The accomplishments of technology icons like Steve Jobs and Mark Zuckerberg continue to attract young programmers into the realm of business, with many starting up their own tech firms in the hope of replicating these moguls’ successes. Reality TV competitions, such as Techstars, for example, draw more computer science and I.T. majors into entrepreneurship with the promise of exclusive mentorship and more than $100,000 seed money for their business. Budding tech executives, however, tend to overlook the fact that their industry is actually among the hardest in the world of business.
Apart from aggressive competitors, incidents of widespread cyber-attacks and syndicated hacking are also, unfortunately, rather commonplace. Tech firms must therefore be prepared to handle potential losses and liabilities resulting from unexpected events, whether fortuitous or man-made. Insurance thus plays a very important role in the survival of these tech companies in order to secure their assets, people, and processes, among others.
Tech firms, however, have a different insurance requirement than traditional businesses, like shopping centers and food chains. That is why executives of technology-based corporations must only get insurance coverage from companies that understand the distinct nature of their industry. They need to rely on professional insurers who are well-versed with the workings of tech firms and their corresponding needs for coverage. The insurance products that they purchase should be able to answer for the most basic up to the most complex form of assets and derivatives that are unique to their field of business.