They might prevent you from getting General Liability Insurance
We have listed below end uses of tech products and services that most General Liability underwriters specializing in tech accounts consider a high risk of litigation. Unfortunately, high tech involves high risk, so it’s important for you to be fully aware of how your risk is viewed by insurance underwriters. Rejection is not clear-cut and there may be stipulations to specific instances.
Nevertheless, the core tenets behind declining the application would directly relate to what we have listed below.
- Environmental controls for heat, refrigeration, flame ignition or suppression
- Liquid level controls and pressure gauges
- Automated test equipment or process control equipment
- Manufacturing process/controls (robotics, factory automation, computer aided manufacturing)
- Critical parts of aircraft, autos, watercraft, trains, trucks or other transportation equipment or controls
- Athletic, medical or flotation equipment
- Safety or alarm equipment, systems, processes or parts (fire, security, emergency)
- Computer Aided Design (CAD) (This does not apply if you use CAD in designing computer systems It only applies when you sell CAD for use by your customers.)
- Scientific/weather (seismology, etc.)
- Utility/natural resource process (oil and gas, power, nuclear, waste disposal, etc.)
- Medical purposes (diagnostics, patient care, biotech, non-administrative)
This refers to medical/healthcare operations or equipment, not to associated business functions such as accounting, billing, appointment scheduling or general office management.
- Chemical processing
- Financial software (funds transfer, trading, financial modeling)
- Aerospace, aircraft
- Computer security system advice/product diagnostics, encryption, vulnerability assessments or penetration testing (This does not apply if you are merely systems integrator and install security system software manufactured by others. Example: firewall, anti-virus from Norton or McAfee.)
- Pollution, environmental testing and remediation
- Machinery/equipment control (control of operating/moving parts of machinery, equipment, toys or appliances)
- Military defense (weapons procurement, guidance systems, tracking, etc.)This refers to military/defense operations or applications (such as weapons procurement, ballistic missile technology) not to general office management such as general accounting or non-weapons, non-combat related procurement.
- Staffing for temporary employees who do not perform “tech related” services
- Gaming machines or programs
- Computer aided mapping servicesAdvances in both medical and digital technology have been taking place at lightning speed for the last 20 years or more. Generation X and the Millennials have no concept of life without the Internet, iPods, GPS navigation, DNA testing, laparoscopic and laser surgery, and alternative methods of conception.From your digital medical records and prescriptions to remote-controlled robotic surgeries, just about everything in medicine is enhanced by if not dependant on wireless technology.
Why Should I Get Health Insurance?
Broadly, there are two reasons to have health insurance:
- Health insurance supports you if you get sick
- Health insurance helps you avoid getting sick to begin with
Let’s look at each of these reasons in more detail:
Health Insurance as a Safety Net
It’s important to have health insurance as a safety net. If you unexpectedly get sick or injured, health insurance is there to help cover costs that you likely can’t afford to pay on your own.
Health care can be very expensive. It can be an enormous financial burden. Surgery, emergency care, prescription drugs, lab work, scans and examinations – these sorts of costs can add up very quickly. They can even be high enough to cause individuals to go bankrupt, or to turn down care that they need but can’t afford out-of-pocket.
The other reason it’s important to have health insurance is that it makes it easier for you to keep from getting sick in the first place.
Having health insurance makes it easier for you to access – that is, find and pay for – routine and preventive health care. This includes:
- Annual checkups
- Vaccinations (flu shots, MMR, etc.)
- Blood tests and lab work
- Scans and screenings
These all play a role in keeping you healthy, and diagnosing any illness you might have as soon as possible.
Will the insurance industry advance just as quickly?
So far, it hasn’t. Insurers currently focus on tangible medical products. But medical devices and smart technology, with particular regard to software and apps, are now nearly one in the same. Adding to the problem is the fact that product liability laws differ among jurisdictions.
The Food and Drug Administration is expected to release regulation recommendations addressing the merging worlds of medical and pseudo-medical devices. New regulations in this area will surely affect the health insurance in my state and any other.
Source:Graeme Newman, “Technical and Medical Device Convergence,” Insurance Journal. 24 Feb. 2014
If you have questions about this list of other end uses of product, give us a call at 800-622-7370. A Sadler insurance expert will be happy to answer our questions and discuss your unique insurance needs.