04 Mar Business Insurance Cover for Tech Start-Ups
Business Insurance Cover for Tech Start-Ups
Business insurance is a must for any tech start-up to ensure protection from the numerous risks inherent in beginning a business in the sector.
However, against a background of possible data breaches and other technological threats, it can be too easy to neglect the bread and butter aspects of business insurance—for example, employers liability cover, commercial property cover and errors and omission insurance.
Having comprehensive cover in place to guard against all possibilities – whether software errors, data breaches or cyber-attacks – can help a business safeguard its future success by providing cover against legal action.
Any other approach risks exposing a tech start-up to avoidable risk, potentially jeopardising an exciting business before it has even had the chance to properly get off the ground.
What you need
As a tech start-up you will need business insurance policies to protect against cyber-attacks, third-party claims, injuries to employees, injuries to contractors, property damage, and more.
When so much of business’s concern is digital, it is also important not to forget the bricks and mortar of a business, so consider commercial property insurance and contents insurance as essential.
What insurers can learn from tech start-ups
The business insurance industry can not only provide policies to tech start-ups but also learn a lot from them. Just like all players in the insurance industry, business insurers are built on data and analytics. After all, it is only by building accurate risk models that they able to be profitable and to survive.
Against this light it is hardly surprising that insurers have a reputation for embracing and innovating new technology. However, insurers have sometimes been slow in embracing today’s Artificial Intelligent-based systems. If business insurers show more tech start-up spirit, they can begin the process of embracing Artificial Intelligence-based systems that might help better understand risk factors in order to establish more accurate policy pricing: a win-win situation for insurers and start-ups.