By: John Abbott
When people think Technology Insurance, most will think of Cyber Liability coverage first. While Cybersecurity and Cyber coverage is a growing concern and an important area for all companies to address, whether they are technology related or not, it is just one component in a robust risk management program. Cyber related losses are not always the most damaging, nor are they the only area of concern for companies. The more pertinent risks are often more mundane: is my property insured for a proper value, do I have coverage for all perils that I am facing, does my insurance comply with my contracts, am I buying enough insurance to cover my exposures?
When it comes to coverage plans specifically designed for Technology companies, one unique area of risk that must be addressed is Contingent Risk. With cloud based services and Sass-model software increasingly being utilized by Technology companies, the risk of loss is being outsourced to third parties who provide these services. Their use provide flexibility and cost-savings that fit well into business models and help companies prosper, but it also places upon companies a greater dependence on the systems of their providers.
There are ways to provide a backstop to limit the impact to your business and mitigate this risk. Contingent Liability coverage steps in to play when a third party loss occurs and the loss is tied to the insured party, making them liable as well. Pairing Contingent Liability with a full risk management plan ensures companies are covered even in situations where they are not primarily liable.
Keeping in mind the areas of unique exposures Technology companies face helps to build a solid coverage plan that protects not only the company in question, but their employees, associates, and customers as well. Through a comprehensive risk management view, we can craft an insurance program that will balance what you need to cover and what you want to spend.
John Abbott is a Senior Account Executive with AssuredPartners Colorado and specializes in companies in the Technology industry. He has a demonstrated history of working in the insurance industry and is a strong professional skilled in Professional Liability, Risk Management, Property & Casualty Insurance, Excess, and Employment Practices Liability. Contact John at AssuredPartners Colorado to discuss your companies insurance needs (303) 863-7788.