Since opening in 1904, Stolly Insurance has grown, adapted, and experienced nearly every economic, industrial, and technological change in the 20th and 21st centuries. An educational approach has guided our agency through it all and into the technology boom we live in today. Cyber insurance is an important need for nearly every business with a digital platform and especially for those involved in the design, service, and manufacturing of technologies. Stolly Insurance and its agents are constantly adapting and stand ready to provide well rounded insurance solutions for all of your cyber insurance needs.
Here are a couple insurance coverages to understand as a technology company:
Cyber Liability Insurance covers financial losses resulting from a data breach and other cyber incidents. This insurance policy may include first-party and/or third-party coverage wherein first-party coverage applies to a direct financial loss to your company and third-party applies to damages alleged by others resulting from your failure to act.
An example of first-party coverage is if your clients’ data that was stored in your computer system was to be damaged by a virus or stolen by hackers. Your Cyber Liability Insurance would cover the costs of retrieving damaged or stolen clients’ data, including the cost of hiring an expert just to recover the data. Third-party coverage, on the other hand, covers lawsuits alleging that data breach (or your clients’ inability to access their data on your system) is due to your company’s negligence to provide adequate security and protection.
So, you might be thinking, is Cyber Liability insurance important for your tech startup? The answer is very simple: As your business relies heavily on online activities, the risks of data breach litigations and other cyber-attacks are high. Therefore, it is necessary to protect your business from any cyber-attack that will cause a lot of damage to the existence of your business. This can include retrieving very confidential information about your startup’s earnings and some other personal information (example: personal identifiable information, or PII) that is stored on your system.
Errors and Ommissions Insurance will protect your company and its employees against claims made by clients for unsatisfactory work or inadvertent mistakes. In other words, E&O insurance is your protection against different types of liabilities that are in correlation with the professional services you provide.
As a rule, if your business requires you to constantly deal with clients or bill them for services rendered, it would be beneficial for you to get this type of insurance, even if the law does not necessarily require it. You are going to need protection against clients who may accuse you of something you have said or done having been harmful to them or their situation. You need protection against clients, who are not satisfied with the work you did, and you need protection against something you promised to deliver to your client but, for some reason, you were not able to deliver.
Errors and Omissions insurance, also known as Professional Liability insurance, offers coverage against financial loss resulting from services your business provided. Because mistakes are inevitable, and can occur in any type of business, you should consider getting this type of insurance to keep you from shelling out a significant amount of money just to correct the mistake your business made inadvertently.