Technology businesses face an immense amount of risk. In a constantly changing world and a constantly changing industry risks arise that simply cannot be predicted. Because of the nature of technology companies, it is important for business owners to have a strong working relationship with their insurance agent in order to adequately protect the business. There are certain policies all businesses need, but there are additional coverage that may or may not be necessary depending upon the specifics of each individual business. Partnering with an independent agent is the best way to get unbiased advice about what exactly a business needs. Here are six policies most technology companies should strongly consider to insure the business properly.
General Liability Insurance
General Liability Insurance is required by law for most businesses in most states. For that reason, it is usually the first policy purchased by any tech business. A general liability insurance policy protects policy holders from third party risks associated with lawsuits and other claims. These risks can result from something as simple as a common slip, trip, or fall. It also can be something as big as a fire in the basement of your property. General Liability is required by law in most states. In most cases a General Liability Insurance Policy is the first line of insurance purchased by a business, but it is not all encompassing. This is something that should be kept in mind when business owners are looking for the cheapest general liability insurance small business.
Hired and Non-Owned Auto
Hired and Non Owned Auto Insurance is a type of insurance policy that many businesses need yet far too many fail to secure. According to the International Risk Management Institute (IRMI), Hired and Non Owned Auto Insurance is; ‘An auto that is used in connection with the named insured’s business but that is not owned, leased, hired, rented, or borrowed by the named insured’. In layman’s terms this is an insurance policy for a business when an employee of that business uses a vehicle for business purposes that is not owned by that business. If you or your employees use their personal vehicle or a rented vehicle while on the job, you should strongly consider hired and non-owned auto insurance.
Inland Marine Insurance
Inland Marine Insurance is frequently referred to as “Equipment Coverage”. This type of coverage is designed primarily for property that is likely to be moved or is frequently in transit. Inland marine is also for a highly specialized type of property that requires a unique valuation. This can include products that you are having shipped across the country, a tractor located at a property being built by a construction company, or a vacuum stored at a retail location by a commercial cleaning company.
Data Breach and Cyber Liability
Cyber insurance is almost always sold in a pair of policies that deal with first party and third party liability. The two coverages are called data breach and cyber liability. Data breach coverage deals with the first party damages to a business and cyber liability deals with third party liability a business faces to individuals and businesses damaged by a data breach.
Employment Practices Liability Insurance (EPLI)
EPLI is an acronym for Employment Practices Liability Insurance. EPLI is a type of professional liability designed to address the risks associated with hiring, employing, and terminating employees. Some common types of lawsuits EPLI covers include: Employee Discrimination, Wrongful Termination, Age Discrimination, Racial or Gender Discrimination, Breach of Contract, Sexual Harassment, and Emotional Distress. EPLI is basically a safeguard for employers in the litigious society of 2018. The coverage provides legal protection for the business, the owners, the officers, the directors, and the other employees.
Professional Liability Insurance is commonly referred to as errors and omissions (E&O) or medical malpractice insurance. It is most common in the medical, insurance, law and accounting fields. Professional Liability Insurance is a type of business liability insurance coverage that is designed to protect traditional professionals like lawyers, doctors, or architects who give professional advice and provide technical services for a fee. This policy is in addition to a traditional general liability insurance. The heart of a professional liability policy is that the policy makes sure consumers have a form of legal recourse from mistakes made by professionals. It also enables professionals the ability to defend themselves and their businesses when they are found responsible for errors.