Technology companies, both startups and mature ventures alike, often require specialized insurance solutions. Whether you develop software, manufacture and distribute hardware or focus on life sciences, CAL Insurance is prepared with expertise and options to create a sound insurance program for your tech-related business. In addition, our employee benefits team can be brought in to consult on leveraging human resource technologies while continuing to meet the important objectives you have for your employees and their families.
Workers’ compensation coverage is mandatory, and proper management of the program is essential. As coverage differs from state to state, based on varying state labor laws, it is important to keep your insurance advisor aware of new hires, especially when hiring in multiple states. Many technology companies don’t adhere to traditional employee models as many have remote employees or independent contractors. New York, in particular, has severe fines for having employees without workers’ compensation coverage in place or added to the current policy.
A properly established D&O program is imperative for technology and life sciences companies that currently have funding or will be obtaining it in the future. In addition, board members may require that a D&O be in place before agreeing to take a seat. Each D&O policy should have three sides of protection: One side for the directors and officers not indemnified by the entity, one for the directors and officers indemnified by the entity and one for the entity itself.
Employment Practice Liability can stand alone or be added to a D&O program. This coverage protects the entity from allegations such as wrongful termination, harassment (including sexual harassment) and discrimination. The limit should provide coverage for defense costs as well as any settlement or judgment, when allowable by the policy.
Like EPLI, Fiduciary Liability can stand alone or be added to a D&O program. This protects the fiduciary(ies) of the organization from allegations of mishandling the company’s retirement plan(s). The policy covers the legal expenses of defending against the claim, as well as the financial losses the plan may have incurred due to errors, omissions, or breach of fiduciary duty.
General Liability is the starting point for allegations of bodily injury and property damage suffered by a third party. This line of coverage will almost always be requested for lease agreements and contracts.
For companies operating in the technology industry, Technology Errors and Omissions (E&O) coverage is an important part of the insurance portfolio. E&O protects the provider of technology services or products. Cyber insurance should have coverage for both first and third party exposures. A robust program will also include cyber crime coverage.
This covers tangible assets, such as computers and office furniture, but it can also protect assets against exposure while in transit via inland and/or maritime routes.
Vehicles registered to a business must be covered, including liability and possibly comprehensive and collision coverage as well.
When entering a contract that requires higher liability limits or to protect additional assets, an excess liability/umbrella policy is recommended. The coverage typically exceeds the general, auto and employer liability and is a part of a workers’ compensation policy.
Operating internationally and/or when employees travel abroad, this coverage buttons up exposure outside the United States.