Insurance Coverage Requirements for Tech Firms

While most firms face similar exposures for insurance coverage, tech firms face additional risks and challenges. After all, IT professionals, web experts and those who set up companies on the tech side find themselves particularly vulnerable no matter how large or small the job.
An understanding of the types of exposures faced by a tech firm includes a review of the insurance provisions typically included in contracts.

Here are a few important points:

1. It is usually the obligation of the contractor to be sure they have the kinds of insurance coverage required in a contract. Although the client may follow up by requesting a certificate of insurance or other proof, it is the firm’s contractual obligation and therefore their responsibility to make sure the required coverage is in place.

2. If you enter into a contract and then it is determined you have insufficient coverage, you could find yourself in breach of contract and be faced with the possibility of losing the job. Even if given the opportunity to purchase the necessary coverage, it may be so costly as to make the project unprofitable.

3. You may not be able to bid on certain tech related contracts without first proving you have the required coverages in place.

A lot of headaches can be avoided by sitting down with your insurance agent to review the standard coverages your firm should be carrying to not only protect itself but to also meet potential contractual obligation. Doing this review ahead of time can ease the stress and frustration when dealing with insurance in general.

Most business understand the exposures faced and the need for general liability, workers compensation, employment practices liability and property coverages but tech companies face exposures different from other businesses. Other coverages that are recommended include cyber liability, professional liability, employee dishonesty and fiduciary liability.

Because looking around for new coverage can be confusing and time consuming, many small to mid-sized tech firms stay with their providers. Harry Kelleher & Co. Inc. would be glad to meet with you, get to know your business and provide you with recommendations and quotations for insurance coverage. Our goal is to understand your business and provide you with proposal that ensures appropriate coverage while taking costs into consideration.

Cyber Liability for Your Business

While almost any business today utilizes technology that puts them at risk for cybercrimes, tech firms face particularly large risks and challenges. After all, IT professionals, web experts, and those who setup companies on the tech side find themselves particularly vulnerable no matter how large or small the job. One cyber-attack can cause major issues and the firm can find itself facing a mountain of legal issues.

Ask yourself “if my business experienced a sizeable data breach…”

– Who would I call?
– How would I organize an immediate response?
– How would I pay for it?
– Who will do my job while I respond to the crisis?

Cyber liability coverage solutions include:

– Privacy Liability: Provides coverage for loss of electronic or paper date in your care, custody and control.
– Privacy Notification Expense: Pays the cost of notifying your customers in the event of a data breach.
– Regulatory Liability: Covers defense expenses and fines and penalties from privacy law violations.
– Media Content Liability: Covers copyright infringement and defamation costs from postings on your website or social media pages.
– Network Security Liability: Coverage for damages and expenses from unauthorized access to your system.
– Crisis Management: Provides expenses for forensic investigations, public relations expenses and your Client’s Credit Monitoring.
– E-Extortion Threat: Provides reimbursement for costs of an extortion threat against the insured.
– Cyber Deception/Social Engineering: Provides coverage against deceptive email, phone or other electronic means. The attacks can including phishing, mock e-mails, phone calls, etc., and uses deceit to mislead employees into transferring money out of the company’s funds.

Harry Kelleher & Co. Inc partners with several brokers and companies which gives us access to more options and greater competition for your business. Contact our office to discuss how we can assist you in navigating through cyber liability insurance placement.