There are three kinds of insurance a tech company needs
General Liability Insurance
Professional Liability Insurance
Though tech companies are innovative, their line of work is risky.
From software to e-commerce, regardless of the product or service you sell online, you must obtain insurance. From the moment your company launches, there will always be exposure to risk, and as CEO, the consequences will fall on you. Whether you’re facing a lawsuit or an employee injures themselves on the job, you will be the person held liable regardless of who’s at fault. At APOLLO, we understand you’ll need adequate protection in the form of a customizable insurance plan that will provide you coverage in any situation.
If you have just launched your tech company, then you may have limited funds. Still, you must invest in adequate protection against any potential risks you face for your business to grow. Without proper coverage, you could end up in a situation where you’re hit with a lawsuit and having to pay massive legal fees out of pocket, resulting in you and your business being unable to recover financially.
In times of crisis, possessing insurance is a vital component to ensuring your business will recover. No matter the situation, a strong insurance policy will secure your future and demonstrate to investors and customers that your product or service is legitimate.
Why do tech companies need insurance?
Though some tech companies operate solely online, that doesn’t mean their business is risk-free. From the very beginning, the business must ensure it has adequate protection, or it may end up going bankrupt. Unlike a traditional brick-and-mortar business, online operations aren’t easy. There is an increased exposure to risks since they don’t run during regular business hours and are always open. That is why they must acquire insurance to be ready at any given moment.
To attract both customers and investors, tech companies must prove that they’re legitimate, and the best way to do so is by purchasing insurance. Doing this demonstrates their commitment to the product or service they’re selling while also providing investors with peace of mind knowing that their money is secured if a significant loss were to occur.
When launching a technological business, there are several legal challenges that CEOs may face. From trademark infringements to breaches of contracts, lawsuits can be filed by customers, the competition, and even their own employees. However, no matter the trial outcome, they will always be forced to pay costly fees. Without proper coverage, the money they owe would have to be paid for out of pocket, which poses a financial threat to the future of their business.
Get insurance in three easy steps
Find and select the coverage you need.
Choose the payment plan that suits you best.
Get your policy documents in an email instantly.
What types of risks do I face running a tech company?
As CEO of a tech company, you aspire to have your business succeed, but without insurance, the risk of errors poses a significant threat. If a client ever felt unsatisfied with the product or service they purchase, they may feel obligated to file a lawsuit against you. In this situation, you’ll be required to pay various kinds of legal fees, and if left in debt, this could end up jeopardizing your dreams.
If your tech company owns or leases space for an office, you and your employees could be at risk. Whether an employee slips and falls or loses their laptop on the premises, you may be liable regardless of fault. To avoid incurring any additional legal or medical expenses, your business must obtain a general liability policy to absorb these costs.
Though unlikely, if a fire or theft were to occur, then your tech business could face severe consequences. Peril, or unexpected, events tend to cause significant damage or losses to a business. Without coverage, you’ll have to pay out of pocket for any kind of replacements or repairs needed for your business to begin operating again.