Insurance You Need for Your Tech Startup

Insurance You Need for Your Tech Startup

November 3, 2022 / 5 mins read

You’re now part of the growing tech startup community in Prince George.

As a startup, you need to protect your business with a technology insurance package that suits your business and how it operates.

Ask your Western business insurance expert about what type of technology insurance you need for your Prince George tech startup business.

We’ve got the expertise and knowledge to get you the right technology insurance package that fits your startup, whether you’re Prince George or in northern British Columbia.

What is technology insurance?

Technology insurance helps protect your hardware, software, intellectual property, and the unique risks your tech startup can face.

Discuss what kind of coverage you need with your Western business insurance expert to make sure you have the insurance you need for your tech startup. Whether you work in software development, ecommerce, web hosting, IT, biotech, cleantech, fintech, we will help you get the right coverage at the right value. You will be able to show clients proof of insurance prior to signing a contract with your startup, if requested.

We will help tailor your insurance to your tech startup and anticipate what you will need as your startup reaches the next stage of growth.

What kind of technology insurance package do I need?

1. Commercial General Liability (CGL) Insurance: This type of insurance can protect technology startups against common claims or lawsuits alleging third-party bodily injury, property damage, false advertising, and libel or slander. If you are sued, CGL may cover legal costs, regardless of the lawsuit’s outcome.

Without commercial liability insurance, you would be responsible for paying any liability costs out of your own pocket.

Ask your Western business insurance expert, what level of CGL coverage your Prince George startup needs.

2. Technology Professional Liability Insurance (Errors and Omissions): If you provide a professional service or advice, errors and omissions liability is necessary. This type of insurance helps cover legal expenses if you’re sued by a third party for causing them financial loss due to an error, omission or professional negligence related to your advice or service. For example, E & O insurance will help protect you if your software fails to perform on a client’s website and you are sued for financial loss and reputational harm.

3. Cyber Insurance: Cyber Insurance helps your Prince George startup deal with a cyberattack, data breach, phishing, or ransomware attack. This type of insurance can help recover stolen data and repair damaged computers and networks and it can help restore stolen customer and employee identities. Depending on the size of the breach and the information that was taken, the customers who are affected can sue your business for damages.

Your Western insurance expert can customize your cyber insurance to suit your startup’s needs.

4. Intellectual Property Insurance: This type of coverage helps startups defend themselves against claims of infringement on patents, copyrights or trademarks or their theft. IP insurance can help cover the legal costs of pursuing infringement or theft of your startup’s intellectual property. It also covers legal defense costs for policyholders accused of IP infringement or theft.

There are two basic types of IP insurance:

Infringement defence: It covers policyholders for infringement claims brought against them.

Abatement enforcement coverage: This type of coverage gives IP owners the financial ability to enforce their IP rights and pursue infringement claims.

5. Business Interruption Insurance: Business interruption insurance is an additional property insurance coverage that covers loss of income if your business suffers a disaster, and your business premises or facility need to be temporarily closed. This type of coverage can mean the difference between reopening your startup and going out of business.

6. Commercial Auto Insurance: If you have a business car, truck, or van that you use for your startup, it needs commercial coverage as part of your tech startup insurance package. Your personal car or truck insurance usually won’t cover your startup business.

7. Commercial Property Insurance: This type of insurance can cover losses due to fire or lightning, including removing property to protect it from further damage. You can also include vandalism and malicious mischief as part of your commercial property insurance in your tech startup insurance package.

8. Crime or Fidelity Coverage: This protection for tech companies for incidents related to employee theft of product, theft of money, counterfeit money or forgery, credit and debit card fraud and funds transfer fraud.

9. Equipment Breakdown Coverage: If you are dependent on your equipment, this type of insurance covers the costs of repairing or replacing equipment that suffers a sudden or accidental mechanical or electrical breakdown, due to an insured peril.

How much will my technology insurance package cost?

Not all tech startups are the same. That means insurance premiums and coverages will likely vary from business to business.

Factors when calculating your premium can include:

  • Services offered
  • Years in operation
  • Training and experience
  • Annual and projected revenue
  • Claims history
  • The coverage limits you need

Your Western insurance expert will go over in detail what coverages your tech startup needs.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Prince George startup the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your tech startup business.

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