The Top 5 Reasons Why Your Company Needs Technology Insurance

As technology becomes more and more important to the business affairs of nearly every type of company, the dangers grow as well. Today there are technology-related liabilities that you may not have even dreamed of years ago. Just because you are covered by a general commercial insurance policy does not mean you are covered in the event of every technology-related issue. If your company has a website, internal or external network, utilizes wireless communication devices (smartphones) or it retains a customer database, you are vulnerable to technology-related lawsuits. Consider these important reasons why your business needs technology insurance to assure continued protection;

  • Your company can be sued for information that is lost, even if you are using a service that is beyond your control. For instance, if you use a service such as Google Docs to save your customer’s data, and that service went down, your customers could sue you for losses that stem from that incident. Technology insurance can protect you from this.
  • If your company’s network were to become infected by a virus, that later spread to your customers, you could be liable for damages to your customer’s own networks. Additionally, the damages to your own network can completely ruin you financially. A good policy will protect you from both of these potential expenses.
  • One issue that is often in the news occurs when a hacker accesses a company’s files and obtains confidential information from a customer database. If this happens with your customer files, you may be susceptible to lawsuits from those customers that have their information stolen.
  • Along the same lines, your old computer systems, fax machines and other equipment may have confidential data left on them. If you fail to remove all remaining data properly, you could accidently expose clients’ data. This is another reason to consider technology insurance.
  • Software glitches, hardware malfunctions and other equipment failure can lead to lost work time. If you cannot afford the costs associated with downtime, a technology policy can protect you in these cases as well.

These are just a few of the incidents that can occur—in these cases, technology insurance could keep you from facing financial hardship or even losing your business. Speak with a knowledgeable agent, such as one from Greenwood Insurance Group, and see what options are available to protect your business from this type of situation.

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