshop and office furniture, regardless of whether you lease it or own them.
What Are The Benefits Of Business Property?
- Protect your building
- Cover your computers, equipment and furniture and other business property.
Umbrella is extra liability insurance. Umbrella coverage is designed to protect your business from claims that exceed the limits of your underlying policies. Umbrella provides additional liability coverage above other coverage limits of either your general liability, workers comp, commercial auto and sometimes other coverage. It is typically contractually required by some clients that will hire you.
Since you are a tech company, your clients will expect you protect their sensitive data. Cyber will cover your business liability from data breach against your customers' financial and personal information. Such information includes credit card numbers and social security. Cyber liability coverage helps protect your firm's data which is exposed or even stolen by hackers entering the company's electronic network.
The business property section of a technology services insurance policy can coves all income losses if you are unable to either run or operate your business. The business income insurance covers loss of revenue when you can't run you technology business due to covered property damage.
What Does Technology Services Insurance Cover & Pay For?
Here are some reasons why Technology Services may be sued and how insurance can help protect them, including how insurance can help pay for lawsuits:
Data Breach: Technology Services providers may be sued if there is a data breach resulting in the unauthorized access, theft, or exposure of sensitive information. This can lead to lawsuits from affected parties claiming damages and financial losses due to the breach. Cyber liability insurance, a type of insurance specifically designed to protect against data breaches and cyber-attacks, can help cover the costs associated with legal defense, settlements, and damages awarded in such lawsuits.
Professional Liability: Technology Services providers can face allegations of professional negligence, errors, or omissions in the services they provide. For example, if a software developer makes a coding error that results in financial losses for a client, the client may sue for damages. Professional liability insurance, also known as errors and omissions (E&O) insurance, can help cover the costs of legal defense, settlements, and damages in such lawsuits.
Intellectual Property Infringement: Technology Services providers may face lawsuits for alleged infringement of intellectual property rights, such as copyright, trademark, or patent infringement. For instance, if a software company is accused of using copyrighted code without proper authorization, they may be sued for damages. Intellectual property insurance can help cover the costs of legal defense, settlements, and damages in such lawsuits.
Breach of Contract: Technology Services providers may be sued for breach of contract, such as failing to deliver services as promised or not meeting contractual obligations. This can result in lawsuits from clients or business partners seeking damages for financial losses. General liability insurance or professional liability insurance, depending on the specifics of the breach, can help cover the costs of legal defense, settlements, and damages in such lawsuits.
Employment Practices Liability: Technology Services providers can face lawsuits related to employment practices, such as wrongful termination, discrimination, or harassment claims brought by employees or job applicants. Employment practices liability insurance (EPLI) can help cover the costs of legal defense, settlements, and damages in such lawsuits.
It's important to note that insurance policies have limitations and exclusions, and coverage may vary depending on the specific policy terms and conditions. It's crucial to carefully review and understand your insurance policy to ensure you have adequate coverage for your Technology Services business and seek legal advice when facing lawsuits or legal claims.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7379 Computer Related Services, Not Elsewhere Classified
- NAICS CODE: 541519 Other Computer Related Services
- Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC
Description for 7379: Computer Related Services, Not Elsewhere Classified
Division I: Services | Major Group 73: Business Services | Industry Group 737: Computer Programming, Data Processing, And Other Computer Related Services
7379 Computer Related Services, Not Elsewhere Classifieds: Establishments primarily engaged in supplying computer related services, not elsewhere classified. Computer consultants operating on a contract or fee basis are classified in this industry. Establishments primarily engaged in producing prepackaged software are classified in Industry 7372; and those engaged in offering data processing courses or training in computer programming and in computer and computer peripheral equipment operation, repair, and maintenance are classified in Industry 8243.
- Computer consultants
- Data base developers
- Data processing consultants
- Disk and diskette conversion services
- Disk and diskette recertification services
- Requirements analysis, computer hardware
- Tape recertification service
Technology Services Insurance - The Bottom Line
Tech service insurance can help increase your business security, productivity, stability and also allow you to attract more customers.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Artificial Intelligence
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Electronic Data Processing
- Electronic Data Processing Equipment
- Internet Business
- Internet Service Provider
- IT Consultant
- Online Store
- Social Media
- Software Developer
- Technology Services
- Website Design
- Specialty Computer
The information technology (IT) industry is constantly evolving and adapting to new technologies and trends. It is a critical component of many businesses and organizations, as it helps them to communicate, store data, and operate efficiently. However, the IT industry also faces unique risks and challenges that can lead to financial losses, legal issues, and damage to reputation. This is why it is essential for IT businesses to have commercial insurance to protect their assets and interests.
One of the main risks that IT businesses face is data breaches and cyber attacks. Hackers can gain access to sensitive information stored on a company's servers or systems, leading to data theft, identity theft, and other crimes. Insurance can provide coverage for these types of events, helping IT companies to mitigate the financial and legal consequences.
Another risk that IT businesses face is the possibility of equipment failure or malfunction. This can result in downtime and lost productivity, which can have a significant impact on a company's bottom line. Commercial insurance can help IT businesses to cover the costs of repairs and replacements, as well as any lost revenue or expenses incurred due to the equipment failure.
IT businesses may also face legal issues, such as intellectual property disputes or contract disputes with clients. Insurance can provide coverage for legal fees and damages, helping IT companies to defend their interests and protect their reputation.
Overall, the IT industry needs business insurance to protect against the many risks and challenges it faces. Without adequate coverage, IT businesses may be vulnerable to financial losses and legal issues that could impact their operations and success.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.