One of the most important things a tech company needs to get right is its insurance. But it’s often one of the things they neglect until the last minute and end up buying a policy that might not be suitable. These companies will often have complex insurance needs that might not be available as standard, and it can be tricky to understand exactly how to make sure everything’s covered properly.
So, to help guide you through the insurance minefield, we asked Lisa Petherick, Client Director at Konsileo and Gold Partner at Sci-Tech Daresbury for her top tips on getting the right insurance for tech companies.
Don’t look for an off-the-shelf solution
‘Going online and finding a policy isn’t always the best course of action for tech companies. These kinds of policies are fairly generic and take a one-size-fits-all approach, which is unlikely to give you the level of cover you need. In fact, some of them might not cover you for what you thought they did when you come to claim too, so you could end up with a hefty sum to settle.’
Professional indemnity is a must
‘I’ve heard tech company owners question whether they really need this. The answer is always “Yes”. Professional indemnity protects you if any third parties take action against you. For example, a technology-based company could be found negligent if they unknowingly transfer a virus to clients through their online services.’
Protect what’s yours
‘Another bit of insurance that’s vital to tech companies is Intellectual Property (IP) protection, as it helps with copyright or trademark infringement. This could be where you inadvertently copy elements of something somebody else has developed (infringement), or someone does the same to you. IP protection can be very useful in both cases.’
Cybercrime is a huge issue
‘This is perhaps the biggest challenge tech companies are facing right now. Claims are increasing quicker than ever before. One thing we’re seeing more of is cyber criminals actively recruiting furloughed or recently laid-off workers to get them into companies’ systems. This is as well as increased cyber-attacks on remote workers using their home internet, which can be less secure, to access company data.
‘Insurance policies are available for cybercrime that include risk management advice on how to keep systems as safe as possible, as well as dealing with criminals directly in the event of a breach.’
Homeworking presents new challenges too
‘Business equipment from the office isn’t automatically covered if it’s used at home, so it’s a good idea to check your policy now many people are working remotely. This includes all staff, not just business owners, and things like laptops, phones and general office supplies bought by the business.’
‘Check where you stand if your premises are empty for long periods too, as the majority of business insurance policies limit cover after buildings are unoccupied for more than 30 days. Speak to your provider about extending this if you need to, as the majority of insurers are extending this period to 60 days at no extra cost.’
It’s good to talk
‘Most insurance companies and brokers want you to talk to them, especially when things are changing so rapidly as they are now. If you’re unsure about something on your policy, get in touch and see what they say. Insurers are more proactive than ever before and are having to change things quickly, so don’t be afraid to contact them.’
Do your homework before you renew
‘As I said earlier, a standard online insurance package might not be the best thing for your business, so see what’s out there and do some research before you need to renew. Insurance brokers can be a good option as they might be able to match – or even beat – an online price and give you a more comprehensive policy. They might be able to create something unique for you too, with a range of different insurances wrapped up together.’