Tech Insurance
The table below lisis typical coverages that are needed in the Technology industry along with some approximate pricing.
We can usually issue the policy and provide you with the appropriate certificate of insurance for your vendors within 2 hours.
General Liability
Below is a detailed description of the proposal for General Liability Insurance. The annual premium is $425. You can make monthly payments if you like.
This Policy combines all of your insurance needs and packages them into one competitively priced product.
| Liability Coverages | Limits of Insurance | Premium |
|---|---|---|
| Business Liability Insurance for Each Occurrence | $1,000,000 | Included |
| General Aggregate | $2,000,000 | Included |
| Products/Completed Operations Aggregate | $2,000,000 | Included |
| Personal and Advertising INjury | $1,000,000 | Included |
| Damages to Premises Rented to You | $300,000 | Included |
| Medical Expenses | $10,000 | Included |
What is Covered
Tech insurance can be used to provide peace of mind and protection for your assets with regards to the pitfalls of operating a business.
General liability insurance and professional liability insurance, sometimes referred to as technology liability insurance and technology professional liability insurance are normally the two insurance policies that will provide the protection you need from technology claims and losses.
Let’s look at some of the common tech E&O claims and their causes.
- Poor communication with clients. Not having the appropriate methods for communication both orally and in writing can normally lead to claims and losses because of unmet expectations.
- Errors in programming. Losses in this area, other than incompetence, can normally be traced back to poor communication with clients in the programming process.
- Delays in work product. This too can be traced back to poor communication with clients in not laying out appropriate timelines and schedules and milestones for the project. Tech insurance procurement normally take some time and waiting until the last moment to have IT insurance in place can cause unnecessary delays in your project.
- Project development problems. Problems normally do arise in the technology consulting area and this problematic area also needs to have good communication procedures in place.
- Large integration projects and/or installation projects. Clearly the complexity of any project is commensurate with the size of the project and/or projects that are intertwined. IT contractor insurance provided by having IT professional liability insurance and technology liability insurance in place can protect you from claims and losses in this area.
- Problems with combining legacy systems. Having multiple platforms of both hardware and software can create problems with regards to your tech insurance and your specific contract with your client. Sorting out what you promised versus what the technology business insurance is going to provide coverage for can leave you with gaps in coverage.
- Project creep. If change orders can be initiated randomly without a formal process this can be a hotbed of claims and losses in either your tech E. & O. insurance or your IT consultant insurance portfolio.
- Beta testing. Taking shortcuts or not providing the proper beta testing can have long-term tech liability losses coming your way soon.
- Turnover. Besides potentially losing key personnel on each and every project, having the appropriate workers compensation insurance in place and crime insurance bond can protect your company from losses to valuable employees or from a not so valuable employee.
- Negligence. Tech insurance, which includes general liability insurance and professional liability insurance as well as other coverages, are what is known as negligence contracts. There typically is no coverage whatsoever for intentional acts. These policies typically cover bodily injury, property damage, personal injury, advertising injury, technology professional liability, and the like due to accidents and not intentional acts.
Almost all of these 10 examples of causes of losses and claims, all point back to the first cause of loss and that is poor client communications. Having both formal and informal communication procedures in place that are mutually beneficial to both you and your client will go a long ways in preventing claims and losses. Tech insurance can and will provide peace of mind to cover these gaps in client communications that can cause severe losses to your assets and cash flow.
R. Glenn Matsen, CEO
MBA, CPCU, ChFC, ARM
707.528.7299 ext. 303
707.528.1662 fax
info@techologyinsurancequote.net/
Lic. #05083580
