Technology Insurance
Technology-based businesses are exposed to several risks that can lead to overwhelming financial challenges that might be difficult to overcome without the right insurance coverage. Finding adequate protection is essential to maintaining a healthy business, whether you offer a tech product or service.
Technology errors and omissions (tech E&O) is the most common type of tech insurance. It’s a form of professional liability coverage that protects when a business’s product or service fails to meet a customer’s expectations. For example, a software developer might be sued for professional negligence if their product fails to perform as promised and results in their client losing money.
It’s important to understand that tech E&O is different from cyber insurance. Tech E&O protects against financial loss from a failed product or service, whereas cyber insurance protects against data loss and attacks. Both types of insurance are beneficial to tech-based businesses.
Who needs it?
Any company that provides a technology product or service needs technology insurance. These businesses include:
- IT consultants
- Software developers
- Web designers
- Computer manufacturers
- Data storage companies
- Web developers
- IT staffing companies
- Social media consultants