Software and Tech Companies
Technology companies may be the fastest growing sector of the economy. As the world becomes increasingly digital, software and tech companies provide the brainpower and manpower to create the newest, fastest and most functional tech products and programs.
Many companies fall into the definition of a tech company even though their primary focus is not on tech. A company that utilizes software for purposes of accounting, auditing, branding, marketing, other professional services can find itself subject to tech related claims. Any business who primarily utilizes the internet to deliver a product can be considered for the same coverages as a tech focused company. In addition to the standard coverages a business would need such as workers compensation and general liability, technology focused companies also have a special need for cyber liability coverage and technology errors and omissions coverage.
Cyber Liability coverage provides important coverage for tech companies. Any company that handles digital, private, personally identifying information such as names, addresses, social security numbers, or credit card numbers can be at risk.
Cyber liability coverage provides the technology business with reassurance and coverage in case of a data breach. Cyber coverage can provide reimbursement for notification expenses after a breach, as well as coverage for forensic research to prevent another data breach.
Cyber coverage can also give peace of mind if a company’s proprietary data is held hostage by ransomware. It can pay expenses related to the ransom and restoring the company’s data.
Any business is vulnerable to claims of copyright infringement. Companies that engage in social media, graphic design, or marketing are at a greater risk if they are creating original content for themselves or others. Cyber policies can provide coverage for claims of infringement of copyright, title, slogan, trademark, trade dress and more.
Tech companies also have a risk with the delivery and performance of their products. Technology errors and omissions coverage is specifically tailored for today’s high tech business. This policy will protect a business from claims that arise out of their work or products. If a customer does not think software, work, or other products do not meet agreed upon performance or expectations they could hold the company responsible for monetary damages. These damages could include:
- Lost Revenue
- Diminished Profits
- Business Interruptions
- Increased costs or expenses
Customers commonly change the size and scope of projects during development and want to hold the tech company responsible for delays. Even baseless claims can turn into contract disputes and lawsuits. Technology errors and omissions coverage will provide businesses with defense even for baseless claims and can be the easiest way to give tech company owners peace of mind that a contract dispute won’t harm the company’s bottom line.