How Technology is impacting the Insurance Industry

The Insurance Industry has been Slow to Adapt to Technology

Many people within the insurance industry say the industry has not evolved since the Industrial Revolution. In some ways that is a true statement. With the introduction of several different forms of technology the insurance industry is advancing into the twenty first century. Technology has and will play a large part of the insurance industry for the foreseeable future. The insurance industry has been slow to adapt, but there the best companies are now using technology to gain a competitive advantage in both personal and commercial insurance.

Human Brain, Technology, Artificial Intelligence

Types of Technology Impacting the Insurance Industry

Wearables

Wearables have evolved far beyond wristwatches and clip-on GPS trackers. Some companies are adding smart vests and even boot inserts to monitor employees. What businesses are monitoring include heart rate, body temperature, and even the sweat rate. This helps businesses prevent employees from suffering from heat stroke or hypothermia. Motion sensors are being used to detect when a worker has fallen or in some instances when an employee has not moved for a period of time. These wearable technologies can alert supervisors or nearby colleagues of a potential danger.

Drone Technology

Insurance companies are using drones in a number of ways. One of the best ways carriers are using drones is to speed up the claims process in the aftermath of a natural disaster. Carriers will send an underwriter to an area and inspect multiple damaged properties with the drone saving an enormous amount of time in the claims process. In some instances, the underwriter can begin to process a claim even before the owner of the property is allowed back in to the area. In the future, many within the industry think the industry could use drones to view a property periodically throughout the year to record the condition of a property prior to a claim. Like most things with technology and the insurance industry, this will create new types of risks and privacy issues.

Autonomous Vehicles

Autonomous vehicles bring many different issues to the insurance industry. As autonomous vehicles work now, the insurance is held by the owner of the car. In the future, as autonomous vehicles move into other areas of the economy, the insurance industry will have to develop ways to deal with new types of risks. When a company like Uber or Lyft begin offering rides in unmanned vehicles, the liability insurance required will  change. When a company like Amazon begins using unmanned vehicles for deliveries; the insurance industry, along with the states and federal government, will have to adjust how the liability involved in these vehicles develops.

Computer Technology

How is Technology Impacting the Insurance Industry

Underwriting and Claims are quicker and more efficient

Insurance is a very specific product to sell. The price for one business is dramatically different than another business for a number of reasons. Insurance agents need a lot of information about a business before they can offer a quote on premium. There are a number of reasons for this and it is a frustration for both agents, underwriters, and business owners looking for coverage. Technology is helping to streamline this process.

Technology adoption is helping to better identify fraud and other crimes

There are numerous ways insurance companies are using technology to improve the insurance process for all policyholders. No where is that more evident than when it comes to policing fraud. Wearables and smart home devices are helping insurance companies determine when someone is committing arson or when someone is lying about a crime. A good example of how technology is being used to cover up a crime is in Arkansas in 2015, man was suspected of murder. Using the Amazon Echo and the smart water heater, prosecutors found that a large amount of water was used in the early hours of the morning on the night of the murder. The prosecutors used this as circumstantial evidence to show the man was covering up the crime.

Technology

Technology Requires New Types of Coverage

Cyber Insurance 

Cyber insurance is a necessary coverage for most business need in 2019. There are three types of policies that businesses may need. Cyber Liability and Data Breach Coverage are the two policies most businesses need and they are almost exclusively sold in tandem. The additional coverage some businesses need related to cyber insurance is Technology Errors and Omissions.

Data Breach Insurance deals with the first party damages to you and your business. Cyber liability deals with the third party liability a business faces to other people damaged by a data breach. Technology Errors and Omissions deals with businesses that provide or sell technology services and products. Thus far, carriers have had trouble understanding the risk factors related to cyber. For most policies, the carriers have years of historical loss information to determine the probability of claims. Most businesses have been operating over the internet for less than 10 years and a majority of that time they did not carry cyber insurance. Because of this lack of data, most insurance carriers either do not have a strong appetite for this coverage or they keep premium relatively high.

 

Odd ways businesses get hacked.

3 ways your Small Business can be Hacked

If your small business has eve been hacked, you know the importance of cyber security for small business.  You more than likely know that data breaches are no longer just a problem for big business. Any business can be hacked and the ways in which a business is hacked are very widespread. Here are 3 ways your small business can be hacked that are within your control to stop.

