Technology companies own valuable intangible assets, such as sensitive data, software and intellectual property, which a general liability policy likely doesn’t account for. General liability provides protection in the event of bodily injury or property damage. Technology insurance cover is designed to protect against the significant risk of economic loss related to intellectual property, network liability, and network and cyber-property security.
A comprehensive risk management plan needs to guard against the unique exposures that technology operations present. Specialised technology insurance is relatively new and the terminology is still evolving as more claims are handled and new exposures are discovered. As a result, the terminology can be confusing and hard to understand. The following terms are some of the most common you will need to know to best understand your technology insurance protections:
Cyber-liability – A cyber-liability policy is a cover that protects against damage from cyber-attacks, data breaches and other basic risks that result from using electronic communications and data storage. They often cover the cost of recreating damaged or lost data or systems, but do not include the costs that stem from the loss or damage, including legal expenses and data notification costs. Sometimes the term cyber-liability is used broadly to describe technology related risks and technology specific insurance in general.
Cyber-property – The intangible property your company owns. This can include websites, data and networks. These intangible assets can all be damaged. To protect your cyber-property you may need to broaden the property enhancements on your existing policy. Also, check if you have any cover that would protect if your company or an employee caused damage to another organisation’s cyber-property.
Technology E&O – Technology errors & omissions (E&O) cover protects against claims by a client that they suffered a loss due to mistakes by your company. These mistakes must be due to error or oversight in a product such as a software programme or web service.
Media and intellectual property liability – All content on the internet is considered to be published, meaning it is subject to copyrights and infringement. Negative content about a person or company can be considered libellous. Take caution when publishing or posting anything to websites, forums or social networking sites.
The exposures and threats of technology business operations will continue to grow as the technology industry does. Sirelark Risk Services can help you keep your business protected against these specialised risks.
The content of this publication is of general interest and is not intended to apply to specific circumstances or jurisdiction. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice from their own legal counsel. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2011-2013Zywave, Inc. All rights reserved