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Are You Really Covered? 5 Questions to Ask Your Technology Insurance Company

Questions to ask your technology insurance company to make sure you're covered in essential situations.

Monday, March 24, 2014/Categories: business-liability-insurance

When it’s time to secure insurance for your small tech firm, it’s a good idea to work with a technology insurance company that has experience finding coverage for firms of your size that face a risk profile similar to yours. Working with a company that has experience increases your odds of securing protection appropriate for your unique needs rather than being shoved into a generic policy designed for a much bigger company.

Beyond choosing a group with small-biz experience, what else should you consider when choosing a technology insurance company? Asking these six questions will help ensure that you end up with coverage that actually suits your needs.

  1. Do I need Errors & Omissions Insurance? Because owners of tech businesses often work with clients who don’t fully understand the products or services they provide, there is sometimes a gap between their expectations for a project and their clients’. In the event that this understanding gap leaves a client dissatisfied and interested in collecting damages, Errors & Omissions Insurance will cover the costs of defending yourself in court.
  2. How can I save on my policies? Many technology insurance companies offer policies that allow business owners to save on their premiums. If your business has a fairly low risk profile and meets a few other eligibility requirements, you might be able to save on your premiums by bundling multiple insurance policies together. One popular bundle, the Business Owner’s Policy, combines General Liability and Property Insurance for a single premium.
  3. What’s NOT covered by my policy? The term “comprehensive insurance” is misleading because no insurance is truly comprehensive – in every policy, some events are excluded. While this is perfectly normal, it’s essential to be clear about what your policy excludes before agreeing to it. For example, if you have lots of high-end equipment you need to protect or live in an area where a specific type of weather event causes a lot of damage, be sure your Property Insurance is up to the task.
  4. What does my Cyber Liability Insurance cover? These days, nearly every small business can benefit from Cyber Risk Insurance. But, as your technology insurance company can likely tell you, small tech firms have slightly different cyber liability needs than other types of businesses. Chances are good that you’ll need what’s called third-party coverage, which protects companies from cyber incidents related to storage and ownership of data.
  5. Can I insure my income? Possibly. You may be able to buy Business Interruption Insurance, which provides you income in the event that an occurrence beyond your control prevents you from earning income as usual. Business Interruption Insurance is often available as part of a Business Owner’s Policy, so be sure to ask your technology insurance company for eligibility details.

Still have questions about your insurance needs? Post them in the comments and we’ll do our best to answer!

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