Hacked

Not periodically resetting a password

A few years ago there was a hack that occurred between two baseball teams, the St. Louis Cardinals and the Houston Astros. This hack occurred because a rogue employee (Chris Correa) within the Cardinals Organization guessed what the password of a former Cardinals Employee who now works for the Astros (Jeff Lunhow). It has never been confirmed what exactly the password was and if Correa knew what Lunhows’ password was when he was with the Cardinals, but Correa has admitted that he guessed the correct password for Lunhows’ log in credentials with his new team the Houston Astros.

This could have been prevented by simply resetting a password periodically and not using the same password for all log ins. Here is one tactic, many people use to remember their password when it has to change.  Start with a password like:

BaSkeTBaLl_2741+3657

The word Basketball can change with the seasons.  For instance, you could use the word baseball in the Summer and Football in the Fall.  You could also keep the same password and change the special character. In this example you would change the _ and the +. Be careful using this method because you are not changing much about the password.

Old Employees Still Have Network Access

When an employee leaves your organization there shoul dbe adequate steps taken to ensure the terminated employee no longer has access to any networks or internal files. There also may be several Sales as a Service (SAAS) companies out there that your business has an account with, but the terminated employee is the only employee who used the account. Having a way to keep access to those accounts or to change the password is important.

Third party vendors getting hacked

Two of the largest data breaches in history, Home Depot and Target, were started by a third party vendor being hacked first. In both of these cases a small business was hacked several weeks or months previously and the criminals waited until they realized they had access to the much larger database through this vendor partnership.  In the case of Target it was a local HVAC company that serviced a few of their locations in the Pittsburgh area. Home Depot had a vendor partner that processed the credit and debit card transactions at their self check out stations in most of their locations.

3 Types of Cyber Insurance Every Business Should Have

What if my business does not deal with computers.  Does that mean I really don’t need Cyber Liability Insurance?  What if I am the only person in my business who uses a computer.  Doesn’t that mean I don’t face all that much risk?  Let’s say I might need Cyber Insurance, but what kind and how much?

Do any of these statements sound familiar? If so, you definitely need Cyber Liability Insurance. The term Cyber Liability Insurance is used pretty generally because cyber security is such a young sector and the data about the risks are changing very rapidly.  Business owners and insurance companies are still having trouble determining who is at risk and how much risk those businesses actually face. Just because this is a new type of insurance coverage does not diminish the importance it can have for protecting your business.

Cyber Liability Insurance

Many business owners think a data breach can only occur to a big multi-national corporation. For the big data breaches that make the news, this is certainly true, but the truth is most data breach first start out with small mom and pop businesses. These mom and pop businesses are first hacked with the hackers intention of gaining access to a much larger database.  This usually occurs through carious types of vendor partnerships. In the case of Target and Home Depot both of these breaches were first accessed by a much smaller business partner, who was hacked.  For this reason it is immensely important for you to talk with an experienced independent insurance agent about all the risks your business faces.

The three main types of Cyber Liability Insurance Coverage are Cyber Security, Cyber Liability and Technology Errors and Omissions Insurance. The first two deal with risks relating to a Data Breach. The third deals with companies that provide technology services and products.

Cyber Security

Cyber Security Insurance is also known as Privacy Notification and Crisis Management Expense Insurance.  This coverage includes coverage for first party damage to you and your business. This coverage does not protect your business from damage done to third parties. Cyber Security Insurance deals specifically with the immediate response costs associated with a data breach. In many cases it is required by law to find out how the breach occurred, notify those affected and provide credit monitoring services for one year.

Examples of costs included in Cyber Security Coverage include:

  • hiring a forensics expert to determine the cause of the breach, suggest measures to secure the site and prevent future breaches

  • hiring a public relations agency to assist in dealing with the crisis

  • setting up a post-breach call center

  • notifying affected individuals whose personally identifiable information (PII) has been compromised

  • monitoring these individuals’ credit (usually for 1 year)

  • paying the costs to “restore” stolen identities as a result of a data breach (e.g., expenses of notifying banks and credit card companies)

Cyber Liability

Cyber Liability Insurance, also termed Information Security and Privacy Insurance, covers the insured’s liability for damages resulting from a data breach. It does not cover expenses that deal with the immediate response cost. This type of insurance protects businesses which sell products and services directly on the internet.  Also, it protects businesses which collect data within its internal electronic network. The most common forms of data breach involve personal or financial information like credit card numbers, bank account information, social security numbers, health information, trade secrets or intellectual property.

