If your business is technology-related, then you should consider getting an insurance policy to protect your business. Insurance is not just limited to the construction business, contractors, and physical stores. Somewhere along the way, a customer may make a claim against your software, app, or cloud service so you need to be prepared. This is where having insurance for technology companies can come in handy. While doing your research for an insurance provider, here are five things you should look for.
Look for professional liability
General liability can cover your business from property damage and personal injury. Professional liability, on the other hand, protects your business from damages caused by code. A good example is when your software does not work as advertised and your customer suffers financial losses, then you may be held liable for the losses without professional liability.
One Size Does Not Fit All
There is no one-size-fits-all approach to insurance. Not all tech companies are alike. You need to work with an insurance provider that will provide you with growth opportunities. You may need it now but in the future you will. Having Technology Insurance For IT Companies And Consultants will help you save time when something goes wrong with your business.
Manage Domestic and International Exposure
Sooner or later, your business needs to expand beyond your own backyard. International expansion is no longer exclusive to big corporations and multinational companies. However, if you are just managing a small business, you may not a huge budget for expanding internationally. So look for an insurance provider that can handle exposures beyond your local shores. You can also include coverage for employees traveling overseas, or for outsourcing.
Cover for Software and Programming Services
Most general liability insurance does not cover software which can be disastrous when something goes wrong with your program. For example, a software glitch can cause your laptop to slow down or an app to crash. A bug in safety or navigation software can result to more than lost data and frayed nerves. Customers may make a claim against you for the bugged software. While your software may be bulletproof, it still pays to have some protection in place.
Claims Reporting Procedure
While we do not want it to happen, some dissatisfied customers may think of making a claim against you. If your insurance provider does not require you to report, you may be forced to shoulder the cost of the claims. So do make sure that your carrier has clear and consistent reporting policies to keep you from exposure to claims.