What is Tech PI inc Cyber Insurance?
Technology Professional Indemnity (PI) including Cyber Insurance is coverage created to protect against professional liability risks that companies operating in the technology industry commonly face. It protects companies against claims arising from mistakes, negligence, or failure to deliver services as promised.
This policy can cover damages, legal fees, and other expenses resulting from claims against the company. It can also extend to cover claims related to data breaches or cybersecurity failures. In the US this insurance is often referred to a Technology Errors and Omissions or Technology E&O.
This type of insurance is crucial for tech startups, especially if they provide software, consulting, or other tech-related services. It some countries it can be a regulatory requirement to practice or more commonly needed as part of a contractual agreement
What does Tech PI inc Cyber Insurance cover?
The coverage provided by a Tech PI inc Cyber Insurance policy typically includes:
Legal defense costs
The insurer will pay for the cost of defending a claim made against the policyholder, including legal fees and court costs for unintentional acts of negligence like bad advice or mis representation
Negligence & Breach of Contract
Can provide coverage if a company is accused of failing to provide services to the expected standard or making mistakes that result in a financial loss for the client. Also protects against claims that the business didn’t fulfill the terms of a contract.
Data Breaches and Cybersecurity
Many policies cover claims related to data breaches or cybersecurity failures, which is crucial for tech companies handling sensitive information including transmission of a computer virus, denial of service, malicious cyber attack
Copyright infringement
can provide coverage for unintentional infringement of intellectual property rights including cybersquatting. Some policies can protect you if you have unintentionally violated someone’s copyright including infringement of trademark or slogan or breach of license to use copyrighted material
Why buy Tech PI inc Cyber Insurance?
Tech PI inc Cyber Insurance is essential for tech businesses and professionals because it protects against risks related to the services you provide your clients.
Many clients, especially large corporations, require technology professionals to have indemnity insurance as part of their contracts to ensure they are financially protected in case something goes wrong. If a claim is made against your company, even if it’s not legitimate, the cost of legal defence can be significant. Insurance helps maintain your company’s financial stability and protects your reputation
How much does Tech PI inc Cyber Insurance cost?
The cost of any Tech PI inc Cyber Insurance depends on several factors including location, revenue, clients, contractual requirements and claims history.
Usually, companies that have been in business for longer will probably pay less for Tech PI inc Cyber Insurance. A company with a long history and no claims track record poses a lower risk of litigation and can expect to pay less than a new company with no track record or experience.
When should I consider Tech PI inc Cyber Insurance?
If you are providing any type of tech-related professional service then Tech PI inc Cyber Insurance should be considered from the start. If not, the driver could be purely down to a push factor such as your major client requiring it as part of the contract or a regulator asking for evidence of it as part of your licence application. In either case should you need impartial advice as to what to buy and when, please Contact Us
Why work with Continuum?
Our in-depth knowledge of both the industry and the appetite of insurers allows to advise clients on the appropriate solutions to help them protect their business and offer value to their clients. We take a client-centric approach, appreciating that insurance may be a future requirement rather than an immediate need and advise on the timing of policy inception as well as helping with payment schedules and budgeting requirements. Our aim is to advise and assist digital asset firms from seed to flower and become a long-partner with them through their journey to success.
Choose your industry to find the coverage that suits you
Web 3.0 & Emerging Technology
Crypto, Digital Assets & NFTs
Financial Institutions
EduTech and E-Learning
Fintech, Insurtech and DeFi
Tech Start Ups and Developers
Digital Health and MedTech
