Technology & Software Company Insurance
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Technology and software company insurance encompasses a range of covers to ensure financial protection from unexpected events
Technology and software companies work at the forefront of innovation and operate within a constantly evolving environment. Therefore, insurance solutions are required to be flexible and comprehensive to offer the protection required.
At get indemnity we are experts in insurance for software companies and can access the wholesale market to identify to range of competing solutions to meet your needs.
Technology & Software Insurance Guide
- What is technology & software insurance?
- Technology professional indemnity insurance
- Professional activities measured by risk
- Technology & software company insurance guide
- Technology business insurance considerations
What is technology & software insurance?
Technology & software insurance provides specialist cover designed for software developers, IT services, hardware providers and other companies working within the technology sector. Cover typically includes:
> cyber insurance; and
To obtain your no-obligation quotes from a range of wholesale insurers, please complete our online application.
Technology professional indemnity insurance
Maintaining adequate professional indemnity insurance is necessary when dissatisfied clients are increasingly likely to consider litigation to recover costs and potential damages.
Critical to business - Companies place great importance on the application of technology to achieve their strategic objects. Expected benefits are often identified and detailed within the architecture phase. If these high expectations are not delivered upon, clients may seek to identify ways to bring a civil action.
Potentially large counterparties - The UK technology sector is made up of predominantly small and medium sized companies. If disputes arise, technology companies can find themselves defending legal actions against companies with significant financial resources.
Unfounded allegations - Technology companies through no fault of their own can become the target of frivolous allegations. It is not uncommon within the technology sector for professional indemnity claims to be without merit. Unfortunately, the time and costs associated to defend these actions can still be significant.
As a digital insurance broker, we have the tools and knowledge to identify the most appropriate technology & software insurance to meet your needs.
It is not uncommon for new and untested products to have unintended or unforeseen consequences. QBE Insurance have produced an insightful article called Technology companies face some challenging risks.
Professional activities measured by risk
Technology and software company obligations, responsibilities and therefore insurance needs will vary depending upon their area of expertise.
> Low to medium risk
Application Developer, Data Processor, Computer Systems Analysis, Control Systems Integrators, Hardware Design, Hardware Installation, Hardware Maintenance, Hosting Services, Internet Services, IT Consulting, IT Contractor, IT Support, IT Security, Network Management, Software Development, Software Installation, Software Maintenance, Systems Integration, Training Services.
> High risk activities
Cryptocurrencies, EWallets, Medical Software, Point of Sale (POS) System, Reward Card Providers, Safety Automotive Systems, Trade Execution Software.
Technology & software company insurance guide
The below guide identifies scenarios you may face and the available insurance for software companies that can offer financial protection:
| What would happen if… | Technology Insurance: | What the coverage does: |
|---|---|---|
| A client alleges an infringement of intellectual property rights when a similar solution is developed for a competitor. | > Professional Indemnity | Protects your company against legal costs incurred in defending the allegation; and damages from any award or settlement. |
| A client seeks compensation for a failure to deliver on a software project within a specified timeframe. | > Professional Indemnity | Protects your company against legal costs incurred in defending the allegation; and damages from any award or settlement. |
|
A client seeks compensation for a system upgrade that contained an inadequate component that crashed their network for 48 hours. |
> Professional Indemnity | Protects your company against legal costs incurred in defending the allegation; and damages from any award or settlement. |
| An employee causes serious injury after slipping over a wet floor and seeks financial compensation. | > Employers Liability | Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. |
| A client suffers a serious injury after falling over object left on the floor of your premises and seeks compensation. | > Public Liability | Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. |
| The Information Commissioner's Office investigates and prosecutes your directors for a data protection breach. | Protects the directors against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
| An allegation of breach of contract is made against your company. | Protects the company against legal costs incurred in defending the allegation. | |
| You discover that an employee has been misappropriating funds over a number of months. | Protects the company against financial loss from the theft of property, money or securities by an employee. | |
|
An allegation of unfair dismissal and workplace harassment is made against your firm. |
Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
|
A cyber breach steals customer information and you are required to notify thousands of individuals. |
> Cyber Insurance | Protects the company against financial loss arising from security and privacy breaches. Can cover first and third-party losses. |
| Your company premises and equipment is damaged as a result of an insurable event? (i.e. fire, flood or storm). | > Property Damage | Protects your company’s buildings and contents (including options for computer equipment) against loss or damage from a range of insured perils. |
|
Your company is unable to trade as a result of an insured event. |
> Business Interruption | Protects against the loss of income from being unable to trade as a result of the insured peril (i.e. property damage from a fire, flood or storm). |
Tailored insurance covers are available that can meet more specialised needs. Additional covers can also include business health insurance.
At get indemnity we maintain the knowledge and expertise to offer a wide range of technology business insurance solutions for any transferable risk.
Technology business insurance considerations
Technology and software companies are faced with a variety of risks often dependent upon the nature of the services offered.
Specific consideration should be made to purchasing sufficient PI insurance, sometimes overlooked, if there is not a contractual requirement to purchase.
It is worth considering that defending a liability insurance allegation can typically amount to half the total cost of the claim.
Please complete our online application to apply for the above technology & software company insurance. If you are unsure which business insurance is the most appropriate, please contact us to discuss.
This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.