To many business owners, computer business insurance sounds like something only tech companies would require. In reality, you don’t need to be doing programming or building and repairing hardware in order to benefit from computer business insurance. In this day and age, every business utilizes computers to conduct their trade. Any company without computer business insurance – also known as tech E&O insurance – is at risk. Read on to find out how your company can benefit from tech insurance.
Computer Business Insurance and Data Breaches
One of the most common and serious vulnerabilities for business is data breaches. Without a computer business insurance policy a company can be seriously damaged by a data breach, or even put out of business. Many business collect customer data, sometimes without even realizing it. Few companies wipe the memories on fax machines before discarding them, not realizing it holds customer information they are required to keep confidential.
Just a few of the causes of data breaches:
– An employee loses a flash drive, CD, smartphone, or laptop containing information
– Security software is temporarily disabled to allow for maintenance and not properly reconfigured
– Viruses are transmitted during the installation of new software
New laws are being created that require companies to disclose breaches of personal information. In some states, businesses are already required to notify customers whose identifiable information may have been lost or leaked. In these instances, computer business insurance could help indemnify your company, saving substantial amounts of money.
Some of the expenses of data breaches:
– Loss of business due to bad publicity
– The cost of notifying hundreds or thousands of customers
– Hiring lawyers to defend against lawsuits
– Credit monitoring for large numbers of individuals in the event information leaked included financial details
Other Benefits of Computer Business Insurance
Data breaches aren’t the only liability that could be covered by computer business insurance. In addition to data breaches and failure to prevent disclosure of personally identifiable information.
Tech E&O insurance could help protect your business from these risks:
– Copyright infringement of software code
– Negligence and failure to perform
– Failure to prevent the introduction of viruses and malware
– Trademark violations
If contracts aren’t carefully written and fulfilled, IT consultants and professionals can find themselves liable for failure to satisfy the original scope of work. System operators can be held responsible for failing to properly secure networks or databases, thus allowing for the introduction of a virus that corrupts data and disrupts business. Without computer business insurance, you are operating in a perpetual state of jeopardy. No one does their best work while they’re fretting about lawsuits. Furthermore, most general business coverages do not protect the holder against the threats mentioned above. Business in the 21st century is ripe with new opportunities and new dangers. Protect against the latter so you can make the most of the former. Talk to a tech E&O professional today to discuss coverage options.