Business insurance, sometimes, isn’t so cut and dry. If you’re like most businesses, your organization probably has a technological component. Or, you might be a tech start-up. If your business deals with programs, digital information or even has an IT department, you should consider tailoring your liability coverage to meet your cyber security needs. Check out a few tech-first business insurance tips below.
Tip One: Get a Full Life-Cycle Plan
A lot of tech companies need insurance options at different stages of maturity. If you’re a small business owner, you’ll outgrow your insurance needs eventually. Still, changing your coverage doesn't have to mean big changes in budget. It’s possible to save money on a policy while still having enough protection, however.
Rather than switching carriers all the time, try to get a comprehensive, long-term policy from the start. In some cases, it's possible to get a complete life-cycle insurance policy. Such policies come in packages, frequently giving you access to the following benefits:
- New business coverage
- Mid-term adjustments
- Policy renewals
- Policy lapse coverage
- Policy cancellation options
Full life-cycle plans often give you more flexibility as your company grows, tech-wise. In many cases, it will also protect you if any business gaps arise.
Tip Two: Cover Domestic and International Exposure
The Internet is big. It’s really big. Eventually, you might need to conduct business in other countries. Even if you’re not a multinational enterprise, you should defend against international exposure. Cyber attacks don’t always originate in your country, after all. Also, your software’s packaging might hurt someone overseas. Make sure your product liability plan is on par with your business’s full outreach capabilities.
Tip Three: Carry Certificates of Liability Insurance
A Certificate of Liability Insurance is a document which covers the key parts of an insurance policy. It includes the following:
- Start dates
- Expiration dates
- Terms of coverage
- Covered parties
- Policy limits
A lot of businesses offering technology services need to have this information. A Certificate of Liability Insurance is particularly important if you’re outsourcing digital solutions to smaller businesses.
Tip Four: Cover the Legal Expenses
About 66 percent of cyberattacks target customer records. Therefore, data breaches are expensive. Between investigation, client notification and identity recovery, the expenses can build up. Make sure your liability policy has enough coverage to manage these fees. Even a single data breach can cost your business hundreds of thousands of dollars.
Make sure your cyber liability insurance plan is always up to date. Between remediation services and financial coverage, you have a lot to choose from. Your business insurance should cover all digital parts of your organization.