Technology Insurance Coverage
There are many different types of insurance a Canadian technology company may need. Every business is different and has a unique set of risks and exposures, which is why our technology insurance brokers will help you find the right protection for your individual needs. Here are the most common types of coverage chosen by Canadian tech startups:
- Commercial General Liability
- Professional Liability (also known as Errors & Omissions Liability)
- Cyber/Privacy Liability
- Media Liability (also known as Multimedia Liability)
- Crime and Fidelity
- Equipment Breakdown
- Business Interruption
Some technology insurance companies offer specific packages designed for tech startups and businesses.
Property coverage is standard insurance for all businesses. This protection covers repair or replacement of your company’s property if it is damaged, destroyed, stolen or impacted by an insured peril. This includes furniture, equipment, tools, stock or inventory, improvements, and renovations. It also applies to static premises you own or occupy as a tenant as well as mobile property.
Insured perils depend on the individual policy but commonly include fire, theft, wind and more. Generally, sewer backup and overland water (also known as flood) insurance are an add-on and may not always be available.
Commercial General Liability
Another standard coverage for all businesses is commercial general liability insurance. This type of protection covers your business if a third party sues you for causing a bodily injury or property damage due to a negligent act. Here are a few examples:
- A random passerby slips on the sidewalk outside your business and injures themselves. They sue you for failing to clear the sidewalk of ice and snow, causing them to get hurt.
- A client in your office trips gets hurt and sues your business.
- While installing equipment at a customer’s premises, an employee accidentally causes damage to the third party’s property. The customer sues you for damages.
Technology Professional Liability Insurance
If your technology business provides a professional service or advice, technology professional liability insurance (also known as errors & omissions liability) is essential. This protection covers legal expenses if you’re sued by a third party for causing them financial loss due to an error, omission or professional negligence related to your advice or service failure. Here are a few examples:
- As a technology consultant, you advise a client on cybersecurity measures. That client follows your advice and still suffers a cyberattack, causing them significant financial loss. They sue you for providing bad advice.
- A client accuses you of failing to provide adequate professional services as laid out in your contract.
- There is a coding error in a third-party app you created which fails to perform on its launch date to horrible reviews. Your client sues you for financial loss and reputational harm.
- You make an error and cost your client money – they can sue you to recoup their costs.
Cyber and privacy liability is critical for technology companies and startups in Canada. This protection helps your business deal with a cyber-attack or data breach, depending on the policy. This can include covering costs associated with:
- Related legal expenses
- Regulatory fines
- Crisis public relations or brand/reputation recovery
- Cyber extortion
- Cyber crime and social engineering
- Notification expenses
- Investigation and forensic expenses
- Restoration expenses
- Business interruption
- Technology supply chain failure
Cyber liability varies depending on the technology insurance company and there is a lot of room for customization.
Anything published on the internet is considered subject to copyright and trademark laws. Negative content about an individual or corporation can be considered libellous or slanderous and open to legal action. Media liability coverage can help address risk exposures such as defamation, personal disparagement, product defamation, invasion of privacy, and copyright and trademark infringement.
Crime & Fidelity Coverage
Certain crimes related to monies and securities are a common exclusion on many insurance policies. Crime or fidelity coverage provides protection for tech companies for incidents related to:
- Employee dishonesty or theft of product
- Theft of money (embezzlement, both first-party and third-party)
- Counterfeit money or forgery
- Credit and debit card fraud
- Funds transfer fraud
Equipment Breakdown Coverage
Many technology companies in Canada are dependent on their equipment. Technology equipment breakdown protection covers the costs of repairing or replacing equipment that suffers a mechanical or electrical breakdown. This type of damage is not covered by a normal property insurance policy.
Business interruption coverage provides technology companies with financial assistance if they have a covered insurance claim or are forced to vacate their business due to a mandatory evacuation order. There are a few variations of this type of protection so it’s important to discuss with an experienced insurance advisor, such as at Rogers.
If you are looking to provide benefits to your employees, we offer a wide range of coverages including:
- Extended health coverage
- Dental coverage
- Eye coverage
- Life insurance
- Critical illness insurance
- Disability insurance
We offer customizable benefits plans for technology companies of all sizes.