ASP models have become increasingly popular as they offer cost savings, flexibility, and reduced IT overhead for businesses and individuals compared to traditional software deployment models where users have to purchase, install, and maintain software on their own hardware.
However, Application Service Providers (ASPs) face various risks, some of which can impact their business operations and the services they provide to their customers.
ASP Insurance, also known as Application Service Provider Insurance, is coverage designed to protect Application Service Providers (ASPs) from various risks associated with their business operations.
ASPs deliver software applications or services over the internet and often handle sensitive customer data.
This insurance provides financial protection in the event of unforeseen incidents, such as:
- Data breaches
- Cyberattacks
- Service disruptions
- Legal disputes, and other liabilities
ASP Insurance typically includes cyber liability coverage to address data security and privacy issues, professional liability (errors and omissions) coverage for contractual disputes, and business interruption coverage for revenue losses during service disruptions.