Technology insurance is a highly specialized form of business insurance geared specifically towards coverage in the IT field. Large cities such as New York have an especially critical need for sufficient technology coverage, as the high population can increase both the client base and the risk potential. While technology insurance New York has coverage options similar to many other professional insurance policies, there are a number of additional areas that must be addressed, with one of the most important being crime coverage.
Technology insurance New York has many of the same features of other business insurance policies, including General Liability, Professional Liability, and Workmans Compensation. However, the specifics of the coverage may vary from the protection provided through typical business liability insurance. Professional Liability in the area of technology, for example, is not limited to the tangible damage that can occur through inadequate professional services, but also extends to the loss of intellectual property, meaning electronic data and information owned by the client. While this intellectual damage is not physical, the loss of critical data can be financially devastating for the company should a claim be filed. This is the main reason that Professional Liability insurance should be combined with Tech E & O coverage.
Tech E & O coverage in regards to technology insurance New York is specifically intended to fill in the gaps of Professional Liability coverage. When dealing in the area of technology, claims can be filed for any number of reasons, from the receipt of poor technical advice to the purchased software or components not living up to expectations, many of these are not covered under Professional Liability policies. For this reason, E & O coverage is imperative for protecting against the claims that fall through the cracks of Professional Liability, and coverage includes the cost of defense, as well as any judgements made against the company. An added benefit is that coverage can also be extended to any subcontractors hired to perform specific tasks on behalf of the IT company.
Hired auto is another specific coverage provided by most technology insurance New York companies, which offers protection against damage claims involving vehicles not owned by the company. This is especially important if employees or subcontractors use their own vehicles to make service calls, as incidents involving these vehicles can result in claims made against the company. Contents coverage is also recommended as an addition to technology insurance policies, as the equipment used in the place of business can be extremely expensive to replace. One of the most crucial additions, however, is crime coverage, as the risk of loss through dishonesty can be very high, particularly in an area such as New York.
Crime coverage is often added to technology insurance New York to protect the company from losses resulting from the theft of both real and intellectual property. The potential for dishonesty in employees is one of the main reasons that this has become necessary, as these are the people that have the specific knowledge of the technology used by the company, and the means to either leak it to competitors or use it for their own private gains. Either of these can amount to significant financial losses to the company. The one disadvantage of crime coverage is that the limits of coverage may not cover the real losses experienced by the company in the event of theft.
Technology insurance New York is especially important given that the large population means an increased potential for risks. While policies often contain coverage options similar to typical business insurance plans, tech insurance also addresses areas that may require additional coverage, such as tech-specific E & O, hired auto, and crime coverage. Selecting a provider that specializes in technology insurance is recommended when searching for a policy and comparisons should be made concerning both coverage and prices before a policy is purchased. The intellectual property that is inherent in the technology field means that physical damage is not necessary to file a claim, which makes technology insurance New York one of the most important parts of any New York IT company.
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