3 Insurance Types That Application Service Providers May Wish to Consider
Whether you offer hosting solutions, browser-based applications, or some mixture of both, your customers depend on the services you offer day in and day out.
However, while you may not face the same risks as a business with a traditional brick-and-mortar location, you are still delivering a service. With data breaches, cyber ransom plots, and coding bugs all capable of putting you temporarily out of commission, if something goes wrong, your clients could end up paying for it in more ways than one.
To that end, an application service provider insurance policy can help you protect your business.
1. Commercial Property Insurance
As a company that primarily delivers its services over the web, your work computers and your professional equipment are your bread and butter. If a fire were to break out in your office building or if a pipe were to burst overnight and damage your equipment, you could find yourself struggling to stay in operation.
Commercial property insurance makes it possible for you to receive compensation if an insured peril damages your company equipment.
2. Errors and Omissions Insurance
While there’s no question that you and your team are diligent when it comes to delivering your service, mistakes still happen to even the most well-established companies. In addition, when so many enterprises and smaller businesses depend on your service, even an hour of unexpected downtime can have a major financial impact on your clients.
Bugs and coding errors can make your service inaccessible or can cause your application to make costly mistakes. Errors and omissions insurance can help you cover the cost of defending yourself.
3. Cyber Liability Insurance
Because you deliver your application service through web-based or computer-based methods, cyber liability insurance is another coverage option that application service providers can benefit from.
A data breach or a disgruntled employee getting unauthorized access to customer information could leave your company exposed to liability. And if your clients are making payments online or if you or your customers are storing information in the cloud, the risks become that much more serious.
From cyber ransom payments to hacks, cyber liability insurance can help you protect your business.
The Real Reason Why You Should Consider Working With a Professional Broker for Your Application Service Provider Insurance Needs
As an application service provider, you already know how specialization and outsourcing tasks can help businesses accomplish more in real time. After all, your customers can do more in part because of the service you offer.
It’s a similar deal when you’re choosing an insurance package. When you work with an ALIGNED professional, you’re partnering with an expert service provider who will work hard to get your business the protection it needs.
