Small business insurance

Small Business Technology Insurance

 Affordable solutions for small business owners

Insurance for Techs understands the importance of proper coverage for your business. As a leading technology insurance company, we know that small businesses are experiencing an ever-increasing capacity for work. As a result, you also have a greater likelihood for technology errors and omissions liability. When it comes to protecting your business, you need an insurance plan that meets your needs.

Insurance for Techs is a technology insurance company that responds to the changing business environment. We know how to efficiently and appropriately quote technology Errors and Omissions Liability insurance. With Insurance for Techs, you get more than technology insurance – you get a protection plan that includes essential risk management advice.

4.50 avg. rating (85% score) - 2 votes
Categories: Errors & Ommissions, Small Business, Tech Insurance, Technology
Crime Insurance

Increased Need for Crime Insurance for Small Businesses

Diligence is the key to preventing losses

Since the 2008 economic decline, there has been a sharp rise in crimes by employees and third parties. Fueled by the fear of unemployment, workers are fighting back against their employers. They’re more likely to take what they feel they deserve because of the work they’ve done for their company over the years. Not surprisingly, many companies are taking a closer look at risk controls to cut unnecessary costs and uncovering theft issues that may have been undetected in the past.

The majority of people who commit these crimes are not professional criminals. Rather, they’re in a financial  bind and tend to rationalize such behavior as borrowing the money until they can pay it back.

Small businesses must take all necessary precautions to prevent employee theft and fraud. To this, they must address the fraud risks or their policy limits to adjust for the related losses. Only one in four private companies buys crime insurance. Stand alone crime policies are better than crime coverage added to Business Owners Policies (BOPs).

One way to determine an appropriate crime limit is to assume 5 percent of the company’s revenue will be the cost of fraud, and include that amount in the limit. Another way is to use organizations like Advisen that can evaluate a client’s cash flow, number of employees and business locations, employee turnover rates, and effectiveness to its internal risk controls.

Risk controls to minimize employee fraud:

  • Use prenumbered checks typed or numbers written in permanent ink
  • Be aware of employees who object strongly to new policies concerning financial, inventory, or supply matters
  • Employees with duties that  include check preparation or distribution should not reconcile the bank checking account
  • Improve background checks of job applicants
  • Separate receiving, store keeping, and shipping functions. Complete physical inventories annually and assign them to an individual who is not responsible for inventory records.
  • Be aware of employees who exhibit signs of compulsive gambling, persistent borrowing, or repeated requests for salary advances.
  • Separate mail opening and posting functions
  • Record checks and cash in appropriate registers and stamp checks for deposit only
  • Be aware of employees who suddenly want to work late

Source: Russ Banham, Independent Agent

5.00 avg. rating (87% score) - 1 vote
Categories: Crime, Risk Management, Small Business, Technology, Theft

60% of Small Businesses Fail After a Data Breach

Do you need any more incentive than that to purchase Cyber Risk insurance?

Small business insuranceBelow are some eye opening statistics presented by the U.S. House of Representatives Small Business subcommittee on health and technology:

  • 75% of small businesses believe that they are safe from hackers.
  • 20% of all cyber attacks hit businesses with fewer than 250 employees.
  • 60% of small businesses will shut down after a cyber attack.
  • The average cost of a data breach is $6.75 million at an average of $214 per compromised customer.

The cost of a small business failure due to cyber attack is not just measured in terms of losses to the local economy (revenues and jobs), but includes the costs associated with the theft of trade secrets and intellectual property.

Cyber Risk insurance is becoming increasingly inexpensive each year. In the past, it could only be purchased on a stand-alone basis at a cost of approximately $,500. However, it can now often be added to an existing Business Owners Policy by endorsement for about $500. More and more online Cyber Liability vendors are popping up with highly discounted offerings.

Source: Small Business 2013/03/21 Small Businesses Don’t Recover From Cyber Crime

4.00 avg. rating (77% score) - 1 vote
Categories: Cyber Liability, Small Business

High E&O Limits Difficult for Small Tech Accounts

Such requests are often red flag for high risk work

We were recently approached by a small tech prospect who requested a $10 million Errors & Omissions Liability limit (also called Professional Liability)Big Money to comply with contractual requirements of a project owner. Our primary E&O market for tech accounts is approved to handle limits only up to $5 million. Our managing general agent provided quote indications for an excess layer for an additional $5 million from two carriers. However, the minimum premiums for this excess layer were $25,000 and $30,000 respectively.

Any carrier providing a limit approaching $10 million will be wary of why the project owner would require such a high limit in the first place. This is likely to be a red flag that the type of work is high risk and as a result the underwriters will closely scrutinize such a submission.

1.00 avg. rating (47% score) - 1 vote
Categories: Errors & Ommissions, Professional Liability, Small Business

Online Small Business Insurance Quotes

Small businessSmall businesses perform most of the professional services within the U.S. economy. As a result, they have the greatest need for Professional Liability (Errors and Omissions Liability) insurance. The major problem with small businesses obtaining small business insurance is affordability. Unfortunately, most insurance carriers that offer Professional Liability insurance have a high minimum premium in the $2,500 to $5,000 range. As a result, it could be said that most Professional Liability insurance is designed with larger professional service firms in mind.

However, many innovative insurance carriers have recently begun customizing Professional Liability  insurance programs with smaller businesses in mind. For example, here at Sadler we offer an affordable Professional Liability insurance policy for smaller technology companies that starts out at a price of around $850.

Please call us at 800-622-7370 for a free quote.

 

 

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Categories: Errors & Ommissions, Professional Liability, Small Business