The types of situations where this information are accessed include:

  • An employee’s car is broken into and a business laptop is stolen.

  • An email containing sensitive customer information is sent to the wrong person.

  • Important paperwork, like a credit application, is taken during a break-in.

  • Failure to timely disclose a data breach.

Technology Errors and Omissions

Technology Errors and Omissions Insurance, also referred to as Professional Liability or E&O, is a form of liability coverage that protects businesses who provide or sell technology services and products. This coverage prevents businesses from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in a civil lawsuit. This can include business who sell and service computer products, but it can also include graphic designers and advertising agencies who create digital content that can harm a company’s reputation. It covers computer programmers who may create faulty code for a website that causes that business to mail products to the wrong addresses.

Cyber Liability Insurance is a new and emerging part of the insurance industry and it is not going anywhere. These risks are only going to become stronger as more and more business operate online. Before too long Cyber Security Insurance will be a normal part of businesses insurance policy just like workers compensation Insurance and general liability Insurance are today. Now is the time to consider if and how much cyber insurance your business needs.

Food trucks

How much insurance do owners of food trucks need?????

  • Food Trucks are a booming industry.  In 2015, the industry represented more than 1.2 billion in annual sales. This booming industry has contributed to an annual growth rate of more than 12% over the 5 previous years. Because of this popularity many more business owners entering the market. As they enter the market there are many risks that come to this industry. Many business owners in this industry got their start in the traditional restaurant industry. There are many more risks that come with a restaurant that is mobile and processing many transactions at a remote location. Those risks are much different from a traditional restaurant, a non-profit organization or even a home health care agency. For this reason, food truck owners need to have a strong relationship with an independent insurance agent who can help them properly protect their investment. Here are 5 coverages most food truck owners need to secure, in order to properly protect their business.
  •  •   General Liability

•   Commercial Auto

•   Inland Marine

•   Cyber Insurance

•   Workers Compensation

Food Trucks

    General Liability
    General Liability is the first and most essential coverage a food truck owner will need to secure in order to protect their business. It is required by law in most states depending on the way in which your business is classified and how much revenue you generate.
    Commercial Auto
    A Commercial Auto Policy will be essential to food trucks.  This will cover the main body of the vehicle if it is damaged in an accident.  It will also cover your liability to the other vehicle in the crash if the accident is the fault of you or your employee. A commercial auto insurance policy is not all encompassing.  The equipment kept inside your vehicle or pulled behind a trailer is not covered by a commercial auto policy.  These pieces of equipment will be covered by an inland marine insurance policy.
    Inland Marine
    An Inland Marine Insurance Policy is designed for specialized equipment that is meant to be in transit. The very nature of the food truck industry makes this coverage essential. One key to making sure all of your equipment is covered, is to have a detailed conversation with your independent insurance agent about what types of equipment you have and exactly how you use that equipment.
    Cyber Insurance
    Cyber Insurance is a necessary coverage far too many food truck owners do not realize they need. Even at a mobile workstation like a food truck, a majority of the purchases will be made with a card or mobile device. Depending upon what type of mobile Point of Sale software you use this can open up your business to becoming a victim of a data breach.  If you secure the proper coverage it can help you recover from the damages your business faces as a result of a data breach. The coverage can help you make your customers whole again and it can help you restore the damaged image of your business as a result of a data breach.
    Workers Compensation
    Workers Compensation insurance is required by law in 48 out of 50 states. Each workers compensation system is regulated by the individual states and each states’ system has specific exclusions based on how many employees you have, the revenues of your business and certain industries.  You may not be required to secure this coverage depending upon your specific state. Even if you are not required to secure this coverage it is more than likely beneficial to you to secure this coverage once you hire an employee not in your immediate family.

Find in-depth information about the best insurance for food trucks at MyInsuranceQuestion.com

Florist

How much insurance does a small Florist really need?

Here are 6 Insurance Policies every Floral Business should consider

How much and what types of insurance coverage a florist needs really depends on the size, type and scope of the business.  If the florist only sells flowers at one location, it may not need all of the coverages discussed in this blog post. If the florist business designs flower arrangements or provides delivery service it opens up your business to an enormous amount of additional risk.  Here are 6 insurance coverage’s all floral businesses should strongly consider securing.

Florist designing a spread of flowers for a wedding.

