Insurance is an age-old term in today’s times. It is being used as a safeguard against those unprecedented rainy days that could occur. But what exactly is Technology Services Insurance? Why is it being used by companies so much?
What is it?
Even though Technology Services Insurance is a newer term in the world of insurances, it is used by people working in the technology sector. This mostly includes data storage providers, web developers, UI/UX designers and many more. The insurance protects these professional people against unexpected failures in their designs or performance issues. So, what exactly is covered under Technology Services Insurance? The insurance protects the tech professional against a number of problems. One of the major reasons to get insurance is in the case of a data leak or data hacking. The lawsuit faced by the data provider in case of hacking or lack of privacy is huge. Insurance in place is a fine choice to have. A technology services insurances could come in handy on the off chance the provider fails to meet deadlines and loses a fairly huge asset in the process. To monitor the cost and credits or for intellectual property rights, insurance is involved. Banks or other major institutions could encounter data breaches. There have been several instances where that has happened. Technology services insurance is useful in such scenarios. There are three types of insurance available that are technology-related.
- Errors and omissions: Errors and omissions or commonly known as E & O is a common type of technology insurance. Any kind of liability claim that has been upheld against your firm is dealt with in an E & O. A good insurance is expected to cover errors and omissions along with any kind of personal or physical injuries. The introduction of malware in codes and other regulatory defences also comes under this.
- Coverage for data breaches: This is another major requirement of technology insurances. There could be several instances where the data of your clients could be hacked or leaked. This would follow with a lawsuit. To pay up the clients to compensate for the breaches is no simple task.
- Business income extensions: There are incidences where cloud services shut down, leading to huge losses for the business. Such losses can be covered with this type of insurance.
Technology services insurance is an essential thing to have in the competitive world. Choose a trustable insurance company to cover your potential losses on the off chance of a misfortune.