Insurance is a very broad term that is used for making sure that no calamity falls upon the topic that you are ensuring, and that it does not give you any type of financial damage. Insurance is done for unforeseen circumstances and everything in the world can be ensured including legs and feet. Technology insurance is a very new term in the market, and it is one of the most exponentially growing fields in the banking industry. This technology insurance has been growing steadily in silicon valley with the rise of technology. Let us understand this topic in detail.
What is technology insurance?
Technology insurance is the term used for insurance technological products, for software designers, web developers, and cloud-based engineers. For people working in silicon valley, they need to ensure their products and data, as any loss of data regarding anything would result in utter chaos. Since it is literally impossible to print computer data or binary codes, it is impossible to not lose data, if encountering an electrical blackout.
There is a separate term in insurance which is known as E&O insurance or Errors Or Omission insurance. This type of insurance includes things that can be done in error or process that can happen without knowledge, or things omitted by mistake.
This policy also includes policies related to failure to execute their personal or professional services. If you consider it properly then you would understand that there are many instances where a simple load shedding or a simple restart of the computer could result in losses, unimaginable. There could also be instances where the professional would not be able to execute or give out their services, and this would result in legal proceedings.
Why is it important?
The technological world is prone to hacking, and there are many times that information regarding the company or any client’s information, can be leaked online. This result in a lawsuit filed by the client, or any professional difficulties faced during this leak or hack, could result in financial problems.
Since the technological world is also on a financial basis, this resulting lawsuit or leak could result in losses of thousands, if not, millions of dollars. Therefore, technological experts need to get technology insurance for their services. You can keep in mind all the data breaches that have occurred in the past year related to so many social media giants, and the lawsuit that they must have paid in so many different countries regarding the same exact thing.