More Businesses Contemplating the Need for Technology Insurance

More Businesses Contemplating the Need for Technology Insurance

Technology is an important part of the growth of many companies in all lines of business and services. As we, as a nation, grow more and more savvy with regards to integrating new technologies into our companies, there will be the increased threat of lawsuits arising from the many new exposures being faced daily. Technology insurance can protect a business with coverage for claims related to allegations of negligent activities or failure to use reasonable care within the scope of the services they provide.

Many of the country's leading providers of business insurance for computer consulting and IT services firms face a myriad of challenges surrounding these new technologies and their place within different types of business structures. Helping thousands of businesses and individuals get the small business liability insurance they need is a primary goal of agents and insurers. Getting the right policy for those working in a technology-based business or industry is an important first step in protecting these companies from financial ruin. Owners and CEOs realize they need a good technology insurance policy specifically designed to address the risks associated with those technology services.

E&O protection a growing concern 

In a technology business, errors and omissions are a common occurrence. There is, and always has been, a tendency for clients to file a lawsuit when things go wrong. Business owners purchase Tech E&O insurance to protect their company and the people they employ. Errors and omissions insurance is a separate policy that provides coverage in the event someone claims the company, it employees, or executives are liable for any of several types of actions.

Fault may be attributed to several factors 

It could be an accusation of being negligent, or simply failure, in the eyes of the client, to take some form of action. From the person whose job is to make recommendations to the person who offers installation advice for a product their company sells, almost every Tech professional has the potential to make even a minor mistake that could lead to a major issue resulting in a lawsuit.

In today's increasingly competitive marketplace, managing risks can be pivotal to the success of any software and computer-related services business. Professional Liability insurance protects those companies from lawsuits and damages if a client holds anyone responsible for software performance, programming errors, or a breach of contract.

A Professional liability policy insures not only against any mistakes made in house, but also the mistakes of any people or contractors hired. A technology insurance policy can be both, affordable, and effective.

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