What is The Preferred Technology Industry Program?
The Preferred Technology Industry Program is a tailored insurance solution designed to address the unique risks faced by businesses operating within the technology sector. Whether you develop software, provide IT consulting, or manufacture tech equipment, this program offers coverage that aligns with the specific liability exposures and operational hazards inherent to your industry.
Unlike standard commercial policies, this program is structured to handle evolving risks such as cyber threats, intellectual property concerns, and technology errors and omissions. It helps ensure your business is protected against claims that could arise from system failures, data breaches, or service disruptions.
Who Needs It
This insurance program is ideal for a wide range of technology-focused entities, including:
- Software developers and SaaS providers
- IT consultants and managed service providers
- Electronics manufacturers and component suppliers
- Technology startups and research organizations
Companies that handle client data, provide tech-based services, or distribute digital products face elevated liability exposures and should consider this type of policy.
What it Typically Covers
While coverage can be customized, a Preferred Technology Industry Program typically includes:
- Technology Errors & Omissions (E&O)
- Cyber liability and data breach response
- Commercial general liability
- Property coverage for offices and equipment
- Business interruption and loss of income
Some policies may also address participant accident coverage or commercial auto exposure if your operations include onsite installations or field services.
For broader options, consider reviewing the Technology Based Services Insurance Program or the Technology Insurance Program for additional features.
Common Exclusions or Limitations
Like all insurance policies, there are exclusions to be aware of. These may include:
- Intentional acts or fraud
- Contractual liability not assumed under standard terms
- Product recalls or performance guarantees
- Uninsurable cybercrime scenarios
It’s essential to review your policy terms closely with your insurance representative to understand how exclusions apply to your business model.
Factors That Influence Cost
Several underwriting factors can affect your premium, including:
- Company size and annual revenue
- Services or products offered
- Number of employees and geographic reach
- Risk management practices in place
For example, a company that stores sensitive client data or develops mission-critical software may see higher premiums due to increased liability exposure.
Proof of Insurance & Compliance
Most clients, especially in the enterprise and government sectors, will require proof of insurance before entering into contracts. A certificate of insurance (COI) is typically issued once coverage is bound. Maintaining compliant coverage ensures your business can continue operations without interruption due to gaps in liability protection.
How to Get a Quote
To receive a customized quote for your technology business, visit our quote request page. Our team will guide you through the application process and help tailor a policy that matches your specific risks and coverage needs.
Frequently Asked Questions
What types of technology businesses are eligible for this program?
Most tech-focused operations, including software developers, IT consultants, and electronics manufacturers, are eligible for coverage under this program.
Is cyber liability coverage included?
Yes, cyber liability is often included or available as an add-on to address data breaches, ransomware, and other cyber threats.
Does this insurance cover physical equipment?
Yes, property coverage can extend to physical assets like servers, computers, and tech equipment used in your operations.
What is technology errors and omissions (E&O) insurance?
Technology E&O covers claims related to professional mistakes or service failures, such as software bugs or missed deadlines that cause client loss.
Can startups apply for this insurance?
Yes, startups of all sizes can apply. Coverage terms may vary depending on business maturity and risk profile.
Still have questions? Talk to a local insurance expert.