General Liability

General Liability Insurance will protect your business from property damage and bodily injury claims of third parties.  Third parties can be anyone not associated with your business that is harmed by the actions of your businesses operations.  Included in this group of people can be customers, vendors delivering products to your facility or even a plumber who comes to work on your toilet.

Professional Liability

If you are designing floral arrangements for special occasions like weddings, funerals, Valentines Day or Christmas; you can be sued if the designs are not up to the expectations of the customer.  The lawsuits do not have to be founded to cost your business immensely in legal fees and reputation management.  A Professional Liability Insurance Policy will help your business withstand the costs to defend your self in court and for missed time at work spent defending you and your business.

Commercial Auto/Hired and Non-owned Auto

If your business uses vehicles as a part of normal business operations than you need to secure one or both of these coverages. If the business owns a vehicle and that is the only vehicle used for business purposes than a commercial auto policy should suffice your business, but if you have employees who use their own vehicle or rented vehciles for any part of their job than you need to secure the addition of hired and non-owned auto coverage.

Commercial Property

A commercial property insurance policy is needed if your business owns and operates any property as a part of your operations, no matter the size. It is different than a traditional home owners policy.  Commercial property policies are sold on a replacement cost or on an actual value basis.  It is usually best to purchase a replacement cost policy.  This type of policy will cover the cost to tear down, haul off and replace the property that is damage.  An actual value policy will pay you an agreed upon value of what the property is worth.  In most cases this will not pay the entire amount to make your business whole again.

Inland Marine

If you own any specialized equipment or equipment that is designed to be in transport frequently, you have a need for Inland Marine Coverage.  A commercial property will cover your facility.  A commercial auto policy will cover your vehicles.  If you have specialized equipment you use to design and maintain the arrangements or an attachment to your vehicle like a trailer it will not be covered by either of these policies. This is where an inland marine policy can be added to cover this specific equipment. Taking additional time with your agent to explain all the details of your business can make sure you secure all of the policies your business needs.

Workers Compensation

Workers Compensation Insurance is required by law for most businesses in 48 out of 50 states. The system is managed by the individual states, so it is important for you to check with the proper state governing agency to ensure you are compliant with your states laws and regulations. Even if there is an exclusion for your business to not carry the coverage, it is usually in your best interest to still secure workers comp coverage. This insurance policy will protect your business from being sued for most injuries that occur as a part of normal business operations. It also provides medical coverage and reimbursement of some lost wages for workers injured as a part of normal business operations.

4 ways your Small Business can prevent a Data Breach

In today’s day and age, there are many ways businesses take and face risks. Some businesses are in industries where they take risks just in the fact that they are open for business. That can be a roofing company who has employees who climb on top of a house on a daily basis. Other businesses face risks in hiring and firing employees, generating enough revenue to stay afloat and most importantly the risk of becoming victim to a data breach.  Most business owners do not think twice about purchasing commercial property insurance, but many still hesitate to secure small business data breach insurance.  This is a mistake because it does not matter the size nor the scope of your business, every business is a target for being hacked and every business is at risk for a data breach.

Obtain the best information about how to protect your small business from a cyber attack and where to buy small business data breach insurance at myinsurancequestion.com

Two of the largest data breaches in history were Target and Home Depot. Both of those breaches were accessed by first hacking in to a smaller company before gaining access to the larger company. Niether of these businesses had Small Business Data Breach Insurance. In the case of Target, the company was Fazio Mechanical Services and in the case of Home Depot, the company provided credit and debit card processing. These companies had been hacked weeks if not months prior to accessing the system of the larger company.  If your business works for any larger business than you could be at risk of being a target for hackers. If you choose to protect your business with data breach insurance this may not be as damaging.  Even if your business does not partner with larger companies you could still be a target for hackers just to get the information of your customers. This is a costly risk that you are taking without properly insuring your business and without taking precautions to protect your business. According to the Ponemon Institute it costs a business on average $174 per record. Other studies show it costing more. Taking these numbers in to consideration it would cost your business more than $17,000 for just 100 records being compromised. if that were 1,000 records it would cost $174,000. If that is not a cost your business can withstand than you need to have Small Business Data Breach Insurance Coverage and on top of that you need to be taking the proper steps to preventing this from happening. Here are four simple things your business can do to prevent a data breach.

Train your employeesLearn about the needs for Small Business Data Breach Insurance at My Insurance Question.com

The prevention of data breaches starts with your new hire training. If an employee is going to be using a computer they need to be trained on how to protect the company from being at risk. Do not assume employees know how to do this. Many employees may be very capable of doing a job for your business that is necessary. This does not mean they are computer savy and are properly trained to protect your business from intruders. Take the time and effort on the front end to properly prepare your employees to defend your business against hackers and it will provide dividends on the back end.

