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THREE Business Insurance Provides Valuable Insights on the Essentials of Cyber Insurance for Tech Companies

Cyber Insurance for Technology Companies: What It Is and Why It’s Essential

Omaha, June 04, 2024 (GLOBE NEWSWIRE) — Technology companies are the engine driving progress in a wide variety of industries. From the services they provide to the products they develop, tech businesses help companies work more efficiently and effectively. However, their position on the cutting edge of digital transformation puts them at high risk of cyberattacks. That’s why Cyber Insurance for technology companies is so important.

IT team working together

IT team working together

Among the many reasons tech companies are subject to cyberattacks is that their work typically involves generating data, gathering data, or both, and cybercriminals are always looking to steal information. In addition, bad actors may believe that tech companies’ rapid evolution can create openings in their digital defenses.

Whatever the reason or reasons, tech companies are frequently preyed on by hackers. Consequently, they must work continually to defend their systems and data. They should also carry cyber liability coverage to protect themselves financially from the repercussions of data breaches and other cyberattacks.

These businesses may be frequent targets of hackers, but they don’t have to be victims or take on enormous financial burdens. Cyber Insurance for technology companies is the key.

What is Cyber Insurance and why do you need it?

Cyber Insurance is coverage that can protect you if someone believes you’re liable for a loss their business suffered and sues you for compensation.

Imagine that, despite your best efforts, hackers gain access to your network, steal customer credit card numbers, and use them to commit fraud (or are likely to do so). You’re then obligated to notify customers and take other costly steps to address the situation. You may also face one or more lawsuits from people and organizations that feel you’re at fault in the incident because you have failed to meet your responsibility to keep their data safe.

The Cyber Insurance provisions in a policy from THREE can shield you from many of the significant costs that typically arise from cyberattacks. That protection keeps your finances safe, but it does more than that. Knowing that your business is protected enables you to stay focused on your work without worrying about the risk posed by hackers. And, in some ways, that’s one of the most important benefits of Cyber Insurance.

Every tech company faces a high risk of data breaches and other incidents. In fact, some bad actors may see smaller tech companies as “easy” targets since they might not have the financial resources or expertise to defend themselves effectively from sophisticated attacks—phishing, malware, etc.

Why is Cyber Insurance important to tech startup founders, CTOs, and risk management executives?

Cyber insurance is particularly important to tech company founders, chief technology officers (CTOs), and risk management executives because they play key roles in protecting the organization—both digitally and financially.

If you’re a tech entrepreneur, you probably wear several hats and are looking for Cyber Insurance that’s easy to obtain and manage but provides solid financial protection. A THREE policy and its Cyber Insurance provisions can give you peace of mind, letting you focus on growing your business without the fear of the potentially crippling costs of cyber incidents.

If you’re a CTO, you’re likely responsible for overseeing your company’s technology infrastructure and cybersecurity measures. You may also play a role in choosing coverage for various cyber risks that complements your efforts in designing and implementing digital defenses. It’s your job to ask questions like, “What does your Cyber Insurance not cover?” (all policies have exclusions) and to evaluate the reliability of insurance providers. THREE’s Small Business Advisors are an asset to CTOs, as they can answer your questions about the Cyber Insurance provisions of our policy.

If you’re a risk management executive, you know that cyber risks are among the most significant a tech business faces—especially given the regulatory requirements for data protection and cybersecurity. A THREE policy that has Cyber Insurance along with other critical protections for holistic risk management is an excellent solution. You can be confident that if a cyber criminal makes it past your organization’s defenses, THREE will be there with financial protection and support that makes it easier to handle an incident, safeguard the company’s reputation, and keep the business moving forward.

A THREE policy protects beyond cyber coverage

One reason so many tech companies turn to THREE for their Cyber Insurance coverage is that our comprehensive policy provides the benefits of Cyber Insurance plus other critical coverages, including those for incidents like:

Tech companies typically have expensive equipment, such as laptops, tablets, servers, etc. Damage to these assets from fire, water, or other risks can be costly. Similarly, replacing stolen items can drain a company’s financial reserves. Property coverage in a THREE policy addresses these issues. It can also cover business interruption expenses if property damage forces a business to cease operations temporarily or relocate.

Many tech companies provide professional services, such as when they enter into a contract to have a team of programmers develop a software application for a client. Suppose that the team makes mistakes in completing the project that adversely affect the client’s business (or, at least, the client claims they did). The professional liability insurance (also called errors & omissions insurance or E&O) in a THREE policy can help with the costs of a resulting lawsuit.

Ultimately, we provide excellent coverage that’s easy to obtain and simple to manage in one convenient policy.

What does Cyber Insurance (along with other coverage) for a tech company cost?

With the high risk of cyberattacks that tech companies face, it’s important to act quickly in getting covered. Fortunately, THREE makes that easy. You can obtain a quote for Cyber Insurance (and the accompanying coverages) online or by calling 1-800-507-4495. The process only takes a few minutes.

Then, you can buy your THREE policy, with coverage active the next day in most cases, and enjoy the reassurance of knowing your tech company is protected from the financial consequences of cyberattacks and other business risks. Even if you choose to hold off temporarily on your purchase, getting a quote means you have the information you need to budget for what may be one of your company’s most important assets.

Cyber Insurance: Taking the risk out of starting and running a tech company.

We’re not into “scare tactics” at THREE. At the same time, we know it’s crucial for tech companies to face the realities of today’s digital world. Hackers may never target your company in a cyberattack. Or you may have cybercriminals assessing your digital defenses right now, looking for ways to defeat them. You just don’t know.

However, what you can be sure of is that the sooner you get Cyber Insurance, the sooner you and your employees can sleep better at night. A THREE policy won’t keep cybercriminals from gaining illegal access to your systems. But in combination with all the digital safeguards you put in place, it can help ensure that an incident doesn’t devastate your finances. You owe it to yourself, your team members, and everyone who relies on your company to defend your business proactively.

The future is bright for properly insured tech companies!

Companies offering technology services and products are vital to today’s digital economy. What will they come up with next? The only limit is their imagination. And when your business is protected from the financial ramifications of cybercrime, you can cross that concern off your list of limitations as well.

Get covered, and keep moving forward!

About THREE Business Insurance

Our promise: one policy, comprehensive coverage, and a fair price. It sounds simple because it is. THREE is here to serve you and your business, with no middleman and as your business’s only insurer, we’ll protect you from loss, guide you through crisis, and be here when you need us. https://threeinsurance.com

Media Contact:
Dave Stanard | 1-800-507-4495

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