Technology insurance – As the tech sector in New York City continues to grow, and weâ€™re growing along with it.
We have been partnering with tech firms for over 20 years and have a deep understanding of intricate coverage issues that technology firms are exposed to.
Here is a short guide on the top issues for tech when it comes to business insurance.Â Theyâ€™re in no particular order and weâ€™re not covering ALL the technology insurance New York issues.Â Every firm is different and needs a tailored approach to their business insurance.
As an experienced insurance broker in New York working in the tech sector, we are here to answer your questions and help you as you grow.
1. General business insurance often called a BOP or Business Owners Policy.
Whether you work in your own office, a shared space, or entirely virtually you need this fundamental policy which covers your general liability and property insurance exposures.
General liability is different from E&O liability (errors & omissions) which weâ€™ll get into shortly, but general liability covers you for claims of bodily injury or property damage to third parties.
The property insurance portion of the policy covers your furniture, fixtures, office improvements, computers, and business income exposures.
In addition to the core liability and property coverages a BOP also provides a bunch of fringe coverages needed by small businesses.
2. Technology Errors & Omissions often called E&O insurance.
E&O covers you for claims which can arise from your technology product or service from failing.Â Claims normally will allege financial damages the claimant suffered because your product or service did not work as described; or your product triggers another companyâ€™s software or product to stop working resulting in financial damages.
The tremendous unknowns of technology make buying E&O insurance a must.
3. Cyber Insurance
Cyber is another â€śmust-haveâ€ť coverage (not just for tech firms, but for all companies today) because the potential for cyber-related claims impacting your company on a variety of levels is almost certain.
Cyber policies typically will cover 4 major elements:
- Costs to respond to a cyber incident and give you access to experts in remediating a breach/hack or other cyber event.
- Coverage for damage to your data, software, and hardware caused by a cyber incident, including business interruption claims triggered by ransomware attacks.
- Third-party coverage for liability claims which can arise over data privacy and data security issues.
- Cybercrime coverage for cyber and electronic related frauds for the theft of money and securities, including social engineering, wire transfer fraud, impersonation, etc.
When possible we like to wrap E&O insurance with Cyber either in the same policy or with the same underwriter.
4.Â Directors & Officers Liability (D&O)
D&O is a unique coverage form, designed to protect your management team (as well as employees) from claims which can arise from allegations of wrongdoing or mismanaging the company.Â Because claims will name the directors, officers or managers of a company individually their personal assets are at risk so D&O protection is critical.
If you plan on recruiting independent directors to your board, or your investors to the board, they will likely not take a seat until you have D&O in place.Â So, having D&O purchased early in the lifecycle of your tech firm is important.
A subsection or additional coverage to D&O insurance added to the policy is EPLI or Employment Practice Liability Insurance.Â If you engaged with a Professional Employer Organization (PEO) then you most likely will not need to purchase this as the PEO typically include this in their program with you.
Thereâ€™s a lot of websites out there touting that they can get your insurance done in ten minutes or save you 15% or more, and thatâ€™s great.Â Yes, weâ€™re a tech enabled firm, but we also believe in personal relationships.Â We want to talk to you and learn whatâ€™s really important to you.Â It wonâ€™t take long to understand your company, but we think thatâ€™s valuable so we can add our expertise in the mix and not leave it to chance that you get the right insurance at the end of the journey.Â We promise to make it as easy as possible, but we also promise to get it right and give you a great client experience as well â€“ not only at the time of buying, but through the entire relationship.
The Coyle Group is a 90+ year old insurance brokerage in New City, NY serving the greater NY Metro area and is licensed in over 30 states.