Help each employee protect their work space

Logging out and locking up your desk when away and over night are crucial. Even if the employee is just stepping away to the restroom it is crucial to lock up their devices. In most business environments, there are customers, vendors and other employees who may gain access to your computer while you are away.  You do not have to create a culture of mistrust to do this. On top of locking down your devices it is also important to not write down passwords on a post it note or some other piece of paper. It may be rare, but if these passwords fall in to the wrong hands it can cost your business immensely.

Require long passwords 

Passwords need to have certain requirements to be allowed. The best way to make this easier for your employees is to give them examples of what you want. here are a few examples of how someone can make a password strong and still make them rather easy to remember.

6h1fl,j2Oc49=

This would be an example of a password that is extremely secure.

BaSeBaLl_2345+6789

This would be an example of a password that is a little less secure, but easier to remember.

JoeSmith or password

These are examples of terrible passwords that should not be allowed.

I like using something similar to the middle password because I can change the word Baseball with the time of the year. In the Fall I might use Football or Autumn, in the Winter I might use basketball or Thanksgiving. This allows me to change the password frequently but not having to remember an entirely new password. There should also be a time period for how frequently a password must be changed. Every 90 days is a good rule of thumb, but many businesses have different requirements based on the needs of their organizations.

Shred everythingTo prevent a Small Business Data Breach make sure your employees shred everything that could be used in a cyber attack.

In today’s day and age, there is no reason any personal information should ever be disposed of without first being shred. There are outside businesses that can dispose of the shredded material. Some of these businesses will even recycle this paper, which is something you can share with your employees, customers and vendor partners. If any of these groups are environmentally conscious this can be a bonus to them and will add to your credibility as a business.

 

Data security becoming a bigger issue for hotels

The hotel industry is seeing a rapidly growing trend of data security breaches that are part of the latest trend of industries targeted by cyber criminals. The trend is now reaching the radar of the general public, after Hilton Hotels & Resorts acknowledged hackers stole credit card information from a large number of the franchise locations in November.

According to Barry Kouns, President & Chief Executive Officer at Risk Based Security, there have been 49 reported data breaches from the hospitality industry between 1/1/14 and  11/31/15. Kouns acknowledges that many breaches go unreported by organizations. Of the group of reported breaches, almost 60% exposed client credit card numbers, according to Risk Based Security.

This two-year long trend first received some notice after hotel owner, developer and management company White Lodging acknowledged a cyber hack in the first quarter of 2014. That attack (as has been the case with the Hilton breach and the Mandarin Oriental data breach) targeted point-of-sale devices inside of restaurants, coffee bars and gift shops located within the 14 hotels breached. The White Lodging  cyber attack was where the issue really first came on the radar for the hotel industry.

In fact, that attack prompted John Buchanan to write his article “Sources: Data breach shows industry liability” on Hotel News Now.com. In that report, Buchanan sites an expert who discusses how the industry is being threatened and is seen as a good target for cybercriminals — especially for franchise chains within the industry.

Part of the reason franchises make such an attractive target is because the franchise models typically have a standardized model, even within their computer systems. Because of that standardization, when a security deficiency exists within a specific system, it can be used against the entire franchise.

Former Washington Post reporter Brian Krebs broke both the Hilton and White Lodging breaches on his blog, Krebs on Security. White Lodging confirmed a second data breach in February 2015, attacking the same systems in different hotels.

What can hotels do to protect themselves?

The biggest issue most hotels seem to struggle with centers around their inability to quickly implement security patches in their networks. One of the easiest suggestions Mr. Kouns offers to those in the hospitality industry is for the company to conduct regular network scans and to fix issues.

Another key implementation step is to make sure that anti-virus software and definitions are kept updated. New viruses come out every day and the anti-virus protection software is usually pretty good at staying on top of the new viruses, offering fixes regularly. If a company isn’t updating their anti-virus software, that company is leaving itself exposed for a potentially avoidable hack.

Risk Based Security is one of several companies that offers different solutions to businesses to help them mitigate their risk of a data breach. They offer a subscription service designed to provide clients with the tools, services and resources to stay informed about the latest security threats and have ready access to security expertise while maintaining a continuous improvement posture.

