Is Your Business Protected Against Tech Gremlins

Does Your Business Have Adequate Insurance Cover?

There are many risks facing the entrepreneur and their new business and it is important to make sure the business is protected. Every kind of business whether large or small business requires business insurance cover to cater for losses during emergencies especially those related to the technology used in the business.

As an IT support company, we see ‘mini’ tech disasters happening almost daily and sadly sometimes a more serious tech disaster, like a ransomware attack or fire or theft.  Any good disaster recovery plan should include adequate insurance cover to help protect the business when it’s most vulnerable.

Small business owners have good ideas of what equipment, tools, technology, and employees they need for their business but many aren’t knowledgeable when it comes to the type of insurance they require and how much coverage is appropriate to help protect their business.

All businesses today rely on some sort technology whether that’s using specialist equipment, a Point of Sales terminal, stock control systems or just a website.  With reliance on technology comes the risk disaster when or more of those systems fail.  So knowing the best insurance cover is vital to protect the business, owner, staff and clients against such emergencies.

This article will discuss the types of insurance cover available to small business owners. Some technology disasters like equipment loss during natural disasters, data losses, data security breach for clients, or data recovery are discussed in this article.
You should always seek the advice of a qualified insurance broker before deciding on any insurance product, for example, you can find insurance advisors here.

1.General Liability Insurance

Some type of General liability coverage for your store or office is usually a legal requirement. This basic insurance policy is essential as it includes various liabilities such as premises liability and product liability. If you, your employee or the product causes or is alleged to have caused bodily injury or property damage to a third party this policy provides for both legal defence and any resultant damages.

2. Product Liability Insurance

public liability insuranceProducts you manufacture or resell are potentially a source of problems. So it is crucial for small business owners to have this type of insurance cover to protect against the claims connected to the products you sell. The policy will guarantee to cover for the loss or damages caused by the products sold. For instance, the insurance cover helps if you sell a malfunctioning computer accessory that results in loss or damage to the customer.

3. Business Property Building & Content Insurance

loss due to fire or theftNatural disasters are part of life, and entrepreneurs are never free from such threats occurring to their business. Unexpected events like fire, extreme weather conditions or disasters like floods can pose risks to your business properties and content. Business property insurance policy protects your small business against such calamities. The insurance will cover for all the loss resulting from damaged merchandise and business equipment such as computers, servers etc following unexpected events. The insurance company will also help in repairing the building.

4. Data Breach Insurance Policy

This type of insurance helps to cover the cost associated with the data security breach. As a business owner, you are responsible for protecting sensitive or non-public information about the employee or clients on the computers, paper files or servers. A data breach can occur anytime you have clients due to various reasons such as cyber-crimes or employee error. Having insurance cover to protect your small business when customers make claims of their data loss or privacy breach would be a good idea

5. Cyber Crime Liability Insurance

cyber crimeCyber-crime is a major threat to business fo all size. Cyber-crime comes in a variety of forms,  like online fraud or viruses installed on your website or even removing access to your data through data encryption.  As our reliance on the internet has increased these crimes have increased exponentially. If you run online stores a virus attack or a DDOS attack can be devastating putting the whole business at risk. Cyber liability insurance provides both financial and legal protection from such crimes.

6. Crime Insurance

Theft or shoplifting is a common risk to a business. Crimes can result from customers, visitors at your store, or from employees. They all pose crime risk to your merchandise, and hence it is advisable to have proper insurance coverage as a security measure. Unlike other insurance covers such as cyber liability, crime insurance protect your small business from direct loss. The loss can be due to dishonest or fraudulent acts committed by third parties or employees.

7. Professional Indemnity Insurance

Everyone including business experts can make mistakes. These mistakes can sometimes cause negative financial impacts on clients. Professional indemnity also known as errors and omissions insurance helps to cover you as the business owner and the company if you are found negligent in the services provided.  Also, with this type of liability insurance, you and your company are protected against all claims of financial harms to clients arising due to mistakes on the business’s part or because the firm failed to perform some services. Similarly, this liability insurance helps to cover the costs of errors made due to clerical mistakes, including legal fees and damages awarded.

8. Worker’s Compensation Insurance

Worker’s compensation insurance provides coverage to all employees injured in the workplace. With this cover, all types of medical and recovery costs are covered. Also, the indemnity will cater to the lost income if the employee needs to take time off to recover.

9. Commercial Vehicle Insurance

caFor businesses with commercial vehicles, this policy covers all types of road vehicles, and it also has a dual function. This function is protecting against both physical and bodily damages resulting from a crash or any other liability which may arise from the collision.

10. Public Liability Insurance

This type of insurance covers the cost of claims made by the public or customers for incidences that occur on the business premises. The cover compensates for personal injuries, loss or damages to properties or even death. Although the policy excludes the employee, temporary staffs or people on placements (there are specific policies for employees), the insurance covers everyone else.

11. Bring Your Own Device (BYOD) Policy

damaged tech equipmentBYOD is a policy which permits employees to bring personally owned electronic devices to their workplaces. It has become a growing trend in recent years due to the influx of smartphone, tablets, and laptops and also due to benefits associated with it such as flexible working and telecommuting. However, it is crucial to understand the risks associated with this policy. Such risks include loss of devices, breach of customer’s data or documents, firewall breach among others. Therefore, the business owner should have strong policy and compliance, together with proper insurance in place to protect against the associated risks.

In conclusion, there are a wide variety of insurance policies available and navigating this potential minefield is fraught with danger so always seek professional advice before signing any contracts. Business insurances may seem in some cases a bit of a luxury, especially to a cash strapped bootstrapper but some insurances are required by law and others may well just save your business from huge financial losses.