Which Insurance policies does a tech company need and why?
Your company’s growth and success lie in the hands of the professionals you have hired. Every employee in your company is its integral part, and you need to ensure people stay healthy while working for you.
The world is changing for the better because of rapid advancements in the field of technology. Whether it is the Internet, eCommerce businesses, Artificial Intelligence or IoT, latest technologies have become an integral part of consumers’ lives. Some of the credit goes to tech companies across the globe that are developing best-in-class solutions for us to live or do business. While we mostly get to know about the bright side of growth of the tech companies, there is a dark side as well.
No matter how small or big these companies are, they are vulnerable to a wide range of risk factors. While some of these risks can be covered with technical expertise, others need insurance to safeguard the company from possible losses. In the growing technology market, risk management is an essential factor that tech companies need to consider.
If you own and run a tech company in India, here are a few insurance policies you should buy:
1. Cyber Security Insurance
While working for an e-commerce, consulting or in fact any kind of company today, where your team handles data, networks and other information-related assets, there is a high risk of cyber exposure. For instance, your company may have access to private and confidential information about customers of one of your clients, which you are expected to keep secure. However, situations may arise where a security breach occurs and causes your client’s information assets to be vulnerable to damage. Your client may then sue you for damages. You need not worry if there is cybersecurity insurance to help you out. It protects your business against a range of first- and third-party liabilities arising out of such cyber exposures.
2. Directors and Officers (D&O) Insurance
The directors on the board of your tech company or the senior executives make significant decisions for business growth and operations. Their work responsibilities make them vulnerable to litigation from any of the stakeholders, be it employees, clients, third party agencies, to name a few. The allegations can be about fiduciary breach, mismanagement or criminal acts.
D&O insurance works to protect your company and its directors from lawsuits arising against them. This insurance type provides cover for the defense cost involved as well as the settlement amount. Additionally, buying this policy may also enable venture capital firms to invest in your company as they will be more ready to join your company’s board.
3. Workmen Compensation Insurance
A workplace hazard can happen at any point in time. Even though you do your best to ensure that none of your employees face any injury when at work, the risk is always present. What’s more, a dissatisfied employee can file a complaint against your company for not maintaining workplace safety and ask for compensation. In the worst-case scenario, the work environment can lead to the death of hired workmen. To be on the safe side, you are advised to buy workers compensation insurance from a reputable insurer. It limits your company’s exposure to lawsuits and provides cover for the financial claims of the injured in case of a workplace hazard.
4. Employee Health Insurance
Your company’s growth and success lie in the hands of the professionals you have hired. Every employee in your company is its integral part, and you need to ensure people stay healthy while working for you. One way to ensure longer employee retention in your tech company is to provide health insurance to them all. Unlike individual medical insurance policies which are high in cost, there are cost-effective group health plans you can opt for.
It is crucial for you, as the owner or decision maker of a tech company to make sure all the risks of possible losses related to the business are mitigated to the maximum extent. Whether it is about buying D&O insurance for the directors or cyber insurance to manage the risks of cyber threats, all these insurance types are essential for your company.
If you need more help to find out ways to protect your business, you can also connect with a reputable insurance broker in India such as SecureNow.