In the ever-growing technology sector, businesses of all sizes are at risk of outages, failures and cyber incidents, causing the demand for technology insurance to surge. In response, underwriters are starting to prioritize potential safeguards in businesses looking for cover. So, what can businesses do to make sure they’re ticking all the right boxes for technology insurance providers?
We asked our technology underwriters what they look out for when sizing up cover for new businesses. Here are the top five things they love to see in potential clients.
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Effective contractual management controls
Contractual management is key for businesses looking for tech insurance cover. Businesses should always work under some form of clear written agreement, to mitigate the risks associated with rapidly evolving projects. Managing scope creep is also essential. It’s all too common for changes to be made to project scope, so adopting a change-request control can make a big difference in ensuring consistency.
Adopting a uniform strategy for handling limitations of liability also helps. Businesses should avoid direct links between contractual limits and insurance policies, instead specifying a fixed sum or aligning with the contract’s value to ensure clarity and accuracy in coverage.
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Good data management policies
Robust data management policies are important for all technology businesses, particularly for those handling third-party data. We love to see businesses being thoughtful in their approach, using encryption across all data storage, transmission and processing. This helps to safeguard sensitive data and prevent the risk of data breaches.
On top of bolstering data security, having well-documented data destruction and retention policies is critical for regulatory compliance and risk management. We also look at how businesses store personally identifiable information (PII), and whether these practices comply with any local regulations that may be in place in a geographic region.
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Backup, backup and backup again
In this digital age, it’s difficult for any business to operate without access to its data. Our underwriters look to see if businesses have resilient backup practices, which enable them to ensure data continuity and mitigate the impact of potential disruptions. It’s a good idea to enforce immutability for at least one backup version, preventing unauthorized access and protecting against data loss.
By implementing strict access controls, businesses can also prevent any single account type from accessing all backed-up data instances, strengthening security and reducing the likelihood of unauthorized access or manipulation.
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Shut the front door!
With cyber threats growing in frequency and sophistication, no business can afford to stand still. To secure digital perimeters, it’s high-time to adopt a multi-faceted approach, addressing common vulnerabilities such as remote desktop protocol (RDP) ports. Shutting down exposed or unused ports will minimize avenues for unauthorized access and exploitation, acting as an initial line of defense. While implementing multi-factor authentication (MFA) adds another layer of security, requiring users to verify their identity through multiple authentication methods, significantly enhancing overall security posture and thwarting potential breaches.
Our underwriters also love to see endpoint detection and response (EDR) tools in use. With firewalls and antivirus software often unable to prevent more sophisticated cyber attacks, EDR tools can monitor a business’s technology infrastructure, to ensure it’s secure and free of malicious activity.
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Be a unicorn, not a show pony
When it comes to technology, it’s crucial to stand out. But while flashy and exciting innovations may catch attention, ideas must still be tested and have substance.
The experience of directors can also be pivotal in instilling confidence and credibility within the industry. While some companies may attract substantial investment, it's equally essential that companies can allocate resources judiciously, prioritize sustainable growth and create longevity in this highly competitive landscape.
The need for technology insurance has never been greater.
With more than twenty years’ experience insuring technology businesses of all shapes and sizes, our expert team knows how quickly this industry can evolve—and the insurance businesses need to get ahead.
If you’d like to talk about the types of businesses we cover, get in touch with our technology underwriters here. We’d love to hear from you.
