Insurance for Technology

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Overview

With numerous digital transformations emerging, the pace of innovation is only accelerating. Even over the past three years, 45% of IT executives and business have reported a significant push on the technological gas pedal.

With no sign of a yellow light on the digital frontier, artificial intelligence trends are popping up all over large enterprises and entrepreneurial startups alike. Moving IT systems to the cloud, for example, is an initiative 60% of enterprises are expected to undertake in the near future.

Unsurprisingly, it doesn’t stop there. Plenty more AI implementations are due to take place—over 30% more than in past years, in fact . Meaning, more devices will become connected, opening the door to identity and privacy protection being a top concern.

It’s no secret that to get to the technology of tomorrow, certain foundational macro forces will make it happen—cyber, the business of technology, and core modernization. Ultimately, it’s all hands on deck for tech companies.

Why is Insurance for Tech Organizations Important?

Google:

Running for nearly a decade, Google’s antitrust probes were the main aim of a $1.7 billion fine. The U.S. tech giant was called out for market abuse regarding the company’s popular software for Android phones and shopping-related searches. 

See: Google Fined $1.7 Billion Over Advertising Market Abuse

Apple:

From an “eavesdropping” Apple glitch to a secret Canadian sex toy scandal, Chicago-based attorney Jay Edelson has won his clients millions in class-action cases. His innovative approach targets tech companies who play fast and loose with consumer privacy.

See: Big Tech Vs. Small Privacy Lawsuits

Uber:

Philadelphia lawyers called upon Uber to open their books, setting their sights set on a slew of business operating audits. Filed by three drivers, this popular rideshare app faced three years-worth of various unpaid taxes. 

See: Philadelphia drivers’ lawsuit a risk t Uber as tech giant prepares to go public

Oracle:

Backed by a high degree of statistical evidence, Oracle endured scrutiny from over 4,200 female employees. The California-based tech company faced class-action complaints regarding sexual misconduct, uneven pay, and biased workplaces.

See: Oracle systematically underpaid thousands of women, lawsuit says

Yahoo:

Two different data breaches, possibly impacting all of Yahoo’s users, catapulted a securities class-action lawsuit. Additionally, shareholders filed numerous lawsuits against Yahoo’s board and senior managers which was later consolidated. 

See: Yahoo Data Breach-Related Derivative Suit Settled for $29 Million

The importance of computers and system integrity for e-commerce companies cannot be overstated, so let’s start with some of the risks insurance addresses. The theft of customers’ personal info — or worse yet, their financial info — is a looming threat for online retailers. Bad actors can wreak havoc by stealing data, encrypting your data and extorting you, or shutting you down with a DDoS attack. These challenges can cause lasting damage to a company who isn’t prepared to face them.

Cybersecurity

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.

Legal & Regulatory

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.

Product Collapse

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

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.

System Failures

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.

Lawsuits

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.

Types of Tech Industry Companies that need insurance

  • Software & App Developers
  • Artificial Intelligence (AI)
  • Software as a Service
  • Data & Analytics
  • Blockchain
  • IOT
  • Fintech
  • IT Services
  • Internet Service Providers
  • Data & Analytics
  • Cloud Technology
  • Hardware Manufacturers

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Kyle Jeziorski, Broking Manager

Meet your specialist

Kyle is the market facing leader at Founder Shield, a boutique insurance brokerage specialized in serving emerging industries. Kyle has been at Founder Shield for 4+ years and in the insurance industry for 9+ years. Prior to Founder Shield, Kyle worked at Marsh on the FINPRO team focusing on management liability in the large private and public space. A graduate of Saint Joseph’s University’s Risk Management and Insurance Program, Kyle has focused his entire career helping clients to navigate through an ever changing risk environment.

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