The insurance for technology services providers is new in the market available to a professional technology services provider. Basic insurance comes with limitations. In that case, you need technology-specific insurance. Technology services insurance can help you cover your risk. These can cover the risks related to your business and the risks you face daily. It is like the Errors & Omissions coverage that covers professionals against claims due to their failure to perform or inability to execute services. Further are some commonly asked questions related to Technology Services Insurance.
What does it cover?
You must all be aware of the well-known frauds and hacking incidents. The targets usually are banks and other government contractors. These events happen regularly, and the customers do not choose but lose all their productivity. It does not matter if the glitch is happening due to the service provider or not. Customers are going to come to the technology services provider to claim compensation.
Technology services insurance covers the following:
- E & O: It helps to cover the negligence in your technology service.
- Covers Data Breach: It is there to pay the costs for the individuals whose information has been hacked or stolen.
- Cloud service interruption: It helps cover loss of income by cloud services interruption. Cloud services are the most important part because the customer data is there most of the time. If it goes down, the entire data can get lost.
It would help if you looked for a technology services provider, who can cover you for injuries along with E & O. However, you buy supplementary coverage for services like intellectual property.
How much does it cost?
The cost of such insurance depends on the payroll, location, size, sales, and experience. It usually ranges from $27 to $39 per month.
Benefits of Technology insurance
Now, you must have gotten an idea of the benefits of technology insurance by now. But let us talk about them in detail:
- Legal Defense: Technology insurance covers the payment to secure your claims. Otherwise, you will end up paying for your defense.
- Damages covered: Insurance covers the cost of your payback as well as paying the amount you need to settle a dispute.
The benefits of Technology services insurance are huge and have a futuristic approach. Therefore, you should learn more about it and apply for the relevant insurance.