Technology Insurance 101
Technology Insurance is crucial for technology, information and knowledge based companies that own rights to valuable intangible assets, such as sensitive data, software and intellectual property, which a general liability policy doesn’t account for. General liability provides protection in the event of bodily injury or property damage. Technology insurance coverage is designed to protect against the significant risk of economic loss related to intellectual property, network liability and network and cyber property security.
A comprehensive risk management plan needs to guard against the unique exposures that technology operations present. Specialized technology insurance is relatively new and the terminology is still evolving as more claims are handled and new exposures are discovered. As a result, the terminology can be confusing and hard to understand. The following technology insurance terms are some of the most common you will need to know to understand your technology insurance options:
Cyber liability and Technology Insurance
A cyber liability policy is a coverage that protects against damage from cyber attacks, data breaches and other basic risks that result from using electronic communications and data storage. They often cover the cost of recreating damaged or lost data or systems, but do not include the costs that stem from the loss or damage, including legal expenses and data notification costs. Sometimes the term cyber liability is used broadly to describe technology related risks and technology insurance in general.
Data breach notification laws and Technology Insurance
Federal and provincial laws dictate the requirements for notification if an organization were to suffer a data breach that compromised personal data, such as Social Insurance Numbers and financial and health information. Laws vary on the time period that individuals need to be notified of the breach and what situations are exempt from the requirement.
Technology Insurance Concerning Errors & Omissions (E&O)
Technology errors & omissions (E&O) coverage protects against claims by a client that suffered a loss due to mistakes by you or your company. These mistakes must be due to error or oversight in a product such as a software program or web service.
Technology Insurance Concerning Media and Intellectual Property Liability
All content on the Internet is considered to be published, meaning it is subject to copyrights and infringement. Negative content about a person or company can be considered libellous. Take caution when publishing or posting anything to websites, forums or social networking sites.
Given the pace at which technology evolves it is clear that exposures and threats to “technology” companies will continue to grow as the technology industry does.
For More Information On Technology Insurance And Choosing The Right Solutions For Your specific Business Needs Contact An ALIGNED Insurance Advocate Today At 1-866-287-0448.