Another key element is providing training to employees regarding cyber security. Many data breaches occur when an employee has either visited a website or clicked on an email that corrupts the computer. Most of the time, the employee is aware that they have made a mistake … but since nothing obvious happens right away the employee is tempted to stay quiet rather than bring up the issue to their IT department and potentially get in trouble.

Some of the most successful companies to avoid data breaches discuss open communication and react in a supportive way when a computer is attacked. That reaction encourages employees to report potential data breaches, which can make the difference between catching an issue quickly, or having your company’s name attached to the next data breach report.

What is Cyber Insurance? Does my business really need it?

Cyber Insurance is a new and emerging part of the insurance sector. Most of the coverages are so infant that common terms have not yet been established by the insurance industry. Most of the risks associated with cyber technology are so new that many business owners still think they do not effect their business. Those business owner’s are wrong.  In today’s day and age, it is becoming more and more difficult to operate a successful business without a presence online or without storing some type of information about your customers. In these situations a business must have cyber insurance or run the risk of being liable for all costs as a result of a data breach.

Learn how to prevent your small business from being a victim of a cyber attack at myinsurancequestion.com

A normal General Liability Insurance Policy does not cover damages caused by most data breaches. This is a fact many business owner’s do not realize. Many business owner’s think General Liability Insurance is an all encompassing coverage. It is not all encompassing. Most General Liability Policies covers losses due to bodily injury and property damage. Third party information lost in a data breach does not fall under losses covered by a General Liability Policy. A separate Cyber Insurance Policy is necessary in addition to a General Liability Policy.

Frequently business owner’s think they just don’t have enough customers for cyber insurance to be relevant. They might think not enough people in their business even use a computer for business purposes or they do not have enough customers for someone to want to hack them, but the main way data is stolen is not from sophisticated hacking techniques. Data is often stolen by someone stealing a laptop. A stolen laptop could happen to any business, not just those who work with advanced computer technology.

When a data breach does occur, the average cost to a business is around $200 dollars per customer. If your business loses the information of 100 customers, it could cost your company $20,000. If that amount were 10,000 customers it would cost about $2 million. Could your business survive a loss of these amounts? If not than you need some form of cyber insurance.

There are three main types of coverage a company may need:  Cyber Liability, Cyber Security and Technology Errors and Omissions. The first two deal with coverage resulting from a data breach. The third deals with companies that provide technology services and products.

Keep your business secure from a data breach by reading the most up to date information about cyber insurance at my insurance question.com

Cyber Security

Cyber Security is the term most commonly used to refer to first party coverage. First party coverage deals with damages to you and your company. These damages are often referred to as the immediate response costs resulting from a data breach. These costs include notifying all customers who are affected, hiring a forensic team to find out how the breach occurred and providing credit monitoring services for up to one year. These three costs are required by law in most states. Cyber Security Coverage would also cover costs like hiring a public relations firm to help repair your businesses tarnished image and setting up a post breach call-center to service customer concerns.

 Cyber Liability

Cyber Liability is the term most commonly used to refer to third party liability dealing with a data breach. Some industry professionals may refer to it as Information Security and Privacy Insurance. Third party coverage deals with damages to anyone who is not you or your employee, who was harmed by the data breach. It includes customers whose data was stolen or vendors you do business with. This will pay up to the policy limits for court costs, defense costs, some fines related to the breach and lost monies that were stolen from those effected.

Technology Errors and Omissions

The final type of coverage is Technology Errors and Omissions Insurance. This type of policy is a form of liability insurance that helps protect businesses providing all types of technology services and products. This coverage prevents businesses from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in a civil lawsuit. Costly mistakes can and will happen, even to employees with the best training and years of experience. Technology Errors and Omissions Insurance is designed for when these errors take place. A good example where this coverage is necessary would be if a web developer provided faulty coding that causes a business to be closed for several days because their website is down.

Not all businesses need all three of these coverages. The most common coverages businesses need are Cyber Liability and Cyber Security. Not all businesses will need Technology Errors and Omissions Insurance, but those that do typically are at a very high risk if not insured. Most insurance providers prefer to offer these coverage’s as a part of a Business Owner’s Policy (BOP). A BOP usually includes general liability, business property, business loss of income, EPLI and cyber insurance. Offering packages like this contain the cost to the business and helps ensure there are no gaps in coverage. In today’s business climate some form of cyber insurance is essential to all businesses. Is your business at risk?