Technology insurance can help protect your small business when things go wrong and technology fails.
Companies today rely on their technology. Thanks to it, successful worldwide companies can be run with just a handful of employees, while small firms can market their wares far beyond their local Main Street. But if the technology a business uses goes wrong, they don’t want to hear excuses or explanations – they just want it fixed, now. The first person they’re likely to blame if their software doesn’t work properly or if their screens go blank is the one who sold them the package – regardless of whether it’s their fault or not.
That’s why it’s important if you run an IT firm to protect your small business with tailored IT insurance. Because in today’s global marketplace, where businesses never put up the ‘closed’ sign, even a minor problem which leads to a service outage can quickly escalate into a large claim.
Why does my IT company need technology insurance?
For example, a company sues your IT firm, claiming the software solution you sold it lacks the functionality it required. Now, the client may not have bought the solution you recommended, but instead opted for the cheaper alternative of buying some new features to add to their existing system, which do not work seamlessly together. But, before you know it, you may become embroiled in a complicated contractual dispute, in which both sides’ legal teams are poring over the fine print in your service agreement to decide whether you delivered what the client wanted.
IT firms and technology service providers can buy specialist IT insurance to cover against these kinds of negligence claims. So if you’re sued for breach of contract because the solution you provided wasn’t up to specification, or because of a breach in security, or because a rival alleges you have infringed its intellectual property rights, your insurer will pay your defense costs as well as any damages stemming from legitimate claims made against you.
What does IT business insurance protect?
Companies’ strategic objectives increasingly depend on their technology and they have in turn become increasingly litigious over IT problems. So if something goes wrong they won’t hesitate to sue first and ask questions later. Tech court cases tend to be long and expensive affairs, with technical language making the arguments confusing on all sides. It also goes without saying that they’re a time-consuming and incredibly stressful experience. You wouldn’t want to endure one without having an experienced and expert legal team behind you. That’s why it’s imperative for every IT company to ensure it has the right technology insurance protection. This will give you the peace of mind of knowing your livelihood won’t be at stake if a problem occurs.
Tell us! Has your IT firm or one that you know faced an issue where your business’ well-being was at risk?