Running a business is challenging. It can sometimes feel like you have about a million decisions that need your full attention, and it’s easy to get overwhelmed that way. One such decision that every business owner needs to make is the matter of insurance. There are hundreds of types of business insurance, each of which is crucial in its own right. One form of protection you may not have considered is tech insurance. If you’re stuck on the decision of whether or not to pay for this service, here’s a short checklist to see if you need it.
Estimated reading time: 3 minutes
Do you develop tech?
The first box on the checklist has to do with what your company does. While there are multiple aspects of tech insurance, one of the most prevalent forms is protecting developing tech from theft. If your company develops technology in any capacity, taking out an insurance policy can protect you and your work from online pirates. Whether you design websites or code new video games, tech insurance keeps your hard work safe from theft.
Additionally, if your company develops electrical components, you may want to look into getting a tech insurance policy. While these policies keep your intellectual work safe from theft, they also protect you in the unfortunate case of something malfunctioning and hurting someone. For instance, if you make computer parts and one has a battery leak causing bodily injury to someone, having an insurtech policy will keep your company safe from the fallout. If your company works in tech development at all, it would be a wise decision to include tech insurance in your coverage.
Do you work with high-value data?
The second box on the checklist is the contents of your databanks. Companies that develop tech aren’t the only ones who need special insurance policies. If you work with online data, it may be prudent for your business to be covered as well. Depending on what sort of data you deal in, you could have competitors and other interested parties trying to break into your servers and steal information. While that sounds like a scenario from a spy movie, it happens to big tech companies fairly often. Rather than leaving your data unprotected, you may want to take out an insurance policy to keep you covered.
Along those lines, keeping your IT department insured can help prevent potential data leaks. When every computer and server in your business is working properly, it’ll be harder for sensitive information to be exposed and potentially harm your company. Whether you deal in R&D, federal contracts, or simply HR for larger companies, having a tech insurance policy will help keep your information safe.
Do you have financial information online?
The final box to check is your financial records. If your company is like most others, you do payroll digitally. All that data about your employees, their banks, and your company accounts is online. If the worst happens and someone outside your business gets ahold of that information, do you have a contingency plan? Having tech insurance can help protect you in the event of a financial data leak. While there’s no way to predict when someone will try to steal data, insurtech can help recover and reimburse your business.
Similarly, if your company does payroll or HR for other businesses, you should ensure you protect your data. Whether or not you deal with your own employees’ financial information, you want your servers and spreadsheets to be safe and secure. Rather than dealing with an out-of-control data leak, taking out a tech insurance policy will give you peace of mind at work.
In summary, tech insurance is a wise decision for various businesses. If your company can tick off any of these boxes, you may want to look into getting a proper policy.
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