With more businesses adopting new technology in their IT departments, the U.S. tech sector is booming. With so many tech startups getting off the ground, it is imperative they are able to secure appropriate insurance policies, reported InsuranceNewsNet.
The website outlined some types of insurance tech businesses can use to protect themselves. One type, management liability insurance, covers damages that can stem from discrimination and harassment, as well as theft and forgery.
Another policy businesses can purchase is errors and omissions insurance, which provides essential coverage for technology companies. This type of insurance can provide coverage related to personal injury, copyright issues and intellectual property liability, according to INN.
Insurance is needed to cover businesses in the technology sector, but a recent development may allow technology to supplement insurance, according to The Associated Press.
The AP said a recently proposed bill from Democratic Assemblyman Mike Gatto from Los Angeles may allow people to show proof of insurance from an application on their smartphone during a traffic stop.
"We are the state where there's so much technological capital," Gatto told the AP. "We run the risk of losing that value if we don't update our laws from time to time."