The concept of technology is indeed vital for the entire human race. Whether it be a huge automated machinery or a small computer chip, technology is involved. Technology may comprise of a simple language or tool, or something as complex as genetic engineering.
Unlike other insurance prevailing in the market, such as life insurance or property insurance, the concept of technology insurance is distinctive. It does not target huge masses, rather it aims at companies, particularly those in the technology sector. The main purpose of this insurance is to provide safeguards for data, media, and data processing equipment.
Since technology insurance is not designed for normal individuals, its market is niche. There are various clauses that are provided in this policy, providing certain coverage, while disregarding others. While selecting a certain policy, it is necessary for the tech professional to evaluate various options available for their company, and ensuring that the best possible option is being chosen.
The “content coverage” of the technology insurance offers security for inventory, contents, raw materials and equipment. While designing this coverage, the value of the content is being used, in order to set the yearly premium for this policy. This may account for 4% of the total content value.
Over the years, due to the increased use of the online medium, it has been observed that often personal sensitive data ends up in wrong hands, due to the breach of data. In order to overcome the loss associated with these breaches, and to protect themselves from bearing these costs, many businesses make use of technology insurance. It is an era of technology, with increased use of the Internet in particular. The more the individuals are connected to the online platforms, the likelihood of providing personal data increases. It has been observed that since the rise in the use of electronic commerce, many retailers and customers often find themselves as a victim of data breaches. In such situation, it is advisable, nor cost feasible for these retailers to make the necessary amendments or recover and reimburse the cost that was borne by the customers, due to such breach.
In spite of the dangers associated with the use of modern technology, it can be clearly seen that not many companies have still utilized technology insurance. However, due to the increase in the use of online devices, it can be easily predicted that the numbers of companies using technology insurance are most likely to go up.
Alternatively, the role of customers and clients may also have a significant impact, if any such customer comes across misuse of their financial or personal information, and such loss points in the direction of their respective supplier. In this case, the supplier is clearly aware of what’s coming towards them.
The benefit of technology insurance is its capability of being molded, in order to ensure that they best fit according to the requirements and exposure to the industry, on which they are being implied. Although currently it is only aimed towards a small market, it is necessary to be marketed to the masses.