Can you imagine what it was like to operate a business before modern computing technology emerged? It probably involved hand cramps from writing everything by hand and unnecessarily repeating the same tasks because there was no such thing as automation back then. Fortunately, technology has evolved and made operating a business much easier and more streamlined.
The only downside that comes with the evolution of technology is the risks involved, and if you run a business offering technology or computer services, you’re going to need a policy specific to technology services. Think about it… If you’re going to invest in marketing, an online presence, and website security, why wouldn’t you make the investment in business insurance as well?
In fact, website security is going to be one of the biggest threats you’re going to face when working with clients needing your services. The thing to understand is that once you take them on as clients, they’re putting their business in your hands. Meaning, if anything bad happens to their business while it’s under your authority, that client could potentially sue you for damages.
What Type of Threats Will Your Technology Services Business Face?
Just as any business is going to face potential threats and risks, your technology business will face them as well, and probably more. Everything from breaches in data to actual property damage, you need to be well aware of all the threats coming your way as a business owner providing technology services to clients.
Here are some of the biggest risks you’ll face that technology business insurance will cover.
Let’s face it, you’re human and you make mistakes. To take that even further, you’re human and you’re going to make mistakes running your business. The key here is the severity of your mistakes.
You’re running a technology services business, so that means that your mistakes can vary in severity but it also depends on what your clients deem as severe in the mistakes you make.
Depending on the type of client you have and the nature of their business, one of your errors could cost them one of their clients. So you’d not only be losing one of your own clients but you’ll be paying for them losing one of their clients due to negligence claims.
When you’re in the business of providing any type of service, regardless of the industry, you want to always make sure your business is covered with insurance to bail you out of a bind when unintentional mistakes happen.
A lot of the times, when accidental mistakes happen, the client doesn’t even want to take any legal action against you because you’ve done great work thus far, but the mistake you made cost them too greatly to not seek compensation to bounce back from the financial loss.
Property damage is another threat you’ll face in your technology services business as well. If your business is computer repair, what if you were working on a client’s computer late at night but grew tired… As you reached for your cup of coffee, you spilled the entire cup all over your client’s laptop and the screen went black and couldn’t be turned back on.
It would be pretty safe to say that the computer is destroyed but the question would be how you planned on replacing the computer. Computers are extremely expensive these days… well, the good ones.
Nonetheless, whether the computer is expensive or not, it’s still an expense you’re going to have to pay for, and once you inform your client of the damage to their laptop, it could be the very beginnings of establishing a bad reputation for your business. With business insurance, your policy would be able to cover property damage, that way you wouldn’t have to come out of pocket to replace it.
With security breaches, hackers are the main culprits here. Hackers are people who illegally break into computer systems to steal sensitive data for personal, financial, and illegal benefits. The sad part about this is that it not only happens to everyday people but it also happens to businesses all the time. Just look at how the Gigabyte website was defaced by hackers.
With hackers and businesses, they’re only after five types of data, according to entrepreneur.com, and that is:
- Confidential product information
- Your digital infrastructure
- Personal information
- Network control
- Corporate Account Data
As a business owner of a technology services company, you need to be on high alert and have every type of protection system in place to not only protect the information of your clients but your business’ information as well.
Statistics show that 43% of cyberattacks happen to small business but only a small percentage (14%) have the right systems in place for protection. This lack of protection ends up costing small businesses nearly $200,000 in damages. An insurance policy specific to technology services would definitely protect you in the event your business became the victim of a security breach.