Because – from the outside – insurance policies (like fortune cookies) all look the same.
But there is an easy way for you to determine if you need a specialized form of business insurance known as “technology insurance” or “tech insurance”.
You should look into getting a technology insurance policy if your company offers technology services and/or technology products.
To make sure we’re on the same page … let’s clarify:
Technology Services are usually computer and electronic technology-based services that your company does for others (your clients) for a fee, including:
- technology consulting and training,
- data and application hosting,
- data processing,
- internet services,
- computer systems analysis,
- custom software programming,
- computer and software systems installation and integration,
- computer and software support
- network management.
Technology Products, on the other hand, usually refers to:
- computer or telecommunications hardware or software products, or related electronic products that are created, manufactured or developed by your company for others, or …
- licensed, distributed, leased or sold by your company, including software updates, service packs and other maintenance releases provided for such product.
Looking at the above list, it’s really not hard to see how, by delivering “technology services and technology products”, your company’s risk exposures are different than the risks faced by, say an accountant, an architect, a naturopathic clinic or a restaurant.
A restaurant owner, for example, would be concerned about being sued for liquor liability or food contamination liability.
But – would a restaurant owner be concerned about causing damage to others with errors made in software programming’?
Of course not!
Makes sense, right?
Bottom line, if your company provides technology services or products (as described above), then it needs tech insurance (and not just a generic business insurance policy).