Traditional insurance policies premiums were normally based upon tangible asset values. The tech professional’s assets which are primarily intangible can be in the areas of valuable data, software, and intellectual property. Since cyber-risk and tech-risk is still an emerging industry the insurance products that are available for this industry is also in an innovative and emerging status. Unfortunately, this means there is little if any standardized terminology that can be used to compare one insurance company’s forms to another’s. Only after many more court cases will the landscape for defining tech insurance terminology within insurance contracts become more clear and concise for the average consumer.

Let us look at some of the most common insurance terminology that is used in providing insurance coverages for the tech insurance professional.

• Cyber liability. Besides the traditional bodily injury and property damage coverage that is covered under the standard general liability insurance policy, the tech professional needs enhancements for the tech specific risk.
• Cyber-property. Property that is damaged that is mainly intangible, such as websites, data, lost business from e-commerce online, and damage from viruses need broaden property enhancements to address these unique exposures.
• Media and intellectual property liability. Anything that is placed on the Internet is considered published. There can be patent infringements, copyright infringements, losses from libelous statements, all from information that is published media on the Internet via websites, e-commerce, and/or social networking.
• Technology E&O. typically this covers liability claims and losses arising out of professional products and services that the tech professional is offering to their clients. Sometimes there are can be gaps in coverage when the tech professionals own website is the culprit in causing losses for third parties.
• Intellectual property. There can be exposures from both a first party and third-party perspective. Intellectual-property normally includes claims and losses from violation of existing trademarks, copyrights, and patent infringements. Sometimes only defense only coverage is available because intellectual-property claims can sometimes be intentional in class normally there is no coverage for intentional acts. Almost all states have on the books laws that prohibit insurance companies from providing coverage for intentional acts.

Tech insurance is an emerging market of products and services for the tech professional. Because of the lack of standardization of the terminology within the insurance industry this can lead to gaps in coverages that the tech professional was not anticipating. Making sure that you purchase insurance products for your tech company from an insurance company that specializes in writing tech insurance will help you obtain the broad and appropriate coverages that you are seeking. It is also important to seek out an insurance broker who has the experience and expertise in the technology insurance so that the proper carriers and coverages are put in place on your by half. There are only about a half dozen insurance companies in the United States that specialize in writing tech insurance.