Insurance for Technology

High profile data breaches seem to be a constant in the news cycle. Growing from $1.2 million in 2016 to $1.3 million in 2017, the average cost of a cyber attack is ever-increasing. Unsurprisingly, tech companies are often the victims of cyber crime where hackers steal or destroy valuable data. Theft of PII can be particular damaging.

Plenty of sector leaders think that regulations have the potential to slow the growth of the industry. Navigating the complexity of regulatory requirements is a major risk for any Tech company. Often operations do not fit easily into preexisting regulatory regimes, especially if you want to scale internationally.

When the service or digital product fails and causes financial loss, Tech Errors & Omissions is the first line of defense. Of the 55% of small businesses reporting at least one data breach in the past year, ½ of those experienced multiple breaches. This policy would respond should clients lose revenue, for example, after a breach of this nature.

Data breaches are when sensitive information is data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. IBM study estimated that the average cost for companies who are victims of cyber attacks is a whopping $141 per record.

By nature Tech companies are heavily reliant on back end & front end systems and third party services providers for their applications, servers and data services. Any outages, downtimes or failures can result in lawsuits from customers who rely on their platforms to run their business.

As fast as a modern tech company grows, exposures seem to grow at twice the rate. For this reason, it’s vital to protect current and past directors and officers from legal action claiming a mismanagement of the company. An average of 25% of companies face this level of D&O loss.