If you work in tech, you know everything electronic connected to the internet can be exploited, penetrated, and hacked. If tech is the core of your business, you need to be insured against every possible intrusion to your operations from malicious actors who will cost your company dearly in terms of downtime, litigation, and brand perception.
During the financial year of 2021-2022, Australia witnessed a surge in sophisticated cyber threats, including extortion, corporate espionage, and fraud.
The frequency of reported incidents also escalated, with the rate of reports increasing from one every 7 minutes in the previous financial year to one every 8 minutes.
If you get down and dirty with the tech side of the business, you may not be aware of all the kinds of business insurance you require to cover you and your stakeholders – as well as compulsory insurance you need to be on top of.
Compulsory workers compensation insurance
Got a business in Australia? Employ people? Then you’re on the hook for compulsory worker’s compensation insurance. This assures workers are protected in the event that they become ill or become injured at work – and that goes for work from home roles, too.
Cyber liability insurance
More and more crimes are committed exclusively using technology. As such, you need to protect your business from damages with a cyber liability insurance policy. Though your policies may vary, it can cover most cyber-related claims.
Theft of intellectual property and breaches in information security such as ransomware attacks are the two most frequent complaints resulting from malicious cyber activity. What can result is litigation from customers whose identities have been compromised.
Reputable brokers who compare policies side by side can help you make an informed decision, such as – www.savvy.com.au/business-insurance/. If you work in tech, cyber liability is a must have policy.
Product liability insurance
If you make products such as computer software or hardware, you will need to protect yourself against the off chance your product causes harm to systems or individuals, who may sue for damages. It also covers settlements and other legal costs arising from defective product claims.
Public liability insurance
Public liability insurance defends your company from allegations of carelessness that resulted in harm or injury to the general public – these could come from contractors, customers, and other people who frequent your premises.
Professional indemnity insurance
If you are accused of negligence in the course of providing professional services or products to customers, you may be taken to court and ordered to pay compensation. Professional indemnity insurance covers you for legal costs, compensation costs, and other fees associated with such accusations and defending them in court.
Commercial property insurance
Think of it as “home and contents” insurance for business. It provides cover for your business location and whatever is inside it against damage from fire, flood, etc. This is essential for tech businesses, who may experience tech failures due to external causes, which can be costly to fix.
Always talk to a business insurance broker
There are more benefits to business insurance than minimising losses due to unexpected events, cyber-attack, or legal action brought upon you by disgruntled customers.
Having insurance also gives customers greater peace of mind and your brand more credibility. Finding a comprehensive business insurance package that takes care of all eventualities can save your business in the long run.
