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8 types of insurance for early tech companies

When you start a technology business, the last thing on your mind is the insurance policy. Before opening the doors for the first time, you should definitely check with the insurance companies for general liability, professional liability and cyber insurance. Mistakes happen and catastrophic events can wreak havoc on any business, and having these eight types of coverage in place will ensure your business thrives, even in tough times!

#1. General liability

All basic and general liability policies cover all the essentials needed to protect your business from the unexpected. Although each insurance company has its own policy specifications, most of these plans cover the business for accidents, including basic property damage, damage to third parties on site and other common occurrences. Dropping a laptop or falling on a slippery floor are two types of events covered.

#2. Cyber ​​identity theft

Data is quickly becoming the backbone of business success, but managing all that information can be a cause for concern. Hackers are constantly looking for new ways to cause data breaches. The coverage offered by cyber insurance companies helps cover the costs associated with data theft. From customer notification fees to expensive exploit cases, cyber coverage will protect your business when hackers do their worst.

#3. Product liability

Most technology companies are manufacturers that create devices for their customers or program software to make their lives easier. When these products fail, it can be a major headache for your business. By investing in product liability insurance, you can save your business from bankruptcy due to a small software error. The different types of coverage are:

  • Product manipulation
  • New/dangerous liability
  • Ineffectiveness of warranty
  • Retroactive liability
  • Withdrawal costs
  • Responsibility for software

Problems with products, even virtual ones, can lead to the loss of crucial customer data. Therefore, even SaaS companies would do well to acquire a policy that covers their products. Check with cyber insurance companies to see if your policy covers software liability.

#4. Property insurance

If your business needs equipment to operate and space to work in, property insurance is a must. The term “assets” includes everything from buildings and warehouses to laptops and everything in between. You shouldn’t buy anything for your business without adding it to your property insurance. Usually, this type of plan protects your property against fire, smoke, extreme weather and vandalism.

#5. Workers compensation

Having a staff of hard working men and women means keeping them safe on the job. With workers’ compensation insurance, your employees are protected if they are injured in connection with the service. These policies cover accidental damage and associated medical expenses. It can even help replace missing wages and benefits. On the other hand, identity theft cases are usually covered by cyber insurance. In most states, you must purchase workers compensation insurance before you can even open your business!

#6. The home business

If you run a business from your home, home insurance is a necessity. Many homeowners believe that their policy will cover any incident that occurs when they use their spare bedroom as an office. However, most plans do not cover you in the event of an accident involving your business. They also generally do not refund damaged company equipment. Like cyber insurance companies, home insurance providers have specialized plans to help protect all of your business assets.

#7. Cessation of activities

The pandemic has taken many businesses by surprise and forced them to temporarily or permanently close their doors. It is in scenarios like this that business interruption insurance really comes in handy. Whether due to a health crisis or natural disaster, if you are forced to close your business, business interruption insurance can help you cover the expenses that need to be paid all the time. The last thing you need to worry about during a crisis is how you’re going to pay rent, utilities, or payroll obligations!

#8. director and agent

Insurance aims to reduce the risk of accidents and errors. Believe it or not, sometimes the company needs to be protected from its administrators too! Having this type of policy helps separate people who hold leadership positions from the company itself. If you or another manager give bad advice or lose your mind at work, the company can be held liable. With directors and officers insurance, you will be covered against such unfortunate events.

Insurance basics

Whether it’s protecting your equipment with property coverage or backing up your customers’ data with the help of cyber insurance companies, you need a variety of insurance policies to ensure your business is completely secure. Check with your state for specific rules regarding the types of coverage a business like yours needs to operate. Once you have an insurance plan in place, you can rest easy knowing that your business is safe, no matter what the future holds!

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